22
December 31, 2002, as compared to 1.13% as of December 31, 2001. A key indicator of the adequacy of the
allowance for loan losses is the ratio of the allowance to nonperforming loans, which consist of nonaccrual loans,
loans past due 90 days, and restructured loans.  This ratio for the past five years is disclosed in Table 8.  Table 9
provides an allocation of the allowance for loan losses based on loan type and the percent of total loans that each
major loan type represents. Other than the loan types presented in Table 9, we had no loan concentration at
December 31, 2002 that represented more than 10% of total loans.
Although we believe that we use the best information available to make loan loss allowance determinations,
future adjustments could be necessary if circumstances or economic conditions differ substantially from the
assumptions used in making our initial determinations. A downturn in the economy and employment could result in
increased levels of non-performing assets and charge-offs, increased loan loss provisions and reductions in income.
Additionally, as an integral part of their examination process, bank regulatory agencies periodically review our
allowance for loan losses. The banking agencies could require the recognition of additions to the loan loss allowance
based on their judgment of information available to them at the time of their examination.
Table 8 — Loan Loss Experience and Allowance for Loan Losses (in thousands, except percentages):
2002 2001 2000 1999 1998
Balance at January 1,.......................................................... $ 10,602 $ 9,888 $ 8,938 $ 8,988 $ 10,632
Allowance established from purchase acquisitions ..........                -           407                -                -                -
10,602 10,295 8,938 8,988 10,632
Charge-offs:
Commercial, financial and agricultural ......................... 1,116 1,094 950 1,038       1,267
Consumer........................................................................ 1,471 1,498 1,998 2,747 2,786
All other ..........................................................................                -              33              45              36           106
Total loans charged off ...................................................... 2,587 2,625 2,993 3,821 4,159
Recoveries:
Commercial, financial and agricultural ......................... 288 269 391 632 532
Consumer........................................................................ 535 688 855 936 811
All other ..........................................................................              11              11           299           172              32
Total recoveries..................................................................           834           968        1,545        1,740        1,375
Net charge-offs................................................................... 1,753 1,657 1,448 2,081 2,784
Provision for loan losses ....................................................        2,370        1,964        2,398        2,031        1,140
Balance at December 31, ................................................... $   11,219 $   10,602 $     9,888 $     8,938 $     8,988
Loans at year-end ............................................................... $964,040 $940,131 $ 859,271 $ 797,275 $ 779,544
Average loans..................................................................... 942,101 897,616 817,603 779,283 770,183
Net charge-offs/average loans ........................................... 0.19% 0.18% 0.18% 0.27% 0.36%
Allowance for loan losses/year-end loans......................... 1.16 1.13 1.15 1.12 1.15
Allowance for loan losses/nonperforming loans............... 300.78 279.51 278.85 615.55 322.84
Table 9 — Allocation of Allowance for Loan Losses (in thousands):
2002 2001 2000 1999 1998
Allocation
Amount
Allocation
Amount
Allocation
Amount
Allocation
Amount
Allocation
Amount