EX-99.1 2 ex99_1.txt EXHIBIT 99.1 Page 1 of 10 -------------------------------------------------------------------------------- Exhibit 99.1 FOR IMMEDIATE RELEASE ATTENTION: FINANCIAL AND BUSINESS EDITORS -------------------------------------------------------------------------------- Contact: Daryl R. Forsythe, CEO Michael J. Chewens, CFO NBT Bancorp Inc. 52 South Broad Street Norwich, NY 13815 607-337-6416 NBT BANCORP ANNOUNCES QUARTERLY EARNINGS OF $13.5 MILLION; DECLARES CASH DIVIDEND NORWICH, NY (October 24, 2005) - NBT Bancorp Inc. (NBT) (NASDAQ: NBTB) reported today that net income for the quarter ended September 30, 2005, was $13.5 million, or $0.41 per diluted share, up 8% on a per share basis from $12.6 million, or $0.38 per diluted share for the same period a year ago. Return on average assets and return on average equity were 1.23% and 16.06%, respectively, for the quarter ended September 30, 2005, compared with 1.20% and 15.94%, respectively, for the same period in 2004. The increase in net income for the quarter ended September 30, 2005, was primarily the result of a $1.9 million increase in net interest income that was partially offset by a $1.3 million increase in noninterest expense. Net income for the nine months ended September 30, 2005, was $39.4 million, or $1.20 per diluted share, up 5% on a per share basis compared with $37.6 million or $1.14 per diluted share for the first nine months of 2004. Return on average assets and return on average equity were 1.23% and 16.03%, respectively, for the nine months ended September 30, 2005, compared with 1.23% and 15.91%, respectively, for the same period in 2004. The increase in net income for the nine months ended September 30, 2005, was primarily the result of a $6.3 million increase in net interest income and a $1.6 million increase in noninterest income that was partially offset by an increase in noninterest expense of $5.8 million. NBT Chairman and CEO Daryl R. Forsythe stated, "We are pleased to announce this continued positive trend in earnings. The third quarter marked another period of solid deposit and noninterest income growth, combined with strong asset quality. Our consistent and solid financial results continues to reflect the excellent customer service provided by our employees." Page 2 of 10 LOAN AND LEASE QUALITY AND PROVISION FOR LOAN AND LEASE LOSSES Nonperforming loans at September 30, 2005, were $13.3 million or 0.44% of total loans and leases compared with $16.0 million or 0.57% of total loans and leases at September 30, 2004, and $16.2 million or 0.56% of total loans and leases at December 31, 2004. The Company's allowance for loan and lease losses was 1.58% of loans and leases at September 30, 2005, compared with 1.58% at September 30, 2004, and 1.57% at December 31, 2004. The ratio of the allowance for loan and lease losses to nonperforming loans was 356.85% at September 30, 2005, compared with 278.98% at September 30, 2004, and 277.75% at December 31, 2004. Annualized net charge-offs to average loans and leases for the nine months ended September 30, 2005, were 0.19%, compared with the 0.25% annualized ratio for the nine months ended September 30, 2004, and the ratio for the year ended December 31, 2004, of 0.27%. For the quarter and nine months ended September 30, 2005, the provision for loan and lease losses totaled $2.8 million and $6.9 million, respectively, compared with the $2.3 million and $6.9 million for the same periods in 2004. NET INTEREST INCOME Net interest income was up 5% to $40.0 million for the quarter ended September 30, 2005, compared to $38.1 million for the same period a year ago. The increase in net interest income was attributable to 5% growth in average earning assets as the Company's net interest margin remained unchanged at 3.99% for the quarters ended September 30, 2005, and 2004. Martin Dietrich, NBT President commented "Despite several increases in the federal funds rate and the flattening yield curve, the Company was able to maintain a stable net interest margin during the first nine months of 2005. The Company has shortened the duration of its investment portfolio, sold long-term fixed-rate residential real estate mortgages, generated strong noninterest bearing demand deposit growth, and effectively managed borrowing costs." Net interest income for the nine months ended September 30, 2005, increased 6%, to $118.1 million from $111.8 million in the same period for 2004. The increase in net interest income was attributable to 5% growth in average earning assets for the period and to a slight increase in the Company's net interest margin, which was 4.04% for the nine