<SUBMISSION>
<ACCESSION-NUMBER>0000898430-02-003130
<TYPE>10-Q
<PUBLIC-DOCUMENT-COUNT>3
<PERIOD>20020630
<FILING-DATE>20020814
<FILER>
<COMPANY-DATA>
<CONFORMED-NAME>CITY HOLDING CO
<CIK>0000726854
<ASSIGNED-SIC>6021
<IRS-NUMBER>550619957
<STATE-OF-INCORPORATION>WV
<FISCAL-YEAR-END>1231
</COMPANY-DATA>
<FILING-VALUES>
<FORM-TYPE>10-Q
<ACT>34
<FILE-NUMBER>000-11733
<FILM-NUMBER>02733968
</FILING-VALUES>
<BUSINESS-ADDRESS>
<STREET1>25 GATEWATER ROAD
<STREET2>P O BOX 7520
<CITY>CHARLESTON
<STATE>WV
<ZIP>25313
<PHONE>3047691100
</BUSINESS-ADDRESS>
<MAIL-ADDRESS>
<STREET1>25 GATEWATER ROAD
<STREET2>P O BOX 7520
<CITY>CHARLESTON
<STATE>WV
<ZIP>25313
</MAIL-ADDRESS>
</FILER>
<DOCUMENT>
<TYPE>10-Q
<SEQUENCE>1
<FILENAME>d10q.htm
<DESCRIPTION>FORM 10-Q
<TEXT>
<HTML><HEAD>
<TITLE>Prepared by R.R. Donnelley Financial -- Form 10-Q</TITLE>
</HEAD>
<BODY bgcolor="#FFFFFF">
<h5 align="left"><a href="#toc">Table of Contents</a></h5>
 <p align="center"><font face="Times New Roman, Times, serif">UNITED STATES<br> SECURITIES AND EXCHANGE COMMISSION<br> Washington, D.C. 20549 </font></p> <hr color="#000000" width=120> <center> <font
face="Times New Roman, Times, serif"><b>FORM 10-Q</b> <br> </font> </center> <hr color="#000000" width=120> <br> <font face="Times New Roman, Times, serif"><b><font size="2" color="#000000">(Mark One)<br> </font></b></font>
<table width="100%" border="0" cellspacing="0" cellpadding="0" >
<tr>
<td width="6%" height="21"><font size="2" color="#000000"></font></td>
<td width="5%" height="21" valign="top"><font size="2" color="#000000"><b><font face="Wingdings">x</font></b></font></td>
<td width="89%" height="21"><font size="2" color="#000000" face="Times New Roman, Times, serif">QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE QUARTERLY PERIOD ENDED June 30, 2002</font></td> </tr>
<tr>
<td width="6%" height="26"><font size="2" color="#000000"></font></td>
<td width="5%" height="26"><font size="2" color="#000000"></font></td>
<td width="89%" align="left" height="26"> <div align="center"><font size="2" color="#000000" face="Times New Roman, Times, serif">OR</font></div> </td> </tr>
<tr>
<td width="6%"><font size="2" color="#000000"></font></td>
<td width="5%" valign="top"><font size="2" color="#000000"><b><font face="Wingdings">o</font></b></font></td>
<td width="89%"> <div align="left"><font size="2" color="#000000" face="Times New Roman, Times, serif">TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE TRANSITION PERIOD FROM
____________to_____________.</font></div> </td> </tr>
<tr>
<td width="6%"><font size="2" color="#000000"></font></td>
<td width="5%"><font size="2" color="#000000"></font></td>
<td width="89%"><font size="2" color="#000000" face="Times New Roman, Times, serif"></font></td> </tr> </table> <p align="left"><font size="2" color="#000000"><b> <font face="Times New Roman, Times, serif">Commission File number<u>
0-1173</u></font></b></font></p> <p align="center"><font size="5" color="#000000"><b><font face="Times New Roman, Times, serif">CITY HOLDING COMPANY</font></b></font> <hr color="#000000" width=300 size=1 align="center"> <center> <font size="2"
color="#000000" face="Times New Roman, Times, serif">(Exact name of registrant as specified in its charter)</font> </center>
<table width="100%" border="0" cellspacing="0" cellpadding="0" >
<tr>
<td width="48%" valign="bottom" height="12"> <div align="center"><font color="#000000" size="2" face="Times New Roman, Times, serif">West Virginia</font></div> </td>
<td width="12%" height="12"><font size="2" color="#000000" face="Times New Roman, Times, serif"></font></td>
<td width="40%" valign="bottom" height="12"> <div align="center"><font size="2" color="#000000" face="Times New Roman, Times, serif">55-0619957</font></div> </td> </tr>
<tr valign="top">
<td width="48%" height="13"> <hr color="#000000" size=1 width=80> </td>
<td width="12%" height="13"><font size="2" color="#000000" face="Times New Roman, Times, serif"></font></td>
<td width="40%" height="13"> <hr color="#000000" size=1 width=80> </td> </tr>
<tr valign="top">
<td width="48%" height="21"> <div align="center"><font size="2" color="#000000" face="Times New Roman, Times, serif">(State or other jurisdiction of incorporation or organization)</font></div> </td>
<td width="12%" height="21"><font size="2" color="#000000" face="Times New Roman, Times, serif"></font></td>
<td width="40%" height="21"> <div align="center"><font size="2" color="#000000" face="Times New Roman, Times, serif">(IRS Employer Identification Number)</font></div> </td> </tr> </table> <br> <div align="center"> <p><font size="2" color="#000000"
face="Times New Roman, Times, serif">25 Gatewater Road<br> Charleston, West Virginia, 25313<br> (Address of principal executive officers </font></p> </div> <div align="center"></div> <div align="center"><font size="2" color="#000000"
face="Times New Roman, Times, serif">(304) 769-1100</font> <br> <font size="2" color="#000000" face="Times New Roman, Times, serif">(Registrant's telephone number, including area code)</font></div> <p align="center"><font size="2" color="#000000"
face="Times New Roman, Times, serif">Not applicable<br> (Former name, former address and former fiscal year, if changed since last report) </font><font size="2" color="#000000"> </font></p> <p align="left"><font size="2" color="#000000">Indicate by
check mark whether the registrant has (1) filed all reports required to be filed by Sections 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such
reports), and (2) has been subject to such filing requirements for the past 90 days. Yes <font face="Wingdings">x</font> No <font face="Wingdings">o</font></font></p> <p align="center"><font size="2" color="#000000"
face="Times New Roman, Times, serif">APPLICABLE ONLY TO ISSUERS INVOLVED IN BANKRUPTCY PROCEEDINGS DURING THE PRECEDING FIVE YEARS</font></p> <p align="left"><font size="2" color="#000000" face="Times New Roman, Times, serif">Indicate by check mark
whether the registrant has filed all documents and reports required to be filed by Sections 12, 13, or 15(d) of the Securities Exchange Act of 1934 subsequent to the distribution of securities under a plan confirmed by the court. Yes</font><font
size="2" color="#000000"> <font face="Wingdings"> x</font> No <font face="Wingdings">o</font></font></p> <p align="center"><font size="2" color="#000000" face="Times New Roman, Times, serif">APPLICABLE ONLY TO CORPORATE ISSUERS</font></p> <p
align="left"><font size="2" color="#000000" face="Times New Roman, Times, serif">Indicate the number of shares outstanding of each of the issuer's classes of common stock, as of the latest practical date.</font></p> <p align="left"><font size="2"
color="#000000" face="Times New Roman, Times, serif">Common stock, $2.50 Par Value - 16,808,448 shares as of August 12, 2002.</font></p> <p align="left">&nbsp;</p>

<p Style='page-break-before:always'>
<HR  SIZE="3" COLOR="#CCEEFF" WIDTH="100%" ALIGN="CENTER">
<h5 align="left"><a href="#toc">Table of Contents</a></h5>
