18
Table 2 — Average Balances and Average Yields and Rates (in thousands, except percentages):
2002 2001 2000
Average
Balance
Income/
Expense
Yield/
Rate
Average
Balance
Income/
Expense
Yield/
Rate
Average
Balance
Income/
Expense
Yield/
Rate
Assets
Short-term investments........................... $    57,030 $      947 1.66% $    79,424 $    3,211 4.04% $    50,538 $    3,148 6.23%
Taxable investment securities................. 597,830 32,264 5.40 540,771 32,170 5.95 544,546 33,557 6.16
Tax-exempt investment securities (1).... 150,824 10,475 6.95 135,620 9,202 6.79 125,072 8,389 6.71
Loans (1)(2).............................................     942,101     64,872 6.89     897,616     75,063 8.36 817,603     75,652 9.25
Total earning assets .............................. 1,747,785 108,558 6.21 1,653,431 119,646 7.24 1,537,759 120,746 7.85
Cash and due from banks........................ 81,016 80,032 77,727
Bank premises and equipment................ 41,195 40,903 40,400
Other assets.............................................. 24,458 17,693 28,212
Goodwill, net........................................... 24,644 29,178 19,335
Allowance for loan losses.......................     (11,099)     (10,107)     (9,420)
Total assets............................................ $1,907,999 $1,811,130 $1,694,013
Liabilities and Shareholders’ Equity
Interest-bearing deposits......................... $1,259,158 $  24,088 1.91% $1,226,560 $  43,971 3.58% $1,161,175 $  47,738 4.11%
Short-term borrowings............................     24,628         292 1.19     25,392         863 3.40      17,621      1,091 6.19
Total interest-bearing liabilities........... 1,283,786    24,380 1.90 1,251,952    44,834 3.58 1,178,796    48,829 4.14
Noninterest-bearing deposits .................. 385,012 339,800 317,659
Other liabilities........................................     14,846     14,861     13,529
Total liabilities...................................... 1,683,644 1,606,613 1,509,984
Shareholders’ equity ..................................    224,355    204,517    184,029
Total liabilities and shareholders’
equity..................................................... $1,907,999 $1,811,130 $1,694,013
Net interest income .................................... $  84,178 $  74,812 $  71,917
Rate Analysis:
Interest income/earning assets................ 6.21% 7.24% 7.85%
Interest expense/earning assets............... 1.39 2.71 3.18
Net yield on earning assets................... 4.82% 4.52% 4.68%
_______________
(1) Computed on a tax-equivalent basis assuming a marginal tax rate of 35%.
(2) Nonaccrual loans are included in loans.
Noninterest Income .  Noninterest income for 2002 was $29.6 million, an increase of  $2.0 million, or 7.2%, as
compared to 2001.  The increase resulted primarily from (i) an increase in service fees on deposit accounts of  $692
thousand which reflects growth in number of accounts and transactions processed; (ii) an increase in real estate
mortgage fees of $248 thousand which reflects a continued high volume of mortgage originations and refinancing
transactions generated by low mortgage rates; (iii) an increase of  $429 thousand in ATM transaction fees which
reflects the Company’s focus to increase the cardholder base and the usage of check cards; and (iv) $735 thousand in
check printing fees that, in periods prior to 2002, were recorded as a reduction in printing and supplies expense.  The
change in classification for check printing fees was made in response to a change in bank regulatory financial
reporting guidelines.
 Noninterest income for 2001 was $27.6 million, an increase of $1.6 million, or 6.3%, as compared to 2000.
This increase was primarily a result of; (i) an increase in trust fees of $397 thousand; (ii) an increase in service fees
on deposit accounts of $669 thousand; and (iii) an increase of $588 thousand in real estate mortgage fees. Table 3
provides comparisons for other categories of noninterest income.