20
Table 4 — Noninterest Expense (in thousands):
2002
Increase
(Decrease) 2001
Increase
(Decrease) 2000
Salaries....................................................................... $ 23,984 $ 1,604 $ 22,380 $ 1,417 $ 20,963
Medical and other benefits........................................ 2,297 180 2,117 133 1,984
Profit sharing ............................................................. 2,681 823 1,858 (16) 1,874
Pension....................................................................... 1,173 549 624 (56) 680
Payroll taxes ..............................................................           1,858              152           1,706              130           1,576
Total salaries and employee benefits.................... 31,993 3,308 28,685 1,608 27,077
Net occupancy expense............................................. 3,909 (87) 3,996 433 3,563
Equipment expense ................................................... 4,801 343 4,458 277 4,181
Intangible amortization ............................................. 135 (1,506) 1,641 - 1,641
Other:
Data processing and operation fees ...................... 1,078 (38) 1,116 (147) 1,263
Postage ................................................................... 1,094 (80) 1,174 128 1,046
Printing, stationery and supplies........................... 1,475 391 1,084 202 882
Advertising ............................................................ 1,169 64 1,105 51 1,054
Correspondent bank service charges .................... 1,491 162 1,329 67 1,262
ATM expense ........................................................ 1,361 266 1,095 145 950
Credit card fees...................................................... 696 27 669 65 604
Telephone............................................................... 870 (8) 878 124 754
Public relations and business development.......... 758 43 715 12 703
Directors’ fees........................................................ 516 30 486 33 453
Audit and accounting fees..................................... 785 39 746 80 666
Legal fees............................................................... 383 50 333 54 279
Other professional and service fees ...................... 796 (37) 833 302 531
Regulatory exam fees............................................ 526 83 443 19 424
Travel ..................................................................... 311 7 304 54 250
Courier expense..................................................... 676 127 549 101 448
Operational and other losses ................................. 743 203 540 (205) 745
Other miscellaneous expense................................           3,516              623           2,893               (23)           2,916
Total other..........................................................         18,244           1,952         16,292           1,062        15,230
Total Noninterest Expense........................................ $      59,082 $        4,010 $      55,072 $        3,380 $     51,692
Income Taxes .  Income tax expense was $14.6 million for 2002 as compared to $12.8 million for 2001 and
$12.7 million for 2000.  Our effective tax rates on pretax income were 30.1%, 30.4% and 30.9%, respectively, for
the years 2002, 2001 and 2000.
Balance Sheet Review
Loans.  The loan portfolio is comprised of loans made to businesses, individuals, and farm and ranch operations
located in the primary trade areas served by our subsidiary banks.  Real estate loans represent loans primarily for
new home construction and owner-occupied real estate.  The structure of loans in the real estate mortgage
classification generally provides repricing intervals to minimize the interest rate risk inherent in long-term fixed rate
mortgage loans.  As of December 31, 2002, total loans were $964.0 million, an increase of $23.9 million, as
compared to December 31, 2001. As compared to year-end 2001, real estate loans increased $28.6 million and