EX-99.1 2 dex991.htm PRESS RELEASE DATED APRIL 25, 2007 ANNOUNCING FIRST QUARTER ENDED MARCH 31, 2007 Press Release dated April 25, 2007 announcing first quarter ended March 31, 2007

Exhibit 99.1

FOR IMMEDIATE RELEASE

April 25, 2007

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

FIRST QUARTER 2007 EARNINGS

1st QUARTER 2007 HIGHLIGHTS

 

 

•

  

Earnings of $7.3 million, compared to $8.2 million for the 1st quarter 2006

 

 

•

  

Diluted earnings per share of $0.45 from $0.51 for the 1st quarter 2006

 

  •  

Total loans were $1.83 billion, an increase of $239 million, or 15% year over year, and $125 million, or 7%, from December 31, 2006

 

  •  

Total assets were $2.68 billion, an increase of 5% from December 31, 2006

 

  •  

Stable core deposit ratio of 73%

 

 

•

  

Net interest margin decreased to 4.37% from 4.65% in the 1st quarter of 2006 and from 4.43% in the 4th quarter of 2006

 

  •  

Credit quality metrics remain solid; non-performing assets to total assets at a historical low of 0.13%

 

  •  

Entered into definitive merger agreements with Mountain Bank Holding Company and Town Center Bancorp

 

  •  

New Bellevue branch to open May, 2007

TACOMA, Washington—Columbia Banking System, Inc. (“Columbia”; NASDAQ: COLB) today announced earnings for the first quarter 2007 of $7.3 million, or $0.45 per diluted share, compared to net income of $8.2 million, or $0.51 per diluted share for the first quarter of 2006. The decrease in earnings is primarily due to compression of the net interest margin, as well as the costs associated with the hiring of new banking teams, who are expected to enhance loan and deposit growth. The compression of the net interest margin resulted from an increasing reliance on higher cost deposits and borrowings to fund loan growth.

Melanie J. Dressel, President and Chief Executive Officer, commented, “There were two major factors that impacted our earnings for the first quarter. We face the same economic headwinds of the

banking industry as a whole in the growing competition for low cost deposits, resulting in net interest margin compression. Due to our mix of core deposits and loans that are tied to short-term indices, such as the prime rate, we have been successful in delaying the full impact of margin compression, although we are now beginning to feel some of its effects.

Ms. Dressel continued, “In addition, we recently made an investment in high quality, very experienced commercial and builder banking teams based in King County. These teams were solid contributors to the substantial growth in loans, particularly during the latter part of the quarter. While we have incurred the expense to generate the new loans, including an appropriate provision for loan losses, we have not yet realized their full quarter earnings benefit. . Although we expect loan growth to moderate in upcoming quarters, we are pleased that our loans ended the quarter at over $1.8 billion, an increase of $239 million, or 15% from first quarter 2006 and $125 million, or 7% from year-end 2006. We have maintained good asset quality, with a strong commercial business component, and a balanced portfolio which has given us the ability to consider new lending relationships based on their merits without the constraints created by excessive concentrations in any single category.”

Ms. Dressel continued, “Earnings growth remains a challenge in this unusual interest rate environment, with short-term interest rates higher than long-term interest rates. We expect this pressure on our earnings to continue as yields on earning assets remain flat and competition for deposits remain strong. Core deposit growth increased during the final month of the first quarter, and comprised a healthy 73% of total deposits, providing a stable source of funding at relatively low costs. We continue to focus our marketing initiatives on increasing core deposits through new customer acquisition, highlighting our breadth of products and services, staff expertise and customer service. Because of the challenging interest rate environment, it is incumbent upon us to balance expense control with well considered long-term investments in growth.”

At March 31, 2007, Columbia’s total assets were $2.68 billion, an increase of 9% from $2.46 billion at March 31, 2006, and 5% from $2.55 billion at December 31, 2006. Total loans were $1.83 billion at March 31, 2007, up 15% from $1.60 billion at March 31, 2006 and up 7% from $1.71 billion at year-end 2006. Total deposits were $2.1 billion at March 31, 2007, an increase of 5% from March 31, 2006, and 3% from December 31, 2006. Most of the growth occurred in core deposits, which were $1.52 billion at quarter-end 2007, up 4% from $1.46 billion at quarter-end 2006. Core deposits were 73% of total deposits at March 31, 2007.