 <p align="left"><font size="2" color="#000000"><b>FORWARD-LOOKING STATEMENTS</b></font></p> <p align="left"><font size="2" color="#000000">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;All statements other than
statements of historical fact included in this Form 10-Q Quarterly Report, including statements in Management's Discussion and Analysis of Financial Condition and Result of Operations are, or may be deemed to be, forward-looking statements within
the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Exchange Act of 1934. Such information involves risks and uncertainties that could result in the Company's actual results differing from those projected in the
forward-looking statements. Important factors that could cause actual results to differ materially from those discussed in such forward-looking statements include, but are not limited to, (1) the Company may incur additional loan loss provision due
to negative credit quality trends in the future that may lead to a deterioration of asset quality, or conversely, the Company may incur less, or even negative, loan loss provision due to positive credit quality trends in the future and further
resolution of various loan quality issues; (2) the Company may experience increases in the default rates on its retained interests in securitized mortgages causing it to take impairment charges to earnings; (3) the Company could have adverse legal
actions of a material nature; (4) the Company may face competitive loss of customers associated with its efforts to increase fee-based revenues or may be unable to meet its expectations regarding loan and deposit growth; (5) the Company may be
unable to manage its expense levels due to the expenses associated with its loan portfolio quality, regulatory, and legal issues; (6) current earnings from the Company's subsidiaries may not be sufficient to fund the cash needs of the Parent
Company, including the payment of common stock dividends and interest payments required to be paid to City Holding Company Capital Trust and the City Holding Company Capital Trust II; (7) the planned purchases of Trust I and Trust II Capital
Securities and the common stock may not occur or may not have the effects anticipated; (8) rulings affecting, among other things, the Company's and its banking subsidiaries' regulatory capital and required loan loss allocations may change, resulting
in the need for increased capital levels; (9) changes in the interest rate environment may have results on the Company's operations materially different from those anticipated by the Company's market risk management functions; (10) changes in
general economic conditions and increased competition could adversely affect the Company's operating results; and (11) changes in other regulations and government policies affecting bank holding companies and their subsidiaries, including changes in
monetary policies, could negatively impact the Company's operating results. Forward-looking statements made herein reflect management's expectations as of the date such statements are made. Such information is provided to assist stockholders and
potential investors in understanding current and anticipated financial operations of the Company and is included pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. The Company undertakes no obligation to
update any forward-looking statement to reflect events or circumstances that arise after the date such statements are made.</font></p> <p align="center"><font size="2" color="#000000">2</font></p>

<p Style='page-break-before:always'>
<HR  SIZE="3" COLOR="#CCEEFF" WIDTH="100%" ALIGN="CENTER">
<h5 align="left"><a href="#toc">Table of Contents</a></h5>
 <p align="center"><font size="2" color="#000000"><b>
<a name="toc"></a>Index</b></font></p> <p align="center"><font size="2" color="#000000"><b>City Holding Company and Subsidiaries</b></font></p>
<table width="100%" border="0" cellspacing="0" cellpadding="0" >
<tr>
<td nowrap><b><font size="2" color="#000000">Part I.</font></b></td>
<td colspan="2"><b><font size="2" color="#000000"> Financial Information</font></b></td>
<td width="101"><font size="2" color="#000000"></font></td> </tr>
<tr>
<td width="55"><font size="2" color="#000000"></font></td>
<td colspan="2"><font size="2" color="#000000">
<a href="#l48818tx1">Item 1. Financial Statements (Unaudited)</a></font></td>
<td width="101"><font size="2" color="#000000"></font></td> </tr>
<tr>
<td width="55"><font size="2" color="#000000"></font></td>
<td width="38"><font size="2" color="#000000"></font></td>
<td width="1050"><font size="2" color="#000000">
<a href="#l48818tx2">Consolidated Balance Sheets - June 30, 2002 and December 31, 2001</a></font></td>
<td width="101"><font size="2" color="#000000"></font></td> </tr>
<tr>
<td width="55"><font size="2" color="#000000"></font></td>
<td width="38"><font size="2" color="#000000"></font></td>
<td width="1050"><font size="2" color="#000000">
<a href="#l48818tx3">Consolidated Statements of Income - Six months ended June 30, 2002 and 2001 and Three months ended June 30, 2002 and 2001</a></font></td>
<td width="101"><font size="2" color="#000000"></font></td> </tr>
<tr>
<td width="55"><font size="2" color="#000000"></font></td>
<td width="38"><font size="2" color="#000000"></font></td>
<td width="1050"><font size="2" color="#000000">
<a href="#l48818tx4">Consolidated Statements of Changes in Stockholders' Equity - Six months ended June 30, 2002 and 2001</a></font></td>
<td width="101"><font size="2" color="#000000"></font></td> </tr>
<tr>
<td width="55"><font size="2" color="#000000"></font></td>
<td width="38"><font size="2" color="#000000"></font></td>
<td width="1050"><font size="2" color="#000000">
<a href="#l48818tx5">Consolidated Statements of Cash Flows - Six months ended June 30, 2002 and 2001</a></font></td>
<td width="101"><font size="2" color="#000000"></font></td> </tr>
<tr>
<td width="55"><font size="2" color="#000000"></font></td>
<td width="38" valign="middle"><font size="2" color="#000000"></font></td>
<td width="1050"><font size="2" color="#000000">
<a href="#l48818tx6">Notes to Consolidated Financial Statements - June 30, 2002</a></font></td>
<td width="101"><font size="2" color="#000000"></font></td> </tr>
<tr>
<td width="55"><font size="2" color="#000000"></font></td>
<td colspan="2" valign="middle"><font size="2" color="#000000">
<a href="#l48818tx7">Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations</a></font></td>
<td width="101"><font size="2" color="#000000"></font></td> </tr>
<tr>
<td width="55"><font size="2" color="#000000"></font></td>
<td colspan="2"><font size="2" color="#000000">
<a href="#l48818tx8">Item 3. Quantitative and Qualitative Disclosures about Market Risk</a></font></td>
<td width="101"><font size="2" color="#000000"></font></td> </tr>
<tr>
<td nowrap><b><font size="2" color="#000000">Part II.&nbsp;&nbsp; </font></b></td>
<td colspan="2"><b><font size="2" color="#000000">Other Information</font></b></td>
