text: Banking regulators measure capital adequacy by means of the risk-based capital ratio and leverage ratio. The 
  risk-based capital rules provide for the weighting of assets and off-balance-sheet commitments and contingencies 
  according to prescribed risk categories ranging from 0% to 100%. Regulatory capital is then divided by risk- 
  weighted assets to determine the risk-adjusted capital ratios. The leverage ratio is computed by dividing 
  shareholders’ equity less intangible assets by quarter-to-date average assets less intangible assets. Regulatory 
  minimums for risk-based and leverage ratios are 8.00% and 3.00%, respectively. As of December 31, 2002, our 
  total risk-based and leverage ratios were 19.52% and 10.51%, respectively, as compared to total risk-based and 
  leverage ratios of 18.08% and 9.92% as of December 31, 2001. We believe by all measurements our capital ratios 
  remain above regulatory minimums. 
  
  *Interest Rate Risk*. Interest rate risk results when the maturity or repricing intervals of interest-earning assets 
  and interest-bearing liabilities are different. Our exposure to interest rate risk is managed primarily through our 
  strategy of selecting the types and terms of interest-earning assets and interest-bearing liabilities that generate 
  
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