HIGHLIGHTS - Quarterly earnings totaled $8.6 million, or $0.46 per share, a ;ncrease of 29.8% and 15.0%, respectively, over the third quarter of2004. ; - Strong growth in operating revenues as reflected by 36.5% growth in ne ;nterest income and 20.8% increase in noninterest income. ; - Continued improvement in net interest margin as reflected by a 23 basi ;oint improvement over the third quarter of 2004 and a 10 basis poin ;mprovement over the second quarter of 2005. ; - Continued strong credit quality as reflected by a nonperforming asse ;atio of .36% and an annualized net charge-off ratio of .08%. ; - Well capitalized with a risk based capital ratio of 12.35%. ; EARNINGS HIGHLIGHTS ;Three Months EndedNine Months Ende ;ept. 30, June 30, Sept. 30, Sept. 30, Sept. 30, 2005 20052004 2005 2004 ; (Dollars in thousands, except per except per share data)(2) ; EARNINGS ; Net Income $ 8,5777,868 10,819 22,822 22,109 Diluted Earnings Per Common Share 0.46 0.44 0.66 1.26 1.34 ; PERFORMANCE ; Return on Average Equity 11.31% 11.3519.81 10.8913.98 Return on Average Assets 1.32 1.28 2.22 1.25 1.55 Net Interest Margin 5.17 5.07 4.94 5.05 4.93 Noninterest Income as % of Operating Revenue 31.1530.7545.47 30.9938.47 Efficiency Ratio 63.6063.5652.60 64.6460.73 ; CAPITAL ADEQUACY Tier 1 Capital Ratio 12.35% 11.9611.81 12.3511.81 Total Capital Ratio 13.2912.9112.62 13.2912.62 Leverage Ratio 10.20 9.28 9.17 10.20 9.17 Equity to Assets 11.6711.2311.22 11.6711.22 ; (1) Analysis of quarterly earnings performance excludes from 2004 revenues, a one-time non-recurring pre-tax gain of $6.9 million ($4.2 million after-tax) recognized from the sale of the bank's credit card portfolio during the third quarter of 2004. ; (2) All share and per share data have been restated to reflect the 5-for-4 stock split effective July 1, 2005. ; Three Months Ended Nine Months Ended Sept. 30, June 30, Sept. 30, Sept. 30, Sept. 30, 20052005 2004 2005 2004 ; (Dollars in thousands, except per except per share data)(2) ; ASSET QUALITY Allowance as % of Non-Performing Loans 342.79% 289.12 261.91 342.79 261.91 Allowance as % of Loans 0.85 0.85 0.80 0.85 0.80 Net Charge-Offs as % of Average Loans 0.08 0.08 0.22 0.08 0.22 Nonperforming Assets as % of Loans and ORE 0.36 0.30 0.36 0.36 0.36 ; STOCK PERFORMANCE High $ 38.7233.4632.9638.7236.44 Low 31.7828.0226.6628.0226.66 Close $ 37.7132.3230.9737.7130.97 Average Daily Trading Volume 18,024 23,792 13,065 20,946 12,949 ; (2) All share and per share data have been restated to reflect the 5-for-4 stock split effective July 1, 2005. ; Capital City Bank Group, Inc. (Nasdaq: CCBG) reported earnings for the ;third quarter totaling $8.6 million, or $0.46 per diluted share. This ;compares to $10.8 million, or $0.66 per diluted share, in the third quarter of ;2004, which included a one-time after-tax gain of $4.2 million, or $.26 per ;diluted share, from the sale of the bank's credit card portfolio. Core ;earnings (reported earnings excluding the after-tax gain) increased 29.8% and ;15.0% on a dollar and per diluted share basis, respectively. The Return on ;Average Assets was 1.32% and the Return on Average Equity was 11.31%, compared ;to 1.35% and 12.10%, respectively, for the comparable period in 2004. The growth in core earnings was attributable to an increase in operating ;revenue (defined as net interest income plus noninterest income less the pre- ;tax gain) of $10.0 million, or 31.2%, partially offset by an increase in ;noninterest expense of $7.0 million, or 32.2%, and a higher income tax ;provision of $1.0 million, or 27.6%. The increase in operating revenues ;reflects a 36.5% increase in net interest income and a 20.8% increase in ;noninterest income. Net interest income increased as a result of earning ;asset growth and an improved net interest margin. Higher deposit service ;charge fees, mortgage banking fees, and merchant fees drove the increase in ;noninterest income. The increase in noninterest expense is primarily ;attributable to higher operating costs associated with the integration of two ;recent acquisitions, which added 12 new offices to the Capital City franchise, ;and marketing costs supporting the Company's new "Absolutely Free Checking" ;product. William G. Smith, Jr., Chairman, President and CEO, stated "Our third ;quarter earnings reflect solid performance across the Company as earning ;assets grew, margins expanded and credit losses remained at historically low ;levels. Capital City's new checking account strategy continues to gain ;traction and in September we introduced "Absolutely Free Business Checking." ;We anticipate competition for deposits will continue to intensify and our ;challenge as we enter the fourth quarter of 2005 and 2006 will be to balance ;the trade-off between deposit growth and the rising cost of funds." Taxable equivalent net interest income in the third quarter increased $7.8 ;million, or 36.3%, and $1.9 million, or 7.1%, as compared to the third quarter ;of 2004 and the second quarter of 2005, respectively. Improvement was driven ;by growth from acquisitions, strong loan growth in existing markets, and an ;improvement in the net interest margin. The net interest margin improved 23 ;basis points from the third quarter of 2004 to a level of 5.17%, and 10 basis ;points from the prior quarter, primarily attributable to higher asset yields ;resulting from the continued Fed rate increases. A slight increase in net ;interest income during the fourth quarter is anticipated as higher rates on ;new production and repricing of existing earning assets will increase interest ;income. Management expects higher interest expense primarily due to the ;increased competition for deposits and the continued pressure in most markets ;to increase rates resulting from the Fed rate hikes. Provision for loan losses of $376,000 for the quarter was slightly higher ;than the third quarter of 2004. The provision for the quarter was slightly ;lower than net charge-offs, which totaled $403,000, or .08%, of average loans ;for the quarter compared to $829,000, or .22%, for the third quarter of 2004. ;The lower level of net charge-offs in the third quarter of 2005 is due to the ;August 2004 sale of the credit card portfolio, which previously accounted for ;a significant portion of the bank's charge-offs. At quarter-end, the ;allowance for loan losses was .85% of outstanding loans and provided coverage ;of 343% of nonperforming loans. Noninterest income (excluding the gain on sale of credit card portfolio) ;increased $2.3 million, or 20.8%, from the third quarter of 2004 primarily due ;to higher deposit service charge fees, mortgage banking fees, and merchant ;fees. The increase in deposit service charge fees is due to the growth in ;deposit accounts attributable to recent acquisitions, and "Absolutely Free ;Checking," which was launched in early 2005. Higher mortgage banking revenues ;is reflective of lower than normal production in the third quarter of 2004 due ;to a general slow-down in the residential lending market. Lending activity ;picked up momentum early in the second quarter of 2005 and resulted in ;improved performance for the third quarter. The improvement in merchant fees ;directly correlates with the growth in merchant card processing volume. Noninterest expense grew by $7.0 million, or 32.2%, compared to the third ;quarter of 2004. Higher expense for compensation, occupancy, advertising, ;printing and supplies, telephone, and intangible amortization were the primary ;reasons for the increase. The increase in compensation was driven by higher ;expense for associate salaries, pension, and insurance benefits, primarily ;reflective of the integration of associates from the acquisitions in late 2004 ;and mid-2005. The increase in occupancy was driven by higher expense for ;depreciation, maintenance and repair, and property taxes, primarily ;attributable to the increase in the number of banking offices, and higher ;expense for core processing and other software maintenance agreements. The ;increase in advertising expense is reflective of the marketing support costs ;for the "Absolutely Free Checking" campaign. Higher expense for printing and ;supplies and telephone is also attributable to the aforementioned acquisitions ;and increase in the number of banking offices. The increase in intangible ;amortization reflects core deposit amortization from recent acquisitions. Average earning assets for the quarter increased $516.2 million, or 29.8%, ;over the comparable quarter in 2004. The increase in earning assets is ;primarily attributable to an increase in average loans of $522.6 million ;reflecting acquisitions and strong organic loan growth. Nonperforming assets of $7.4 million increased from the third quarter of ;2004 by $1.8 million and represented .36% of total loans and other real estate ;at quarter-end. This compares to .36% and .29%, respectively, for the third ;and fourth quarters of 2004. The increase in the level of nonperforming ;assets is primarily due to one large commercial real estate property currently ;classified as other real estate. Management expects no significant loss upon ;the disposition of this asset. Average total deposits increased $468.2 million, or 30.3%, from the third ;quarter of 2004, driven by a $183.3 million increase in NOW deposits and a ;$133.9 million increase in certificates of deposit. These increases are ;primarily reflective of recent acquisitions and new NOW accounts acquired as ;part of the "Absolutely Free Checking" campaign. The Company ended the third quarter with approximately $21.9 million in ;average net overnight funds purchased as compared to $10.5 million in net ;overnight funds sold in the third quarter of 2004 and $13.2 million in net ;overnight funds sold for the prior quarter. The decline from the third quarter ;of 2004 is primarily reflective of the Company's significant loan growth and ;the decline from the prior quarter is primarily due to a seasonal variation in ;public funds deposits and some deposit run-off expected from recent ;acquisitions. ; About Capital City Bank Group, Inc. Capital City Bank Group, Inc. (Nasdaq: CCBG) is one of the largest ;financial services companies headquartered in Florida and has more than $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, bankcards, data processing and securities brokerage ;services. The Company's bank subsidiary, Capital City Bank, was founded in ;1895 and now has 68 banking offices, six mortgage lending offices, 77 ATMs and ;11 Bank 'N Shop locations in Florida, Georgia and Alabama. In 2005, Mergent, ;Inc., a leading provider of information on publicly traded companies, named ;the Company as a Dividend Achiever, a list of public companies that have ;increased their regular cash dividends for at least 10 consecutive years. Of ;all U.S. companies that pay dividends, less than three percent made this list. ;For more information about Capital City Bank Group, Inc., visit ;http://www.ccbg.com. ; FORWARD-LOOKING STATEMENTS "Safe Harbor" Statement under the Private Securities Litigation Reform Act ;of 1995: The matters discussed in this press release, that are not historical ;facts, contain forward-looking information with respect to strategic ;initiatives. Such forward-looking statements are based on current plans and ;expectations, which are subject to a number of uncertainties and risks that ;have been described in Capital City Bank Group's annual report on Form 10-K ;for the fiscal year ended December 31, 2004, and the Company's other filings ;with the Securities and Exchange Commission. These uncertainties and risks ;could cause future results to differ materially from those anticipated by such ;statements. ; ; CAPITAL