8-K

UNITED STATES
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

April 23, 2008

Date of Report (Date of earliest event reported)

FIRST COMMUNITY BANCSHARES, INC.

(Exact name of registrant as specified in its charter)

Nevada	000-19297	55-0694814
(State or other jurisdiction of incorporation)	(Commission File Number)	(IRS Employer Identification No.)
P.O. Box 989
Bluefield, Virginia		24605-0989
(Address of principal executive offices)		(Zip Code)

(276) 326-9000

(Registrant’s telephone number, including area code)

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:

o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

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

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

o 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

On April 23, 2008, First Community Bancshares, Inc. announced by press release its earnings for the first quarter of 2008. A copy of the press release is attached hereto as Exhibit 99.1. The information contained in this Report on Form 8-K is furnished pursuant to Item 12 and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that section, nor shall such information be deemed incorporated by reference in any filing under the Securities Exchange Act of 1933, as amended, except as shall be expressly set forth by specific reference in such filing.

Item 9.01 Financial Statements and Exhibits

(d) The following exhibit is included with this report:

Exhibit No.	Exhibit Description
99.1	Press release dated April 23, 2008

SIGNATURE

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 thereunto duly authorized.

	FIRST COMMUNITY BANCSHARES, INC.
Date: April 23, 2008	By:	/s/ David D. Brown
		David D. Brown
		Chief Financial Officer

EX-99.1

EXHIBIT 99.1

NEWS RELEASE

FOR IMMEDIATE RELEASE:
April 23, 2008 FOR MORE INFORMATION,
CONTACT:      David D. Brown
(276) 326-9000

First Community Bancshares, Inc. Announces First Quarter Earnings and
Strong Credit Quality

Bluefield, Virginia — First Community Bancshares, Inc. (NASDAQ: FCBC) (www.fcbinc.com) today reported that first quarter earnings were $6.31 million, or $0.57 per diluted share. This represents an 11.40% decrease over first quarter 2007 earnings of $7.12 million, or $0.63 diluted earnings per share. Return on average assets was 1.21% for the first quarter of 2008 compared with 1.42% for the first quarter of 2007. Return on average equity for the first quarter of 2008 was 11.66%, compared to 13.33% for the same period in 2007.

John M. Mendez, President and Chief Executive Officer, said, “In these turbulent times, I am pleased that our asset quality measures have held up nicely. We remain vigilant over asset quality, which has led to lower new loan production levels.” Mr. Mendez continued, “We now have our Small Business Lending Division running at full pace and have brought our levels of commercial lending staff back close to optimal levels. This leaves First Community well positioned to take advantage of future growth opportunities as real estate markets rebound.”

The Company continues to see non-performing assets at historically low levels. At the close of the first quarter, nonaccrual loans remained near record lows at $3.14 million, or 0.27% of total loans. Other real estate owned was $400 thousand. The Company made a $323 thousand provision for loan losses in the first quarter. The modest loan loss provision reflects the Company’s annualized net charge-off percentage for the first quarter of only 10 basis points.

The Company’s first quarter results reflect significant margin compression and loan portfolio declines. The margin compression stems from the 200 basis point decline in prime loan rates which could not be absorbed within the quarter.

Non-interest income of $9.14 million was an improvement of 75.28% compared with first quarter 2007 of $5.22 million. During the first quarter, the Company sold investment securities resulting in gains totaling $1.82 million. Service charges on deposit accounts increased by 28.64%, and other service charges and fees improved 28.85%. The first quarter included $1.34 million in insurance commission revenues from GreenPoint Insurance Group. The Company acquired GreenPoint Insurance Group, a High Point, North Carolina, insurance agency near the end of third quarter 2007. GreenPoint is a full-service insurance agency offering commercial and personal lines, property and casualty, life, and health insurance.

Also during the first quarter, the Company prepaid a $25.00 million advance from the FHLB. The advance had a fixed rate of 5.47% and the prepayment resulted in a penalty of approximately $1.65 million. The Company did not replace the borrowing as it remains in a strong liquidity position.

Financial Highlights
First Quarter 2008

• Interest income was $29.55 million, a decrease of $1.14 million, or 3.71%, from first quarter 2007. The decrease was due primarily to decreases in loan yields and average loans. The yield on loans dropped to 7.09% from 7.54% and average loans decreased $60.15 million to $1.21 billion from first quarter 2007. At the same time, the Company has added to its investment portfolio, and first quarter 2008 average investments increased $82.97 million, or 15.02%, compared to first quarter 2007.