<td width="101"><font size="2" color="#000000"></font></td> </tr>
<tr>
<td width="55" height="21"><font size="2" color="#000000"></font></td>
<td colspan="2" height="21"><font size="2" color="#000000">
<a href="#l48818tx9">Item 1. Legal Proceedings</a></font></td>
<td width="101" height="21"><font size="2" color="#000000"></font></td> </tr>
<tr>
<td width="55"><font size="2" color="#000000"></font></td>
<td colspan="2"><font size="2" color="#000000">
<a href="#l48818tx10">Item 2. Changes in Securities</a></font></td>
<td width="101"><font size="2" color="#000000"></font></td> </tr>
<tr>
<td width="55"><font size="2" color="#000000"></font></td>
<td colspan="2"><font size="2" color="#000000">
<a href="#l48818tx11">Item 3. Defaults upon Senior Securities</a></font></td>
<td width="101"><font size="2" color="#000000"></font></td> </tr>
<tr>
<td width="55"><font size="2" color="#000000"></font></td>
<td colspan="2"><font size="2" color="#000000">
<a href="#l48818tx12">Item 4. Submission of Matters to a Vote of Security Holders</a></font></td>
<td width="101"><font size="2" color="#000000"></font></td> </tr>
<tr>
<td width="55"><font size="2" color="#000000"></font></td>
<td colspan="2"><font size="2" color="#000000">
<a href="#l48818tx13">Item 5. Other Information</a></font></td>
<td width="101"><font size="2" color="#000000"></font></td> </tr>
<tr>
<td width="55"><font size="2" color="#000000"></font></td>
<td colspan="2"><font size="2" color="#000000">
<a href="#l48818tx14">Item 6. Exhibits and Reports on Form 8-K</a></font></td>
<td width="101"><font size="2" color="#000000"></font></td> </tr>
<tr>
<td colspan="3"><b><font size="2" color="#000000">
<a href="#l48818tx15">Signature</a></font></b></td>
<td width="101"><font size="2" color="#000000"></font></td> </tr> </table>

<p Style='page-break-before:always'>
<HR  SIZE="3" COLOR="#CCEEFF" WIDTH="100%" ALIGN="CENTER">
<h5 align="left"><a href="#toc">Table of Contents</a></h5>
 <p align="left"><font size="2" color="#000000"><b>
<a name="l48818tx1"></a>PART I, ITEM 1 - FINANCIAL STATEMENTS</b><br> <b>CONSOLIDATED BALANCE SHEETS</b><br> <b>CITY HOLDING COMPANY AND SUBSIDIARIES</b><br> <i>(in thousands)</i></font></p>
<TABLE BORDER=0 WIDTH="100%" CELLPADDING=0 CELLSPACING=0>
<TR align="center" valign="bottom">
<TD><font size="1" color="#000000"></font></TD>
<TD width="3"><font size="1" color="#000000"></font></TD>
<TD width="90"><b><font size="1" color="#000000">June 30</font></b></TD>
<TD width="2"><font size="1" color="#000000"></font></TD>
<TD width="20"><font size="1" color="#000000"></font></TD>
<TD width="3"><font size="1" color="#000000"></font></TD>
<TD width="90"><b><font size="1" color="#000000">December 31</font></b></TD>
<TD ALIGN=left width="2"><font size="1" color="#000000"></font></TD>
<TD width="15"><font size="1" color="#000000"></font></TD> </TR>
<TR align="center" valign="bottom">
<TD><font size="1" color="#000000"></font></TD>
<TD width="3"><font size="1" color="#000000"></font></TD>
<TD width="90"><b><font size="1" color="#000000">2002</font></b></TD>
<TD width="2"><font size="1" color="#000000"></font></TD>
<TD width="20"><font size="1" color="#000000"></font></TD>
<TD width="3"><font size="1" color="#000000"></font></TD>
<TD width="90"><b><font size="1" color="#000000">2001</font></b></TD>
<TD ALIGN=left width="2"><font size="1" color="#000000"></font></TD>
<TD width="15"><font size="1" color="#000000"></font></TD> </TR>
<tr align="center" valign="bottom">
<td><font size="1" color="#000000"></font></td>
<td colspan="2"><font size="1" color="#000000"></font> <hr size="2" color="#000000"> <font size="1"></font></td>
<td width="2"><font size="1" color="#000000"></font></td>
<td width="20"><font size="1" color="#000000"></font></td>
<td colspan="2"><font size="1" color="#000000"></font> <hr size="2" color="#000000"> <font size="1"></font></td>
<td align=left width="2"><font size="1" color="#000000"></font></td>
<td width="15"><font size="1" color="#000000"></font></td> </tr>
<TR align="center" valign="bottom">
<TD><font size="1" color="#000000"></font></TD>
<TD width="3"><font size="1" color="#000000"></font></TD>
<TD width="90"><i><font size="1" color="#000000">(Unaudited)</font></i></TD>
<TD width="2"><i><font size="1" color="#000000"></font></i></TD>
<TD width="20"><i><font size="1" color="#000000"></font></i></TD>
<TD width="3"><i><font size="1" color="#000000"></font></i></TD>
<TD width="90"><i><font size="1" color="#000000">(Note A)</font></i></TD>
<TD ALIGN=left width="2"><font size="1" color="#000000"></font></TD>
<TD width="15"><font size="1" color="#000000"></font></TD> </TR>
<TR valign="bottom">
<TD><font size="2" color="#000000"><b>Assets</b></font></TD>
<TD ALIGN=right width="3"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="90"><font size="2" color="#000000"></font></TD>
<TD ALIGN=left width="2"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="20"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="3"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="90"><font size="2" color="#000000"></font></TD>
<TD ALIGN=left width="2"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="15"><font size="2" color="#000000"></font></TD> </TR>
<TR valign="bottom" bgcolor="#CCEEFF">
<TD><font size="2" color="#000000">Cash and due from banks</font></TD>
<TD ALIGN=right width="3"><font size="2" color="#000000">$</font></TD>
<TD ALIGN=right width="90"><font size="2" color="#000000"> 71,225</font></TD>
<TD ALIGN=left width="2"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="20"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="3"><font size="2" color="#000000">$</font></TD>
<TD ALIGN=right width="90"><font size="2" color="#000000"> 81,827</font></TD>
<TD ALIGN=left width="2"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="15"><font size="2" color="#000000"></font></TD> </TR>
<TR valign="bottom">
<TD><font size="2" color="#000000">Federal funds sold</font></TD>
<TD ALIGN=right width="3"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="90"><font size="2" color="#000000">86,407</font></TD>
<TD ALIGN=left width="2"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="20"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="3"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="90"><font size="2" color="#000000">88,500</font></TD>
<TD ALIGN=left width="2"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="15"><font size="2" color="#000000"></font></TD> </TR>
<tr valign="bottom">
<td><font size="2" color="#000000"></font></td>
<td align=right colspan="2"> <hr size="2" color="#000000"> <font size="2" color="#000000"></font></td>
<td align=left width="2"><font size="2" color="#000000"></font></td>
<td align=right width="20"><font size="2" color="#000000"></font></td>
<td align=right colspan="2"> <hr size="2" color="#000000"> <font size="2" color="#000000"></font></td>
<td align=left width="2"><font size="2" color="#000000"></font></td>
