Unassociated Document

CCBG QUARTERLY FINANCIAL DATA SUPPLEMENT

Corporate Headquarters

217 North Monroe Street

Tallahassee, FL 32301

Financial Highlights

Second Quarter, 2007

Quarterly earnings totaled $7.9 million, or $0.43 per diluted share, compared to $8.3 million, or $0.44 per diluted share in the second quarter of 2006.

Earnings for the quarter were negatively impacted by margin compression and a higher loan loss provision, but benefited from strong growth in noninterest income and expense management initiatives, which continue to contribute positively to earnings as evidenced by a 3.8% decrease in noninterest expense from the second quarter of 2006 and a 2.2% decrease from the prior quarter.

Tax equivalent net interest income declined 5.0% as a result of a 46 basis point increase in funding costs compared to the second quarter of 2006.

Noninterest income continues to show improvement as evidenced by a 7.7% increase over the second quarter of 2006 and an 8.0% increase over the prior quarter.

Higher loan loss provision is due to a higher level of impaired loan reserves primarily attributable to one large commercial real estate loan. Allowance for loan losses continues to be adequately funded at .91% of total loans (net of overdrafts) and 194% of non-performing loans.

Well-capitalized with a risk based capital ratio of 14.66%.

	Three Months Ended							Six Months Ended
	June 30,			March 31,		June 30,		June 30,		June 30,
(Dollars in thousands, except per share data)	2007			2007		2006		2007		2006
EARNINGS
Net Income	$	7,891			6,957		8,315		14,848		15,736
Per Common Share - Diluted		0.43			0.38		0.44		0.81		0.84
PERFORMANCE
Return on Average Equity		10.23	%		8.91		10.56		9.57		10.12
Return on Average Assets		1.26			1.11		1.28		1.19		1.22
Net Interest Margin		5.33			5.29		5.38		5.31		5.31
Noninterest Income as % of Operating Revenue		34.64			33.02		31.69		33.84		31.32
Efficiency Ratio		64.44			67.90		66.23		66.15		66.70
CAPITAL ADEQUACY
Tier 1 Capital Ratio		13.67	%		13.88		12.99		13.67		12.99
Total Capital Ratio		14.66			14.83		13.92		14.66		13.92
Leverage Ratio		11.14			11.22		10.35		11.14		10.35
Equity to Assets		11.91			12.04		11.56		11.91		11.56

	Three Months Ended							Six Months Ended
	June 30,			Mar 31,		June 30,		June 30,		June 30,
(Dollars in thousands, except per share data)	2007			2007		2006		2007		2006
ASSET QUALITY
Allowance as % of Non-Performing Loans		193.69	%		207.67		325.80		193.69		325.80
Allowance as a % of Loans (net of overdrafts)		0.91			0.87		0.84		0.90		0.84
Net Charge-Offs as % of Average Loans		0.27			0.28		0.03		0.27		0.09
Nonperforming Assets as % of Loans and ORE		0.52			0.48		0.28		0.52		0.28
STOCK PERFORMANCE
High	$	33.69			35.91		35.39		35.91		37.97
Low		29.12			29.79		29.51		29.12		29.51
Close	$	31.34			33.30		30.20		31.34		30.20
Average Daily Trading Volume		40,051			24,499		27,302		32,338		21,387

Capital City Bank Group, Inc. (NASDAQ: CCBG) today reported earnings for the second quarter of 2007 totaling $7.9 million ($0.43 per diluted share) compared to $8.3 million ($0.44 per diluted share) in the second quarter of 2006, down 2.3% on a per-share basis. The Return on Average Assets was 1.26% and the Return on Average Equity was 10.23%, compared to 1.28% and 10.56%, respectively, for the comparable period in 2006.

The decrease in earnings compared to second quarter 2006 was attributable to a reduction in net interest income of $1.7 million and a $1.6 million increase in the loan loss provision, partially offset by an increase in noninterest income of $1.1 million, a decrease in noninterest expense of $1.2 million, and a reduction in income taxes of $600,000. The decrease in net interest income is reflective of a 46 basis point increase in funding costs. The higher loan loss provision is reflective of a higher level of required reserves for impaired loans. The 7.7% increase in noninterest income is due to increases in deposit fees, retail brokerage fees, and card processing fees. The 3.8% decline in noninterest expense reflects lower compensation, advertising, and miscellaneous expense.