months ended September 30, 2005, compared with 4.03% for the same period in 2004. Dietrich added, "We believe the margin could decrease slightly in the fourth quarter, depending on further increases in the federal funds rate and on the pricing influence of competitive market rates paid on interest-bearing deposits." NONINTEREST INCOME Noninterest income for the quarter ended September 30, 2005, was $10.4 million, up $0.2 million from $10.1 million for the same period in 2004. Excluding net securities losses of $0.7 million during Page 3 of 10 the quarter ended September 30, 2005, total noninterest income increased $1.0 million or 10% from the same period in 2004. Net securities losses of $0.7 million resulted from the sale of $25 million in securities available for sale to improve investment portfolio yield going forward. Retirement plan administration fees were $1.2 million. This is a new service from the acquisition of EPIC Advisors, Inc. in January 2005. Other income increased $0.5 million from increases in consumer and commercial banking fees, mortgage banking income and title insurance revenue. Offsetting these increases was a $1.1 million decrease in broker/dealer and insurance revenue due to the sale of the Company's broker/dealer subsidiary M. Griffith Inc. in March 2005. Noninterest income for the nine months ended September 30, 2005, was $32.1 million, up $1.6 million from $30.5 million for the same period in 2004. Excluding net securities losses of $0.7 million during the nine months ended September 30, 2005, total noninterest income increased $2.3 million or 7% from the same period in 2004. Retirement plan administration fees totaled $3.2 million, from the previously mentioned acquisition of EPIC Advisors, Inc. in January 2005. ATM and debit card fees increased $0.4 million compared with the same period a year ago, due to growth from transaction deposit accounts, which has led to an increase in the Company's debit card base. Other income increased $0.7 million from increases in consumer and commercial banking fees, mortgage banking income and title insurance revenue. Offsetting these increases was a $2.6 million decrease in broker/dealer and insurance revenue due to the previously mentioned sale of the Company's broker/dealer subsidiary M. Griffith Inc. in March 2005. NONINTEREST EXPENSE AND INCOME TAX EXPENSE Noninterest expense for the quarter ended September 30, 2005, was $28.6 million, up $1.3 million from $27.3 million for the same period in 2004. Salaries and employee benefits for the quarter ended September 30, 2005, increased $1.8 million over the same period in 2004. This increase resulted mainly from higher pension costs, salaries from merit and staffing increases and a charge for a $0.6 million bonus for certain non-executive employees. Income tax expense for the quarter ended September 30, 2005, was $5.4 million, down $0.5 million from the $5.9 million recorded during the same period in 2004. The effective rate for the quarter ended September 30, 2005, was 28.7%, down from 32.0% for the same period in 2004. The decrease in tax expense and the effective tax rate for the quarter ended September 30, 2005, was due to the reversal of a previously accrued $0.7 million liability that was determined to no longer be required. Noninterest expense for the nine months ended September 30, 2005, was $86.2 million, up $5.8 million from $80.4 million for the same period in 2004. The increase in noninterest expense was driven Page 4 of 10 by increases in salaries and employee benefits and equipment expense. Salaries and employee benefits increased $5.2 million, mainly from increases in salary expense driven by merit and staffing increases, higher pension costs and the previously mentioned $0.6 million charge related to a bonus for certain non-executive employees. Equipment expense increased $0.4 million, principally from ATM and technology upgrades. BALANCE SHEET Total assets were $4.4 billion at September 30, 2005, up $0.2 billion from $4.2 billion at September 30, 2004. Loans and leases increased $0.2 billion or 7% from $2.8 billion at September 30, 2004, to $3.0 billion at September 30, 2005. Loan growth was fueled by solid production from consumer and commercial loan products. Total deposits were $3.2 billion at September 30, 2005, up 4% from the same period at September 30, 2004. Noninterest bearing demand deposit accounts are up $0.1 billion or 15% at September 30, 2005, compared with the same period in 2004. Stockholders' equity was $332.2 million representing a total-equity-to-total-assets ratio of 7.57% at September 30, 2005 compared with $325.4 million or a