<td align=right width="15"><font size="2" color="#000000"></font></td> </tr>
<TR valign="bottom" bgcolor="#CCEEFF">
<TD><font size="2" color="#000000">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>Cash and Cash Equivalents</b></font></TD>
<TD ALIGN=right width="3"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="90"><font size="2" color="#000000">157,632</font></TD>
<TD ALIGN=left width="2"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="20"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="3"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="90"><font size="2" color="#000000">170,327</font></TD>
<TD ALIGN=left width="2"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="15"><font size="2" color="#000000"></font></TD> </TR>
<TR valign="bottom">
<TD><font size="2" color="#000000"><br> Securities available for sale, at fair value</font></TD>
<TD ALIGN=right width="3"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="90"><font size="2" color="#000000">418,911</font></TD>
<TD ALIGN=left width="2"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="20"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="3"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="90"><font size="2" color="#000000">383,552</font></TD>
<TD ALIGN=left width="2"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="15"><font size="2" color="#000000"></font></TD> </TR>
<TR valign="bottom" bgcolor="#CCEEFF">
<TD><font size="2" color="#000000">Securities held-to-maturity, at amortized cost</font></TD>
<TD ALIGN=right width="3"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="90"><font size="2" color="#000000">65,220</font></TD>
<TD ALIGN=left width="2"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="20"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="3"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="90"><font size="2" color="#000000">&#151;</font></TD>
<TD ALIGN=left width="2"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="15"><font size="2" color="#000000"></font></TD> </TR>
<tr valign="bottom">
<td>&nbsp;</td>
<td align=right colspan="2"> <hr size="2" color="#000000"> <font size="2" color="#000000"></font></td>
<td align=left width="2"><font size="2" color="#000000"></font></td>
<td align=right width="20"><font size="2" color="#000000"></font></td>
<td align=right colspan="2"> <hr size="2" color="#000000"> <font size="2" color="#000000"></font></td>
<td align=left width="2"><font size="2" color="#000000"></font></td>
<td align=right width="15"><font size="2" color="#000000"></font></td> </tr>
<TR valign="bottom" bgcolor="#CCEEFF">
<TD><font size="2" color="#000000">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b></b><b>Total Securities</b></font></TD>
<TD ALIGN=right width="3"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="90"><font size="2" color="#000000">484,131</font></TD>
<TD ALIGN=left width="2"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="20"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="3"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="90"><font size="2" color="#000000">383,552</font></TD>
<TD ALIGN=left width="2"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="15"><font size="2" color="#000000"></font></TD> </TR>
<TR valign="bottom">
<TD><font size="2" color="#000000">Loans:</font></TD>
<TD ALIGN=right width="3"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="90"><font size="2" color="#000000"></font></TD>
<TD ALIGN=left width="2"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="20"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="3"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="90"><font size="2" color="#000000"></font></TD>
<TD ALIGN=left width="2"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="15"><font size="2" color="#000000"></font></TD> </TR>
<TR valign="bottom" bgcolor="#CCEEFF">
<TD><font size="2" color="#000000">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Residential real estate</font></TD>
<TD ALIGN=right width="3"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="90"><font size="2" color="#000000">522,016</font></TD>
<TD ALIGN=left width="2"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="20"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="3"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="90"><font size="2" color="#000000">631,103</font></TD>
<TD ALIGN=left width="2"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="15"><font size="2" color="#000000"></font></TD> </TR>
<TR valign="bottom">
<TD><font size="2" color="#000000">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Home equity</font></TD>
<TD ALIGN=right width="3"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="90"><font size="2" color="#000000">157,577</font></TD>
<TD ALIGN=left width="2"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="20"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="3"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="90"><font size="2" color="#000000">98,100</font></TD>
<TD ALIGN=left width="2"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="15"><font size="2" color="#000000"></font></TD> </TR>
<TR valign="bottom" bgcolor="#CCEEFF">
<TD><font size="2" color="#000000">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Commercial real estate</font></TD>
<TD ALIGN=right width="3"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="90"><font size="2" color="#000000">251,347</font></TD>
<TD ALIGN=left width="2"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="20"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="3"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="90"><font size="2" color="#000000">284,759</font></TD>
<TD ALIGN=left width="2"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="15"><font size="2" color="#000000"></font></TD> </TR>
<TR valign="bottom">
<TD><font size="2" color="#000000">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other commercial</font></TD>
<TD ALIGN=right width="3"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="90"><font size="2" color="#000000">110,468</font></TD>
<TD ALIGN=left width="2"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="20"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="3"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="90"><font size="2" color="#000000">145,989</font></TD>
<TD ALIGN=left width="2"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="15"><font size="2" color="#000000"></font></TD> </TR>
<TR valign="bottom" bgcolor="#CCEEFF">
<TD><font size="2" color="#000000">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Installment</font></TD>
<TD ALIGN=right width="3"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="90"><font size="2" color="#000000">89,117</font></TD>
<TD ALIGN=left width="2"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="20"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="3"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="90"><font size="2" color="#000000">125,236</font></TD>