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• Net interest income was down $655 thousand, or 3.85%, from the first quarter of 2007. First quarter interest expense decreased $484 thousand, or 3.54%, from 2007. The Company has been proactively managing down interest costs on deposit accounts in response to actions taken by the Federal Reserve that lowered the target overnight borrowing rate 200 basis points during the first quarter. First quarter deposit costs decreased $559 thousand compared to the first quarter of 2007, while the average rate paid on interest-bearing deposits decreased 21 basis points to 3.03%. Compared to 2007, interest costs on borrowings increased $75 thousand to $4.45 million, while the average balance increased $69.18 million as the Company added additional wholesale borrowings during the second quarter of 2007. First quarter cost of interest-bearing liabilities decreased 30 basis points compared to last year. Average interest bearing liabilities increased $68.32 million, or 4.35%, compared with first quarter 2007. Tax equivalent net interest margin was 3.78%.

• Wealth management revenues decreased $119 thousand, or 11.69%, compared with the first quarter of 2007 as trust revenue decreased $211 thousand and investment advisory revenue increased $88 thousand. Service charges on deposit accounts increased $690 thousand, or 28.64%. Other service charges and fees increased $251 thousand, or 28.85%. Insurance commissions were $1.34 million for the first quarter of 2007. Insurance commissions are derived from GreenPoint Insurance Group, a September 2007 acquisition. Other operating income increased 8.75% to $858 thousand.

• Total non-interest expenses for the first quarter of 2008 increased $4.13 million, or 33.93%, from first quarter 2007. The first quarter 2008 includes a penalty of $1.65 million the Company incurred as a result of prepayment of a $25.00 million FHLB convertible advance. Salaries and benefits increased $1.38 million, or 21.51%, from the first quarter of 2007. GreenPoint accounted for approximately $645 thousand of the increase. The Company’s new Small Business Lending Division and new branches accounted for $101 thousand and $313 thousand of the increase, respectively. The Company also deferred $281 thousand less in salaries and benefits costs through FAS 91 as a result of lower loan production, and saw increases in health care costs of $111 thousand (exclusive of GreenPoint). Occupancy and furniture and equipment fixtures increased due to the new branches that were opened throughout 2007 and the addition of operating expenses at GreenPoint. Other non-interest expenses increased $857 thousand, or 22.77%, compared to the first quarter of 2007 and included $200 thousand of expenses at GreenPoint, $138 thousand of increased account promotion and marketing expenses, $136 thousand in increased professional accounting expenses, and $77 thousand in increased consulting fees expenses. The first quarter efficiency ratio was 58.00% compared to 51.13% in 2007.

• Credit quality remains very sound. Loan delinquencies as a percent of total loans decreased to 0.65% at March 31, 2008, compared with 0.98% at December 31, 2007. The ratio of allowance for loan losses as a percent of loans held for investment was 1.09% compared with 1.05% at December 31, 2007. Non-performing assets remained stable at $3.54 million compared with $3.47 million at December 31, 2007. Non-performing assets as a percentage of loans held for investment and other real estate were 0.30% compared with 0.28% at December 31, 2007.

• Net charge-offs in the first quarter of 2008 were $294 thousand compared to $39 thousand in the first quarter of 2007. The Company made a provision for loan losses of $323 thousand in the first quarter of 2008 compared with no provision in the first quarter of 2007.

• Since year-end 2007, consolidated assets have decreased $84.73 million to $2.07 billion. Included in that decrease is the prepayment of a $25.00 million FHLB and a decrease of $46.00 million in the loan portfolio. The rapid decrease in the interest rate environment and higher levels of liquidity has led the Company to bid less aggressively for higher-cost time deposits as it seeks to manage overall deposit funding cost.

• Total stockholders’ equity for the Company was $208.98 million, resulting in a book value per common share outstanding of $18.98 compared to $217.10 million and $19.61 per common share at December 31, 2007. The decrease in total equity principally reflects the increase in accumulated other comprehensive loss as a result of lower valuations on the Company’s securities portfolio and interest rate swap. During the first quarter of 2008, the Company repurchased 67,300 shares at an average cost of approximately $32.23 per share.