“The Company’s underlying performance for the second quarter and the first half is essentially a reflection of the current rate environment and lower loan volume - as economic momentum throughout our markets has tempered. The business activity within our footprint is not driven primarily by real estate speculation, as has occurred in many Florida regions, but we are seeing slower general economic growth in the northern sectors of the state,” said William G. Smith, Jr., Chairman, President, and CEO of Capital City Bank Group, Inc. “Our overall credit quality remains favorable and the diversification within our loan portfolios should mitigate undue exposure to material deterioration of any specific asset class. As noted in this release, the quarter’s increase in our loan loss provision from the second quarter in 2006 is primarily attributable to a single credit.”

“The Company repurchased 428,442 shares of its common stock during the second quarter under its previously-announced buyback authorization, which is a business decision that we believe adds significantly to shareholder value.” said Smith. “We intend to continue to execute on this prudent initiative.”

Tax equivalent net interest income in the second quarter decreased $1.5 million, or 5.0%, compared to the second quarter of 2006, due to an increase in funding costs. The net interest margin decreased 5 basis points from the second quarter of 2006 to a level of 5.33%. The earning asset yield improved by 41 basis points, but was more than offset by a 46 basis point increase in the cost of funds.

The provision for loan losses of $1.7 million for the quarter was $1.6 million higher than the second quarter of 2006 primarily attributable to a $5.7 million commercial real estate project located on Florida’s west coast, for which a reserve requirement of $927,000 is maintained. At this time, management believes the reserve allocated to this loan is sufficient to absorb any anticipated loss. Net charge-offs totaled $1.3 million, or .27%, of average loans for the quarter compared to $0.1 million, or .03%, for the second quarter of 2006. At quarter-end, the allowance for loan losses was .91% of outstanding loans (net of overdrafts) and provided coverage of 194% of nonperforming loans.

Noninterest income increased $1.1 million, or 7.7%, from the second quarter of 2006 primarily due to higher deposit fees, retail brokerage fees, and card processing fees. The increase in deposit fees is due primarily to an increase in non-sufficient funds and overdraft activity and an increase in fees for deposit accounts initiated during the quarter. Retail brokerage fees increased as a result of increased activity by clients and improvement in the internal referral system for this service. Card processing fees were driven higher primarily by increased transaction volume for merchant services and increased interchange fees related to bank payment card activity.

Noninterest expense decreased by $1.2 million, or 3.8% compared to the second quarter of 2006. Lower expense for compensation ($212,000), advertising ($249,000), training ($158,000), and travel and entertainment ($85,000) were the primary reasons for the decrease. The decline in compensation reflects a lower level of incentive plan expense. The decline in advertising, training, and travel and entertainment expense is reflective of steps taken by management to improve expense management controls.

Average earning assets for the second quarter decreased $91.6 million, or 4.0%, from the second quarter of 2006 due to a decline in deposits and FHLB borrowings. Average loans decreased $95.7 million, or 4.7% during the same period reflective of higher principal pay-downs and loan pay-offs, including the pay-off of several larger commercial loans, and a general slowing of lending activity.

Nonperforming assets of $10.1 million increased from the second quarter of 2006 by $4.3 million. The increase in the level of nonperforming assets is due to a $3.7 million increase in non-accrual loans and a $0.6 million increase in other real estate owned. Nonperforming assets represented .52% of loans and other real estate at the end of the second quarter compared to .28% for the same period in 2006 and .44% at year-end 2006.

Average total deposits decreased $60.3 million, or 2.9%, from the second quarter of 2006 driven primarily by declines in demand deposit ($63.9 million), savings ($13.6 million), and time deposits ($43.9 million). Increases in NOW ($31.4 million) and money market accounts ($29.6 million), respectively, partially offset the aforementioned declines in demand deposit, savings, and time deposits. The change in deposit mix between the demand deposit/savings and NOW/money market categories primarily reflects the migration of clients toward higher rate nonmaturity deposit products. The decline in time deposit balances reflects management’s unwillingness to retain higher cost funding in the face of a declining loan portfolio.

The Company had approximately $38.3 million in average net overnight funds sold for the second quarter of 2007 as compared to $35.7 million in average net overnight funds sold in the second quarter of 2006. The increase is due to the aforementioned reduction in the loan portfolio.

About Capital City Bank Group, Inc.