<TD ALIGN=left width="2"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="15"><font size="2" color="#000000"></font></TD> </TR>
<TR valign="bottom">
<TD><font size="2" color="#000000">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Indirect</font></TD>
<TD ALIGN=right width="3"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="90"><font size="2" color="#000000">65,634</font></TD>
<TD ALIGN=left width="2"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="20"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="3"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="90"><font size="2" color="#000000">86,474</font></TD>
<TD ALIGN=left width="2"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="15"><font size="2" color="#000000"></font></TD> </TR>
<TR valign="bottom" bgcolor="#CCEEFF">
<TD><font size="2" color="#000000">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Credit card</font></TD>
<TD ALIGN=right width="3"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="90"><font size="2" color="#000000">18,285</font></TD>
<TD ALIGN=left width="2"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="20"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="3"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="90"><font size="2" color="#000000">18,594</font></TD>
<TD ALIGN=left width="2"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="15"><font size="2" color="#000000"></font></TD> </TR>
<tr valign="bottom">
<td><font size="2" color="#000000"></font></td>
<td align=right colspan="2"> <hr size="2" color="#000000"> <font size="2" color="#000000"></font></td>
<td align=left width="2"><font size="2" color="#000000"></font></td>
<td align=right width="20"><font size="2" color="#000000"></font></td>
<td align=right colspan="2"> <hr size="2" color="#000000"> <font size="2" color="#000000"></font></td>
<td align=left width="2"><font size="2" color="#000000"></font></td>
<td align=right width="15"><font size="2" color="#000000"></font></td> </tr>
<TR valign="bottom" bgcolor="#CCEEFF">
<TD><font size="2" color="#000000">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>Gross loans</b></font></TD>
<TD ALIGN=right width="3"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="90"><font size="2" color="#000000">1,214,444</font></TD>
<TD ALIGN=left width="2"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="20"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="3"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="90"><font size="2" color="#000000">1,390,255</font></TD>
<TD ALIGN=left width="2"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="15"><font size="2" color="#000000"></font></TD> </TR>
<TR valign="bottom">
<TD><font size="2" color="#000000">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Allowance for loan losses</font></TD>
<TD ALIGN=right width="3"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="90"><font size="2" color="#000000">(28,023</font></TD>
<TD ALIGN=left width="2"><font size="2" color="#000000">)</font></TD>
<TD ALIGN=right width="20"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="3"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="90"><font size="2" color="#000000">(48,635</font></TD>
<TD ALIGN=left width="2"><font size="2" color="#000000">)</font></TD>
<TD ALIGN=right width="15"><font size="2" color="#000000"></font></TD> </TR>
<tr valign="bottom">
<td><font size="2" color="#000000"></font></td>
<td align=right colspan="2"> <hr size="2" color="#000000"> <font size="2" color="#000000"></font></td>
<td align=left width="2"><font size="2" color="#000000"></font></td>
<td align=right width="20"><font size="2" color="#000000"></font></td>
<td align=right colspan="2"> <hr size="2" color="#000000"> <font size="2" color="#000000"></font></td>
<td align=left width="2"><font size="2" color="#000000"></font></td>
<td align=right width="15"><font size="2" color="#000000"></font></td> </tr>
<TR valign="bottom" bgcolor="#CCEEFF">
<TD><font size="2" color="#000000">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>Net Loans</b></font></TD>
<TD ALIGN=right width="3"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="90"><font size="2" color="#000000">1,186,421</font></TD>
<TD ALIGN=left width="2"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="20"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="3"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="90"><font size="2" color="#000000">1,341,620</font></TD>
<TD ALIGN=left width="2"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="15"><font size="2" color="#000000"></font></TD> </TR>
<TR valign="bottom">
<TD><font size="2" color="#000000">Retained interests</font></TD>
<TD ALIGN=right width="3"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="90"><font size="2" color="#000000">76,930</font></TD>
<TD ALIGN=left width="2"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="20"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="3"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="90"><font size="2" color="#000000">71,271</font></TD>
<TD ALIGN=left width="2"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="15"><font size="2" color="#000000"></font></TD> </TR>
<TR valign="bottom" bgcolor="#CCEEFF">
<TD><font size="2" color="#000000">Premises and equipment</font></TD>
<TD ALIGN=right width="3"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="90"><font size="2" color="#000000">40,211</font></TD>
<TD ALIGN=left width="2"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="20"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="3"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="90"><font size="2" color="#000000">43,178</font></TD>
<TD ALIGN=left width="2"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="15"><font size="2" color="#000000"></font></TD> </TR>
<TR valign="bottom">
<TD><font size="2" color="#000000">Accrued interest receivable</font></TD>
<TD ALIGN=right width="3"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="90"><font size="2" color="#000000">11,492</font></TD>
<TD ALIGN=left width="2"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="20"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="3"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="90"><font size="2" color="#000000">12,422</font></TD>
<TD ALIGN=left width="2"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="15"><font size="2" color="#000000"></font></TD> </TR>
<TR valign="bottom" bgcolor="#CCEEFF">
<TD><font size="2" color="#000000">Net deferred tax asset</font></TD>
<TD ALIGN=right width="3"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="90"><font size="2" color="#000000">34,637</font></TD>
<TD ALIGN=left width="2"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="20"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="3"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="90"><font size="2" color="#000000">47,443</font></TD>
<TD ALIGN=left width="2"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="15"><font size="2" color="#000000"></font></TD> </TR>
