EX-99.1 2 dex991.htm PRESS RELEASE Press Release

Exhibit 99.1

 

FOR IMMEDIATE RELEASE

January 26, 2006

 

Contacts:                     Melanie J. Dressel, President and

Chief Executive Officer

(253) 305-1911

Gary R. Schminkey, Executive Vice President

and Chief Financial Officer

(253) 305-1966

 

COLUMBIA BANKING SYSTEM ANNOUNCES

RECORD FULL YEAR AND FOURTH QUARTER 2005 EARNINGS

 

4th QUARTER 2005 HIGHLIGHTS

 

  •   Earnings of $8.6 million, up 33% from $6.5 million in 2004

 

  •   Diluted earnings per share of $0.54, up 32% from $0.41 in 2004

 

  •   Return on average equity of 15.23%, and return on average assets of 1.47%

 

  •   Net interest margin improved to 4.61%, up from 4.26% in 2004

 

  •   Return on average tangible equity of 18.17%, up from 15.63% in 2004

 

  •   Reached milestone of over $2 billion in total deposits

 

FULL-YEAR 2005 HIGHLIGHTS

 

  •   Earnings for the year of $29.6 million, up 32% compared with 2004

 

  •   Diluted earnings per share for the year of $1.87, up 23% from 2004

 

  •   Return on average equity of 13.81% and return on average assets 1.29%

 

  •   Net interest margin improves to 4.44% for the year, up from 4.19% for 2004

 

  •   Total loans increased $205.0 million, up 15% from 2004

 

TACOMA, Washington—Columbia Banking System, Inc. (Nasdaq: COLB) today announced increased net income of $8.6 million for the quarter ended December 31, 2005, an increase of 33% compared to $6.5 million for the same quarter of 2004. On a diluted per share basis, net income for the quarter was $0.54, an increase of 32% from $0.41 in 2004. Return on average assets and return on average equity for the quarter were 1.47% and 15.23%, respectively, compared to 1.19% and 12.74%, respectively, for the same period in 2004.

 

Return on average equity for the year was 13.81%, up from 13.29% for 2004, while return on average assets for 2005 was 1.29%, up from 1.17% for 2004. Net income for the year was $29.6 million, an increase of $7.1 million, or 32%, over $22.5 million for the prior year. On a diluted per share basis, net income was $1.87, an increase of 23% from $1.52 in the prior year. Total nonperforming assets decreased $4.3 million, or 47%, to $4.9 million at December 31, 2005.

Return on average tangible equity for the quarter improved to 18.17%, compared to 15.63% for the same quarter last year. For the year, return on average tangible equity was 16.63%, up from 14.02% in the prior year. Return on average tangible equity, a non-GAAP performance measure, is used by Columbia’s management in recognition of the goodwill created by the fourth quarter 2004 acquisition of Bank of Astoria, providing a more consistent comparison with pre-acquisition performance.

 

Melanie J. Dressel, President and Chief Executive Officer, said “Our profitability continued to improve for the quarter and year as a result of increased interest income, loan growth and rising short-term rates. We are pleased to have improved our return on average equity, reaching 15.23% for the quarter, up from 12.74% in the same quarter of 2004. An important driver of our performance was the improvement in our net interest margin, which was 4.61% for the quarter, up from 4.45% last quarter and 4.26% for the fourth quarter of 2004. In addition, the Bank of Astoria was accretive to earnings as planned, and has maintained its 34% share of the deposit market in Clatsop County”

 

Ms. Dressel continued, “The strengthening local and regional economies as evidenced by strong job growth, wage increases and a robust housing sector in western Washington and Oregon were a significant factor in our strong performance during 2005. Eight 25 basis point increases in the prime rate during 2005 had a positive impact on our net interest income, as over 40% of our loans are tied to prime and other related indices. We have been able to manage our cost of funds and our net interest margin through our continued growth in core deposits, which comprise 74% of our total deposits.”

 

Mark Nelson, Executive Vice President and Chief Banking Officer noted, “We continued to generate healthy commercial and commercial real estate loan growth during 2005, while maintaining outstanding asset quality. Total loans at December 31, 2005 were up over $200 million from the prior year, reflecting the exceptional efforts of our experienced lending team throughout the market areas we serve”.