Revenue (net interest income plus noninterest income) was $30.9 million, up 2% from $30.3 billion for the quarter ended March 31, 2006. Return on average assets and return on average equity for the first quarter 2007 were 1.14% and 11.52%, respectively, compared to 1.39% and 14.37%, respectively, for the first quarter of the prior year. The efficiency ratio increased to 63.39% at March 31, 2007, compared to 58.64% for the same period in 2006.

First Quarter 2007 Operating Results

Net Interest Income

Net interest income increased to $24.7 million, or $397,000, in the first quarter 2007 compared to the first quarter 2006, primarily due to loan growth. The Company’s net interest margin decreased to 4.37% in the first quarter 2006, compared with 4.65% in the first quarter 2006; deposit and borrowing costs increased faster than loan yields, adding to pressure on the net interest margin. Net interest income decreased six basis points at quarter-end 2007, from 4.43% during the 4th quarter of 2006. This was primarily due to rapid loan growth during the latter part of the first quarter 2007, while deposit growth lagged first quarter loan growth. This difference in loan and deposit growth was funded by higher cost borrowings.

Average interest-earning assets increased to $2.39 billion, or 9%, during the first quarter of 2007, compared with $2.19 billion at the end of the first quarter 2006. The yield on average interest-earning assets increased 52 basis points to 7.16% at March 31, 2007, from 6.64% at March 31, 2006. Average interest-bearing liabilities increased 12% to $1.89 billion from $1.69 billion last year. The cost of average interest-bearing liabilities increased 94 basis points to 3.53% in the first quarter of 2007, compared to 2.59% in the first quarter of 2006.

Noninterest income

Total noninterest income for the first quarter 2007 increased to $6.2 million, or 3%, from $6.0 million a year ago. The increase in noninterest income during the first quarter of 2007 as compared to first quarter 2006 was primarily due to increased service charges and other fees related to an increase in customer volume, partially offset by decreased merchant services fees. The Company expects a modest increase in noninterest income for the remainder of 2007.

Noninterest expense

Noninterest expense for the first quarter of 2007 was $20.4 million, an increase of 11% from $18.3 million for the same period in 2006. This increase was partly due to expenses that have historically been heavily weighted to the first quarter, such as increased compensation and employee benefits, occupancy expenses, and legal and professional services. The increase in compensation is primarily a result of the investment in additional bankers in the retail and lending areas. Legal and professional services were higher in the current quarter compared to the same period in 2006, primarily as a result of the recovery of previously incurred professional expenses received in the first quarter of last year.

The Company’s efficiency ratio was 63.39% for the first quarter 2007 compared with 58.64% for the same period in 2006. Melanie Dressel noted, “As discussed previously, we experienced seasonal expenses traditionally associated with the first quarter. We expect improvement in our efficiency ratio as we benefit from revenue increases associated with our new banking teams, and the resulting growth in loans and deposits.”

Nonperforming Assets and Loan Loss Provision

The Company made a provision for loan losses of $638,000 for the first quarter of 2007, compared with $215,000 for the first quarter of 2006, and $950,000 for the quarter ending December 31, 2006. The increase in the provision over the same period last year was primarily due to accelerating loan growth experienced during the current quarter compared to the same quarter last year. The provision decreased over the fourth quarter 2006 primarily due to a continuing decline in the level of non-performing assets and the low level of net loan charge offs for the period.

The allowance for loan and lease losses as a percentage of loans (excluding loans held for sale at each date) decreased to 1.14% at March 31, 2007 as compared to 1.18% at year-end 2006. For the quarters ended March 31, 2007 and 2006, net charge-offs amounted to $1,000 and $353,000, respectively.

