Ex-99.1 October 23, 2006 Earnings Press Release

FOR IMMEDIATE RELEASE

Aimee Punessen,

Investor Relations

EXHIBIT 99.1

810 Crescent Centre Drive, Suite 320
Franklin, TN 37067
office 615.263.9500 fax 615.383.8830

CIVITAS REPORTS CONTINUED STRONG
GROWTH AND IMPROVING PROFITS

FRANKLIN, Tenn. (October 23, 2006) — Civitas BankGroup (CVBG) reported net income of $5.5 million for the first nine months of 2006 and 25.1% growth in loans at its subsidiary, Cumberland Bank.

The $5.5 million nine months’ net income from continuing operations represents a $2.6 million or 89.8% increase from the comparable period in 2005. On a per share basis, 2006 net income from continuing operations totaled $0.35 per share, compared to $0.18 per share in 2005.

Net income for the first nine months of 2006 included a non-recurring $2.1 million (after tax) gain related to the company’s sale of its 50% interest in the Murray (Kentucky) Bank. Earnings for the first nine months of 2006, excluding this gain, were $3.4 million compared to earnings from continuing operations of $2.9 million for the first nine months of 2005.

Net income for the third quarter 2006 was $1.2 million ($0.07 per share), an increase of 42.1% over the third quarter 2005.

Loans and deposits at Cumberland Bank have continued to exhibit strong growth. Compared to September 30, 2005, loans have grown $124.5 million (26.2%) and deposits have increased $132.4 million (23.7%). Compared to year-end 2005, loans have grown at an annualized rate of 33.5% and annualized growth compared to June 30, 2006, was 45.6%.

“Growth dominated our financial performance during the third quarter of 2006,” explained Richard E. Herrington, President of Civitas BankGroup. “Loans grew $61 million during the third quarter, an annualized growth rate of 45.6%. In the last twelve months, we have grown our loan portfolio by $125 million. In the highly competitive Middle Tennessee market, these growth rates are remarkable. The loan and deposit growth reflect the last two years’ efforts to focus on the Middle Tennessee market. We are now fully restructured as Middle Tennessee’s community bank. We opened our twelfth banking center in Hendersonville earlier this year and have announced plans for new banking centers in Cool Springs and Murfreesboro for 2007.”

“However, there is a downside to such dynamic growth,” added Herrington. “Short-term, net income is penalized by loan growth as a result of substantial additions to the Allowance for Loan Losses through provision for loan loss expense. In reality, we have given up short-term income to build for longer term profits. Additionally, short-term earnings have been negatively impacted by national and local interest rate markets, characterized by a flat or inverted yield curve and rapidly rising short-term interest rates, as we have rebuilt our balance sheet and shifted our funding philosophy away from long-term, high cost certificates of deposits.”

“While franchise growth has been outstanding, we have been mindful of the need to continue our focus on asset quality,” said Herrington. “Our asset quality ratios put us in a leadership position among peer banks. For example, our delinquency ratio finished the quarter below 0.5% of loans, which is less than half of our peer group average.”

“We are in the fourth year of our rebuilding program, and we are pleased with the results,” explained Herrington. “Since year-end 2002, we have achieved three key objectives. First, we have eliminated the vast majority of our problem loan issues and implemented an appropriate credit culture. Second, we have significantly grown Cumberland Bank, increasing assets from $468 million at year-end 2002 to $862 million at September 30, 2006. Finally, while sacrificing short-term earnings to solve problems and build a strong foundation, we have increased core earnings and developed a positive trend in profits and profitability. To accomplish these three objectives simultaneously speaks to the abilities and experience of our banking team.”

In July 2006, the common stock of Civitas began trading on the NASDAQ Global Markets exchange.

Civitas BankGroup is a bank holding company operating in Middle Tennessee through Cumberland Bank. The company also owns 50% of Nashville’s Insurors Bank of Tennessee.

—30—

THE STATEMENTS CONTAINED IN THIS RELEASE WHICH ARE NOT HISTORICAL FACTS ARE FORWARD-LOOKING STATEMENTS MADE PURSUANT TO THE SAFE HARBOR PROVISIONS OF THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995. FORWARD-LOOKING STATEMENTS DESCRIBING OUR FUTURE PLANS, PROJECTIONS, STRATEGIES AND EXPECTATIONS, ARE BASED ON ASSUMPTIONS AND INVOLVE A NUMBER OF RISKS AND UNCERTAINTIES, MANY OF WHICH ARE BEYOND OUR CONTROL. ACTUAL RESULTS COULD DIFFER MATERIALLY FROM THOSE PROJECTED DUE TO CHANGES IN INTEREST RATES, COMPETITION IN THE INDUSTRY, CHANGES IN LOCAL AND NATIONAL ECONOMIC CONDITIONS AND VARIOUS OTHER FACTORS. ADDITIONAL INFORMATION CONCERNING SUCH FACTORS, WHICH COULD AFFECT US, IS CONTAINED IN OUR FILINGS WITH THE SECURITIES AND EXCHANGE COMMISSION.

