text: The Company’s policy requires measurement of the allowance for an impaired collateral dependent loan based 
  on the fair value of the collateral. Other loan impairments are measured based on the present value of expected 
  future cash flows or the loan’s observable market price. 
  
  **Results of Operations**
  
  *Performance Summary*. Net earnings for 2002 were $34.0 million, an increase of $4.6 million, or 15.7%, over 
  net earnings for 2001 of $29.4 million. Net earnings for 2000 were $28.3 million. The increase in net earnings for 
  2002 over 2001 was primarily attributable to an increase in net interest income resulting primarily from growth in 
  average earning assets and an improved net interest margin. The increase in net earnings for 2001 over 2000 was 
  primarily attributable to an increase in net interest income resulting primarily from the growth in average earning 
  assets and an increase in noninterest income resulting primarily from increases in service fees on deposit accounts 
  and real estate mortgage fees. 
  
  On a basic net earnings per share basis, net earnings were $2.75 for 2002 as compared to $2.38 for 2001 and 
  $2.28 for 2000. Return on average assets was 1.78% for 2002 as compared to 1.62% for 2001 and 1.67% for 2000. 
  Return on average equity was 15.13% for 2002 as compared to 14.35% for 2001 and 15.39% for 2000. 