• The first quarter cash dividend to shareholders was $0.28 per share. 2008 is expected to be the 17^th consecutive year of dividend increases to shareholders.

The Company will host an investor and media teleconference and webcast on Wednesday, April 23, 2008, at 11:00 a.m. To access the teleconference, the toll-free number to call is (877) 407-8033. Alternatively, individuals may listen to the live or

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archived webcast of the conference call. To listen to the webcast, visit www.fcbinc.com and follow the link under the Current News Releases section. The Company’s press release and financial summary will be available in this section, as well. Copies of the Company’s first quarter 2008 earnings press release and financial summary will also be made available upon request via fax, email or postal service mail. To request a copy, contact David D. Brown, Chief Financial Officer, at (800) 425-0839.

First Community Bancshares, Inc., headquartered in Bluefield, Virginia, is a $2.07 billion financial holding company and is the parent company of First Community Bank, N. A. First Community Bank, N. A. operates through fifty-seven locations and four wealth management offices in the five states of Virginia, West Virginia, North Carolina, South Carolina, and Tennessee. First Community Bank, N. A. offers wealth management services through its Trust & Financial Services Division and Investment Planning Consultants, Inc., a registered investment advisory firm, which offers wealth management and investment advice. The Company’s wealth management group managed assets with a market value of $823 million at March 31, 2008. First Community is also the parent company of GreenPoint Insurance Group, Inc., a full-service insurance agency located in High Point, North Carolina. First Community Bancshares, Inc.’s common stock is traded on the NASDAQ Global Select Market under the symbol, “FCBC”. Additional investor information can be found on the Internet at www.fcbinc.com.

This news release may include forward-looking statements. These forward-looking statements are based on current expectations that involve risks, uncertainties and assumptions. Should one or more of these risks or uncertainties materialize or should underlying assumptions prove incorrect, actual results may differ materially. These risks include: changes in business or other market conditions; the timely development, production and acceptance of new products and services; the challenge of managing asset/liability levels; the management of credit risk and interest rate risk; the difficulty of keeping expense growth at modest levels while increasing revenues; and other risks detailed from time to time in the Company’s Securities and Exchange Commission reports, including but not limited to the Annual Report on Form 10-K for the most recent year ended. Pursuant to the Private Securities Litigation Reform Act of 1995, the Company does not undertake to update forward-looking statements contained within this news release.

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First Community Bancshares, Inc.

Consolidated Statements of Income

		Three Months Ended
		March 31,
(In Thousands, Except Share and Per Share Data)(Unaudited)		2008			2007
Interest	Interest and fees on loans held for investment	$	21,237		$	23,519
Income	Interest on securities-taxable		6,067			4,981
	Interest on securities-nontaxable		2,063			1,912
	Interest on federal funds sold and deposits		180			274
	Total interest income		29,547			30,686
Interest	Interest on deposits		8,741			9,300
Expense	Interest on borrowings		4,446			4,371
	Total interest expense		13,187			13,671
	Net interest income		16,360			17,015
	Provision for loan losses		323			—
	Net interest income after provision for loan losses		16,037			17,015
Non-Interest	Wealth management income		899			1,018
Income	Service charges on deposit accounts		3,099			2,409
	Other service charges and fees		1,121			870
	Insurance commissions		1,344			—
	Gain on sale of securities		1,820			129
	Other operating income		858			789
	Total non-interest income		9,141			5,215
Non-Interest	Salaries and employee benefits		7,790			6,411
Expense	Occupancy expense of bank premises		1,164			1,057
	Furniture and equipment expense		901			823
	Amortization of intangible assets		160			103
	Prepayment penalty		1,647			—
	Other operating expense		4,621			3,764
	Total non-interest expense		16,283			12,158
	Income before income taxes		8,895			10,072
	Income tax expense		2,583			2,948
	Net income	$	6,312		$	7,124
	Basic earnings per common share (EPS)	$	0.57		$	0.63
	Diluted earnings per common share (DEPS)	$	0.57		$	0.63
	Weighted Average Shares Outstanding:
	Basic		11,029,931			11,259,375
	Diluted		11,107,610			11,346,828
	For the period:
	Return on average assets		1.21	%		1.42	%
	Return on average equity		11.66	%		13.33	%
	Return on average tangible equity		17.53	%		18.92	%
	Cash dividends per share	$	0.28		$	0.27
	At period end:
	Book value per share	$	18.98		$	19.33
	Market value	$	36.42		$	39.00