Capital City Bank Group, Inc. (NASDAQ: CCBG) is one of the largest publicly traded financial services companies headquartered in Florida and has approximately $2.5 billion in assets. The Company provides a full range of banking services, including traditional deposit and credit services, asset management, trust, mortgage banking, merchant services, bankcards, data processing and securities brokerage services. The Company's bank subsidiary, Capital City Bank, was founded in 1895 and now has 70 banking offices, three mortgage lending offices, and 80 ATMs in Florida, Georgia and Alabama. In 2006, Mergent, Inc., a leading provider of information on publicly traded companies, named the Company as a Dividend Achiever. To be named a Dividend Achiever, a public company must have increased its regular cash dividends for at least 10 consecutive years. Of all publicly traded U.S. companies that pay dividends, less than three percent made this list. Capital City Bank Group, Inc. was also named to this list in 2005. For more information about Capital City Bank Group, Inc., visit www.ccbg.com.

FORWARD-LOOKING STATEMENTS

Forward-looking statements in this press release are based on current plans and expectations that are subject to uncertainties and risks, which could cause our future results to differ materially. The following factors, among others, could cause our actual results to differ: our ability to integrate acquisitions; the strength of the U.S. economy and the local economies where we conduct operations; harsh weather conditions; fluctuations in inflation, interest rates, or monetary policies; changes in the stock market and other capital and real estate markets; legislative or regulatory changes; customer acceptance of third-party products and services; increased competition and its effect on pricing; technological changes; changes in consumer spending and savings habits; our growth and profitability; changes in accounting; and our ability to manage the risks involved in the foregoing. Additional factors can be found in our Annual Report on Form 10-K for the fiscal year ended December 31, 2006, and our other filings with the SEC, which are available at the SEC’s internet site (http://www.sec.gov). Forward-looking statements in this press release speak only as of the date of the press release, and we assume no obligation to update forward-looking statements or the reasons why actual results could differ.

CAPITAL CITY BANK GROUP, INC.
CONSOLIDATED STATEMENT OF INCOME
*Unaudited*

	2007				2006							Six Months Ended
	Second		First		Fourth		Third		Second			June 30
(Dollars in thousands, except per share data)	Quarter		Quarter		Quarter		Quarter		Quarter			2007		2006

INTEREST INCOME
Interest and Fees on Loans	$	39,092	$	39,053		40,096		40,260		38,967			78,145		76,310
Investment Securities		1,943		1,940		1,928		1,914		1,816			3,883		3,346
Funds Sold		689		521		576		338		586			1,210		1,125
Total Interest Income		41,724		41,514		42,600		42,512		41,369			83,238		80,781

INTEREST EXPENSE
Deposits		11,098		11,000		10,830		9,985		8,716			22,098		16,438
Short-Term Borrowings		737		761		722		753		776			1,498		1,600
Subordinated Notes Payable		932		926		936		936		926			1,858		1,852
Other Long-Term Borrowings		496		502		515		615		764			998		1,574
Total Interest Expense		13,263		13,189		13,003		12,289		11,182			26,452		21,464
Net Interest Income		28,461		28,325		29,597		30,223		30,187			56,786		59,317
Provision for Loan Losses		1,675		1,237		460		711		121			2,912		788
Net Interest Income after Provision for Loan Losses		26,786		27,088		29,137		29,512		30,066			53,874		58,529

NONINTEREST INCOME
Service Charges on Deposit Accounts		6,442		6,045		6,394		6,450		6,096			12,487		11,776
Data Processing		790		715		709		674		703			1,505		1,340
Asset Management Fees		1,175		1,225		1,180		1,215		1,155			2,400		2,205
Retail Brokerage Fees		804		462		586		520		502			1,266		985
Gain on Sale of Investment Securities		-		7		-		-		(4	)		7		(4	)
Mortgage Banking Revenues		850		679		787		824		903			1,529		1,624
Merchant Fees		1,892		1,936		1,694		1,766		1,793			3,828		3,518
Interchange Fees		951		910		845		797		788			1,861		1,463
ATM/Debit Card Fees		661		641		658		635		627			1,302		1,226
Other		1,519		1,342		1,532		1,263		1,440			2,861		2,915
Total Noninterest Income		15,084		13,962		14,385		14,144		14,003			29,046		27,048