<TR valign="bottom">
<TD><font size="2" color="#000000">Other assets</font></TD>
<TD ALIGN=right width="3"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="90"><font size="2" color="#000000">52,231</font></TD>
<TD ALIGN=left width="2"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="20"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="3"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="90"><font size="2" color="#000000">46,482</font></TD>
<TD ALIGN=left width="2"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="15"><font size="2" color="#000000"></font></TD> </TR>
<tr valign="bottom">
<td><font size="2" color="#000000"></font></td>
<td align=right colspan="2"> <hr size="2" color="#000000"> </td>
<td align=left width="2"><font size="2" color="#000000"></font></td>
<td align=right width="20">&nbsp;</td>
<td align=right colspan="2"> <hr size="2" color="#000000"> </td>
<td align=left width="2"><font size="2" color="#000000"></font></td>
<td align=right width="15"><font size="2" color="#000000"></font></td> </tr>
<TR valign="bottom" bgcolor="#CCEEFF">
<TD><font size="2" color="#000000">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>Total Assets</b></font></TD>
<TD ALIGN=right width="3"><font size="2" color="#000000">$</font></TD>
<TD ALIGN=right width="90"><font size="2" color="#000000">2,043,685</font></TD>
<TD ALIGN=left width="2"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="20"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="3"><font size="2" color="#000000">$</font></TD>
<TD ALIGN=right width="90"><font size="2" color="#000000">2,116,295</font></TD>
<TD ALIGN=left width="2"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="15"><font size="2" color="#000000"></font></TD> </TR>
<tr valign="bottom">
<td><font size="2" color="#000000"></font></td>
<td align=right colspan="2"><font size="2" color="#000000"></font> <hr size="4" color="#000000"> <font size="2" color="#000000"></font></td>
<td align=left width="2"><font size="2" color="#000000"></font></td>
<td align=right width="20"><font size="2" color="#000000"></font></td>
<td align=right colspan="2"><font size="2" color="#000000"></font> <hr size="4" color="#000000"> <font size="2" color="#000000"></font></td>
<td align=left width="2"><font size="2" color="#000000"></font></td>
<td align=right width="15"><font size="2" color="#000000"></font></td> </tr>
<TR valign="bottom">
<TD><font size="2" color="#000000"><b>Liabilities</b></font></TD>
<TD ALIGN=right width="3"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="90"><font size="2" color="#000000"></font></TD>
<TD ALIGN=left width="2"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="20"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="3"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="90"><font size="2" color="#000000"></font></TD>
<TD ALIGN=left width="2"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="15"><font size="2" color="#000000"></font></TD> </TR>
<TR valign="bottom">
<TD><font size="2" color="#000000">Deposits:</font></TD>
<TD ALIGN=right width="3"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="90"><font size="2" color="#000000"></font></TD>
<TD ALIGN=left width="2"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="20"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="3"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="90"><font size="2" color="#000000"></font></TD>
<TD ALIGN=left width="2"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="15"><font size="2" color="#000000"></font></TD> </TR>
<TR valign="bottom" bgcolor="#CCEEFF">
<TD><font size="2" color="#000000">&nbsp;&nbsp;&nbsp;&nbsp;Noninterest-bearing</font></TD>
<TD ALIGN=right width="3"><font size="2" color="#000000">$</font></TD>
<TD ALIGN=right width="90"><font size="2" color="#000000"> 280,409</font></TD>
<TD ALIGN=left width="2"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="20"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="3"><font size="2" color="#000000">$</font></TD>
<TD ALIGN=right width="90"><font size="2" color="#000000"> 284,649</font></TD>
<TD ALIGN=left width="2"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="15"><font size="2" color="#000000"></font></TD> </TR>
<TR valign="bottom">
<TD><font size="2" color="#000000">&nbsp;&nbsp;&nbsp;&nbsp;Interest-bearing:</font></TD>
<TD ALIGN=right width="3"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="90"><font size="2" color="#000000"></font></TD>
<TD ALIGN=left width="2"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="20"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="3"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="90"><font size="2" color="#000000"></font></TD>
<TD ALIGN=left width="2"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="15"><font size="2" color="#000000"></font></TD> </TR>
<TR valign="bottom" bgcolor="#CCEEFF">
<TD><font size="2" color="#000000">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Demand deposits</font></TD>
<TD ALIGN=right width="3"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="90"><font size="2" color="#000000">369,291</font></TD>
<TD ALIGN=left width="2"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="20"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="3"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="90"><font size="2" color="#000000">392,258</font></TD>
<TD ALIGN=left width="2"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="15"><font size="2" color="#000000"></font></TD> </TR>
<TR valign="bottom">
<TD><font size="2" color="#000000">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Savings deposits</font></TD>
<TD ALIGN=right width="3"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="90"><font size="2" color="#000000">308,171</font></TD>
<TD ALIGN=left width="2"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="20"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="3"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="90"><font size="2" color="#000000">272,885</font></TD>
<TD ALIGN=left width="2"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="15"><font size="2" color="#000000"></font></TD> </TR>
<TR valign="bottom" bgcolor="#CCEEFF">
<TD><font size="2" color="#000000">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Time deposits</font></TD>
<TD ALIGN=right width="3"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="90"><font size="2" color="#000000">654,288</font></TD>
<TD ALIGN=left width="2"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="20"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="3"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="90"><font size="2" color="#000000">741,503</font></TD>
<TD ALIGN=left width="2"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="15"><font size="2" color="#000000"></font></TD> </TR>
<tr valign="bottom">
<td><font size="2" color="#000000"></font></td>
