Edgar Filing: NBT BANCORP INC

NBT Bancorp 8K Press Release

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

PURSUANT TO SECTION 13 OR 15(D) OF THE

SECURITIES EXCHANGE ACT OF 1934

Date of Report (Date of earliest event reported): July 25, 2005

NBT BANCORP INC.

--------------------------------------------------------------------------------

(Exact name of registrant as specified in its charter)

DELAWARE	0-14703	16-1268674
----------------------------	-------------	-------------------
(State or other jurisdiction of incorporation)	(Commission File Number)	(IRS Employer Identification No.)

52 SOUTH BROAD STREET, NORWICH, NEW YORK 13815

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(Address of principal executive offices)

Registrant's telephone number, including area code: (607) 337-2265

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Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

[ ] Written communication pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

[ ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

[ ] Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

[ ] Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

ITEM 2.02 Results of Operations and Financial Condition

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On July 25, 2005, NBT Bancorp Inc. issued a press release describing its results of operations for the six months and quarter ending June 30, 2005 as well as announcing a quarterly dividend of $0.19 per share to be paid on September 15, 2005 to shareholders of record on September 1, 2005. That press release is furnished as Exhibit 99.1 hereto.

ITEM 9.01 Financial Statements and Exhibits

{c} The following is being furnished herewith:

Exhibit No.	Exhibit Description
99.1	Press release text of NBT Bancorp Inc. dated July 25, 2005

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

NBT BANCORP INC.

--------------------------------------

(Registrant)

/s/ Michael J. Chewens

--------------------------------------

Michael J. Chewens

Senior Executive Vice President,

Chief Financial Officer and Corporate Secretary

Date: July 26, 2005

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 $13.1 MILLION;

DECLARES CASH DIVIDEND

NORWICH, NY (July 25, 2005) - NBT Bancorp Inc. (NBT) (NASDAQ: NBTB) reported today that net income for the quarter ended June 30, 2005, was $13.1 million, or $0.40 per diluted share, up 5% 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 1.22% and 16.21%, respectively, for the quarter ended June 30, 2005, compared with 1.24% and 16.05%, respectively, for the same period in 2004. The increase in net income for the quarter ended June 30, 2005, was primarily the result of a $2.6 million increase in net interest income and a $1.1 million increase in noninterest income that was partially offset by a $2.8 million increase in noninterest expense.

Net income for the six months ended June 30, 2005, was $25.9 million, or $0.79 per diluted share, up 5% on a per share basis compared with $24.9 million or $0.75 per diluted share for the first six months of 2004. Return on average assets and return on average equity were 1.23% and 15.99%, respectively, for the six months ended June 30, 2005, compared with 1.24% and 15.89%, respectively, for the same period in 2004. The increase in net income for the six months ended June 30, 2005, was primarily the result of a $4.4 million increase in net interest income and a $1.3 million increase in noninterest income that was partially offset by an increase in noninterest expense of $4.5 million.

NBT Chairman and CEO Daryl R. Forsythe stated, “We are pleased to report another solid quarter for the Company. Earnings and loan growth continued their positive trends. The combination of exceptional customer service and commercial lending expertise that we provide has attracted and retained a loyal customer base in the markets we serve. In addition, NBT’s expansion efforts into the Albany, Binghamton and northeastern Pennsylvania markets have delivered solid results in the areas of loan and deposit growth as well as noninterest income growth.”

Loan and Lease Quality and Provision for Loan and Lease Losses

Nonperforming loans at June 30, 2005 were $13.5 million or 0.45% of total loans and leases compared with $13.8 million or 0.50% of total loans and leases at June 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 1.55% of loans and leases at June 30, 2005 compared with 1.58% at June 30, 2004, and 1.57% at December 31, 2004. The ratio of the allowance for loan and lease losses to nonperforming loans was 344.01% at June 30, 2005 compared with 315.52% at June 30, 2004, and 277.75% at December 31, 2004. Annualized net charge-offs to average loans and leases for the six months ended June 30, 2005, were 0.18%, compared with the 0.28% annualized ratio for the six months ended June 30, 2004, and the ratio for the year ended December 31, 2004 of 0.27%. The improvement in credit quality during the second quarter of 2005 was driven mainly by the sale of approximately $5.0 million in nonperforming loans.