NONINTEREST EXPENSE
Salaries and Associate Benefits		14,992		15,719		14,943		15,278		15,204			30,711		30,634
Occupancy, Net		2,324		2,236		2,460		2,354		2,358			4,560		4,581
Furniture and Equipment		2,494		2,349		2,259		2,491		2,661			4,843		5,161
Intangible Amortization		1,458		1,459		1,484		1,536		1,536			2,917		3,066
Other		8,629		8,799		8,838		8,763		9,311			17,428		17,720
Total Noninterest Expense		29,897		30,562		29,984		30,422		31,070			60,459		61,162

OPERATING PROFIT		11,973		10,488		13,538		13,234		12,999			22,461		24,415
Provision for Income Taxes		4,082		3,531		4,688		4,554		4,684			7,613		8,679
NET INCOME	$	7,891	$	6,957		8,850		8,680		8,315			14,848		15,736

PER SHARE DATA
Basic Earnings	$	0.43	$	0.38		0.48		0.47		0.44			0.81		0.84
Diluted Earnings		0.43		0.38		0.48		0.47		0.44			0.81		0.84
Cash Dividends		0.175		0.175		0.175		0.163		0.163			0.350		0.326
AVERAGE SHARES
Basic		18,089		18,409		18,525		18,530		18,633			18,248		18,642
Diluted		18,089		18,420		18,569		18,565		18,653			18,248		18,658

CAPITAL CITY BANK GROUP, INC.
CONSOLIDATED STATEMENT OF FINANCIAL CONDITION
*Unaudited*

	2007						2006
	Second			First			Fourth			Third			Second
(Dollars in thousands, except per share data)	Quarter			Quarter			Quarter			Quarter			Quarter

ASSETS
Cash and Due From Banks	$	95,573		$	92,233			98,769			100,781			103,078
Funds Sold and Interest Bearing Deposits		77,297			93,832			78,795			35,631			126,210
Total Cash and Cash Equivalents		172,870			186,065			177,564			136,412			229,288

Investment Securities, Available-for-Sale		189,680			191,446			191,894			190,617			191,232

Loans, Net of Unearned Interest
Commercial, Financial, & Agricultural		203,555			205,048			229,327			218,442			220,345
Real Estate - Construction		159,751			180,549			179,072			183,238			180,049
Real Estate - Commercial		640,172			643,272			643,885			647,302			672,881
Real Estate - Residential		493,783			509,040			524,301			529,087			536,346
Real Estate - Home Equity		175,781			172,283			173,597			174,577			171,835
Consumer		240,110			235,175			234,596			237,069			238,381
Credit Card		-			-			-			-			-
Other Loans		14,715			14,899			11,837			14,521			29,784
Overdrafts		2,844			5,575			3,106			5,223			3,239
Total Loans, Net of Unearned Interest		1,930,711			1,965,841			1,999,721			2,009,459			2,052,860
Allowance for Loan Losses		(17,469	)		(17,108	)		(17,217	)		(17,311	)		(17,264	)
Loans, Net		1,913,242			1,948,733			1,982,504			1,992,148			2,035,596

Premises and Equipment, Net		92,656			88,812			86,538			84,915			81,407
Intangible Assets		101,485			102,944			104,402			105,886			107,422
Other Assets		60,815			60,117			55,008			48,895			52,541
Total Other Assets		254,956			251,873			245,948			239,696			241,370

Total Assets	$	2,530,748		$	2,578,117			2,597,910			2,558,873			2,697,486

LIABILITIES
Deposits:
Noninterest Bearing Deposits	$	456,986		$	467,875			490,014			506,331			572,549
NOW Accounts		559,050			575,740			599,433			533,549			555,350
Money Market Accounts		401,415			396,150			384,568			387,906			377,958
Regular Savings Accounts		119,585			124,970			125,500			129,884			135,330
Certificates of Deposit		472,554			477,327			482,139			491,569			512,672
Total Deposits		2,009,590			2,042,062			2,081,654			2,049,239			2,153,859

Short-Term Borrowings		74,307			77,936			65,023			54,171			77,571
Subordinated Notes Payable		62,887			62,887			62,887			62,887			62,887
Other Long-Term Borrowings		41,276			42,879			43,083			43,701			63,022
Other Liabilities		41,251			41,841			29,493			29,833			28,403

