Unassociated Document

Commenting on fourth quarter and full year results for 2010, Chief Executive Officer John M. Mendez stated, “Given the difficult operating environment that persisted throughout 2010, we are pleased to report operating results, capital levels, and credit measures that continue to position our company among the leaders in the industry. Credit management has indeed been a challenge for banks over the past three years as the economy struggled to recover from a very deep recession and significant devaluations in many segments of the real estate market. We have weathered these conditions well and we look forward to a more hospitable environment in the coming quarters as we begin to see the modest economic expansion and recovery that is being forecast by many.”

Mendez continued by saying, “Despite high credit costs we achieved a strong performance for the year with a 0.97% return on average assets and a solidly profitable year with earnings of $21.85 million during the most challenging economic environment in decades. With these results we finished the year with a solid and growing capital base, with non-performing assets at a very manageable 1.32% of total assets, and with a generous loan loss reserve of $26.48 million or 1.91% of loans. While these results do not represent the high standard of performance that we expect of ourselves, they do represent a solid rebound performance in light of the economy.”

Tax-equivalent net interest margin for the fourth quarter of 2010 was 3.78% compared to 3.92% from the comparable quarter of 2009. Net interest income was $18.10 million for the fourth quarter of 2010, a decrease of $863 thousand, or 4.55%, from the fourth quarter of 2009. Interest income was $24.98 million for the fourth quarter of 2010, a decrease of $2.78 million, or 10.01%. The yield on loans decreased to 5.94% for the fourth quarter of 2010 from 6.24% in the same period of the prior year, while average loans decreased $4.32 million between the comparable periods to $1.40 billion. The Company continued to maintain a high level of liquidity with cash and cash equivalent balances of $112.19 million in the fourth quarter of 2010.

Fourth quarter 2010 interest expense was $6.88 million, a decrease of $1.91 million, or 21.77%, from the fourth quarter of 2009. Fourth quarter 2010 deposit costs decreased $1.75 million compared to the fourth quarter of 2009, which was primarily due to a decrease in the average rate paid on interest-bearing deposits of 46 basis points to 1.22%. Compared to the fourth quarter of 2009, interest costs on borrowings decreased $166 thousand to $2.47 million for the fourth quarter of 2010, while the average balance decreased $2.29 million from the comparable period due to the redemption of various wholesale borrowings and decreasing rates of interest. The cost of interest-bearing liabilities decreased 40 basis points during the fourth quarter of 2010 compared to the fourth quarter of 2009. Average interest-bearing liabilities decreased $26.91 million, or 1.50% for the fourth quarter of 2010 compared with the fourth quarter of 2009, which included a decrease of $7.73 million in Federal Home Loan Bank (“FHLB”) borrowings and other long-term debt.

During the fourth quarter of 2010, wealth management revenues decreased $37 thousand, or 3.49%, to $1.02 million from the fourth quarter of 2009. The Wealth Management Division reported $859 million in assets under management at December 31, 2010. Service charges on deposit accounts were $3.33 million for the fourth quarter of 2010, a decrease of $253 thousand, or 7.06%, from the fourth quarter of 2009. Insurance commissions were $1.47 million for the fourth quarter of 2010, an increase of $9 thousand, or 0.61%, from the previous year.

Noninterest expenses for the fourth quarter of 2010 increased $2.22 million, or 12.57%, compared to the fourth quarter of 2009. The increase was primarily due to salaries and employee benefits which increased $1.07 million, or 12.90%, in the fourth quarter of 2010 compared to the same period in the prior year. The increase is attributed to increasing health care costs, new personnel in the insurance subsidiary, and the building of corporate resources in anticipation of future growth. Federal Deposit Insurance Corporation (“FDIC”) deposit insurance premiums decreased $747 thousand, or 50.68% in the fourth quarter of 2010, compared to the fourth quarter of 2009. As of December 31, 2010, the Company recognized a goodwill impairment of $1.04 million at the insurance agency segment. Other operating expenses were $5.95 million, an increase of $1.14 million, or 23.80%, from the fourth quarter of 2009 due to a significant increase in expenses associated with repossessed real estate. The efficiency ratio for the fourth quarter of 2010 was 64.82% compared to 61.29% for the fourth quarter of 2009.