 

At December 31, 2005, Columbia’s total assets were $2.38 billion, an increase of 9% from $2.18 billion at December 31, 2004. Total loans were $1.54 billion at December 31, 2005, up 15% from December 31, 2004, and total securities decreased $57.4 million to $585.3 million at December 31, 2005, down 9% from the prior year. Total deposits increased 8% from December 31, 2004, ending at $2.01 billion at December 31, 2005. Core deposits at December 31, 2005 were $1.48 billion, an increase of $97.0 million, or 7%, compared with 2004.

Operating Results

 

Quarter and Year-Ended December 31, 2005

 

Net Interest Income

 

Net interest income for the quarter increased 17% to $23.9 million, from $20.5 million for the same quarter in 2004. This increase was primarily due to higher average earning assets coupled with increases in short-term rates during the quarter as compared to the same quarter in 2004. The net interest margin increased to 4.61%, up from 4.26% for the same quarter last year. Total revenue (defined as net interest income plus noninterest income) was $30.4 million for the quarter, up 15% from $26.5 million in the same quarter of 2004.

 

Average interest-earning assets grew to $2.12 billion, or 7%, during the quarter, compared with $1.97 billion during the same quarter of 2004. The yield on average interest-earning assets increased 98 basis points (a basis point equals 1/100 of 1%) to 6.30% during the quarter compared with 5.32% during the same quarter of 2004. During the same period, average interest-bearing liabilities increased $90.3 million to $1.62 billion. The cost of average interest-bearing liabilities increased 64 basis points to 2.20% during the quarter, from 1.36% in the same quarter of 2004.

 

For the twelve months ended December 31, 2005, net interest income increased 26% to $90.9 million from $71.9 million in 2004. During 2005, the Company’s net interest margin increased to 4.44% from 4.19% for 2004. Total revenue for the year was $115.7 million, an increase of 23% from $94.2 million at year-end 2004. Average interest-earning assets grew to $2.10 billion during 2005, compared with $1.77 billion during 2004. The yield on average interest-earning assets increased 72 basis points to 5.93% during 2005, from 5.21% in 2004. In comparison, average interest-bearing liabilities grew to $1.64 billion compared with $1.39 billion for 2004. The cost of average interest-bearing liabilities increased 60 basis points to 1.91% during 2005 from 1.31% in 2004.

 

Noninterest Income

 

Noninterest income for the quarter was $6.5 million, an increase of $545,000 or 9% over the same quarter in 2004. For the year, noninterest income was $24.8 million, an increase of $2.5 million, or 11%, from $22.2 million for 2004.

 

The increase during the fourth quarter is due primarily to increases in service charges and other fees and continuing growth in merchant services income, offsetting a decrease in mortgage activity. Merchant services income increased $1.2 million to $8.5 million for the year, compared to $7.3 million for the prior year.

Noninterest Expense

 

Total noninterest expense for the quarter was $18.3 million, an increase of 9% from $16.7 million for the same quarter in 2004. Noninterest expense for the year was $72.9 million, an increase of 19% from $61.3 million from the prior year. Ms. Dressel commented, “These increases were primarily due to higher compensation, employee benefits and occupancy expenses from the first full year of Bank of Astoria operations as well as the expansion of our King County lending team, all of which were not incurred during the first nine months of 2004. In addition, we experienced higher group medical costs.” The efficiency ratio improved to 58.46% for the quarter and 61.20% for the year 2005, compared to 61.40% and 63.20%, respectively, for the same periods in 2004.

 

Nonperforming Assets and Loan Loss Provision

 

Due to improving credit quality, Columbia’s provision for loan losses for the quarter decreased to $15,000 compared with $445,000 for the same quarter of 2004. The decrease in the provision for loan losses over the prior year reflects a significant decrease in total net charge-offs, nonperforming loans and nonperforming assets. Net charge-offs in the fourth quarter of 2004 were $1.9 million, compared with net recoveries of $24,000 for the same period in 2005. The decline in losses was primarily the result of declining levels of nonperforming loans, strong collection efforts and stable economic conditions. Total nonperforming assets declined 47% from December 31, 2004 to $4.9 million at December 31, 2005.

 

As a result of the decline in nonperforming loans and an increase in the allowance for loan losses year-over-year, the ratio of the allowance for credit losses to nonperforming loans was 428.84% at December 31, 2005, compared with 235.31% at December 31, 2004. The reserve for loan losses stood at $20.8 million, or 1.33%, of period end loans as of December 31, 2005 compared to $19.9 million, or 1.46%, as of December 31, 2004. Management believes this level of reserves is appropriate based upon its analysis of the loan portfolio and the economic conditions in Columbia’s banking markets.