Total Liabilities		2,229,311			2,267,605			2,282,140			2,239,831			2,385,742

SHAREOWNERS' EQUITY
Common Stock		179			183			185			185			185
Additional Paid-In Capital		58,001			71,366			80,654			80,938			80,272
Retained Earnings		251,838			246,959			243,242			238,870			233,201
Accumulated Other Comprehensive Loss, Net of Tax		(8,581	)		(7,996	)		(8,311	)		(951	)		(1,914	)

Total Shareowners' Equity		301,437			310,512			315,770			319,042			311,744

Total Liabilities and Shareowners' Equity	$	2,530,748		$	2,578,117			2,597,910			2,558,873			2,697,486

OTHER BALANCE SHEET DATA
Earning Assets	$	2,197,688		$	2,251,119			2,270,410			2,235,707			2,370,302
Intangible Assets
Goodwill		84,811			84,811			84,811			84,811			84,811
Deposit Base		15,399			16,810			18,221			19,632			21,042
Other		1,275			1,323			1,370			1,443			1,569
Interest Bearing Liabilities		1,731,074			1,757,889			1,762,633			1,703,667			1,784,790

Book Value Per Diluted Share	$	16.87		$	16.97			17.01			17.18			16.81
Tangible Book Value Per Diluted Share		11.19			11.34			11.39			11.48			11.01
														18,530
Actual Basic Shares Outstanding		17,869			18,287			18,518			18,532			18,530
Actual Diluted Shares Outstanding		17,869			18,297			18,562			18,567			18,550

CAPITAL CITY BANK GROUP, INC.
ALLOWANCE FOR LOAN LOSSES
AND NONPERFORMING ASSETS
*Unaudited*

	2007						2006
	Second			First			Fourth		Third		Second
(Dollars in thousands)	Quarter			Quarter			Quarter		Quarter		Quarter

ALLOWANCE FOR LOAN LOSSES
Balance at Beginning of Period	$	17,108			17,217			17,311		17,264		17,279
Provision for Loan Losses		1,675			1,237			460		711		121
Net Charge-Offs		1,314			1,346			554		664		136

Balance at End of Period	$	17,469			17,108			17,217		17,311		17,264
As a % of Loans		0.91	%		0.87	%		0.86		0.86		0.84
As a % of Nonperforming Loans		193.69			207.67			214.09		269.35		325.80
As a % of Nonperforming Assets		172.60			181.23			197.19		253.79		299.72

CHARGE-OFFS
Commercial, Financial and Agricultural	$	253			560			81		294		144
Real Estate - Construction		-			108			-		-		-
Real Estate - Commercial		5			326			54		-		-
Real Estate - Residential		992			67			154		81		23
Consumer		534			761			787		690		448

Total Charge-Offs	$	1,784			1,822			1,076		1,065		615

RECOVERIES
Commercial, Financial and Agricultural	$	47			36			77		43		63
Real Estate - Construction		-			-			-		-		-
Real Estate - Commercial		5			5			9		4		2
Real Estate - Residential		26			3			1		2		2
Consumer		392			432			435		352		412

Total Recoveries	$	470			476			522		401		479

NET CHARGE-OFFS	$	1,314			1,346			554		664		136

Net Charge-Offs as a % of Average Loans ⁽¹⁾		0.27	%		0.28	%		0.11		0.13		0.03

RISK ELEMENT ASSETS
Nonaccruing Loans	$	9,019			8,238			8,042		6,427		5,299
Restructured		-			-			-		-		-
Total Nonperforming Loans		9,019			8,238			8,042		6,427		5,299
Other Real Estate		1,102			1,202			689		394		461
Total Nonperforming Assets	$	10,121			9,440			8,731		6,821		5,760

Past Due Loans 90 Days or More	$	332			860			135		300		205

Nonperforming Loans as a % of Loans		0.47	%		0.42	%		0.40		0.32		0.26
Nonperforming Assets as a % of
Loans and Other Real Estate		0.52			0.48			0.44		0.34		0.28
Nonperforming Assets as a % of Capital ⁽²⁾		3.17			2.88			2.62		2.03		1.75


(1) Annualized

(2) Capital includes allowance for loan losses.