The Company’s loan quality measures at December 31, 2010, continue to compare favorably to the industry. Total loan delinquencies of 30 days or more, including non-accrual loans, as a percent of total loans were 2.62% at December 31, 2010. This compares favorably to the most recent Federal Reserve report of the Company’s peer group of bank holding companies with total assets between $1 and $3 billion, which indicates peer total loan delinquencies of 4.65%. The ratio of allowance for loan losses as a percent of loans held for investment was 1.91% at December 31, 2010, compared to 1.89% at September 30, 2010, and 1.79% at June 30, 2010.

Total non-performing assets, which include unseasoned loan restructurings and other real estate owned, were 1.32% of total assets at December 31, 2010, and non-performing loans as a percentage of loans held for investment were 1.78%. These levels are much better by comparison than those in the Federal Reserve peer group, which were last reported as total non-performing assets to total assets of 3.47% and non-performing loans to total loans of 3.71%. Included in non-performing assets are $5.33 million of unseasoned loan restructurings at December 31, 2010.

The Company will host an investor and media teleconference and webcast on Thursday, January 27, 2011, at 11:00 a.m. To access the teleconference, the toll-free number is (877) 407-8033. Alternatively, individuals may listen to the live or archived webcast of the conference call. To listen to the webcast, visit www.fcbinc.com and follow the link under the Investor Relations section. The Company’s press release and financial summary will be available in this section, as well. Copies of the Company’s fourth quarter 2010 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 (276) 326-9000.

First Community Bancshares, Inc., headquartered in Bluefield, Virginia, is a $2.24 billion financial holding company and is the parent company of First Community Bank, N. A. First Community Bank, N. A. operates through fifty-six locations 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 Division managed assets with a market value of $859 million at December 31, 2010. The Company is also the parent company of GreenPoint Insurance Group, Inc., a full-service insurance agency headquartered in High Point, North Carolina, that operates ten offices. The Company’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.

	Three Months Ended						Year Ended
(Unaudited)	December 31,						December 31,
(In Thousands, Except Share and Per Share Data)	2010			2009			2010			2009
Interest Income
Interest and fees on loans held for investment	$	20,950		$	22,085		$	84,741		$	82,704
Interest on securities — taxable		2,293			4,190			12,704			19,093
Interest on securities — nontaxable		1,672			1,445			5,943			5,972
Interest on federal funds sold and deposits		60			32			194			165
Total interest income		24,975			27,752			103,582			107,934
Interest Expense
Interest on deposits		4,407			6,155			19,887			27,796
Interest on borrowings		2,469			2,635			9,838			10,886
Total interest expense		6,876			8,790			29,725			38,682
Net interest income		18,099			18,962			73,857			69,252
Provision for loan losses		3,686			7,282			14,757			15,801
Net interest income after provision for loan losses		14,413			11,680			59,100			53,451
Noninterest Income
Wealth management income		1,022			1,059			3,828			4,147
Service charges on deposit accounts		3,332			3,585			13,128			13,892
Other service charges and fees		1,299			1,248			5,074			4,715
Insurance commissions		1,474			1,465			6,727			6,988
Net impairment losses recognized in earnings		-			(44,067	)		(185	)		(78,863	)
Security gains (losses)		4,248			(14,603	)		8,273			(11,673	)
Acquisition gain		-			-			-			4,493
Other operating income		713			983			3,663			2,624
Total noninterest income (loss)		12,088			(50,330	)		40,508			(53,677	)
Noninterest Expense
Salaries and employee benefits		9,319			8,254			34,528			31,385
Occupancy expense of bank premises		1,586			1,687			6,438			5,889
Furniture and equipment expense		965			988			3,713			3,746
Amortization of intangible assets		263			277			1,032			1,028
FHLB debt prepayment fees		-			-			-			88
FDIC premiums and assessments		727			1,474			2,856			4,262
Merger-related expenses		-			146			-			1,726
Goodwill impairment		1,039			-			1,039			-
Other operating expense		5,945			4,802			20,337			18,500
Total noninterest expense		19,844			17,628			69,943			66,624
Income (loss) before income taxes		6,657			(56,278	)		29,665			(66,850	)
Income tax expense (benefit)		1,772			(21,537	)		7,818			(28,154	)
Net income (loss)		4,885			(34,741	)		21,847			(38,696	)
Dividends on preferred stock		-			-			-			2,160
Net income (loss) available to common shareholders	$	4,885		$	(34,741	)	$	21,847		$	(40,856	)
Per Share
Basic earnings (loss) per common share	$	0.27		$	(1.96	)	$	1.23		$	(2.75	)
Diluted earnings (loss) per common share	$	0.27		$	(1.96	)	$	1.23		$	(2.75	)
Weighted average shares outstanding:
Basic		17,845,857			17,687,413			17,802,009			14,868,547
Diluted		17,891,807			17,687,413			17,822,944			14,868,547
For the period:
Return on average assets		0.85	%		-6.02	%		0.97	%		-1.83	%
Return on average common equity		7.00	%		-51.69	%		8.11	%		-16.73	%
Cash dividends per common share	$	0.10		$	-		$	0.40		$	0.30