<td align=right colspan="2"> <hr size="2" color="#000000"> <font size="2" color="#000000"></font></td>
<td align=left width="2"><font size="2" color="#000000"></font></td>
<td align=right width="20"><font size="2" color="#000000"></font></td>
<td align=right colspan="2"> <hr size="2" color="#000000"> <font size="2" color="#000000"></font></td>
<td align=left width="2"><font size="2" color="#000000"></font></td>
<td align=right width="15"><font size="2" color="#000000"></font></td> </tr>
<TR valign="bottom" bgcolor="#CCEEFF">
<TD><font size="2" color="#000000">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>Total Deposits</b></font></TD>
<TD ALIGN=right width="3"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="90"><font size="2" color="#000000">1,612,159</font></TD>
<TD ALIGN=left width="2"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="20"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="3"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="90"><font size="2" color="#000000">1,691,295</font></TD>
<TD ALIGN=left width="2"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="15"><font size="2" color="#000000"></font></TD> </TR>
<TR valign="bottom">
<TD><font size="2" color="#000000"><br> Short-term borrowings</font></TD>
<TD ALIGN=right width="3"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="90"><font size="2" color="#000000">111,536</font></TD>
<TD ALIGN=left width="2"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="20"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="3"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="90"><font size="2" color="#000000">127,204</font></TD>
<TD ALIGN=left width="2"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="15"><font size="2" color="#000000"></font></TD> </TR>
<TR valign="bottom" bgcolor="#CCEEFF">
<TD><font size="2" color="#000000">Long-term debt</font></TD>
<TD ALIGN=right width="3"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="90"><font size="2" color="#000000">36,549</font></TD>
<TD ALIGN=left width="2"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="20"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="3"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="90"><font size="2" color="#000000">29,328</font></TD>
<TD ALIGN=left width="2"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="15"><font size="2" color="#000000"></font></TD> </TR>
<TR valign="bottom">
<TD><font size="2" color="#000000">Corporation-obligated mandatorily redeemable capital securities of subsidiary trusts holding solely subordinated debentures of City Holding Company</font></TD>
<TD ALIGN=right width="3"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="90"><font size="2" color="#000000"> 87,500</font></TD>
<TD ALIGN=left width="2"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="20"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="3"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="90"><font size="2" color="#000000"> 87,500</font></TD>
<TD ALIGN=left width="2"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="15"><font size="2" color="#000000"></font></TD> </TR>
<TR valign="bottom" bgcolor="#CCEEFF">
<TD><font size="2" color="#000000">Other liabilities</font></TD>
<TD ALIGN=right width="3"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="90"><font size="2" color="#000000">37,113</font></TD>
<TD ALIGN=left width="2"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="20"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="3"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="90"><font size="2" color="#000000">34,619</font></TD>
<TD ALIGN=left width="2"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="15"><font size="2" color="#000000"></font></TD> </TR>
<tr valign="bottom">
<td><font size="2" color="#000000"></font></td>
<td align=right colspan="2"> <hr size="2" color="#000000"> <font size="2" color="#000000"></font></td>
<td align=left width="2"><font size="2" color="#000000"></font></td>
<td align=right width="20"><font size="2" color="#000000"></font></td>
<td align=right colspan="2"> <hr size="2" color="#000000"> <font size="2" color="#000000"></font></td>
<td align=left width="2"><font size="2" color="#000000"></font></td>
<td align=right width="15"><font size="2" color="#000000"></font></td> </tr>
<TR valign="bottom" bgcolor="#CCEEFF">
<TD><font size="2" color="#000000">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>Total Liabilities</b></font></TD>
<TD ALIGN=right width="3"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="90"><font size="2" color="#000000">1,884,857</font></TD>
<TD ALIGN=left width="2"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="20"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="3"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="90"><font size="2" color="#000000">1,969,946</font></TD>
<TD ALIGN=left width="2"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="15"><font size="2" color="#000000"></font></TD> </TR>
<TR valign="bottom">
<TD><font size="2" color="#000000"><br> Stockholders' Equity</font></TD>
<TD ALIGN=right width="3"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="90"><font size="2" color="#000000"></font></TD>
<TD ALIGN=left width="2"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="20"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="3"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="90"><font size="2" color="#000000"></font></TD>
<TD ALIGN=left width="2"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="15"><font size="2" color="#000000"></font></TD> </TR>
<TR valign="bottom" bgcolor="#CCEEFF">
<TD><font size="2" color="#000000">Preferred stock, par value $25 per share: authorized - 500,000 shares: none issued</font></TD>
<TD ALIGN=right width="3"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="90"><font size="2" color="#000000"></font></TD>
<TD ALIGN=left width="2"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="20"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="3"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="90"><font size="2" color="#000000"></font></TD>
<TD ALIGN=left width="2"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="15"><font size="2" color="#000000"></font></TD> </TR>
<TR valign="bottom">
<TD><font size="2" color="#000000">Common stock, par value $2.50 per share: 50,000,000 shares authorized; 16,905,434 and 16,892,913 shares issued and outstanding at June 30, 2002 and December 31, 2001, respectively, including 4,979 shares in
treasury at December 31, 2001</font></TD>
<TD ALIGN=right width="3"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="90"><font size="2" color="#000000"> 42,263</font></TD>
<TD ALIGN=left width="2"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="20"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="3"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="90"><font size="2" color="#000000"> 42,232</font></TD>
<TD ALIGN=left width="2"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="15"><font size="2" color="#000000"></font></TD> </TR>