AVERAGE BALANCE AND INTEREST RATES ⁽¹⁾
*Unaudited*

	Second Quarter 2007								First Quarter 2007							Fourth Quarter 2006
	Average					Average			Average					Average		Average					Average
(Dollars in thousands)	Balance			Interest		Rate			Balance			Interest		Rate		Balance			Interest		Rate

ASSETS:
Loans, Net of Unearned Interest	$	1,944,969		$	39,300		8.10	%		1,980,224			39,264		8.04		2,003,719			40,296		7.98

Investment Securities
Taxable Investment Securities		105,425			1,236		4.68			108,377			1,263		4.67		108,041			1,263		4.66
Tax-Exempt Investment Securities		83,907			1,088		5.19			82,627			1,039		5.03		82,568			1,020		4.94

Total Investment Securities		189,332			2,324		4.91			191,004			2,302		4.82		190,609			2,283		4.78

Funds Sold		52,935			689		5.15			40,332			521		5.17		43,738			576		5.15

Total Earning Assets		2,187,236		$	42,313		7.76	%		2,211,560			42,087		7.71		2,238,066			43,155		7.65

Cash and Due From Banks		88,075								88,679							94,449
Allowance For Loan Losses		(17,263	)							(17,073	)						(17,503	)
Other Assets		253,204								247,624							242,345

Total Assets	$	2,511,252								2,530,790							2,557,357

LIABILITIES:
Interest Bearing Deposits
NOW Accounts	$	541,525		$	2,611		1.93	%		552,303			2,626		1.93		542,751			2,522		1.84
Money Market Accounts		393,403			3,458		3.53			386,736			3,427		3.59		391,346			3,488		3.54
Savings Accounts		122,560			74		0.24			125,419			78		0.25		128,027			76		0.24
Time Deposits		474,761			4,955		4.19			480,964			4,869		4.11		484,807			4,744		3.88
Total Interest Bearing Deposits		1,532,249			11,098		2.91			1,545,422			11,000		2.89		1,546,931			10,830		2.78

Short-Term Borrowings		66,764			737		4.41			68,911			761		4.46		65,385			722		4.36
Subordinated Notes Payable		62,887			932		5.94			62,887			926		5.97		62,887			936		5.91
Other Long-Term Borrowings		42,284			496		4.71			43,137			502		4.72		43,453			515		4.71

Total Interest Bearing Liabilities		1,704,184		$	13,263		3.12	%		1,720,357			13,189		3.11		1,718,656			13,003		3.00

Noninterest Bearing Deposits		455,169								458,304							481,522
Other Liabilities		42,547								35,645							33,276

Total Liabilities		2,201,900								2,214,306							2,233,454

SHAREOWNERS' EQUITY:	$	309,352								316,484							323,903

Total Liabilities and Shareowners' Equity	$	2,511,252								2,530,790							2,557,357

Interest Rate Spread				$	29,050		4.64	%					28,898		4.60					30,152		4.65

Interest Income and Rate Earned ⁽²⁾				$	42,313		7.76						42,087		7.71					43,155		7.65
Interest Expense and Rate Paid ⁽²⁾					13,263		2.43						13,189		2.42					13,003		2.30

Net Interest Margin				$	29,050		5.33	%					28,898		5.29					30,152		5.35

(1)	Interest and average rates are calculated on a tax-equivalent basis using the 35% Federal tax rate.

(2)	Rate calculated based on average earning assets.


AVERAGE BALANCE AND INTEREST RATES ⁽¹⁾
*Unaudited*

	Third Quarter 2006								Second Quarter 2006
	Average					Average			Average					Average
(Dollars in thousands)	Balance			Interest		Rate			Balance			Interest		Rate

ASSETS:
Loans, Net of Unearned Interest	$	$2,025,112		$	40,433		7.92	%		2,040,656			39,059		7.68

Investment Securities
Taxable Investment Securities		109,097			1,264		4.60			114,521			1,233		4.30
Tax-Exempt Investment Securities		81,409			999		4.90			74,862			895		4.78

Total Investment Securities		190,506			2,263		4.73			189,383			2,128		4.49

Funds Sold		25,540			338		5.19			48,778			586		4.75

Total Earning Assets		2,241,158		$	43,034		7.62	%		2,278,817			41,773		7.35

Cash and Due From Banks		96,969								99,830
Allowance For Loan Losses		(17,420	)							(17,443	)
Other Assets		239,448								241,886