Expansion Activity

In March, 2007, Columbia announced the signing of definitive merger agreements with Mountain Bank Holding Company (“MBHC”), headquartered in Enumclaw, Washington, and Town Center Bancorp (“TCB”), headquartered in Portland, Oregon. The boards of both companies

unanimously approved the transactions, which are expected to close in the third quarter of this year following MBHC and TCB shareholder and regulatory approvals. Ms. Dressel commented, “We are very pleased that two well-run, profitable organizations with whom we have remarkable cultural similarities have agreed to join forces with us. This is a milestone in our strategy to become a Pacific Northwest regional community bank through a combination of de novo expansion and strategic acquisitions that will expand our geographic footprint, and more importantly, share our commitment to the best possible customer service.”

Columbia Bank will open a new full-service branch office in Bellevue in May, 2007. The Bellevue South branch is located along the Interstate 405 corridor with excellent freeway access, adjacent to the Bellevue Athletic Club. The previously announced Lacey Branch, which has been delayed by permitting issues, is currently under development and is slated to open in the fourth quarter, 2007.

Ms. Dressel noted, “We expect the second quarter roll-out of Daily Deposit, Columbia Bank’s remote deposit capture program, to enhance deposit growth. It gives us the ability to reach out to customers who may currently borrow from us, but do not yet have a deposit relationship with us.”

“We remain committed to growing our market share as a Pacific Northwest community bank,” Ms. Dressel continued. “Accordingly, we will continue to build on our proven strategy of investing in growth through hiring experienced bankers, opening new branches and acquiring well-run banking organizations that expand our footprint.”

Conference Call

Columbia will discuss the quarterly results on a conference call on Thursday, April 26, 2007 at 1:30 PDT. Interested investors, analysts, media representatives and the public are invited to listen to this discussion by calling 1-866-404-2271; Conference ID code 6348598. A conference call replay will be available from approximately 3:00 p.m. PST on April 26 through midnight PDT on Thursday, May 3, 2007. The conference call replay can be accessed by dialing 1-800-642-1687 and entering Conference ID code 6348598.

Columbia Banking System, Inc. is a Tacoma-based bank holding company whose wholly owned banking subsidiaries are Columbia Bank and Bank of Astoria. 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 news 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.   

Three Months Ended

March 31,

        
Unaudited     
(in thousands, except per share amounts)    2007     2006        
Earnings       

Net interest income

    $ 24,703     $ 24,306    

Provision for loan and lease losses

    $ 638     $ 215    

Noninterest income

    $ 6,177     $ 5,973    

Noninterest expense

    $ 20,402     $ 18,340    

Net income

    $ 7,283     $ 8,188    
Per Share       

Net income (basic)

    $ 0.45     $ 0.52    

Net income (diluted)

    $ 0.45     $ 0.51    
Averages       

Total assets

    $ 2,586,025     $ 2,388,680    

Interest-earning assets

    $ 2,392,372     $ 2,190,872    

Loans

    $ 1,765,692     $ 1,567,615    

Securities

    $ 597,952     $ 619,428    

Deposits

    $ 2,001,136     $ 1,955,851    

Core deposits

    $ 1,444,210     $ 1,425,442    

Shareholders’ Equity

    $ 256,292     $ 231,080    
Financial Ratios       

Return on average assets

      1.14 %     1.39 %  

Return on average equity

      11.52 %     14.37 %  

Return on average tangible equity(1)

      13.38 %     17.00 %  

Average equity to average assets

      9.91 %     9.67 %  

Net interest margin

      4.37 %     4.65 %  

Efficiency ratio (tax equivalent) (2)

      63.39 %     58.64 %  
     March 31,     December 31,  
      2007     2006     2006  
Period end       