 

Expansion Activities

 

Ms. Dressel further noted, “We will continue our strategy of leveraging our strong base of branches in both Washington and Oregon, focusing our efforts on increasing market share in the communities we serve. We will be seeking approval for a new branch location in Lacey, just east of

Olympia, Washington. New markets and branch locations will be considered on an ongoing basis, and we will take advantage of other strategic opportunities to expand our footprint that make economic sense for the organization.”

 

Conference Call

 

Columbia will discuss the quarterly and year-end results on a conference call on Thursday, January 26, 2006 at 1:00 PST. Interested investors, analysts, media representatives and the public are invited to listen to this discussion by calling 1-866-404-2271. A conference call replay will be available from approximately 4:30 p.m. PST on January 26 through midnight PST on Thursday, February 2, 2006. The conference call replay can be accessed by dialing 1-800-642-1687 and entering access code 4234977.

 

Annual Meeting of Shareholders

 

Columbia Banking System’s Annual Meeting of Shareholders will be held at 1:00 PST on April 26, 2006, at the Sheraton Tacoma Hotel, 1320 Broadway Plaza, Tacoma, Washington.

 

Columbia Banking System, Inc. is a Tacoma-based bank holding company whose wholly owned banking subsidiaries are Columbia Bank and Bank of Astoria, which was acquired October 1, 2004. Columbia Bank is a Washington state-chartered full-service commercial bank with 35 banking offices in Pierce, King, Cowlitz, Kitsap and Thurston counties. Bank of Astoria, a federally insured commercial bank headquartered in Astoria, Oregon, operates four branches in Clatsop County: Astoria, Warrenton, Seaside and Cannon Beach; and one branch in Manzanita in Tillamook County. More information about Columbia can be found on its website at www.columbiabank.com.

# # #

 

Note Regarding Forward-Looking Statements

 

This press release includes forward looking statements, which management believes are a benefit to shareholders. These forward looking statements describe Columbia’s management’s expectations regarding future events and developments such as future operating results, growth in loans and deposits, continued success of Columbia’s style of banking and the strength of the local economy. The words “will,” “believe,” “expect,” “should,” and “anticipate” and words of similar construction are intended in part to help identify forward looking statements. Future events are difficult to predict, and the expectations described above are necessarily subject to risk and uncertainty that may cause actual results to differ materially and adversely. In addition to discussions about risks and uncertainties set forth from time to time in Columbia’s filings with the SEC, factors that may cause actual results to differ materially from those contemplated by such forward looking statements include, among others, the following possibilities: (1) local, national and international economic conditions are less favorable than expected or have a more direct and pronounced effect on Columbia than expected and adversely affect Columbia’s ability to continue its internal growth at historical rates and maintain the quality of its earning assets; (2) changes in interest rates reduce interest margins more than expected and negatively affect funding sources; (3) projected business increases following strategic expansion or opening or acquiring new branches are lower than expected; (4) costs or difficulties related to the integration of acquisitions are greater than expected; (5) competitive pressure among financial institutions increases significantly; (6) legislation or regulatory requirements or changes adversely affect the businesses in which Columbia is engaged.

 

FINANCIAL STATISTICS

Columbia Banking System, Inc.

 

Unaudited   

Three Months Ended

December 31,

    

Twelve Months Ended

December 31,

  
(in thousands, except per share amounts)    2005
     2004
     2005
     2004
  

Earnings

                                 

Net interest income

    $ 23,934     $ 20,528     $ 90,912     $ 71,943  

Provision for loan losses

    $ 15     $ 445     $ 1,520     $ 995  

Noninterest income

    $ 6,468     $ 5,923     $ 24,786     $ 22,244  

Noninterest expense

    $ 18,271     $ 16,737     $ 72,855     $ 61,326  

Net income

    $ 8,583     $ 6,465     $ 29,631     $ 22,513  

Per Share

                                 

Net income (basic)

    $ 0.55     $ 0.42     $ 1.89     $ 1.55  

Net income (diluted)

    $ 0.54     $ 0.41     $ 1.87     $ 1.52  

Averages

                                 