total-equity-to-total-assets ratio of 7.75% at September 30, 2004. Under previously announced stock repurchase plans, the Company acquired 868,743 shares of its common stock at an average price of $23.01 per share, totaling $20.0 million for the nine months ended September 30, 2005. At September 30, 2005, there were 627,622 shares available for repurchase under previously announced plans. DIVIDEND DECLARED The NBT Board of Directors declared a fourth-quarter cash dividend of $0.19 per share at a meeting held today. The dividend will be paid on December 15, 2005, to shareholders of record as of December 1, 2005. CORPORATE OVERVIEW NBT is a financial services holding company headquartered in Norwich, NY, with total assets of $4.4 billion at September 30, 2005. The Company primarily operates through NBT Bank, N.A., a full-service community bank with two divisions and through a financial services company. NBT Bank, N.A. has 113 locations, including 74 NBT Bank offices in upstate New York and 39 Pennstar Bank offices in northeastern Pennsylvania. EPIC Advisors, Inc., based in Rochester, NY, is a full-service 401(k) plan recordkeeping firm. In June 2005, NBT announced that it had agreed to acquire CNB Bancorp, Inc. (CNB), which has total assets of approximately $400 million, and is headquartered in Gloversville, NY. The merger is subject to regulatory and CNB shareholder approvals. More information about NBT and Page 5 of 10 its divisions can be found on the Internet at www.nbtbancorp.com, ------------------ www.nbtbank.com, www.pennstarbank.com and www.epic1st.com. --------------- -------------------- --------------- FORWARD-LOOKING STATEMENTS This news release contains forward-looking statements. These forward-looking statements involve risks and uncertainties and are based on the beliefs and assumptions of the management of NBT Bancorp and its subsidiaries and on the information available to management at the time that these statements were made. There are a number of factors, many of which are beyond NBT's control, that could cause actual conditions, events or results to differ significantly from those described in the forward-looking statements. Factors that may cause actual results to differ materially from those contemplated by such forward-looking statements include, among others, the following possibilities: (1) competitive pressures among depository and other financial institutions may increase significantly; (2) revenues may be lower than expected; (3) changes in the interest rate environment may reduce interest margins; (4) general economic conditions, either nationally or regionally, may be less favorable than expected, resulting in, among other things, a deterioration in credit quality and/or a reduced demand for credit; (5) legislative or regulatory changes, including changes in accounting standards and tax laws, may adversely affect the businesses in which NBT is engaged; (6) competitors may have greater financial resources and develop products that enable such competitors to compete more successfully than NBT; (7) the costs that will be incurred from the CNB acquisition and the risk of not obtaining regulatory or CNB shareholder approval; and (8) adverse changes may occur in the securities markets or with respect to inflation. Forward-looking statements speak only as of the date they are made. Except as required by law, NBT does not undertake to update forward-looking statements to reflect subsequent circumstances or events. FINANCIAL TABLES APPEAR ON FOLLOWING PAGES (6-10).
Page 6 of 10 NBT BANCORP INC. SELECTED FINANCIAL HIGHLIGHTS (unaudited) NET PERCENT 2005 2004 CHANGE CHANGE --------------- -------------- --------------- -------- (dollars in thousands, except share and per share data) THREE MONTHS ENDED SEPTEMBER 30, Net Income $ 13,526 $ 12,617 $ 909 7% Diluted Earnings Per Share $ 0.41 $ 0.38 $ 0.03 8% Weighted Average Diluted Common Shares Outstanding 32,729,000 32,935,584 (206,584) -1% Return on Average Assets 1.23% 1.20% 0.03% 3% Return on Average Equity 16.06% 15.94% 0.12% 1% Net Interest Margin 3.99% 3.99% 0.00% 0% ========================================================================================================== NINE MONTHS ENDED SEPTEMBER 30, Net Income $ 39,443 $ 37,556 $ 1,887 5% Diluted Earnings Per Share $ 1.20 $ 1.14 $ 0.06 5% Weighted Average Diluted Common Shares Outstanding 32,762,417 33,063,675 (301,258) -1% Return on Average Assets 1.23% 1.23% 0.00% 0% Return on Average Equity 16.03% 15.91% 0.12% 1% Net Interest Margin 4.04% 4.03% 0.01% 0% ========================================================================================================== ASSET