Total assets

    $ 2,676,204     $ 2,460,453     $ 2,553,131  

Loans

    $ 1,833,852     $ 1,595,262     $ 1,708,962  

Allowance for loan and lease losses

    $ 20,819     $ 20,691     $ 20,182  

Securities

    $ 599,306     $ 634,620     $ 605,133  

Deposits

    $ 2,081,026     $ 1,990,363     $ 2,023,351  

Core deposits

    $ 1,518,797     $ 1,455,390     $ 1,473,701  

Shareholders’ equity

    $ 261,329     $ 231,137     $ 252,347  

Book value per share

    $ 16.17     $ 14.47     $ 15.71  

Tangible book value per share

    $ 14.16     $ 12.41     $ 13.68  
Nonperforming assets       

Nonaccrual loans

    $ 2,580     $ 5,115     $ 2,414  

Restructured loans

      806       1,146       1,066  

Personal property owned

      —         —         —    

Other real estate owned

      —         18       —    
                        

Total nonperforming assets

    $ 3,386     $ 6,279     $ 3,480  
                        

Nonperforming loans to period-end loans

      0.18 %     0.39 %     0.20 %

Nonperforming assets to period-end assets

      0.13 %     0.26 %     0.14 %

Allowance for loan and lease losses to period-end loans

      1.14 %     1.30 %     1.18 %

Allowance for loan and lease losses to nonperforming loans

      614.86 %     330.47 %     579.94 %

Allowance for loan and lease losses to nonperforming assets

      614.86 %     329.53 %     579.94 %

Net loan charge-offs

    $ 1 (3)   $ 353 (4)   $ 2,712 (5)

(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 gain/loss

on sale of investment securities, net cost (gain) of OREO and mark-to-market adjustments of interest rate floor instruments.

(3)

For the three months ended March 31, 2007.

(4)

For the three months ended March 31, 2006.

(5)

For the twelve months ended December 31, 2006.

FINANCIAL STATISTICS

       
Columbia Banking System, Inc.    Period End  
Unaudited    March 31,     December 31,  
(in thousands)    2007     2006     2006  
Loan Portfolio Composition       

Commercial business

    $ 673,583     $ 568,814     $ 608,636  

Leases

      7,951       13,415       9,263  

Real Estate:

       

One-to-four family residential

      47,876       71,249       51,277  

Five or more family residential and commercial

      691,758       658,642       687,635  
                        

Total Real Estate

      739,634       729,891       738,912  

Real Estate Construction:

       

One-to-four family residential

      139,806       38,767       92,124  

Five or more family residential and commercial

      128,728       101,916       115,185  
                        

Total Real Estate Construction

      268,534       140,683       207,309  

Consumer

      147,435       144,674       147,782  
                        

Subtotal loans

      1,837,137       1,597,477       1,711,902  

Less: Deferred loan fees

      (3,285 )     (2,215 )     (2,940 )
                        

Total loans

    $ 1,833,852     $ 1,595,262     $ 1,708,962  
                        

Loans held for sale

    $ 2,999     $ 1,737     $ 933  
                        
Deposit Composition       

Demand and other noninterest bearing

    $ 447,052     $ 448,664     $ 432,293  

Interest bearing demand

      430,967       350,081       414,198  

Money market

      530,542       535,681       516,415  

Savings

      110,236       120,965       110,795  

Certificates of deposit

      562,229       534,972       549,650  
                        

Total deposits

    $ 2,081,026     $ 1,990,363     $ 2,023,351  
                        

QUARTERLY FINANCIAL STATISTICS

   
Columbia Banking System, Inc.    Three Months Ended  
Unaudited    Mar 31     Dec 31     Sept 30     Jun 30     Mar 31  
(in thousands, except per share amounts)    2007     2006     2006     2006     2006  
Earnings           

Net interest income

    $ 24,703     $ 24,750     $ 24,405     $ 24,302     $ 24,306  

Provision for loan and lease losses

    $ 638     $ 950     $ 650     $ 250     $ 215  

Noninterest income

    $ 6,177     $ 6,324     $ 6,108     $ 6,267     $ 5,973  

Noninterest expense

    $ 20,402     $ 18,560     $ 18,098     $ 21,136     $ 18,340  

Net income

    $ 7,283     $ 8,341     $ 8,335     $ 7,239     $ 8,188  
Per Share           

Net income [basic]

    $ 0.45     $ 0.52     $ 0.52     $ 0.45     $ 0.52  

Net income [diluted]

