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favorable earnings while limiting the potential negative effects of changes in market interest rates.  We use no off-
balance-sheet financial instruments to manage interest rate risk.
Each of our subsidiary banks has an asset/liability committee that monitors interest rate risk and compliance
with investment policies.  Each subsidiary bank tracks interest rate risk by, among other things, interest-sensitivity
gap and simulation analysis.  Table 13 sets forth the interest rate sensitivity of our consolidated assets and liabilities
as of December 31, 2002, and sets forth the repricing dates of our consolidated interest-earning assets and interest-
bearing liabilities as of that date, as well as our projected consolidated interest rate sensitivity gap percentages for
the periods presented.  The table is based upon assumptions as to when assets and liabilities will reprice in a
changing interest rate environment.  These assumptions are estimates made by management.  Assets and liabilities
indicated as maturing or otherwise repricing within a stated period may, in fact, mature or reprice at different times
and at different volumes than those estimated.  Also, the renewal or repricing of certain assets and liabilities can be
discretionary and subject to competitive and other pressures.  Therefore, the following table does not and cannot
necessarily indicate the actual future impact of general interest rate movements on our consolidated net interest
income.
Table 13 — Interest Sensitivity Analysis (in thousands, except percentages):
2002 2003 2004 2005 2006 Beyond Total
December 31,
2002
Estimated
Fair Value
Loans
Fixed rate loans ....................... $ 95,936 $ 65,864 $ 82,400 $ 79,104 $ 70,057 $ 89,516 $ 482,877 $ 492,042
Average interest rate............. 7.00% 8.42% 8.02% 7.23% 7.17% 7.80% 7.58%
Adjustable rate loans............... 451,626 5,725 3,552 10,087 9,898 275 481,163 481,163
Average interest rate............. 4.87 — — — — — 4.57
Investment securities
Fixed rate securities ................ 102,770 163,451 185,336 149,146 9,990 157,308 768,001 779,414
Average interest rate............. 5.65 5.62 5.22 4.86 5.61 6.75 5.61
Adjustable rate securities........            4,255 — — — — — 4,255 4,255
Average interest rate............. 4.81 — — — — — 4.81
Other earning assets
Adjustable rate other ............... 72,325 — — — — — 72,325 72,325
Average interest rate............. 1.23 — — — — — 1.23
Total interest sensitive assets .... $ 726,912 $ 235,040 $ 271,288 $ 238,337 $ 89,945 $ 247,099 $1,808,621 $ 1,828,364
Average interest rate............. 4.76% 6.43% 6.08% 5.68% 6.98% 7.13% 5.73%
Deposits
Fixed rate deposits................... 466,285 42,008 12,232 2,223 10,879 — 533,627 537,171
Average interest rate............. 2.41% 3.31% 5.28% 4.40% 4.25% — 2.59%
Adjustable rate deposits.......... 750,041 2,421 — — — — 752,462 752,462
Average interest rate............. 0.79 — — — — — 0.79
Other interest-bearing
liabilities
Adjustable rate other ............... 26,709 — — — — — 26,709 26,709
Average interest rate............. 0.67 — — — — — 0.67
Total interest sensitive
liabilities .................................. 1,243,035 44,429 12,232 2,223 10,879 — 1,312,798 1,316,342
Average interest rate............. 1.39% 3.13% 5.28% 4.40% 4.25% — 1.52%
Interest sensitivity gap............... $ (516,123) $ 190,611 $ 259,056 $ 236,114 $ 79,066 $ 247,099 $ 495,823 $ 512,022
Cumulative interest sensitivity
gap............................................ (516,123) (325,512) (66,456) 169,658 248,724 495,823
Ratio of interest sensitive
assets to interest sensitive
liabilities .................................. 58.48%
Cumulative ratio of interest
sensitive assets to interest
sensitive liabilities................... 58.48% 74.72% 94.89% 113.03% 118.95% 137.77%
Cumulative interest sensitivity
gap as a percent of earning
assets ........................................ (28.54)% (18.00)% (3.67)% 9.38% 13.75% 27.41%