CITY BANK GROUP, INC. CONSOLIDATED STATEMENT OF INCOME Unaudited 2005 2004 (Dollars in thousands, Third SecondFirst Fourth Third except per share data)(1) Quarter Quarter Quarter Quarter Quarter ; INTEREST INCOME Interest and Fees on Loans $35,331 32,105 28,842 28,097 23,316 Interest on Investment Securities 1,437 1,447 1,473 1,485 1,197 Interest on Funds Sold 121 358 159 348 147 Total Interest Income36,889 33,910 30,474 29,930 24,660 ; INTEREST EXPENSE Interest on Deposits 5,480 4,618 4,309 4,102 2,434 Interest on Short-term Borrowings 691 734 450 402 332 Interest on Subordinated Note Payable 931 667 441 294 - Interest on Other Long-term Borrowings 783 769 720 836 642 Total Interest Expense7,885 6,788 5,920 5,634 3,408 Net Interest Income 29,004 27,122 24,554 24,296 21,252 Provision for Loan Losses 376 388 410 300 300 Net Interest Income after Provision for Loan Losses28,628 26,734 24,144 23,996 20,952 ; NONINTEREST INCOME Service Charge Revenue5,635 5,035 4,348 4,716 4,487 Data Processing Revenue 660 650 607 640 652 Fees for Trust Services 1,050 1,013 1,112 1,281 1,035 Retail Brokerage Fees 305 313 299 324 316 Invest Sec Gain (Losses) 9 - - 7 (13) Mortgage Banking Revenue 1,317 1,036 763 722 806 Merchant Fees 1,556 1,532 1,564 1,379 1,230 Interchange Fees 582 535 491 458 537 Gain on Sale of Credit Cards - - - 324 6,857 ATM/Debit Card Fees550 536 538 549 494 Other 1,459 1,391 1,338 1,520 1,320 Total Noninterest Income 13,123 12,041 11,060 11,920 17,721 ; NONINTEREST EXPENSE Compensation 14,046 13,187 12,560 11,830 10,966 Premises 2,119 2,035 1,937 1,880 1,828 FF&E 2,285 2,192 2,112 2,179 2,174 Intangible Amortization 1,430 1,296 1,196 1,151 921 Other 8,729 7,886 7,462 7,877 5,744 Total Noninterest Expense 28,609 26,596 25,267 24,917 21,633 ; OPERATING PROFIT13,142 12,179 9,937 10,999 17,040 Provision for Income Taxes 4,565 4,311 3,560 3,737 6,221 NET INCOME $8,577 7,868 6,377 7,262 10,819 ; PER SHARE DATA (1) Basic Earnings $0.460.440.360.400.66 Diluted Earnings 0.460.440.360.400.66 Cash Dividends 0.152 0.152 0.152 0.152 0.144 AVERAGE SHARES (1) Basic 18,623 18,094 17,700 17,444 16,604 Diluted 18,649 18,102 17,708 17,451 16,609 ; ; Nine Months Ended (Dollars in thousands, except per share data)(1) Sept 30, 2005 ; INTEREST INCOME Interest and Fees on Loans $96,278 67,510 Interest on Investment Securities 4,357 3,600 Interest on Funds Sold638485 Total Interest Income 101,273 71,595 ; INTEREST EXPENSE Interest on Deposits 14,407 7,213 Interest on Short-term Borrowings 1,875868 Interest on Subordinated Note Payable 2,039 - Interest on Other Long-term Borrowings 2,272 1,726 ; Total Interest Expense 20,593 9,807 Net Interest Income80,680 61,788 Provision for Loan Losses1,174 1,841 Net Interest Income after Provision for Loan Losses 79,506 59,947 ; NONINTEREST INCOME Service Charge Revenue 15,018 12,858 Data Processing Revenue 1,917 1,988 Fees for Trust Services 3,175 2,726 Retail Brokerage Fees 917 1,075 Invest Sec Gain (Losses)9 7 Mortgage Banking Revenue 3,116 2,486 Merchant Fees 4,652 3,756 Interchange Fees 1,608 1,771 Gain on Sale of Credit Cards - 6,857 ATM/Debit Card Fees 1,624 1,458 Other4,188 3,651 Total Noninterest Income36,224 38,633 ; NONINTEREST EXPENSE Compensation 39,793 32,515 Premises 6,091 5,194 FF&E 6,589 6,214 Intangible Amortization 3,922 2,673 Other 24,077 17,713 Total Noninterest Expense 80,472 64,309 ; OPERATING PROFIT 35,258 34,271 Provision for Income Taxes 12,436 12,162 NET INCOME $22,822 22,109 ; PER SHARE DATA (1) Basic Earnings $1.26 1.34 Diluted Earnings1.26 1.34 Cash Dividends 0.456 0.432 AVERAGE SHARES (1) Basic 18,143 16,591 Diluted 18,157 16,595 ; (1) All share and per share data have been restated to reflect the 5-for-4 stock split effective July 1, 2005. ; ; CAPITAL CITY BANK GROUP, INC. CONSOLIDATED STATEMENT OF FINANCIAL CONDITION Unaudited 2005 (Dollars in thousands, except per Third Second First share