    $ 0.45     $ 0.52     $ 0.52     $ 0.45     $ 0.51  
Averages           

Total assets

    $ 2,586,025     $ 2,517,836     $ 2,504,371     $ 2,480,585     $ 2,388,680  

Interest-earning assets

    $ 2,392,372     $ 2,310,502     $ 2,290,351     $ 2,268,259     $ 2,190,872  

Loans

    $ 1,765,692     $ 1,688,600     $ 1,647,471     $ 1,613,253     $ 1,567,615  

Securities

    $ 597,952     $ 602,075     $ 627,821     $ 645,343     $ 619,428  

Deposits

    $ 2,001,136     $ 2,024,108     $ 1,975,103     $ 1,949,608     $ 1,955,851  

Core deposits

    $ 1,444,210     $ 1,459,281     $ 1,433,641     $ 1,414,455     $ 1,425,442  

Shareholders’ Equity

    $ 256,292     $ 249,202     $ 238,272     $ 232,614     $ 231,080  
Financial Ratios           

Return on average assets

      1.14 %     1.31 %     1.32 %     1.17 %     1.39 %

Return on average equity

      11.52 %     13.28 %     13.88 %     12.48 %     14.37 %

Return on average tangible equity

      13.38 %     15.49 %     16.32 %     14.77 %     17.00 %

Average equity to average assets

      9.91 %     9.90 %     9.51 %     9.38 %     9.67 %

Net interest margin

      4.37 %     4.43 %     4.41 %     4.47 %     4.65 %

Efficiency ratio (tax equivalent)

      63.39 %     57.41 %     58.81 %     60.97 %     58.64 %
Period end           

Total assets

    $ 2,676,204     $ 2,553,131     $ 2,507,450     $ 2,544,598     $ 2,460,453  

Loans

    $ 1,833,852     $ 1,708,962     $ 1,655,809     $ 1,625,255     $ 1,595,262  

Allowance for loan and lease losses

    $ 20,819     $ 20,182     $ 20,926     $ 20,990     $ 20,691  

Securities

    $ 599,306     $ 605,133     $ 611,497     $ 650,955     $ 634,620  

Deposits

    $ 2,081,026     $ 2,023,351     $ 2,020,065     $ 1,962,748     $ 1,990,363  

Core deposits

    $ 1,518,797     $ 1,473,701     $ 1,460,634     $ 1,418,313     $ 1,455,390  

Shareholders’ equity

    $ 261,329     $ 252,347     $ 245,801     $ 232,241     $ 231,137  

Book value per share

    $ 16.17     $ 15.71     $ 15.32     $ 14.49     $ 14.47  

Tangible book value per share

    $ 14.16     $ 13.68     $ 13.27     $ 12.44     $ 12.41  
Nonperforming assets           

Nonaccrual loans

    $ 2,580     $ 2,414     $ 4,101     $ 4,575     $ 5,115  

Restructured loans

      806       1,066       804       1,197       1,146  

Personal property owned

      —         —         —         —         —    

Real estate owned

      —         —         —         —         18  
                                        

Total nonperforming assets

    $ 3,386     $ 3,480     $ 4,905     $ 5,772     $ 6,279  
                                        

Nonperforming loans to period-end loans

      0.18 %     0.20 %     0.30 %     0.36 %     0.39 %

Nonperforming assets to period-end assets

      0.13 %     0.14 %     0.20 %     0.23 %     0.26 %

Allowance for loan and lease losses to period-end loans

      1.14 %     1.18 %     1.26 %     1.29 %     1.30 %

Allowance for loan and lease losses to nonperforming loans

      614.86 %     579.94 %     426.63 %     363.65 %     330.47 %

Allowance for loan and lease losses to nonperforming assets

      614.86 %     579.94 %     426.63 %     363.65 %     329.53 %

Net loan charge-offs (recoveries)

    $ 1     $ 1,694     $ 714     $ (49 )   $ 353  

CONSOLIDATED CONDENSED STATEMENTS OF INCOME

Columbia Banking System, Inc.