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First Community Bancshares, Inc.
Quarterly Performance Summary
Income Statements

		As of and for the Quarter Ended
		March 31,		December 31,		September 30,		June 30,		March 31,
(In Thousands, Except Share and Per Share Data)(Unaudited)		2008		2007		2007		2007		2007
Interest	Interest and fees on loans held for investment	$	21,237	$	23,100	$	23,478	$	23,404	$	23,519
Income	Interest on securities-taxable		6,067		6,942		6,772		6,030		4,981
	Interest on securities-nontaxable		2,063		2,050		2,078		2,150		1,912
	Interest on federal funds sold and deposits		180		102		404		395		274
	Total interest income		29,547		32,194		32,732		31,979		30,686
Interest	Interest on deposits		8,741		9,626		10,083		9,748		9,300
Expense	Interest on borrowings		4,446		5,425		5,506		5,217		4,371
	Total interest expense		13,187		15,051		15,589		14,965		13,671
	Net interest income		16,360		17,143		17,143		17,014		17,015
	Provision for loan losses		323		717		—		—		—
	Net interest income after provision for loan losses		16,037		16,426		17,143		17,014		17,015
Non-Int	Wealth management income		899		949		908		1,005		1,018
Income	Service charges on deposit accounts		3,099		3,310		3,006		2,662		2,409
	Other service charges, commissions and fees		1,121		991		902		837		870
	Insurance commissions		1,344		1,142		—		—		—
	Gain on sale of securities		1,820		202		50		30		129
	Other operating income		858		1,455		1,154		1,013		789
	Total non-interest income		9,141		8,049		6,020		5,547		5,215
Non-Int	Salaries and employee benefits		7,790		6,728		6,544		6,165		6,411
Expense	Occupancy expense of bank premises		1,164		1,170		933		1,020		1,057
	Furniture and equipment expense		901		923		844		780		823
	Amortization of intangible assets		160		154		105		105		103
	Prepayment penalty		1,647		—		—		—		—
	Other operating expense		4,621		4,419		4,410		4,005		3,764
	Total non-interest expense		16,283		13,394		12,836		12,075		12,158
	Income before income taxes		8,895		11,081		10,327		10,486		10,072
	Income tax expense		2,583		3,328		3,011		3,047		2,948
	Net income	$	6,312	$	7,753	$	7,316	$	7,439	$	7,124
Per	Basic EPS	$	0.57	$	0.70	$	0.65	$	0.66	$	0.63
Share	Diluted EPS	$	0.57	$	0.69	$	0.65	$	0.66	$	0.63
	Cash dividends per share	$	0.28	$	0.27	$	0.27	$	0.27	$	0.27
	Weighted Average Shares Outstanding:
	Basic		11,029,931		11,120,938		11,179,322		11,260,868		11,259,375
	Diluted		11,107,610		11,205,292		11,230,220		11,320,227		11,346,828
	Actual shares outstanding at period end		11,012,574		11,069,646		11,175,550		11,232,466		11,271,302
	Book Value per share at period end	$	18.98	$	19.61	$	19.43	$	19.25	$	19.33
	Market Value per share at period end	$	36.42	$	31.89	$	36.23	$	31.19	$	39.00

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First Community Bancshares, Inc.
Quarterly Balance Sheets
(Unaudited)