Total assets

    $ 2,316,654     $ 2,154,285     $ 2,290,746     $ 1,919,134  

Interest-earning assets

    $ 2,116,345     $ 1,973,690     $ 2,102,513     $ 1,769,470  

Loans

    $ 1,534,068     $ 1,320,260     $ 1,494,567     $ 1,186,506  

Securities

    $ 579,177     $ 650,411     $ 605,395     $ 552,742  

Deposits

    $ 2,006,448     $ 1,854,809     $ 1,923,778     $ 1,690,513  

Core deposits

    $ 1,467,077     $ 1,381,334     $ 1,423,862     $ 1,238,536  

Shareholders’ Equity

    $ 223,538     $ 201,934     $ 214,612     $ 169,414  

Financial Ratios

                                 

Return on average assets

      1.47 %     1.19 %     1.29 %     1.17 %

Return on average equity

      15.23 %     12.74 %     13.81 %     13.29 %

Return on average tangible equity(1)

      18.17 %     15.63 %     16.63 %     14.02 %

Average equity to average assets

      9.65 %     9.37 %     9.37 %     8.83 %

Net interest margin

      4.61 %     4.26 %     4.44 %     4.19 %

Efficiency ratio (tax equivalent) (2)

      58.46 %     61.40 %     61.20 %     63.20 %

 

     December 31,
  
     2005
     2004
  

Period end

                 

Total assets

    $ 2,377,322     $ 2,176,730  

Loans

    $ 1,564,704     $ 1,359,743  

Allowance for loan losses

    $ 20,829     $ 19,881  

Securities

    $ 585,332     $ 642,759  

Deposits

    $ 2,005,489     $ 1,862,866  

Core deposits

    $ 1,478,090     $ 1,381,073  

Shareholders’ equity

    $ 226,242     $ 203,154  

Book value per share

    $ 14.29     $ 13.03  

Tangible book value per share

    $ 12.20     $ 10.87  

Nonperforming assets

                 

Nonaccrual loans

    $ 4,733     $ 8,222  

Restructured loans

      124       227  

Personal property owned

      —         —    

Real estate owned

      18       680  
    
 

Total nonperforming assets

    $ 4,875     $ 9,129  
    
 

Nonperforming loans to period-end loans

      0.31 %     0.62 %

Nonperforming assets to period-end assets

      0.21 %     0.42 %

Allowance for loan losses to period-end loans

      1.33 %     1.46 %

Allowance for loan losses to nonperforming loans

      428.84 %     235.31 %

Allowance for loan losses to nonperforming assets

      427.26 %     217.78 %

Net loan charge-offs

    $ 572     $ 2,742  

 

(1) Annualized net income, excluding core deposit intangible asset amortization, divided by average daily shareholders’ equity, excluding average goodwill and average core deposit intangible asset.

 

(2) Noninterest expense divided by the sum of net interest income and noninterest income on a tax equivalent basis, excluding nonrecurring income and expense, such as gains/losses on investment securities and net cost (gain) of OREO.

 

QUARTERLY FINANCIAL STATISTICS

Columbia Banking System, Inc.

 

     Three Months Ended
  

Unaudited

(in thousands, except per share amounts)

   

Dec 31

2005

    

Sept 30

2005

    

Jun 30

2005

    

Mar 31

2005

    

Dec 31

2004

  

Earnings

                                         

Net interest income

    $ 23,934     $ 23,331     $ 22,346     $ 21,301     $ 20,528  

Provision for loan losses

    $ 15     $ 245     $ 370     $ 890     $ 445  

Noninterest income

    $ 6,468     $ 6,516     $ 6,128     $ 5,674     $ 5,923  

Noninterest expense

    $ 18,271     $ 18,793     $ 18,514     $ 17,277     $ 16,737  

Net income

    $ 8,583     $ 7,952     $ 6,798     $ 6,298     $ 6,465  

Per Share

                                         

Net income [basic]

    $ 0.55     $ 0.50     $ 0.44     $ 0.40     $ 0.42  

Net income [diluted]

    $ 0.54     $ 0.50     $ 0.43     $ 0.40     $ 0.41  

Averages

                                         