For the quarter and six months ended June 30, 2005, the provision for loan and lease losses totaled $2.3 million and $4.1 million, respectively, compared with the $2.4 million and $4.6 million for the same periods in 2004. The slight decrease in the provision for loan and lease losses for the quarter and six months ended June 30, 2005, when compared with the same periods in 2004, was due primarily to improved credit quality and above-mentioned lower charge-offs offset somewhat by strong loan growth, as loans and leases were up 9% at June 30, 2005, when compared with the same period in 2004.

Net Interest Income

Net interest income was up 7% to $39.3 million for the quarter ended June 30, 2005, compared to $36.7 million for the same period a year ago. The increase in net interest income was attributable to 6% growth in average earning assets as well as a modest increase in the Company’s net interest margin, which was 4.02% for the quarter ended June 30, 2005, up from the 3.99% for the same period in 2004. Net interest income for the six months ended June 30, 2005, increased 6%, to $78.1 million from $73.8 million in the same period for 2004. The increase in net interest income was attributable to 6% growth in average earning assets for the period as well as a modest increase in the Company’s net interest margin, which was 4.06% for the six months ended June 30, 2005, up slightly from the 4.04% for the same period in 2004. The improvement in net interest margin for the quarter and the six months ended June 30, 2005, compared to the same periods in 2004 resulted primarily from earning assets repricing up faster than interest-bearing liabilities. NBT President Martin A. Dietrich commented, “Effective management of our balance sheet has enabled NBT to maintain a stable net interest margin over the past several quarters during this period of short-term rising rates.”

Noninterest Income

Noninterest income for the quarter ended June 30, 2005 was $11.1 million, up $1.1 million or 11% from $10.0 million for the same period in 2004. 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 and title search revenue. Offsetting these increases was a $1.0 million decrease in broker/dealer and insurance revenue from the sale of the Company’s broker/dealer subsidiary M. Griffith Inc. in March 2005.

Noninterest income for the six months ended June 30, 2005 was $21.8 million, up $1.3 million or 7% from $20.4 million for the same period in 2004. Retirement plan administration fees totaled $2.0 million, from the previously mentioned acquisition of EPIC Advisors, Inc. in January 2005. ATM and debit card fees increased $0.3 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. Offsetting these increases was a $1.4 million decrease in broker/dealer and insurance revenue from the previously mentioned sale of the Company’s broker/dealer subsidiary M. Griffith Inc. in March 2005.

Noninterest Expense

Noninterest expense for the quarter ended June 30, 2005 was $28.7 million, up from $25.9 million for the same period in 2004. Salaries and employee benefits for the quarter ended June 30, 2005, increased $2.3 million over the same period in 2004, mainly from higher salaries from merit increases and higher incentive compensation costs. Other operating expense for the quarter ended June 30, 2005, increased $0.5 million compared with the same period in 2004, primarily from increases in insurance costs and loan underwriting expenses.

Noninterest expense for the six months ended June 30, 2005 was $57.6 million, up $4.5 million from $53.1 million for the same period in 2004. The increase in noninterest expense was driven by increases in salaries and employee benefits, occupancy and equipment expense. Salaries and employee benefits increased $3.4 million, mainly from increases in salary expense and employee benefit expense, reflecting merit increases as well as higher pension and incentive compensation costs. Occupancy expense increased $0.3 million from branch expansion in the Albany, Binghamton and northeastern Pennsylvania markets. Equipment expense increased $0.4 million, principally from ATM and technology upgrades.

Balance Sheet

Total assets were $4.4 billion at June 30, 2005 up $0.3 billion from $4.1 billion at June 30, 2004. Loans and leases increased $0.2 billion or 9% from $2.8 billion at June 30, 2004 to $3.0 billion at June 30, 2005. Loan growth was fueled by solid production from consumer and commercial loan products. Total deposits were $3.2 billion at June 30, 2005 up 5% from the same period at June 30, 2004. Stockholders’ equity was $330.7 million representing total equity to total assets of 7.55% at June 30, 2005 compared with $307.7 million or a total equity to total asset ratio of 7.46% at June 30, 2004. Under previously announced stock repurchase plans, the Company acquired 671,543 shares of its common stock at an average price of $22.84 per share totaling $15.3 million for the six months ended June 30, 2005.

Dividend Declared

The NBT Board of Directors declared a third-quarter cash dividend of $0.19 per share at a meeting held today. The dividend will be paid on September 15, 2005 to shareholders of record as of September 1, 2005.