QUALITY SEPTEMBER 30, December 31, September 30, 2005 2004 2004 --------------- -------------- --------------- Nonaccrual Loans $ 12,412 $ 14,991 $ 14,618 90 Days Past Due and Still Accruing 913 1,186 1,347 Total Nonperforming Loans 13,325 16,177 15,965 Other Real Estate Owned (OREO) 235 428 446 Total Nonperforming Assets 13,560 16,605 16,411 Allowance for Loan and Lease Losses 47,550 44,932 44,539 Year-to-Date (YTD) Net Charge-Offs 4,250 7,334 4,977 Allowance to Loans and Leases 1.58% 1.57% 1.58% Total Nonperforming Loans to Loans and Leases 0.44% 0.56% 0.57% Total Nonperforming Assets to Assets 0.31% 0.39% 0.39% Allowance to Nonperforming Loans 356.85% 277.75% 278.98% Annualized Net Charge-Offs to YTD Average Loans and Leases 0.19% 0.27% 0.25% ========================================================================================================== CAPITAL Equity to Assets 7.57% 7.89% 7.75% Book Value Per Share $ 10.25 $ 10.11 $ 9.93 Tangible Book Value Per Share $ 8.66 $ 8.66 $ 8.42 Tier 1 Leverage Ratio 6.99% 7.13% 6.96% Tier 1 Capital Ratio 9.56% 9.78% 9.61% Total Risk-Based Capital Ratio 10.82% 11.04% 10.86% ==========================================================================================================
---------------------------------------------------------------------------------- QUARTERLY COMMON STOCK PRICE 2005 2004 2003 Quarter End High Low High Low High Low ------- ------- ------- ------- ------- ------- March 31 $ 25.66 $ 21.48 $ 23.00 $ 21.21 $ 18.60 $ 16.75 June 30 $ 24.15 $ 20.10 23.18 19.92 19.94 17.37 September 30 $ 25.50 $ 22.79 24.34 21.02 21.76 19.24 December 31 26.84 21.94 22.78 19.50 ----------------------------------------------------------------------------------
Page 7 of 10 NBT BANCORP INC. SELECTED FINANCIAL HIGHLIGHTS (UNAUDITED) Net Percent 2005 2004 Change Change ---------- ---------- ---------- ---------- (dollars in thousands, except share and per share data) BALANCE SHEET AS OF SEPTEMBER 30, Loans $3,003,103 $2,814,553 $ 188,550 7% Earning Assets 4,085,590 3,904,928 180,662 5% Total Assets 4,385,621 4,201,089 184,532 4% Deposits 3,212,173 3,090,629 121,544 4% Stockholders' Equity 332,168 325,378 6,790 2% ======================================================================================================= AVERAGE BALANCES QUARTER ENDED SEPTEMBER 30, Loans $3,002,017 $2,784,851 $ 217,166 8% Securities AFS (excluding unrealized gains or losses) 944,062 985,202 (41,140) -4% Securities HTM 87,663 78,310 9,353 12% Regulatory Equity Investment 37,965 37,012 953 3% Short-Term Interest Bearing Accounts 8,357 7,395 962 13% Total Earning Assets 4,080,063 3,892,770 187,293 5% Total Assets 4,364,715 4,168,385 196,330 5% Interest Bearing Deposits 2,599,750 2,550,737 49,013 2% Non-Interest Bearing Deposits 572,450 504,457 67,993 13% Short-Term Borrowings 367,737 336,077 31,660 9% Long-Term Borrowings 438,087 411,647 26,440 6% Total Interest Bearing Liabilities 3,405,574 3,298,461 107,113 3% Stockholders' Equity 334,426 314,946 19,480 6% ======================================================================================================= AVERAGE BALANCES NINE MONTHS ENDED SEPTEMBER 30, Loans $2,941,292 $2,710,147 $ 231,145 9% Securities AFS (excluding unrealized gains or losses) 950,660 974,671 (24,011) -2% Securities HTM 86,959 87,322 (363) 0% Regulatory Equity Investment 37,044 34,778 2,266 7% Short-Term Interest Bearing Accounts 7,171 7,638 (467) -6% Total Earning Assets 4,023,126 3,814,556 208,570 5% Total Assets 4,303,581 4,091,552 212,029 5% Interest Bearing Deposits 2,620,446 2,542,621 77,825 3% Non-Interest Bearing Deposits 533,330 485,679 47,651 10% Short-Term Borrowings 339,344 303,251 36,093 12% Long-Term Borrowings 427,348 395,621 31,727 8% Total Interest Bearing Liabilities 3,387,138 3,241,493 145,645 4% Stockholders' Equity 329,741 315,328 14,413 5% =======================================================================================================