Total assets

    $ 2,316,654     $ 2,325,262     $ 2,297,297     $ 2,222,355     $ 2,154,285  

Interest-earning assets

    $ 2,116,345     $ 2,136,229     $ 2,113,384     $ 2,042,917     $ 1,973,690  

Loans

    $ 1,534,068     $ 1,534,281     $ 1,498,990     $ 1,409,119     $ 1,320,260  

Securities

    $ 579,177     $ 598,204     $ 612,455     $ 632,410     $ 650,411  

Deposits

    $ 2,006,448     $ 1,948,022     $ 1,874,208     $ 1,864,610     $ 1,854,809  

Core deposits

    $ 1,467,077     $ 1,451,054     $ 1,397,353     $ 1,378,695     $ 1,381,334  

Shareholders’ Equity

    $ 223,538     $ 218,308     $ 209,864     $ 206,511     $ 201,934  

Financial Ratios

                                         

Return on average assets

      1.47 %     1.36 %     1.19 %     1.15 %     1.19 %

Return on average equity

      15.23 %     14.45 %     12.99 %     12.37 %     12.74 %

Return on average tangible equity

      18.17 %     17.35 %     15.76 %     15.09 %     15.63 %

Average equity to average assets

      9.65 %     9.39 %     9.14 %     9.29 %     9.37 %

Net interest margin

      4.61 %     4.45 %     4.36 %     4.35 %     4.26 %

Efficiency ratio (tax equivalent)

      58.46 %     61.26 %     63.22 %     62.18 %     61.40 %

Period end

                                         

Total assets

    $ 2,377,322     $ 2,322,896     $ 2,326,252     $ 2,243,469     $ 2,176,730  

Loans

    $ 1,564,704     $ 1,511,386     $ 1,510,043     $ 1,436,820     $ 1,359,743  

Allowance for loan losses

    $ 20,829     $ 20,790     $ 20,587     $ 20,179     $ 19,881  

Securities

    $ 585,332     $ 592,467     $ 609,574     $ 619,140     $ 642,759  

Deposits

    $ 2,005,489     $ 1,992,238     $ 1,897,854     $ 1,869,173     $ 1,862,866  

Core deposits

    $ 1,478,090     $ 1,493,925     $ 1,416,421     $ 1,392,772     $ 1,381,073  

Shareholders’ equity

    $ 226,242     $ 221,873     $ 214,788     $ 204,754     $ 203,154  

Book value per share

    $ 14.29     $ 14.04     $ 13.68     $ 13.11     $ 13.03  

Tangible book value per share

    $ 12.20     $ 11.93     $ 11.56     $ 10.96     $ 10.87  

Nonperforming assets

                                         

Nonaccrual loans

    $ 4,733     $ 6,165     $ 6,304     $ 7,183     $ 8,222  

Restructured loans

      124       151       178       205       227  

Personal property owned

      —         —         —         —         —    

Real estate owned

      18       —         —         —         680  
    
 
 
 
 

Total nonperforming assets

    $ 4,875     $ 6,316     $ 6,482     $ 7,388     $ 9,129  
    
 
 
 
 

Nonperforming loans to period-end loans

      0.31 %     0.42 %     0.43 %     0.51 %     0.62 %

Nonperforming assets to period-end assets

      0.21 %     0.27 %     0.28 %     0.33 %     0.42 %

Allowance for loan losses to period-end loans

      1.33 %     1.38 %     1.36 %     1.40 %     1.46 %

Allowance for loan losses to nonperforming loans

      428.84 %     329.16 %     317.60 %     273.13 %     235.31 %

Allowance for loan losses to nonperforming assets

      427.26 %     329.16 %     317.60 %     273.13 %     217.78 %

Net loan (recoveries) charge-offs

    $ (24 )   $ 42     $ (38 )   $ 592     $ 1,858  

 

CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS

Columbia Banking System, Inc.

 

(Unaudited)   

Three Months Ended

December 31,

   

Twelve Months Ended

December 31,

  
(in thousands except per share)    2005
    2004
    2005
     2004
  

Interest Income

                               

Loans

    $ 27,320    $ 19,840    $ 99,535     $ 68,908  

Securities available for sale

      5,589      5,905      22,525       20,718  

Securities held to maturity

      14      22      62       103  

Deposits with banks

      30      15      85       337  
    
  
  
 

Total interest income

      32,953      25,782      122,207       90,066  

Interest Expense

                               

Deposits

      8,110      4,628      25,983       16,537  

Federal Home Loan Bank advances

      364      267      3,515       370  

Long-term obligations

      443      324      1,583       1,162  

Other borrowings

      102      35      214       54  
    
  
  
 

Total interest expense

      9,019      5,254      31,295       18,123  
    
  
  
 