	As of and for the Quarter Ended
(Unaudited)	December 31,		September 30,		June 30,			March 31,		December 31,
(In Thousands, Except Share and Per Share Data)	2010		2010		2010			2010		2009
Interest Income
Interest and fees on loans held for investment	$	20,950	$	21,440	$	20,997		$	21,354	$	22,085
Interest on securities — taxable		2,293		2,895		3,730			3,786		4,190
Interest on securities — nontaxable		1,672		1,451		1,394			1,426		1,445
Interest on federal funds sold and deposits		60		54		34			46		32
Total interest income		24,975		25,840		26,155			26,612		27,752
Interest Expense
Interest on deposits		4,407		4,872		5,106			5,502		6,155
Interest on borrowings		2,469		2,371		2,507			2,491		2,635
Total interest expense		6,876		7,243		7,613			7,993		8,790
Net interest income		18,099		18,597		18,542			18,619		18,962
Provision for loan losses		3,686		3,810		3,596			3,665		7,282
Net interest income after provision
for loan losses		14,413		14,787		14,946			14,954		11,680
Noninterest Income
Wealth management income		1,022		909		1,012			885		1,059
Service charges on deposit accounts		3,332		3,457		3,347			2,992		3,585
Other service charges and fees		1,299		1,244		1,250			1,281		1,248
Insurance commissions		1,474		1,663		1,389			2,201		1,465
Net impairment losses recognized in earnings		-		-		(185	)		-		(44,067	)
Securities gains (losses)		4,248		2,574		1,201			250		(14,603	)
Other operating income		713		1,091		890			969		983
Total noninterest income (loss)		12,088		10,938		8,904			8,578		(50,330	)
Noninterest Expense
Salaries and employee benefits		9,319		8,753		8,487			7,969		8,254
Occupancy expense of bank premises		1,586		1,573		1,570			1,709		1,687
Furniture and equipment expense		965		926		918			904		988
Amortization of intangible assets		263		260		253			256		277
FDIC premiums and assessments		727		718		710			701		1,474
Merger-related expenses		-		-		-			-		146
Goodwill impairment		1,039		-		-			-		-
Other operating expense		5,945		5,199		4,660			4,533		4,802
Total noninterest expense		19,844		17,429		16,598			16,072		17,628
Income (loss) before income taxes		6,657		8,296		7,252			7,460		(56,278	)
Income tax expense (benefit)		1,772		1,743		2,121			2,182		(21,537	)
Net income (loss) available to
common shareholders	$	4,885	$	6,553	$	5,131		$	5,278	$	(34,741	)
Per Share
Basic earnings (loss) per common share	$	0.27	$	0.37	$	0.29		$	0.30	$	(1.96	)
Diluted earnings (loss) per common share	$	0.27	$	0.37	$	0.29		$	0.30	$	(1.96	)
Cash dividends per common share	$	0.10	$	0.10	$	0.10		$	0.10	$	-
Weighted average shares outstanding:
Basic		17,845,857		17,808,348		17,787,325			17,765,556		17,687,413
Diluted		17,891,807		17,832,882		17,805,393			17,784,449		17,687,413

	Three Months Ended						Year Ended
(Unaudited)	December 31,						December 31,
(In Thousands, Except Per Share Data)	2010			2009			2010			2009

Net income (loss), GAAP	$	4,885		$	(34,741	)	$	21,847		$	(38,696	)
Non-GAAP adjustments:
Security (gains) losses		(4,248	)		14,603			(8,273	)		11,673
Acquisition gain		-			-			-			(4,493	)
Merger-related expenses		-			146			-			1,726
FHLB debt prepayment fees		-			-			-			88
Other-than-temporary security impairments		-			44,067			185			78,863
FDIC special assessments		-			-			-			988
Goodwill impairment		1,039			-			1,039			-
Other non-core items		1,381			118			4,115			1,676
Total adjustments to core earnings		(1,828	)		58,934			(2,934	)		90,521
Tax effect		(1,075	)		22,100			(1,100	)		33,896
Core earnings, non-GAAP	$	4,132		$	2,093		$	20,013		$	17,929