	March 31,			December 31,			September 30,			June 30,			March 31,
(In Thousands)	2008			2007			2007			2007			2007
Cash and due from banks	$	44,004		$	50,051		$	39,877		$	40,879		$	42,394
Interest-bearing deposits with banks		33,111			2,695			19,427			33,380			17,082
Securities available for sale		598,853			664,120			671,360			658,901			612,977
Securities held to maturity		12,075			12,075			12,548			13,177			19,266
Loans held for sale		2,116			811			2,294			1,818			1,068
Loans held for investment, net of unearned income		1,179,504			1,225,502			1,239,207			1,243,076			1,258,847
Less allowance for loan losses		12,862			12,833			13,190			13,934			14,510
Net loans		1,166,642			1,212,669			1,226,017			1,229,142			1,244,337
Premises and equipment		49,444			48,383			46,702			42,274			38,381
Other real estate owned		400			545			211			593			600
Interest receivable		9,742			12,465			13,289			12,892			11,835
Intangible assets		71,239			70,056			69,104			62,017			62,092
Other assets		77,487			75,968			73,817			73,522			65,763
Total Assets	$	2,065,113		$	2,149,838		$	2,174,646		$	2,168,595		$	2,115,795
Deposits:
Demand	$	224,097		$	224,087		$	224,297		$	241,423		$	242,254
Interest-bearing demand		172,864			153,570			143,719			143,080			148,735
Savings		305,725			327,691			348,457			333,855			325,454
Time		656,267			688,095			686,564			703,602			703,141
Total Deposits		1,358,953			1,393,443			1,403,037			1,421,960			1,419,584
Interest, taxes and other liabilities		22,293			21,454			20,120			21,000			20,522
Federal funds purchased		—			18,500			15,600			—			45,000
Securities sold under agreements to repurchase		208,000			207,427			226,784			217,987			220,198
FHLB and other indebtedness		266,889			291,916			291,942			291,387			192,654
Total Liabilities		1,856,135			1,932,740			1,957,483			1,952,334			1,897,958
Common stock, $1 par value		11,499			11,499			11,499			11,499			11,499
Additional paid-in capital		108,866			108,795			108,794			108,633			108,769
Retained earnings		120,087			117,670			112,911			108,601			104,198
Treasury stock, at cost		(15,427	)		(13,583	)		(10,051	)		(8,341	)		(7,124	)
Accumulated other comprehensive (loss) income		(16,047	)		(7,283	)		(5,990	)		(4,131	)		495
Total Stockholders’ Equity		208,978			217,098			217,163			216,261			217,837
Total Liabilities and Stockholders’ Equity	$	2,065,113		$	2,149,838		$	2,174,646		$	2,168,595		$	2,115,795

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First Community Bancshares, Inc.
Selected Financial Information
(Unaudited)

	As of and for the Quarter Ended
	March 31,			December 31,			September 30,			June 30,			March 31,
	2008			2007			2007			2007			2007
	(Dollars in Thousands)
Ratios
Return on average assets		1.21	%		1.43	%		1.34	%		1.40	%		1.42	%
Return on average equity		11.66	%		13.95	%		13.31	%		13.56	%		13.33	%
Return on average tangible equity		17.53	%		20.67	%		18.86	%		19.12	%		18.92	%
Net interest margin		3.78	%		3.75	%		3.70	%		3.78	%		3.98	%
Efficiency ratio for the quarter (a)		58.00	%		51.22	%		52.14	%		50.25	%		51.13	%
Efficiency ratio year-to-date (a)		58.00	%		51.20	%		51.18	%		50.69	%		51.13	%
Equity as a percent of total assets at end of period		10.12	%		10.10	%		9.99	%		9.97	%		10.30	%
Average earning assets as a percentage of average total assets		89.10	%		89.61	%		90.23	%		90.47	%		90.39	%
Average loans as a percentage of average deposits		87.68	%		88.49	%		87.91	%		88.82	%		90.90	%
Average Balances
Investments	$	635,350		$	684,227		$	678,790		$	645,266		$	552,383
Loans		1,205,481			1,238,620			1,246,530			1,253,679			1,265,628
Earning assets		1,863,433			1,932,481			1,958,858			1,931,247			1,841,235
Total assets		2,091,397			2,156,484			2,171,036			2,134,612			2,037,006
Deposits		1,374,853			1,399,690			1,417,922			1,411,476			1,392,309
Interest-bearing deposits		1,161,881			1,178,833			1,188,470			1,176,940			1,162,735
Borrowings		477,903			516,635			515,775			484,410			408,726
Interest-bearing liabilities		1,639,784			1,695,468			1,704,245			1,661,350			1,571,461
Equity		217,679			220,520			218,049			219,989			216,807
Tax equivalent net interest income		17,491			18,265			18,281			18,186			18,057

(a) Excludes securities gains/losses, intangible amortization, foreclosed property expenses, non-recurring income and expense items, and includes tax equivalency adjustment.

