text: 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. 