Civitas BankGroup, Inc.
dollars in thousands
unaudited


	Sept 30,			December 31,
	2006			2005			% Change
Balance Sheet Summary

Assets
Cash and Cash Equivalents	$	14,244		$	31,510			-54.8	%
Federal Funds Sold & Interest Bearing Deposits		3,274			3,657			-10.5	%
Investment Securities		219,015			205,170			6.7	%
Loans held for sale		2,939			3,720			-21.0	%
Loans		596,050			476,421			25.1	%
Allowance for Loan Losses		(6,012	)		(4,765	)		26.2	%

Net Loans		590,038			471,656			25.1	%
Fixed Assets		14,035			14,025			0.1	%
Foreclosed Properties		161			346			-53.5	%
Other Assets		22,023			19,432			13.3	%

Total Assets	$	865,729		$	749,516			15.5	%


Liabilities and Shareholders’ Equity
Deposits	$	691,100		$	600,766			15.0	%
Repurchase Agreements and Other Borrowings		99,932			80,452			24.2	%
Subordinated Debentures		17,000			17,000			0.0	%
Other Liabilities		5,060			4,073			24.2	%
Shareholders’ Equity		52,637			47,225			11.5	%

Total Liabilities and Equity	$	865,729		$	749,516			15.5	%


Book Value per Share		3.31			2.98			11.1	%

Civitas BankGroup, Inc.
dollars in thousands except per share data
unaudited


	Three Months Ended Sept 30,							Nine Months Ended Sept 30,
	2006		2005		% Change			2006		2005		% Change
Income Statement
Interest Income	$	14,154	$	10,146		39.5	%	$	38,464	$	29,442		30.6	%
Interest Expense		7,963		4,939		61.2	%		20,817		13,609		53.0	%

Net Interest Income		6,191		5,207		18.9	%		17,647		15,833		11.5	%
Provision for Loan Losses		1,250		325		284.6	%		2,068		863		139.6	%
Non-Interest Income		2,367		1,757		34.7	%		8,845		5,957		48.5	%
Non-Interest Expense		5,543		5,466		1.4	%		15,992		16,788		-4.7	%

Income Before Taxes		1,765		1,173		50.5	%		8,432		4,139		103.7	%
Income Taxes		598		352		69.9	%		2,953		1,253		135.7	%

Income from Continuing Operations*	$	1,167	$	821		42.1	%	$	5,479	$	2,886		89.8	%

Income from Discontinued Operations, net of taxes		—		—		—			—		82		-100.0	%
Gain on Sale of Discontinued Operations, net of taxes		—		—		—			—		3,382		-100.0	%

Net Income	$	1,167	$	821		42.1	%	$	5,479	$	6,350		-13.7	%


Per Share Data
Income — Basic — Continuing Operations*	$	0.07	$	0.05		40.9	%	$	0.35	$	0.18		92.8	%
Income — Diluted — Continuing Operations*		0.07		0.05		41.1	%		0.34		0.18		91.7	%

Income — Basic — Discontinued Operations		—		—		—			—		0.21		-100.0	%
Income — Diluted — Discontinued Operations		—		—		—			—		0.21		-100.0	%

Income — Basic		0.07		0.05		40.9	%		0.35		0.39		-12.4	%
Income — Diluted		0.07		0.05		41.1	%		0.34		0.39		-12.9	%

Weighted Average Shares Outstanding
Basic		15,889,633		15,752,241		0.9	%		15,879,084		16,121,881		-1.5	%
Diluted		15,965,524		15,843,504		0.8	%		16,041,109		16,197,904		-1.0	%

* Includes $2.1 million after tax gain on sale of The Murray Bank for the nine months ended September 30, 2006

Civitas BankGroup, Inc.
dollars in thousands
unaudited


	Three Months Ended						Nine Months Ended
	Sept 30,						Sept 30,
	2006			2005			2006			2005
Average Balances
Loans	$	570,361		$	457,618		$	528,248		$	450,159
Securities		219,890			197,140			213,837			201,037
Earning Assets		792,891			660,579			745,553			661,635
Total Assets of Discontinued Operations		0			0			0			44,673
Total Assets		843,002			715,047			798,317			758,320

Demand Deposits	$	59,872		$	61,166		$	57,725		$	62,211
Interest-Bearing Deposits		610,247			490,494			577,879			503,163
Total Deposits of Discontinued Operations		0			0			0			36,690
Total Deposits		670,119			551,660			635,604			602,065
Shareholders’ Equity		50,519			46,580			49,482			47,930
Key Performance Ratios — Continuing Operations (annualized)*
Return on Average Assets		0.6	%		0.5	%		0.9	%		0.5	%
Return on Average Equity		9.2	%		7.1	%		14.8	%		8.0	%
Net Interest Margin		3.1	%		3.2	%		3.2	%		3.2	%
Efficiency Ratio		64.8	%		78.5	%		60.4	%		77.0	%
Asset Quality Data — Continuing Operations
Nonperforming Assets								2,216			2,741
Allowance for Loan Losses								6,012			4,687
Net Charge-Offs								821			553

Nonperforming Assets to Period- End Loans								0.37	%		0.58	%
Allowance for Loan Losses to Period-End Loans								1.01	%		0.99	%
Net Charge-Offs to Average Loans								0.19	%		0.16	%

* Calculations include $2.1 million after tax gain on sale of The Murray Bank for the nine months in 2006