Core return on average assets		0.72	%		0.36	%		0.88	%		0.80	%
Core return on average equity		5.92	%		3.11	%		7.43	%		7.34	%
Core diluted earnings per share	$	0.23		$	0.12		$	1.12		$	1.21

	Three Months Ended						Year Ended
(Unaudited)	December 31,						December 31,
(In Thousands)	2010			2009			2010			2009

Noninterest expense, GAAP	$	19,844		$	17,628		$	69,943		$	66,624
Non-GAAP adjustments:
Merger-related expenses		-			(146	)		-			(1,726	)
FHLB debt prepayment fees		-			-			-			(88	)
Goodwill impairment		(1,039	)		-			(1,039	)		-
Other non-core items		(1,381	)		(458	)		(4,115	)		(3,004	)
Adjusted noninterest expense		17,424			17,024			64,789			61,806

Net interest income, GAAP		18,099			18,962			73,857			69,252
Noninterest income (loss), GAAP		12,088			(50,330	)		40,508			(53,677	)
Non-GAAP adjustments:
Tax-equivalency adjustment		941			816			3,364			3,297
Security (gains) losses		(4,248	)		14,603			(8,273	)		11,673
Other-than-temporary security impairments		-			44,067			185			78,863
Other non-core items		-			(340	)		-			(340	)
Acquisition gain		-			-			-			(4,493	)
Adjusted net interest and noninterest income		26,880			27,778			109,641			104,575

Efficiency Ratio		64.82	%		61.29	%		59.09	%		59.10	%

	For the Quarter Ended
(Unaudited)	December 31,			September 30,			June 30,			March 31,			December 31,
(Dollars In Thousands)	2010			2010			2010			2010			2009

Cash and due from banks	$	110,342		$	130,401		$	50,922		$	74,962		$	97,641
Interest-bearing deposits with banks		1,847			1,363			25,609			12,744			3,700
Securities available-for-sale		480,064			480,587			502,866			524,297			486,057
Securities held-to-maturity		4,637			5,931			6,468			7,155			7,454
Loans held for sale		4,694			3,386			2,141			1,494			11,576
Loans held for investment, net of unearned income		1,386,206			1,398,251			1,399,885			1,390,874			1,393,931
Less allowance for loan losses		26,482			26,420			25,011			24,508			24,277
Net loans		1,364,418			1,375,217			1,377,015			1,367,860			1,381,230
Premises and equipment		56,244			56,042			56,407			56,772			56,946
Other real estate owned		4,910			5,501			7,108			4,740			4,578
Interest receivable		7,675			7,899			7,859			8,630			8,610
Intangible assets		90,639			91,165			90,757			90,805			91,061
Other assets		123,462			143,319			121,835			130,974			136,006
Total Assets	$	2,244,238		$	2,297,425		$	2,246,846		$	2,278,939		$	2,273,283
Deposits:
Demand	$	205,151		$	216,167		$	205,731		$	205,810		$	208,244
Interest-bearing demand		262,420			270,927			244,889			246,513			231,907
Savings		426,547			425,661			404,820			427,883			381,381
Time		726,837			744,468			757,979			775,405			824,428
Total Deposits		1,620,955			1,657,223			1,613,419			1,655,611			1,645,960
Interest, taxes and other liabilities		21,318			21,377			21,865			21,912			22,498
Securities sold under agreements to repurchase		140,894			153,413			147,772			144,381			153,634
FHLB and other indebtedness		191,193			191,209			195,865			195,873			198,924
Total Liabilities		1,974,360			2,023,222			1,978,921			2,017,777			2,021,016

Common stock		18,083			18,083			18,083			18,083			18,083
Additional paid-in capital		189,239			189,811			190,259			190,650			190,967
Retained earnings		81,486			78,385			73,613			70,262			66,760
Treasury stock, at cost		(6,740	)		(7,729	)		(8,583	)		(9,342	)		(9,891	)
Accumulated other comprehensive loss		(12,190	)		(4,347	)		(5,447	)		(8,491	)		(13,652	)
Total Stockholders' Equity		269,878			274,203			267,925			261,162			252,267
Total Liabilities and
Stockholders' Equity	$	2,244,238		$	2,297,425		$	2,246,846		$	2,278,939		$	2,273,283

Actual shares outstanding at period end		17,866,335			17,834,601			17,807,155			17,782,791			17,765,164
Book value per common share at period end	$	15.11		$	15.37		$	15.05		$	14.69		$	14.20
Tangible book value per common share at period end (1)	$	10.03		$	10.26		$	9.95		$	9.58		$	9.07