data)(1) QuarterQuarterQuarter ; ASSETS Cash and Due From Banks $109,847117,921 92,868 Funds Sold 16,382 59,062 57,115 Total Cash and Cash Equivalents 126,229176,983149,983 ; Investment Securities, Available-for- Sale 192,435195,860190,945 Loans, Net of Unearned Commercial & Industrial 216,695214,983196,632 Real Estate Construction 152,042148,462151,143 Real Estate Mortgage712,682713,619639,637 Real Estate Residential 526,167519,441437,520 Real Estate Home Equity 162,309160,767151,464 Consumer 243,081242,922223,145 Credit Card14948 Other Loans34,225 43,217 42,046 Overdrafts 5,690 3,314 2,168 Total Loans, Net of Unearned 2,052,892 2,046,774 1,843,803 Allowance for Loan Losses(17,424) (17,451) (16,040) Loans, Net2,035,468 2,029,323 1,827,763 ; Premises and Equipment 71,044 69,294 60,443 Intangible Assets111,851113,081 79,139 Other Assets 46,475 45,344 40,819 Total Other Assets 229,370227,719180,401 ; Total Assets $2,583,502 2,629,885 2,349,092 ; LIABILITIES Deposits: Noninterest Bearing Deposits $571,880598,602555,758 NOW Accounts 481,767475,687400,816 Money Market Accounts 267,074287,601250,433 Regular Savings Accounts 155,471162,665148,578 Certificates of Deposit 549,296576,074533,773 Total Deposits 2,025,488 2,100,629 1,889,358 ; Short-Term Borrowings 92,746 71,148 78,593 Subordinated Note Payable 62,887 62,887 30,928 Other Long-Term Borrowings 71,526 73,144 67,879 Other Liabilities 29,278 26,655 22,236 ; Total Liabilities 2,281,925 2,334,463 2,088,994 ; SHAREOWNERS' EQUITY Common Stock 186 149 142 Additional Paid-in-Capital 83,185 82,619 52,772 Retained Earnings219,099213,352208,334 Accumulated Other Comprehensive Income (893) (698)(1,150) ; Total Shareowners' Equity 301,577295,422260,098 ; Total Liabilities and Shareowners' Equity $2,583,502 2,629,885 2,349,092 ; OTHER BALANCE SHEET DATA Earning Assets$2,261,709 2,301,696 2,091,863 Intangible Assets Goodwill 84,710 84,511 54,371 Deposit Base 25,275 26,598 22,689 Other 1,866 1,972 2,079 Interest Bearing Liabilities 1,680,767 1,709,206 1,511,000 ; Book Value Per Diluted Share$16.17 15.87 14.69 Tangible Book Value Per Diluted Share 10.17 9.79 10.22 ; Actual Basic Shares Outstanding 18,624 18,614 17,703 Actual Diluted Shares Outstanding18,649 18,617 17,705 ; ; 2004 (Dollars in thousands, except perFourth Third Second share data)(1) QuarterQuarterQuarter ; ASSETS Cash and Due From Banks $87,039 90,458 97,154 Funds Sold 74,506 47,352107,399 Total Cash and Cash Equivalents 161,545137,810204,553 ; Investment Securities, Available-for- Sale 210,240156,675183,732 Loans, Net of Unearned Commercial & Industrial 206,474187,862187,530 Real Estate Construction 140,190119,248108,422 Real Estate Mortgage655,426473,874466,437 Real Estate Residential 425,765375,109348,917 Real Estate Home Equity 150,061145,408133,729 Consumer 222,207212,847216,553 Credit Card 41 170 22,636 Other Loans24,549 21,530 32,572 Overdrafts 4,112 4,602 4,701 Total Loans, Net of Unearned 1,828,825 1,540,650 1,521,497 Allowance for Loan Losses(16,037) (12,328) (13,657) Loans, Net1,812,788 1,528,322 1,507,840 ; Premises and Equipment 58,963 56,281 56,263 Intangible Assets 80,305 39,720 40,608 Other Assets 40,172 32,985 33,834 Total Other Assets 179,440128,986130,705 ; Total Assets $2,364,013 1,951,793 2,026,830 ; LIABILITIES Deposits: Noninterest Bearing Deposits $566,991518,352520,118 NOW Accounts 338,932285,851320,460 Money Market Accounts 270,095209,262214,815 Regular Savings Accounts 147,348129,461130,822 Certificates of Deposit 571,520427,621426,521 Total Deposits 1,894,886 1,570,547 1,612,736 ; Short-Term Borrowings 96,014 76,216127,012 Subordinated Note Payable 30,928 - - Other Long-Term Borrowings 68,453 62,930 58,427 Other Liabilities 16,932 23,031 18,934 ; Total Liabilities 2,107,213 1,732,724 1,817,109 ; SHAREOWNERS' EQUITY Common Stock 142 133 133 Additional Paid-in-Capital 52,363 18,411 17,922 Retained Earnings204,648200,073191,645 