Corporate Overview

NBT is a financial services holding company headquartered in Norwich, NY, with total assets of $4.4 billion at June 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 114 locations, including 74 NBT Bank offices in upstate New York and 40 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), with total assets of approximately $400 million, which is headquartered in Gloversville, NY. The merger is expected to close in the fourth quarter of 2005 pending regulatory and CNB shareholder approval. More information about NBT and 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; and (7) 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.

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 June 30,
Net Income	$	13,128			$	12,568			$	560			4	%
Diluted Earnings Per Share	$	0.40			$	0.38			$	0.02			5	%
Weighted Average Diluted
Common Shares Outstanding		32,583,600				33,084,126				(500,526		)	-2	%
Return on Average Assets		1.22		%		1.24		%		-0.02		%	-2	%
Return on Average Equity		16.21		%		16.05		%		0.16		%	1	%
Net Interest Margin		4.02		%		3.99		%		0.03		%	1	%

Six Months Ended June 30,
Net Income	$	25,917			$	24,939			$	978			4	%
Diluted Earnings Per Share	$	0.79			$	0.75			$	0.04			5	%
Weighted Average Diluted
Common Shares Outstanding		32,779,403				33,128,783				(349,380		)	-1	%
Return on Average Assets		1.23		%		1.24		%		-0.01		%	-1	%
Return on Average Equity		15.99		%		15.89		%		0.10		%	1	%
Net Interest Margin		4.06		%		4.04		%		0.02		%	0	%

Asset Quality		June 30,				December 31,				June 30,
		2005				2004				2004
Nonaccrual Loans	$	13,041			$	14,991			$	13,240
90 Days Past Due and Still Accruing	$	450			$	1,186			$	541
Total Nonperforming Loans	$	13,491			$	16,177			$	13,781
Other Real Estate Owned (OREO)	$	395			$	428			$	365
Total Nonperforming Loans and OREO	$	13,886			$	16,605			$	14,146
Total Nonperforming Assets	$	13,886			$	16,605			$	14,198
Allowance for Loan and Lease Losses	$	46,411			$	44,932			$	43,482
Year-to-Date (YTD) Net Charge-Offs	$	2,637			$	7,334			$	3,720
Allowance to Loans and Leases		1.55		%		1.57		%		1.58		%
Total Nonperforming Loans to Loans and Leases		0.45		%		0.56		%		0.50		%
Total Nonperforming Assets to Assets		0.32		%		0.39		%		0.34		%
Allowance to Nonperforming Loans		344.01		%		277.75		%		315.52		%
Annualized Net Charge-Offs to
YTD Average Loans and Leases		0.18		%		0.27		%		0.28		%

Capital
Equity to Assets		7.55		%		7.89		%		7.46		%
Book Value Per Share	$	10.22			$	10.11			$	9.43
Tangible Book Value Per Share	$	8.62			$	8.66			$	7.91
Tier 1 Leverage Ratio		6.91		%		7.13		%		6.90		%
Tier 1 Capital Ratio		9.23		%		9.78		%		9.74		%
Total Risk-Based Capital Ratio		10.48		%		11.04		%		11.00		%

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						24.34	21.02			21.76	19.24
December 31						26.84	21.94			22.78	19.50

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 June 30,
Loans	$	2,995,964		$	2,753,625	$	242,339		9	%
Earning Assets	$	4,087,964		$	3,860,751	$	227,213		6	%
Total Assets	$	4,381,364		$	4,125,374	$	255,990		6	%
Deposits	$	3,178,059		$	3,040,609	$	137,450		5	%
Stockholders’ Equity	$	330,749		$	307,675	$	23,074		7	%

Average Balances
Quarter Ended June 30,
Loans	$	2,943,631		$	2,698,654	$	244,977		9	%
Securities AFS (excluding unrealized gains or losses)	$	955,166		$	974,046		($18,880	)	-2	%
Securities HTM	$	88,401		$	87,802	$	599		1	%
Regulatory Equity Investment	$	36,617		$	33,301	$	3,316		10	%
Short-Term Interest Bearing Accounts	$	6,411		$	7,282		($871	)	-12	%
Total Earning Assets	$	4,030,226		$	3,801,085	$	229,141		6	%
Total Assets	$	4,307,004		$	4,073,144	$	233,860		6	%
Interest Bearing Deposits	$	2,657,197		$	2,555,590	$	101,607		4	%
Non-Interest Bearing Deposits	$	521,348		$	483,650	$	37,698		8	%
Short-Term Borrowings	$	320,151		$	283,701	$	36,450		13	%
Long-Term Borrowings	$	430,452		$	388,331	$	42,121		11	%
Total Interest Bearing Liabilities	$	3,407,800		$	3,227,622	$	180,178		6	%
Stockholders’ Equity	$	324,801		$	314,980	$	9,821		3	%