	As of and for the Quarter Ended
(Unaudited)	December 31,			September 30,			June 30,			March 31,			December 31,
(Dollars in Thousands)	2010			2010			2010			2010			2009
Summary of Loan Loss Experience
Allowance for loan losses:
Beginning balance	$	26,420		$	25,011		$	24,508		$	24,277		$	19,710
Provision for loan losses		3,686			3,810			3,596			3,665			7,282
Charge-offs		(3,846	)		(2,651	)		(3,373	)		(3,732	)		(2,954	)
Recoveries		222			250			280			298			239
Net charge-offs		(3,624	)		(2,401	)		(3,093	)		(3,434	)		(2,715	)
Ending balance	$	26,482		$	26,420		$	25,011		$	24,508		$	24,277

Summary of Asset Quality
Non-accrual loans	$	19,414		$	16,645		$	17,668		$	17,477		$	17,527
Restructured loans		5,325			7,904			1,206			1,041			1,390
Loans 90 days or more past due and still accruing		-			-			-			-			-
Total non-performing loans		24,739			24,549			18,874			18,518			18,917

Other real estate owned		4,910			5,501			7,108			4,740			4,578
Total non-performing assets	$	29,649		$	30,050		$	25,982		$	23,258		$	23,495

Restructured loans performing in accordance with terms	$	3,911		$	849		$	1,557		$	2,050		$	2,062

Asset Quality Ratios
Non-performing loans as a percentage of loans held for investment		1.78	%		1.76	%		1.35	%		1.33	%		1.36	%
Non-performing assets as a percentage of total assets		1.32	%		1.31	%		1.16	%		1.02	%		1.03	%
Annualized net charge-offs as a percentage of average loans held for investment		1.03	%		0.68	%		0.89	%		1.00	%		0.77	%
Allowance for loan losses as a percentage of loans held for investment		1.91	%		1.89	%		1.79	%		1.76	%		1.74	%
Ratio of allowance for loan losses to non-performing loans		1.07			1.08			1.33			1.32			1.28

	As of December 31, 2010
					Non-accrual
(Unaudited)	Loans		Non-accrual		Loans to Loans
(Dollars in Thousands)	Outstanding		Loans		Outstanding
Commercial
Commercial & industrial	$	101,769	$	3,925		3.86	%
Agriculture		1,342		-		0.00	%
Total commercial		103,111		3,925		3.81	%

Commercial real estate
Construction, land development & vacant land		113,632		1,025		0.90	%
Non-owner occupied		193,869		1,677		0.87	%
Owner occupied		152,607		2,993		1.96	%
Farmland		36,954		-		0.00	%
Total commercial real estate		497,062		5,695		1.15	%

Consumer		63,475		99		0.16	%

Residential real estate
Residential		543,114		6,364		1.17	%
Multi-family		67,824		2,463		3.63	%
Home equity lines		111,620		868		0.78	%
Total residential		722,558		9,695		1.34	%

Total loans	$	1,386,206	$	19,414		1.40	%

	As of and for the Quarter Ended
(Unaudited)	December 31,			September 30,			June 30,			March 31,			December 31,
(Dollars in Thousands)	2010			2010			2010			2010			2009
Ratios
Return on average assets		0.85	%		1.14	%		0.91	%		0.95	%		-6.02	%
Return on average common equity		7.00	%		9.49	%		7.73	%		8.32	%		-51.69	%
Net interest margin		3.78	%		3.87	%		3.92	%		4.02	%		3.92	%
Efficiency ratio for the quarter		64.82	%		58.92	%		58.26	%		54.53	%		61.29	%
Efficiency ratio year-to-date		59.09	%		57.23	%		56.38	%		54.53	%		59.10	%
Equity as a percent of total assets at end of period		12.03	%		11.94	%		11.92	%		11.46	%		11.10	%
Average earning assets as a percentage of average total assets		87.69	%		87.67	%		87.53	%		87.38	%		87.46	%
Average loans as a percentage of average deposits		85.54	%		85.59	%		85.19	%		85.08	%		85.13	%

