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liabilities existing at each year-end will remain constant over the relevant twelve month measurement period and
that changes in market interest rates are instantaneous and sustained across the yield curve regardless of duration of
pricing characteristics of specific assets or liabilities.  Also, this analysis does not contemplate any actions that we
might undertake in response to changes in market interest rates.  In management’s belief, these estimates are not
necessarily indicative of what actually could occur in the event of immediate interest rate increases or decreases of
this magnitude.  Management believes that it is unlikely that such changes would occur in a short time period.  As
interest-bearing assets and liabilities reprice at different time frames and proportions to market interest rate
movements, various assumptions must be made based on historical relationships of these variables in reaching any
conclusion.  Since these correlations are based on competitive and market conditions, our future results would, in
management’s belief, be different from the foregoing estimates, and such differences could be material.
Liquidity   
Liquidity is our ability to meet cash demands as they arise.  Such needs can develop from loan demand, deposit
withdrawals or acquisition opportunities.  Potential obligations resulting from the issuance of standby letters of
credit and commitments to fund future borrowings to our loan customers are other factors affecting our liquidity
needs.  Many of these obligations and commitments are expected to expire without being drawn upon; therefore the
total commitment amounts do not necessarily represents future cash requirements affecting our liquidity position.
The potential need for liquidity arising from these types of financial instruments is represented by the contractual
notional amount of the instrument, as detailed in Table 14.  Asset liquidity is provided by cash and assets, which are
readily marketable or which will mature in the near future.  Liquid assets include cash, federal funds sold, and short-
term investments in time deposits in banks.  Liquidity is also provided by access to funding sources, which include
core depositors and correspondent banks that maintain accounts with and sell federal funds to our subsidiary banks.
Other sources of funds include our ability to sell securities under agreement to repurchase, which amounted to $26.7
million at December 31, 2002, and an unfunded $25.0 million line of credit established with a nonaffiliated bank
which matures on June 30, 2003.   We believe the line of credit will be renewed upon maturity.  Given the strong
core deposit base and relatively low loan to deposit ratios maintained at the subsidiary banks, management considers
the current liquidity position to be adequate to meet short- and long-term liquidity needs.
In addition, we anticipate that any future acquisition of financial institutions and expansion of branch locations
could also place a demand on our cash resources.  Available cash at our parent company which totaled $23.1 million
at December 31, 2002, available dividends from subsidiary banks which totaled $20.7 million at December 31,
2002, utilization of available lines of credit, and future debt or equity offerings are expected to be the source of
funding for these potential acquisitions or expansions.
Table 14 — Commercial Commitments As of December 31, 2002 (in thousands):
Total Amounts
Committed
Less than 1
year 1 - 3 years 4 - 5 years
Over  5
years
Commitments to extend credit .................... $ 185 ,895 $       176,758 $      4,779 $ 2,491 $       1,867
Standby letters of credit...............................               6,068              5,253             806                  9                   -
Total Commercial Commitments ............... $        191,963 $       182,011 $       5,585 $        2,500 $        1,867