 

(Unaudited)   

Three Months Ended

March 31,

(in thousands except per share)    2007    2006

Interest Income

      

Loans

    $ 34,030    $ 28,644

Taxable securities

      4,774      4,958

Tax-exempt securities

      1,960      1,427

Dividends on Federal Home Loan Bank stock

      11      —  

Federal funds sold and deposits with banks

      371      40
             

Total interest income

      41,146      35,069
Interest Expense      

Deposits

      12,159      8,491

Federal Home Loan Bank advances

      3,179      1,768

Long-term obligations

      507      459

Other borrowings

      598      45
             

Total interest expense

      16,443      10,763
             
Net Interest Income      24,703      24,306

Provision for loan and lease losses

      638      215
             

Net interest income after provision for loan and lease losses

      24,065      24,091
Noninterest Income      

Service charges and other fees

      2,959      2,834

Mortgage banking

      127      147

Merchant services fees

      1,969      2,038

Gain on sale of investment securities, net

      —        10

Bank owned life insurance (“BOLI”)

      426      399

Other

      696      545
             

Total noninterest income

      6,177      5,973
Noninterest Expense      

Compensation and employee benefits

      11,358      9,669

Occupancy

      2,837      2,648

Merchant processing

      823      784

Advertising and promotion

      547      652

Data processing

      567      800

Legal & professional services

      823      230

Taxes, licenses & fees

      613      596

Other

      2,834      2,961
             

Total noninterest expense

      20,402      18,340
             

Income before income taxes

      9,840      11,724

Provision for income taxes

      2,557      3,536
             
Net Income    $ 7,283    $ 8,188
             

Net income per common share:

      

Basic

    $ 0.45    $ 0.52

Diluted

    $ 0.45    $ 0.51

Dividend paid per common share

    $ 0.15    $ 0.13

Average number of common shares outstanding

      16,104      15,860

Average number of diluted common shares outstanding

      16,262      16,101

CONSOLIDATED CONDENSED BALANCE SHEETS

     

Columbia Banking System, Inc.

     
(Unaudited)   

March 31,

2007

    

December 31,

2006

  
(in thousands)             
Assets     

Cash and due from banks

    $ 65,496     $ 76,365  

Interest-earning deposits with banks

      15,804       13,979  

Federal funds sold

      26,250       14,000  
                      

Total cash and cash equivalents

      107,550       104,344  

Securities available for sale at fair value (amortized cost of $588,824 and $598,703 respectively)

      587,281       592,858  

Securities held to maturity at cost (fair value of $1,620 and $1,871 respectively)

      1,572       1,822  

Federal Home Loan Bank stock at cost

      10,453       10,453  

Loans held for sale

      2,999       933  

Loans, net of unearned income of ($3,285) and ($2,940), respectively

      1,833,852       1,708,962  

Less: allowance for loan and lease losses

      20,819       20,182  
                      

Loans, net

      1,813,033       1,688,780  

Interest receivable

      13,837       12,549  

Premises and equipment, net

      44,152       44,635  

Goodwill

      29,723       29,723  

Other assets

      65,604       67,034  
                      

Total Assets

    $ 2,676,204     $ 2,553,131  
                      
Liabilities and Shareholders’ Equity           

Deposits:

           

Noninterest-bearing

    $ 447,052     $ 432,293  

Interest-bearing

      1,633,974       1,591,058  
                      

Total deposits

      2,081,026       2,023,351  

Short-term borrowings:

           

Federal Home Loan Bank advances

      212,700       205,800  

Securities sold under agreements to repurchase

      70,000       20,000  

Other borrowings

      344       198  
                      

Total short-term borrowings

      283,044       225,998  

Long-term subordinated debt

      22,395       22,378  

Other liabilities

      28,410       29,057  
                      

Total liabilities

      2,414,875       2,300,784  

Shareholders’ equity:

           

Preferred stock (no par value)

           

Authorized, 2 million shares; none outstanding

      —         —    
    

March 31,

2007

   

December 31,

2006

             
                     

Common stock (no par value)

           

Authorized shares

    63,034    63,034     

Issued and outstanding

    16,157    16,060      168,033       166,763  

Retained earnings

            93,904       89,037  

Accumulated other comprehensive loss

            (608 )     (3,453 )
                      

Total shareholders’ equity

            261,329       252,347  

Total Liabilities and Shareholders’ Equity

          $ 2,676,204     $ 2,553,131