Average Balances
Investments	$	498,090		$	503,686		$	505,808		$	488,255		$	549,385
Loans		1,402,178			1,404,746			1,397,528			1,395,669			1,406,497
Earning assets		1,996,106			1,990,953			1,976,118			1,960,511			2,001,576
Total assets		2,276,257			2,270,984			2,257,591			2,243,786			2,288,530
Deposits		1,639,154			1,641,339			1,640,432			1,640,424			1,652,082
Interest bearing deposits		1,427,746			1,433,770			1,433,039			1,441,359			1,452,369
Borrowings		344,704			342,497			340,001			340,720			346,990
Interest bearing liabilities		1,772,450			1,776,267			1,773,041			1,782,079			1,799,359
Equity		276,723			274,001			266,218			257,419			266,658
Tax-equivalent net interest income		19,040			19,416			19,333			19,432			19,778

	Three Months Ended December 31,
	2010							2009
					Yield/							Yield/
(Unaudited)	Average		Interest		Rate			Average		Interest		Rate
(Dollars in Thousands)	Balance			(1)		(1)		Balance			(1)		(1)
Earning assets
Loans held for investment (2)	$	1,402,178	$	20,992		5.94	%	$	1,406,497	$	22,123		6.24	%
Securities available-for-sale		493,018		4,751		3.82	%		541,932		6,261		4.58	%
Securities held-to-maturity		5,072		113		8.84	%		7,453		152		8.09	%
Interest-bearing deposits with banks		95,838		60		0.25	%		45,694		32		0.28	%
Total earning assets		1,996,106		25,916		5.15	%		2,001,576		28,568		5.66	%
Other assets		280,151							286,954
Total	$	2,276,257						$	2,288,530
Interest-bearing liabilities
Interest-bearing demand deposits	$	266,938	$	256		0.38	%	$	226,061	$	173		0.30	%
Savings deposits		426,030		468		0.44	%		366,352		752		0.81	%
Time deposits		734,778		3,683		1.99	%		859,956		5,230		2.41	%
Retail repurchase agreements		103,580		219		0.84	%		98,141		319		1.29	%
Wholesale repurchase agreements		50,000		469		3.72	%		50,000		473		3.75	%
FHLB borrowings & other long-term debt		191,124		1,781		3.70	%		198,849		1,843		3.68	%
Total interest-bearing liabilities		1,772,450		6,876		1.54	%		1,799,359		8,790		1.94	%
Noninterest-bearing demand deposits		211,408							199,713
Other liabilities		15,676							22,800
Stockholders' equity		276,723							266,658
Total	$	2,276,257						$	2,288,530
Net interest income, tax-equivalent			$	19,040						$	19,778
Net interest rate spread (3)						3.61	%						3.72	%
Net interest margin (4)						3.78	%						3.92	%

	Year Ended December 31,
	2010							2009
					Yield/							Yield/
(Unaudited)	Average		Interest		Rate			Average		Interest		Rate
(Dollars in Thousands)	Balance			(1)		(1)		Balance			(1)		(1)
Earning assets
Loans held for investment (2)	$	1,400,061	$	84,906		6.06	%	$	1,333,112	$	82,785		6.21	%
Securities available-for-sale		492,703		21,313		4.33	%		537,278		27,638		5.14	%
Securities held-to-maturity		6,299		533		8.46	%		7,828		643		8.21	%
Interest-bearing deposits with banks		81,987		194		0.24	%		62,242		165		0.27	%
Total earning assets		1,981,050		106,946		5.40	%		1,940,460		111,231		5.73	%
Other assets		282,005							288,450
Total	$	2,263,055						$	2,228,910
Interest-bearing liabilities
Interest-bearing demand deposits	$	252,471	$	980		0.39	%	$	205,997	$	443		0.22	%
Savings deposits		421,184		2,751		0.65	%		334,217		2,588		0.77	%
Time deposits		760,286		16,156		2.12	%		863,357		24,765		2.87	%
Retail repurchase agreements		97,531		992		1.02	%		101,775		1,375		1.35	%
Wholesale repurchase agreements		50,000		1,872		3.74	%		50,000		1,922		3.84	%
FHLB borrowings & other long-term debt		194,461		6,974		3.59	%		204,678		7,589		3.71	%
Total interest-bearing liabilities		1,775,933		29,725		1.67	%		1,760,024		38,682		2.20	%
Noninterest-bearing demand deposits		206,396							199,917
Other liabilities		11,280							24,832
Stockholders' equity		269,446							244,137
Total	$	2,263,055						$	2,228,910
Net interest income, tax-equivalent			$	77,221						$	72,549
Net interest rate spread (3)						3.73	%						3.53	%
Net interest margin (4)						3.90	%						3.74	%

FOR IMMEDIATE RELEASE:	FOR MORE INFORMATION,
January 26, 2011	CONTACT:	David D. Brown
		(276) 326-9000