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First Community Bancshares, Inc.
Selected Financial Information
(Unaudited)

	As of and for the Quarter Ended
	March 31,			December 31,			September 30,			June 30,			March 31,
	2008			2007			2007			2007			2007
	(Dollars in Thousands)
Summary of Loan Loss Experience
Allowance for Loan Losses:
Beginning balance	$	12,833		$	13,190		$	13,934		$	14,510		$	14,549
Provision for Loan Losses		323			717			—			—			—
Charge-offs		(966	)		(1,482	)		(1,009	)		(911	)		(893	)
Recoveries		672			408			265			335			854
Net charge-offs		(294	)		(1,074	)		(744	)		(576	)		(39	)
Ending balance	$	12,862		$	12,833		$	13,190		$	13,934		$	14,510
Summary of Asset Quality
Nonaccrual loans	$	3,137		$	2,923		$	2,869		$	2,910		$	4,074
Loans 90 days or more past due and still accruing		—			—			—			—			—
Total non-performing loans		3,137			2,923			2,869			2,910			4,074
Other real estate owned		400			545			211			593			600
Total non-performing assets	$	3,537		$	3,468		$	3,080		$	3,503		$	4,674
Restructured loans	$	239		$	245		$	253		$	256		$	265
Asset Quality Ratios
Non-performing loans as a percentage of loans held for investment		0.27	%		0.24	%		0.23	%		0.23	%		0.32	%
Non-performing assets as a percentage of:
Total assets		0.17	%		0.16	%		0.14	%		0.16	%		0.22	%
Loans held for investment plus other real estate owned		0.30	%		0.28	%		0.25	%		0.28	%		0.37	%
Annualized net charge-offs as a percentage of average loans held for investment		0.10	%		0.34	%		0.24	%		0.18	%		0.01	%
Allowance for loan losses as a percentage of loans held for investment		1.09	%		1.05	%		1.06	%		1.12	%		1.15	%
Ratio of allowance for loan losses to nonaccrual loans		4.10			4.39			4.60			4.79			3.56

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First Community Bancshares, Inc.
Consolidated Average Balance Sheets, Yields, and Rates
(Unaudited)

	Three Months Ended March 31,
	2008							2007
					Yield/							Yield/
	Average		Interest		Rate			Average		Interest		Rate
	Balance		(1)		(1)			Balance		(1)		(1)
	(Dollars in Thousands)
Earning Assets
Loans Held for Investment (2)	$	1,205,481	$	21,258		7.09	%	$	1,265,628	$	23,530		7.54	%
Securities Available for Sale		623,275		8,998		5.81	%		532,618		7,537		5.74	%
Held to Maturity Securities		12,075		242		8.06	%		19,765		387		7.94	%
Interest-bearing Deposits with Banks		22,602		180		3.20	%		23,224		274		4.78	%
Total Earning Assets		1,863,433	$	30,678		6.62	%		1,841,235	$	31,728		6.99	%
Other Assets		227,964							195,771
Total	$	2,091,397						$	2,037,006
Interest-bearing Liabilities
Interest-bearing Demand Deposits	$	162,175	$	76		0.19	%	$	145,960	$	112		0.31	%
Savings Deposits		327,061		1,487		1.83	%		319,660		1,674		2.12	%
Time Deposits		672,645		7,178		4.29	%		697,115		7,514		4.37	%
Fed Funds Purchased & Repurchase Agreements		201,400		1,513		3.02	%		214,455		2,034		3.85	%
FHLB Borrowings & Other Long-term Debt		276,503		2,933		4.27	%		194,271		2,337		4.88	%
Total Interest-bearing Liabilities		1,639,784		13,187		3.23	%		1,571,461		13,671		3.53	%
Noninterest-bearing Demand Deposits		212,972							229,574
Other Liabilities		20,962							19,164
Stockholders’ Equity		217,679							216,807
Total	$	2,091,397						$	2,037,006
Net Interest Income			$	17,491						$	18,057
Net Interest Rate Spread (3)						3.39	%						3.46	%
Net Interest Margin (4)						3.78	%						3.98	%

(1)	Fully taxable equivalent at the rate of 35%.
(2)	Non-accrual loans are included in average balances outstanding but with no related interest income during the period of non-accrual.
(3)	Represents the difference between the yield on earning assets and cost of funds.
(4)	Represents tax equivalent net interest income divided by average earning assets.

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