Total Assets	$	$2,560,155								2,603,090

LIABILITIES:
Interest Bearing Deposits
NOW Accounts	$	511,299		$	2,026		1.57	%		510,088			1,664		1.31
Money Market Accounts		381,628			3,259		3.39			363,754			2,642		2.91
Savings Accounts		132,421			73		0.22			136,168			67		0.20
Time Deposits		504,121			4,627		3.64			518,679			4,343		3.36
Total Interest Bearing Deposits		1,529,469			9,985		2.59			1,528,689			8,716		2.29

Short-Term Borrowings		73,078			753		4.07			82,846			776		3.75
Subordinated Notes Payable		62,887			936		5.91			62,887			926		5.91
Other Long-Term Borrowings		52,367			615		4.66			63,597			764		4.82

Total Interest Bearing Liabilities		1,717,801		$	12,289		2.84	%		1,738,019			11,182		2.58

Noninterest Bearing Deposits		494,054								519,066
Other Liabilities		30,259								30,211

Total Liabilities		2,242,114								2,287,296

SHAREOWNERS' EQUITY:	$	318,041								315,794

Total Liabilities and Shareowners' Equity	$	2,560,155								2,603,090

Interest Rate Spread				$	30,745		4.78	%					30,591		4.77

Interest Income and Rate Earned ⁽²⁾				$	43,034		7.62						41,773		7.35
Interest Expense and Rate Paid ⁽²⁾					12,289		2.17						11,182		1.97

Net Interest Margin				$	30,745		5.45	%					30,591		5.38

(1)	Interest and average rates are calculated on a tax-equivalent basis using the 35% Federal tax rate.

(2)	Rate calculated based on average earning assets.


AVERAGE BALANCE AND INTEREST RATES ⁽¹⁾
*Unaudited*

	Six Months Ended June 2007								Six Months Ended June 2006
	Average					Average			Average					Average
(Dollars in thousands)	Balance			Interest		Rate			Balance			Interest		Rate

ASSETS:
Loans, Net of Unearned Interest	$	1,962,499		$	78,564		8.07	%		2,044,627			76,498		7.54

Investment Securities
Taxable Investment Securities		106,894			2,499		4.68			116,278			2,323		3.99
Tax-Exempt Investment Securities		83,270			2,127		5.11			67,158			1,570		4.67

Total Investment Securities		190,164			4,626		4.87			183,436			3,893		4.24

Funds Sold		46,669			1,210		5.16			49,188			1,125		4.56

Total Earning Assets		2,199,332		$	84,400		7.73	%		2,277,251			81,516		7.21

Cash and Due From Banks		88,376								104,841
Allowance For Loan Losses		(17,169	)							(17,512	)
Other Assets		250,428								239,190

Total Assets	$	2,520,967								2,603,770

LIABILITIES:
Interest Bearing Deposits
NOW Accounts		546,884		$	5,237		1.93	%		510,178			3,110		1.23
Money Market Accounts		390,088			6,885		3.56			353,759			4,940		2.82
Savings Accounts		123,982			152		0.25			137,906			130		0.19
Time Deposits		477,845			9,824		4.15			520,314			8,258		3.20
Total Interest Bearing Deposits		1,538,799			22,098		2.90			1,522,157			16,438		2.18

Short-Term Borrowings		67,832			1,498		4.44			88,326			1,600		3.64
Subordinated Notes Payable		62,887			1,858		5.96			62,887			1,852		5.94
Other Long-Term Borrowings		42,708			998		4.71			66,763			1,574		4.75

Total Interest Bearing Liabilities		1,712,226		$	26,452		3.11	%		1,740,133			21,464		2.49

Noninterest Bearing Deposits		456,728								521,865
Other Liabilities		39,115								28,132

Total Liabilities		2,208,069								2,290,130

SHAREOWNERS' EQUITY:		312,898								313,640

Total Liabilities and Shareowners' Equity		2,520,967								2,603,770

Interest Rate Spread				$	57,948		4.62	%					60,052		4.72

Interest Income and Rate Earned ⁽²⁾				$	84,400		7.73						81,516		7.21
Interest Expense and Rate Paid ⁽²⁾					26,452		2.42						21,464		1.90

Net Interest Margin				$	57,948		5.31	%					60,052		5.31

(1)	Interest and average rates are calculated on a tax-equivalent basis using the 35% Federal tax rate.

(2)	Rate calculated based on average earning assets.