Average Balances
Six Months Ended June 30,
Loans	$	2,910,426		$	2,672,384	$	238,042		9	%
Securities AFS (excluding unrealized gains or losses)	$	954,013		$	969,347		($15,334	)	-2	%
Securities HTM	$	86,602		$	91,878		($5,276	)	-6	%
Regulatory Equity Investment	$	36,576		$	33,648	$	2,928		9	%
Short-Term Interest Bearing Accounts	$	6,569		$	7,761		($1,192	)	-15	%
Total Earning Assets	$	3,994,186		$	3,775,018	$	219,168		6	%
Total Assets	$	4,272,507		$	4,052,714	$	219,793		5	%
Interest Bearing Deposits	$	2,630,965		$	2,538,519	$	92,446		4	%
Non-Interest Bearing Deposits	$	513,447		$	476,186	$	37,261		8	%
Short-Term Borrowings	$	324,912		$	286,658	$	38,254		13	%
Long-Term Borrowings	$	421,890		$	387,519	$	34,371		9	%
Total Interest Bearing Liabilities	$	3,377,767		$	3,212,696	$	165,071		5	%
Stockholders’ Equity	$	327,360		$	315,522	$	11,838		4	%

NBT Bancorp Inc. and Subsidiaries		June 30,		December 31,		June 30,
Consolidated Balance Sheets (unaudited)		2005		2004		2004
(in thousands)

ASSETS
Cash and due from banks	$	118,358	$	98,437	$	102,705
Short term interest bearing accounts		6,078		8,286		7,240
Securities available for sale, at fair value		961,944		952,542		980,097
Securities held to maturity (fair value of $89,465, $82,712, and		88,771		81,782		79,766
$80,390, at June 30, 2005, December 31, 2004
and June 30, 2004, respectively)
Federal Reserve and Federal Home Loan Bank stock		39,442		36,842		35,994
Loans and leases		2,995,964		2,869,921		2,753,625
Less allowance for loan and lease losses		46,411		44,932		43,482
Net loans and leases		2,949,553		2,824,989		2,710,143
Premises and equipment, net		64,133		63,743		62,008
Goodwill		47,544		45,570		47,521
Intangible assets, net		4,092		2,013		2,189
Bank owned life insurance		32,968		32,302		31,609
Other assets		68,481		65,798		66,102
TOTAL ASSETS	$	4,381,364	$	4,212,304	$	4,125,374

LIABILITIES AND STOCKHOLDERS' EQUITY
Deposits:
Demand (noninterest bearing)	$	569,046	$	520,218	$	490,573
Savings, NOW, and money market		1,386,720		1,435,561		1,494,278
Time		1,222,293		1,118,059		1,055,758
Total deposits		3,178,059		3,073,838		3,040,609
Short-term borrowings		384,171		338,823		349,144
Long-term debt		419,377		394,523		369,567
Trust preferred debentures		18,720		18,720		18,720
Other liabilities		50,288		54,167		39,659
Total liabilities		4,050,615		3,880,071		3,817,699

Total stockholders' equity		330,749		332,233		307,675

TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$	4,381,364	$	4,212,304	$	4,125,374