Page 8 of 10 NBT BANCORP INC. AND SUBSIDIARIES SEPTEMBER 30, December 31, September 30, CONSOLIDATED BALANCE SHEETS (UNAUDITED) 2005 2004 2004 ----------------------------------------------------------------------------------------------------------------- (in thousands) ASSETS Cash and due from banks $ 134,131 $ 98,437 $ 119,424 Short term interest bearing accounts 7,515 8,286 7,427 Securities available for sale, at fair value 942,770 952,542 978,925 Securities held to maturity (fair value of $89,887, $82,712, and 89,660 81,782 77,826 79,007, at September 30, 2005, December 31, 2004 and September 30, 2004, respectively) Federal Reserve and Federal Home Loan Bank stock 36,842 36,842 37,042 Loans and leases 3,003,103 2,869,921 2,814,553 Less allowance for loan and lease losses 47,550 44,932 44,539 ================================================================================================================= Net loans and leases 2,955,553 2,824,989 2,770,014 Premises and equipment, net 63,611 63,743 62,557 Goodwill 47,544 45,570 47,521 Intangible assets, net 3,950 2,013 2,084 Bank owned life insurance 33,306 32,302 31,957 Other assets 70,739 65,798 66,312 ----------------------------------------------------------------------------------------------------------------- TOTAL ASSETS $ 4,385,621 $ 4,212,304 $ 4,201,089 ================================================================================================================= LIABILITIES AND STOCKHOLDERS' EQUITY Deposits: Demand (noninterest bearing) $ 583,289 $ 520,218 $ 506,652 Savings, NOW, and money market 1,409,114 1,435,561 1,513,197 Time 1,219,770 1,118,059 1,070,780 ----------------------------------------------------------------------------------------------------------------- Total deposits 3,212,173 3,073,838 3,090,629 Short-term borrowings 356,193 338,823 319,620 Long-term debt 419,353 394,523 394,545 Trust preferred debentures 18,720 18,720 18,720 Other liabilities 47,014 54,167 52,197 ----------------------------------------------------------------------------------------------------------------- Total liabilities 4,053,453 3,880,071 3,875,711 Total stockholders' equity 332,168 332,233 325,378 ================================================================================================================= TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 4,385,621 $ 4,212,304 $ 4,201,089 =================================================================================================================
Page 9 of 10 Three months ended Nine months ended NBT BANCORP INC. AND SUBSIDIARIES September 30, September 30, CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED) 2005 2004 2005 2004 ---------------------------------------------------------------------------------------------------------- (in thousands, except per share data INTEREST, FEE AND DIVIDEND INCOME: Loans and leases $ 48,784 $ 41,283 $ 138,988 $ 120,812 Securities available for sale 10,103 10,784 30,576 31,866 Securities held to maturity 860 731 2,494 2,283 Other 535 295 1,551 797 ---------------------------------------------------------------------------------------------------------- Total interest, fee and dividend income 60,282 53,093 173,609 155,758 ---------------------------------------------------------------------------------------------------------- INTEREST EXPENSE: Deposits 12,842 9,743 35,580 29,462 Short-term borrowings 3,005 1,192 7,073 2,779 Long-term debt 4,176 3,861 12,016 11,103 Trust preferred debentures 308 245 851 588 ---------------------------------------------------------------------------------------------------------- Total interest expense 20,331 15,041 55,520 43,932 ---------------------------------------------------------------------------------------------------------- Net interest income 39,951 38,052 118,089 111,826 Provision for loan and lease losses 2,752 2,313 6,868 6,865 ---------------------------------------------------------------------------------------------------------- Net interest income after provision for loan and lease losses 37,199 35,739 111,221 104,961 ---------------------------------------------------------------------------------------------------------- NONINTEREST INCOME: Trust 1,292 1,182 3,795 3,431 Service charges on deposit accounts 4,314 4,159 12,554 12,286 ATM and debit card fees 1,631 1,474 4,575 4,128 Broker/dealer and insurance revenue 571 1,696 2,659 5,210 Net securities (losses) gains (737) 18 (690) 56 Bank owned life insurance income 339 348 1,005 1,142 Retirement plan administration fees 1,195 - 3,214 - Other 1,746 1,240 5,005 4,296 ---------------------------------------------------------------------------------------------------------- Total noninterest income 10,351 10,117 32,117 30,549 ---------------------------------------------------------------------------------------------------------- NONINTEREST EXPENSE: Salaries and employee benefits 15,438 13,647 46,142 40,896 Office supplies and postage 1,135 1,167 3,406 3,341 Occupancy 2,425 2,445 7,763 7,489 Equipment 1,971 1,941 5,998 5,575 Professional fees and outside services 1,447 1,536 4,503 4,592 Data processing and communications 2,613 2,688 7,801 8,232 Amortization of intangible assets 142 71 402 213 Loan collection and other real estate owned 115 339 724 810 Other operating 3,293 3,471 9,417 9,222 ---------------------------------------------------------------------------------------------------------- Total noninterest expense 28,579 27,305 86,156 80,370 ---------------------------------------------------------------------------------------------------------- Income before income taxes 18,971 18,551 57,182 55,140 Income taxes 5,445 5,934 17,739 17,584 ---------------------------------------------------------------------------------------------------------- NET INCOME $13,526 $12,617 $ 39,443 $ 37,556 ---------------------------------------------------------------------------------------------------------- Earnings Per Share: Basic $ 0.42 $ 0.39 $ 1.21 $ 1.15 Diluted $ 0.41 $ 0.38 $ 1.20 $ 1.14 ==========================================================================================================
Page 10 of 10 NBT BANCORP INC. AND SUBSIDIARIES 3Q 2Q 1Q 4Q 3Q QUARTERLY CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED) 2005 2005 2005 2004 2004 ------------------------------------------------------------------------------------------------------------ (in thousands, except per share data) INTEREST, FEE AND DIVIDEND INCOME: Loans $48,784 $46,260 $43,944 $42,983 $41,283 Securities available for sale 10,103 10,226 10,247 10,398 10,784 Securities held to maturity 860 831 803 761 731 Other 535 549 467 279 295 ------------------------------------------------------------------------------------------------------------ Total interest, fee and dividend income 60,282 57,866 55,461 54,421 53,093 ------------------------------------------------------------------------------------------------------------ INTEREST EXPENSE: Deposits 12,842 12,018 10,720 10,299 9,743 Short-term borrowings 3,005 2,207 1,861 1,307 1,192 Long-term debt 4,176 4,032 3,808 3,919 3,861 Trust preferred debentures 308 285 258 235 245 ------------------------------------------------------------------------------------------------------------ Total interest expense 20,331 18,542 16,647 15,760 15,041 ------------------------------------------------------------------------------------------------------------ Net interest income 39,951 39,324 38,814 38,661 38,052 Provision for loan and lease losses 2,752 2,320 1,796 2,750 2,313 ------------------------------------------------------------------------------------------------------------ Net interest income after provision for loan and lease losses 37,199 37,004 37,018 35,911 35,739 ------------------------------------------------------------------------------------------------------------ NONINTEREST INCOME: Trust 1,292 1,251 1,252 1,174 1,182 Service charges on deposit accounts 4,314 4,311 3,929 4,184 4,159 ATM and debit card fees 1,631 1,544 1,400 1,402 1,474 Broker/dealer and insurance fees 571 736 1,352 1,572 1,696 Net securities (losses) gains (737) 51 (4) 160 18 Bank owned life insurance income 339 333 333 345 348 Retirement plan administration fees 1,195 1,156 863 - - Other 1,746 1,673 1,586 1,503 1,240 ------------------------------------------------------------------------------------------------------------ Total noninterest income 10,351 11,055 10,711 10,340 10,117 ------------------------------------------------------------------------------------------------------------ NONINTEREST EXPENSE: Salaries and employee benefits 15,438 15,253 15,451 14,308 13,647 Office supplies and postage 1,135 1,121 1,150 1,118 1,167 Occupancy 2,425 2,550 2,788 2,416 2,445 Equipment 1,971 1,931 2,096 1,998 1,941 Professional fees and outside services 1,447 1,381 1,675 1,583 1,536 Data processing and communications 2,613 2,530 2,658 2,740 2,688 Amortization of intangible assets 142 142 118 71 71 Loan collection and other real estate owned 115 208 401 431 339 Goodwill impairment - - - 1,950 - Other operating 3,293 3,580 2,544 2,792 3,471 ------------------------------------------------------------------------------------------------------------ Total noninterest expense 28,579 28,696 28,881 29,407 27,305 ------------------------------------------------------------------------------------------------------------ Income before income taxes 18,971 19,363 18,848 16,844 18,551 Income taxes 5,445 6,235 6,059 4,353 5,934 ------------------------------------------------------------------------------------------------------------ NET INCOME $13,526 $13,128 $12,789 $12,491 $12,617 ============================================================================================================ Earnings per share: Basic $ 0.42 $ 0.41 $ 0.39 $ 0.38 $ 0.38 Diluted $ 0.41 $ 0.40 $ 0.39 $ 0.38 $ 0.38 ============================================================================================================