Accumulated Other Comprehensive Income (353) 45221 ; Total Shareowners' Equity 256,800219,069209,721 ; Total Liabilities and Shareowners' Equity $2,364,013 1,951,793 2,026,830 ; OTHER BALANCE SHEET DATA Earning Assets$2,113,571 1,744,677 1,812,628 Intangible Assets Goodwill 54,341 19,657 19,656 Deposit Base 23,778 18,897 19,786 Other 2,186 1,166 1,166 Interest Bearing Liabilities 1,523,290 1,191,341 1,278,057 ; Book Value Per Diluted Share$14.51 13.19 12.64 Tangible Book Value Per Diluted Share 9.97 10.80 10.19 ; Actual Basic Shares Outstanding 17,694 16,607 16,593 Actual Diluted Shares Outstanding17,701 16,612 16,597 ; ; (1) All share and per share data have been restated to reflect the 5-for-4 stock split effective July 1, 2005. ; ; CAPITAL CITY BANK GROUP, INC. ALLOWANCE FOR LOAN LOSSES AND NONPERFORMING ASSETS Unaudited 2005 2004ThirdSecond First Fourth Third (Dollars in thousands)Quarter Quarter Quarter Quarter Quarter ; ALLOWANCE FOR LOAN LOSSES Balance at Beginning of Period $17,451 16,040 16,037 12,328 13,657 Acquired Reserves -1,385 - 4,400 - Reserve Reversal - Credit Card - - - -(800) Provision for Loan Losses 376 388 410 300 300 Net Charge-Offs 403 362 407 991 829 ; Balance at End of Period $17,424 17,451 16,040 16,037 12,328 As a % of Loans 0.85 % 0.850.870.880.80 As a % of Nonperforming Loans 342.79 289.12 302.13 345.18 261.91 As a % of Nonperforming Assets 236.07 280.65 284.25 304.25 220.10 ; CHARGE-OFFS Commercial, Financial and Agricultural $151 302 88 234 187 Real Estate - Construction - - - - - Real Estate - Mortgage 4 2 4 9 - Real Estate - Residential 115 37 25 78 19 Consumer 551 536 718 1,015 998 ; Total Charge-Offs $821 877 835 1,336 1,204 ; RECOVERIES Commercial, Financial and Agricultural $43 98 9 34 10 Real Estate - Construction - - - - - Real Estate - Mortgage 1 - - - 14 Real Estate - Residential 20 14 2 12 1 Consumer 354 403 417 299 350 ; Total Recoveries$418 515 428 345 375 ; NET CHARGE-OFFS $403 362 407 991 829 ; Net Charge-Offs as a % of Average Loans (1) 0.08 % 0.080.090.220.22 ; RISK ELEMENT ASSETS Nonaccruing Loans $5,0836,036 5,309 4,646 4,707 Restructured - - - - - Total Nonperforming Loans 5,0836,036 5,309 4,646 4,707 ; Other Real Estate 2,298 182 334 625 894 Total Nonperformin ;ssets$7,3816,218 5,643 5,271 5,601 ; Past Due Loans 90 Days or More $473 562 298 605 196 ; Nonperforming Loans as a % of Loans 0.25 % 0.290.290.250.31 Nonperforming Assets as a % of Loans and Other Real Estate 0.36 0.300.310.290.36 Nonperforming Assets as a % of Capital (2) 2.31 1.992.041.932.42 ; (1) Annualized ; (2) Capital includes allowance for loan losses. ; ; AVERAGE BALANCE AND INTEREST RATES (1) Unaudited ; Third Quarter 2005 Average Average (Dollars in thousands) Balance InterestRate ; ASSETS: Loans, Net of Unearned Interest$2,046,968$35,433 6.87 % ; Investment Securities Taxable Investment Securities 137,970 1,022 2.95 Tax-Exempt Investment Securities 56,079 638 4.55 ; Total Investment Securities 194,049 1,660 3.42 ; Funds Sold 9,885 121 4.79 ; Total Earning Assets 2,250,902$37,214 6.56 % ; Cash and Due From Banks 106,638 Allowance For Loan Losses (17,570) Other Assets 229,554 ; Total Assets $2,569,524 ; LIABILITIES: Interest Bearing Deposits NOW Accounts $463,936 $773 0.66 % Money Market Accounts 272,724 1,062 1.54 Savings Accounts 159,08075 0.19 Time Deposits 563,595 3,570 2.51 Total Interest Bearing Deposits 1,459,335 5,480 1.49 ; Short-Term Borrowings 89,483 691 3.07 Subordinated Note Payable62,887 931 5.87 Other Long-Term Borrowings 72,408 783 4.29 ; Total Interest Bearing Liabilities 1,684,113 $7,885 1.86 % ; Noninterest Bearing Deposits 554,092 Other Liabilities 30,388 ; Total Liabilities2,268,593 ; SHAREOWNERS' EQUITY: $300,931 ; Total Liabilities and Shareowners' Equity $2,569,524 ; Interest Rate Spread $29,329 4.70 % ; Interest Income and Rate Earned (2) $37,214 6.56 Interest Expense and Rate Paid (2) 7,885 1.39 ; Net