	Three months ended				Six months ended
NBT Bancorp Inc. and Subsidiaries	June 30,				June 30,
Consolidated Statements of Income (unaudited)	2005		2004		2005		2004
(in thousands, except per share data
Interest, fee and dividend income:
Loans and leases	$	46,260	$	39,635	$	90,204	$	79,529
Securities available for sale		10,226		10,313		20,473		21,082
Securities held to maturity		831		755		1,634		1,552
Other		549		235		1,016		502
Total interest, fee and dividend income		57,866		50,938		113,327		102,665
Interest expense:
Deposits		12,018		9,674		22,738		19,719
Short-term borrowings		2,207		794		4,068		1,587
Long-term debt		4,032		3,627		7,840		7,242
Trust preferred debentures		285		163		543		343
Total interest expense		18,542		14,258		35,189		28,891
Net interest income		39,324		36,680		78,138		73,774
Provision for loan and lease losses		2,320		2,428		4,116		4,552
Net interest income after provision for loan and lease losses		37,004		34,252		74,022		69,222
Noninterest income:
Trust		1,251		1,142		2,503		2,249
Service charges on deposit accounts		4,311		4,090		8,240		8,127
ATM and debit card fees		1,544		1,396		2,944		2,654
Broker/dealer and insurance revenue		736		1,783		2,088		3,514
Net securities gains		51		29		47		38
Bank owned life insurance income		333		409		666		794
Retirement plan administration fees		1,156		-		2,019		-
Other		1,673		1,140		3,259		3,056
Total noninterest income		11,055		9,989		21,766		20,432
Noninterest expense:
Salaries and employee benefits		14,848		12,542		30,071		26,655
Office supplies and postage		1,121		1,143		2,271		2,174
Occupancy		2,550		2,446		5,338		5,044
Equipment		1,931		1,781		4,027		3,634
Professional fees and outside services		1,381		1,424		3,056		3,056
Data processing and communications		2,530		2,852		5,188		5,544
Amortization of intangible assets		142		71		260		142
Loan collection and other real estate owned		208		99		609		471
Other operating		3,985		3,505		6,757		6,345
Total noninterest expense		28,696		25,863		57,577		53,065
Income before income taxes		19,363		18,378		38,211		36,589
Income taxes		6,235		5,810		12,294		11,650
Net income	$	13,128	$	12,568	$	25,917	$	24,939
Earnings Per Share:
Basic	$	0.41	$	0.38	$	0.80	$	0.76
Diluted	$	0.40	$	0.38	$	0.79	$	0.75

NBT Bancorp Inc. and Subsidiaries		2Q		1Q			4Q		3Q		2Q
Quarterly Consolidated Statements of Income (unaudited)		2005		2005			2004		2004		2004
(in thousands, except per share data)
Interest, fee and dividend income:
Loans	$	46,260	$	43,944		$	42,983	$	41,283	$	39,635
Securities available for sale		10,226		10,247			10,398		10,784		10,313
Securities held to maturity		831		803			761		731		755
Other		549		467			279		295		235
Total interest, fee and dividend income		57,866		55,461			54,421		53,093		50,938
Interest expense:
Deposits		12,018		10,720			10,299		9,743		9,674
Short-term borrowings		2,207		1,861			1,307		1,192		794
Long-term debt		4,032		3,808			3,919		3,861		3,627
Trust preferred debentures		285		258			235		245		163
Total interest expense		18,542		16,647			15,760		15,041		14,258
Net interest income		39,324		38,814			38,661		38,052		36,680
Provision for loan and lease losses		2,320		1,796			2,750		2,313		2,428
Net interest income after provision for loan and lease losses		37,004		37,018			35,911		35,739		34,252
Noninterest income:
Trust		1,251		1,252			1,174		1,182		1,142
Service charges on deposit accounts		4,311		3,929			4,184		4,159		4,090
ATM and debit card fees		1,544		1,400			1,402		1,474		1,396
Broker/dealer and insurance fees		736		1,352			1,572		1,696		1,783
Net securities gains (losses)		51		(4	)		160		18		29
Bank owned life insurance income		333		333			345		348		409
Retirement plan administration fees		1,156		863			-		-		-
Other		1,673		1,586			1,503		1,240		1,140
Total noninterest income		11,055		10,711			10,340		10,117		9,989
Noninterest expense:
Salaries and employee benefits		14,848		15,223			14,063		13,345		12,542
Office supplies and postage		1,121		1,150			1,118		1,167		1,143
Occupancy		2,550		2,788			2,416		2,445		2,446
Equipment		1,931		2,096			1,998		1,941		1,781
Professional fees and outside services		1,381		1,675			1,583		1,536		1,424
Data processing and communications		2,530		2,658			2,740		2,688		2,852
Amortization of intangible assets		142		118			71		71		71
Loan collection and other real estate owned		208		401			431		339		99
Goodwill impairment		-		-			1,950		-		-
Other operating		3,985		2,772			3,037		3,773		3,505
Total noninterest expense		28,696		28,881			29,407		27,305		25,863
Income before income taxes		19,363		18,848			16,844		18,551		18,378
Income taxes		6,235		6,059			4,353		5,934		5,810
Net income	$	13,128	$	12,789		$	12,491	$	12,617	$	12,568
Earnings per share:
Basic	$	0.41	$	0.39		$	0.38	$	0.38	$	0.38
Diluted	$	0.40	$	0.39		$	0.38	$	0.38	$	0.38