Net Interest Income

      23,934      20,528      90,912       71,943  

Provision for loan losses

      15      445      1,520       995  
    
  
  
 

Net interest income after provision for loan losses

      23,919      20,083      89,392       70,948  

Noninterest Income

                               

Service charges and other fees

      2,922      2,721      11,310       10,547  

Mortgage banking

      276      473      1,223       1,806  

Merchant services fees

      2,088      1,854      8,480       7,259  

Gain (loss) on sale of investment securities, net

      6      —        6       (6 )

Bank owned life insurance (BOLI)

      393      384      1,577       1,318  

Other

      783      491      2,190       1,320  
    
  
  
 

Total noninterest income

      6,468      5,923      24,786       22,244  

Noninterest Expense

                               

Compensation and employee benefits

      9,145      8,743      37,285       32,228  

Occupancy

      2,610      2,451      10,107       8,437  

Merchant processing

      804      763      3,258       2,984  

Advertising and promotion

      404      359      1,978       2,002  

Data processing

      735      625      2,904       2,319  

Legal & professional services

      914      998      3,503       3,312  

Taxes, licenses & fees

      538      425      2,018       1,635  

Net cost (gain) of other real estate owned

      —        2      (8 )     (13 )

Other

      3,121      2,371      11,810       8,422  
    
  
  
 

Total noninterest expense

      18,271      16,737      72,855       61,326  
    
  
  
 

Income before income taxes

      12,116      9,269      41,323       31,866  

Provision for income taxes

      3,533      2,804      11,692       9,353  
    
  
  
 

Net Income

    $ 8,583    $ 6,465    $ 29,631     $ 22,513  
    
  
  
 

Net income per common share:

                               

Basic

    $ 0.55    $ 0.42    $ 1.89     $ 1.55  

Diluted

    $ 0.54    $ 0.41    $ 1.87     $ 1.52  

Dividend paid per common share

    $ 0.12    $ 0.07    $ 0.39     $ 0.26  

Average number of common shares outstanding

      15,813      15,570      15,708       14,558  

Average number of diluted common shares outstanding

      16,012      15,846      15,885       14,816  

 

CONSOLIDATED CONDENSED BALANCE SHEETS

Columbia Banking System, Inc.

 

(Unaudited)

(in thousands)

             

December 31,

2005

    

December 31,

2004

Assets

                         

Cash and due from banks

              $ 96,787     $ 53,467

Interest-earning deposits with banks

                3,619       369
              
 

Total cash and cash equivalents

                100,406       53,836

Securities available for sale at fair value (amortized cost of $576,619 and $627,519 respectively)

                572,355       628,897

Securities held to maturity (fair value of $2,587 and $3,199 respectively)

                2,524       3,101

Federal Home Loan Bank stock

                10,453       10,761

Loans held for sale

                1,850       6,019

Loans, net of unearned income of ($2,870) and ($2,839) respectively

                1,564,704       1,359,743

Less: allowance for loan losses

                20,829       19,881
              
 

Loans, net

                1,543,875       1,339,862

Interest receivable

                11,671       9,582

Premises and equipment, net

                44,690       44,774

Real estate owned

                18       680

Goodwill

                29,723       29,723

Other assets

                59,757       49,495
              
 

Total Assets

              $ 2,377,322     $ 2,176,730
              
 

Liabilities and Shareholders’ Equity

                         

Deposits:

                         

Noninterest-bearing

              $ 455,838     $ 391,011

Interest-bearing

                1,549,651       1,471,855
              
 

Total deposits

                2,005,489       1,862,866

Federal Home Loan Bank advances

                94,400       68,700

Other borrowings

                2,572       2,500

Long-term subordinated debt

                22,312       22,246

Other liabilities

                26,307       17,264
              
 

Total liabilities

                2,151,080       1,973,576

Shareholders’ equity:

                         

Preferred stock (no par value)

                         

Authorized, 2 million shares; none outstanding

                         
     December 31,
2005
    December 31,
2004
           

Common stock (no par value)

                        

Authorized shares

    63,034    63,034               

Issued and outstanding

    15,831    15,594      162,973       159,693

Retained earnings

                66,051       42,552

Accumulated other comprehensive income - Unrealized (losses) gains on securities available for sale, net of tax

                (2,782 )     909
              
 

Total shareholders’ equity

                226,242       203,154
              
 

Total Liabilities and Shareholders’ Equity

              $ 2,377,322     $ 2,176,730