19
Table 3 — Noninterest Income (in thousands):
2002
Increase
(Decrease) 2001
Increase
(Decrease) 2000
Trust fees ................................................................... $ 5,836 $ (55) $ 5,891 $ 397 $ 5,494
Service fees on deposit accounts .............................. 15,435 692 14,743 669 14,074
Real estate mortgage fees.......................................... 1,858 248 1,610 588 1,022
Net securities gains (losses)...................................... 16 (52) 68 (462) 530
ATM fees…………………………………………            2,370               429           1,941               387           1,554
Other:
Mastercard fees...................................................... 980 26 954 124 830
Check printing fees................................................ 735 735 - - -
Miscellaneous income........................................... 708 (95) 803 (114) 917
Safe deposit rental fees.......................................... 403 9 394 (1) 395
Exchange fees........................................................ 196 11 185 (39) 224
Credit life fees ....................................................... 200 (16) 216 (21) 237
Data processing fees.............................................. 245 (16) 261 113 148
Brokerage commissions……………………….. 340 46 294 42 252
Interest on loan recoveries....................................              230                12              218               (52)              270
Total other..........................................................           4,037              712           3,325                52           3,273
Total Noninterest Income...................................... $      29,552 $        1,974 $      27,578 $        1,631 $      25,947
Noninterest Expense .  Total noninterest expense for 2002 was $59.1 million, an increase of $4.0 million, or
7.3%, as compared to 2001. Noninterest expense for 2001 amounted to $55.1 million, an increase of $3.4 million or
6.3% as compared to 2000.  An important measure in determining whether a banking company effectively managed
noninterest expenses is the efficiency ratio, which is calculated by dividing noninterest expense by the sum of net
interest income on a tax-equivalent basis and noninterest income.  Our efficiency ratio for 2002 was 51.96% which
represented improvement when compared to 53.82% for 2001, and 53.11% for 2000.
Salaries and employee benefits for 2002 totaled $32.0 million, an increase of $3.3 million, or 11.5%, as
compared to 2001. Salaries for 2002 were up $1.6 million with the increase attributable to normal pay increases, a
higher number of full time equivalent employees, and higher performance incentive payments. Profit sharing and
pension expenses for 2002 increased $823 thousand and $549 thousand, respectively, as compared to the prior year.
The higher profit sharing expense related to the Company’s 2002 increase in net earnings. In 2002, the Company
lowered the expected long-term rate of return on pension plan assets from 8.5% to 6.5%; this change is the primary
factor contributing to higher pension expense in the current year as compared to the prior year. Net occupancy
expense for 2002 was virtually unchanged from the prior year and equipment expense was up $343 thousand over
the 2001 amount.  The higher equipment expense resulted primarily from higher depreciation and higher repairs and
maintenance expense as compared to 2001.  Intangible asset amortization for 2002 decreased $1.5 million and
resulted primarily from the change in accounting principle that became effective January 1, 2002 and which
eliminated the amortization of goodwill. Printing, stationery and supplies expense for 2002 increased $391 thousand
over the prior year amount.  The increase for 2002 was due to $735 thousand in check printing fees being included
in noninterest income for 2002 versus a reduction in printing expense in prior years.  ATM expense for 2002 was