Interest Margin $29,329 5.17 % ; ; Second Quarter 2005 Average Average (Dollars in thousands) Balance Interest Rate ; ASSETS: Loans, Net of Unearned Interest$1,932,637$32,200 6.68 % ; Investment Securities Taxable Investment Securities 149,958 1,113 2.96 Tax-Exempt Investment Securities 41,316 513 4.97 ; Total Investment Securities 191,274 1,626 3.40 ; Funds Sold46,572 358 3.04 ; Total Earning Assets 2,170,483$34,184 6.32 % ; Cash and Due From Banks 104,336 Allowance For Loan Losses (16,998) Other Assets 200,967 ; Total Assets $2,458,788 ; LIABILITIES: Interest Bearing Deposits NOW Accounts $413,799 $560 0.54 % Money Market Accounts 270,195 830 1.23 Savings Accounts 155,28675 0.19 Time Deposits 547,919 3,153 2.31 Total Interest Bearing Deposits 1,387,199 4,618 1.34 ; Short-Term Borrowings 108,508 734 2.71 Subordinated Note Payable45,681 667 5.86 Other Long-Term Borrowings 68,975 769 4.47 ; Total Interest Bearing Liabilities 1,610,363 $6,788 1.69 % ; Noninterest Bearing Deposits 544,945 Other Liabilities 25,373 ; Total Liabilities2,180,681 ; SHAREOWNERS' EQUITY: $278,107 ; Total Liabilities and Shareowners' Equity $2,458,788 ; Interest Rate Spread $27,396 4.63 % ; Interest Income and Rate Earned (2) $34,184 6.32 Interest Expense and Rate Paid (2) 6,788 1.25 ; Net Interest Margin $27,396 5.07 % ; ; First Quarter 2005 Average Average (Dollars in thousands)Balance Interest Rate ; ASSETS: Loans, Net of Unearned Interest$1,827,327$28,920 6.42 % ; Investment Securities Taxable Investment Securities 153,543 1,090 2.85 Tax-Exempt Investment Securities 43,928 586 5.33 ; Total Investment Securities 197,471 1,676 3.40 ; Funds Sold22,251 159 2.85 ; Total Earning Assets 2,047,049$30,755 6.09 % ; Cash and Due From Banks 97,322 Allowance For Loan Losses (16,167) Other Assets 178,603 ; Total Assets $2,306,807 ; LIABILITIES: Interest Bearing Deposits NOW Accounts $359,151 $447 0.50 % Money Market Accounts 251,849 625 1.01 Savings Accounts 147,67675 0.21 Time Deposits 552,069 3,162 2.32 Total Interest Bearing Deposits 1,310,745 4,309 1.33 ; Short-Term Borrowings 79,582 450 2.29 Subordinated Note Payable30,928 441 5.79 Other Long-Term Borrowings 68,200 720 4.28 ; Total Interest Bearing Liabilities 1,489,455 $5,920 1.61 % ; Noninterest Bearing Deposits 536,633 Other Liabilities 19,773 ; Total Liabilities2,045,861 ; SHAREOWNERS' EQUITY: $260,946 ; Total Liabilities and Shareowners' Equity $2,306,807 ; Interest Rate Spread $24,835 4.48 % ; Interest Income and Rate Earned (2) $30,755 6.09 Interest Expense and Rate Paid (2) 5,920 1.17 ; Net Interest Margin $24,835 4.92 % ; ; Fourth Quarter 2004 Average Average (Dollars in thousands)Balance Interest Rate ; ASSETS: Loans, Net of Unearned Interest$1,779,736$28,180 6.30 % ; Investment Securities Taxable Investment Securities 152,049 1,029 2.71 Tax-Exempt Investment Securities 51,688 696 5.38 ; Total Investment Securities 203,737 1,725 3.39 ; Funds Sold82,638 348 1.65 ; Total Earning Assets 2,066,111$30,253 5.83 % ; Cash and Due From Banks 101,959 Allowance For Loan Losses (15,813) Other Assets 170,613 ; Total Assets $2,322,870 ; LIABILITIES: Interest Bearing Deposits NOW Accounts $333,839 $335 0.40 % Money Market Accounts 267,710 467 0.69 Savings Accounts 144,96772 0.20 Time Deposits 553,435 3,228 2.32 Total Interest Bearing Deposits 1,299,951 4,102 1.25 ; Short-Term Borrowings 92,193 402 1.74 Subordinated Note Payable20,507 294 5.71 Other Long-Term Borrowings 77,041 836 4.32 ; Total Interest Bearing Liabilities 1,489,692 $5,634 1.50 % ; Noninterest Bearing Deposits 553,637 Other Liabilities 30,768 ; Total Liabilities2,074,097 ; SHAREOWNERS' EQUITY: $248,773 ; Total Liabilities and Shareowners' Equity $2,322,870 ; Interest Rate Spread $24,619 4.33 % ; Interest Income and Rate Earned (2) $30,253 5.83 Interest Expense and Rate Paid (2) 5,634 1.08 ; Net Interest Margin $24,619 4.75 % ; ; Third Quarter 2004 Average Average (Dollars in thousands) Balance InterestRate ; ASSETS: Loans, Net of Unearned Interest$1,524,401$23,345 6.09 % ; Investment Securities Taxable Investment Securities 118,903 729 2.45 Tax-Exempt Investment Securities 51,768 716 5.53 ; Total Investment Securities 170,671 1,445 3.38 ; Funds Sold39,636 147 1.45 ; Total Earning Assets 1,734,708$24,937 5.72 % ; Cash and Due From Banks 90,010 Allowance For Loan Losses (13,029) Other Assets 129,683 ; Total Assets $1,941,372 ; LIABILITIES: Interest Bearing Deposits NOW Accounts $280,630 $153 0.22 % Money Market Accounts 212,426 245 0.46 Savings Accounts 130,33032 0.10 Time Deposits 429,702 2,004 1.86 Total Interest Bearing Deposits 1,053,088 2,434 0.92 ; Short-Term Borrowings 96,146 332 1.37 Subordinated Note Payable- - - Other Long-Term Borrowings 59,837 642 4.27 ; Total Interest Bearing Liabilities 1,209,071 $3,408 1.12 % ; Noninterest Bearing Deposits 492,136 Other Liabilities 22,892 ; Total Liabilities1,724,099 ; SHAREOWNERS' EQUITY: $217,273 ; Total Liabilities and Shareowners' Equity $1,941,372 ; Interest Rate Spread $21,529 4.60 % ; Interest Income and Rate Earned (2) $24,937 5.72 Interest Expense and Rate Paid (2) 3,408 0.78 ; Net Interest Margin $21,529 4.94 % ; ; ;Nine Months Ended September 30, 2005 Average Average (Dollars in thousands)Balance Interest Rate ; ASSETS: Loans, Net of Unearned Interest$1,936,448 $96,553 6.67 % ; Investment Securities Taxable Investment Securities 147,099 3,225 2.92 Tax-Exempt Investment Securities 47,153 1,737 4.91 ; Total Investment Securities 194,252 4,962 3.41 ; Funds Sold26,191638 3.21 ; Total Earning Assets 2,156,891$102,153 6.33 % ; Cash and Due From Banks 102,800 Allowance For Loan Losses (16,917) Other Assets 203,228 ; Total Assets $2,446,002 ; LIABILITIES: Interest Bearing Deposits NOW Accounts $412,679 $1,780 0.58 % Money Market Accounts 264,999 2,517 1.27 Savings Accounts 154,056225 0.20 Time Deposits 554,570 9,885 2.38 Total Interest Bearing Deposits 1,386,304 14,407 1.39 ; Short-Term Borrowings 92,561 1,875 2.71 Subordinated Note Payable46,616 2,039 5.85 Other Long-Term Borrowings 69,876 2,272 4.35 ; Total Interest Bearing Liabilities 1,595,357 $20,593 1.73 % ; Noninterest Bearing Deposits 545,287 Other Liabilities 25,217 ; Total Liabilities2,165,861 ; SHAREOWNERS' EQUITY: $280,141 ; Total Liabilities and Shareowners' Equity $2,446,002 ; Interest Rate Spread $81,560 4.60 % ; Interest Income and Rate Earned (2) $102,153 6.33 Interest Expense and Rate Paid (2) 20,593 1.28 ; Net Interest Margin $81,560 5.05 % ; ; ; Nine Months Ended September 30, 2004 Average Average (Dollars in thousands)Balance InterestRate ; ASSETS: Loans, Net of Unearned Interest$1,457,826 $67,616 6.20 % ; Investment Securities Taxable Investment Securities 125,057 2,109 2.25 Tax-Exempt Investment Securities 52,077 2,267 5.81 ; Total Investment Securities 177,134 4,376 3.30 ; Funds Sold62,121486 1.03 ; Total Earning Assets 1,697,081 $72,478 5.70 % ; Cash and Due From Banks 90,086 Allowance For Loan Losses (13,185) Other Assets 126,619 ; Total Assets $1,900,601 ; LIABILITIES: Interest Bearing Deposits NOW Accounts $278,609 $398 0.19 % Money Market Accounts 214,410723 0.45 Savings Accounts 125,351 92 0.10 Time Deposits 427,913 6,000 1.87 Total Interest Bearing Deposits 1,046,283 7,213 0.92 ; Short-Term Borrowings 103,398868 1.12 Subordinated Note Payable- - - Other Long-Term Borrowings 53,560 1,726 4.30 ; Total Interest Bearing Liabilities 1,203,241 $9,807 1.09 % ; Noninterest Bearing Deposits 467,504 Other Liabilities 18,541 ; Total Liabilities1,689,286 ; SHAREOWNERS' EQUITY: $211,315 ; Total Liabilities and Shareowners' Equity $1,900,601 ; Interest Rate Spread $62,671 4.61 % ; Interest Income and Rate Earned (2) $72,478 5.70 Interest Expense and Rate Paid (2)9,807 0.77 ; Net Interest Margin $62,671 4.93 % ; (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. ; ; ;

Source: PR Newswire