<TR valign="bottom" bgcolor="#CCEEFF">
<TD><font size="2" color="#000000">Capital surplus</font></TD>
<TD ALIGN=right width="3"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="90"><font size="2" color="#000000">59,232</font></TD>
<TD ALIGN=left width="2"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="20"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="3"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="90"><font size="2" color="#000000">59,174</font></TD>
<TD ALIGN=left width="2"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="15"><font size="2" color="#000000"></font></TD> </TR>
<TR valign="bottom">
<TD><font size="2" color="#000000">Retained earnings</font></TD>
<TD ALIGN=right width="3"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="90"><font size="2" color="#000000">52,695</font></TD>
<TD ALIGN=left width="2"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="20"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="3"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="90"><font size="2" color="#000000">41,152</font></TD>
<TD ALIGN=left width="2"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="15"><font size="2" color="#000000"></font></TD> </TR>
<TR valign="bottom" bgcolor="#CCEEFF">
<TD><font size="2" color="#000000">Cost of common stock in treasury</font></TD>
<TD ALIGN=right width="3"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="90"><font size="2" color="#000000">&#151;</font></TD>
<TD ALIGN=left width="2"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="20"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="3"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="90"><font size="2" color="#000000">(136</font></TD>
<TD ALIGN=left width="2"><font size="2" color="#000000">)</font></TD>
<TD ALIGN=right width="15"><font size="2" color="#000000"></font></TD> </TR>
<TR valign="bottom">
<TD><font size="2" color="#000000">Accumulated other comprehensive income</font></TD>
<TD ALIGN=right width="3"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="90"><font size="2" color="#000000">4,638</font></TD>
<TD ALIGN=left width="2"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="20"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="3"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="90"><font size="2" color="#000000">3,927</font></TD>
<TD ALIGN=left width="2"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="15"><font size="2" color="#000000"></font></TD> </TR>
<tr valign="bottom">
<td><font size="2" color="#000000"></font></td>
<td align=right colspan="2"> <hr size="2" color="#000000"> <font size="2" color="#000000"></font></td>
<td align=left width="2"><font size="2" color="#000000"></font></td>
<td align=right width="20"><font size="2" color="#000000"></font></td>
<td align=right colspan="2"> <hr size="2" color="#000000"> <font size="2" color="#000000"></font></td>
<td align=left width="2"><font size="2" color="#000000"></font></td>
<td align=right width="15"><font size="2" color="#000000"></font></td> </tr>
<tr valign="bottom" bgcolor="#CCEEFF">
<td><font size="2" color="#000000">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>Total Stockholders' Equity</b></font></td>
<td align=right width="3"><font size="2" color="#000000"></font></td>
<td align=right width="90"><font size="2" color="#000000">158,828</font></td>
<td align=left width="2"><font size="2" color="#000000"></font></td>
<td align=right width="20"><font size="2" color="#000000"></font></td>
<td align=right width="3"><font size="2" color="#000000"></font></td>
<td align=right width="90"><font size="2" color="#000000">146,349</font></td>
<td align=left width="2"><font size="2" color="#000000"></font></td>
<td align=right width="15"><font size="2" color="#000000"></font></td> </tr>
<TR valign="bottom">
<TD><font size="2" color="#000000"></font></TD>
<TD ALIGN=right colspan="2"> <hr size="2" color="#000000"> </TD>
<TD ALIGN=left width="2"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="20"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right colspan="2"> <hr size="2" color="#000000"> <font size="2" color="#000000"></font></TD>
<TD ALIGN=left width="2"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="15"><font size="2" color="#000000"></font></TD> </TR>
<tr valign="bottom" bgcolor="#CCEEFF">
<td><font size="2" color="#000000">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>Total Liabilities and Stockholders' Equity</b></font></td>
<td align=right width="3"><font size="2" color="#000000">$</font></td>
<td align=right width="90"><font size="2" color="#000000">2,043,685</font></td>
<td align=left width="2"><font size="2" color="#000000"></font></td>
<td align=right width="20"><font size="2" color="#000000"></font></td>
<td align=right width="3"><font size="2" color="#000000">$</font></td>
<td align=right width="90"><font size="2" color="#000000">2,116,295</font></td>
<td align=left width="2"><font size="2" color="#000000"></font></td>
<td align=right width="15"><font size="2" color="#000000"></font></td> </tr>
<TR valign="bottom">
<TD><font size="2" color="#000000"></font></TD>
<TD ALIGN=right colspan="2"> <hr size="4" color="#000000"> </TD>
<TD ALIGN=left width="2"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="20">&nbsp;</TD>
<TD ALIGN=right colspan="2"> <hr size="4" color="#000000"> </TD>
<TD ALIGN=left width="2"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="15"><font size="2" color="#000000"></font></TD> </TR> </TABLE> <p align="left"><font size="2" color="#000000"><i>See notes to consolidated financial statements.</i></font></p> <p align="center"><font size="2"
color="#000000">2</font></p>

<p Style='page-break-before:always'>
<HR  SIZE="3" COLOR="#CCEEFF" WIDTH="100%" ALIGN="CENTER">
<h5 align="left"><a href="#toc">Table of Contents</a></h5>
 <p align="left"><font size="2" color="#000000"><b>
<a name="l48818tx2"></a>CONSOLIDATED STATEMENTS OF INCOME </b><i>(Unaudited)</i><br> <b>CITY HOLDING COMPANY AND SUBSIDIARIES</b><br> <i>(in thousands, except earnings per share data)</i></font></p>
<TABLE BORDER=0 WIDTH="100%" CELLPADDING=0 CELLSPACING=0>
<TR valign="bottom">
<TD align="center"><b><font size="1" color="#000000"></font></b></TD>
<TD ALIGN=center colspan="7"><b><font size="1" color="#000000">Six Months Ended June 30</font></b></TD>
<TD width="15" align="center"><b><font size="1" color="#000000"></font></b></TD> </TR>
<TR valign="bottom">
<TD align="center"><b><font size="1" color="#000000"></font></b></TD>
<TD ALIGN=center width="3"><b><font size="1" color="#000000"></font></b></TD>
<TD ALIGN=center width="90"><b><font size="1" color="#000000">2002</font></b></TD>
<TD ALIGN=center width="2"><b><font size="1" color="#000000"></font></b></TD>
<TD ALIGN=center width="20"><b><font size="1" color="#000000"></font></b></TD>
<TD ALIGN=center width="3"><b><font size="1" color="#000000"></font></b></TD>
<TD ALIGN=center width="90"><b><font size="1" color="#000000">2001</font></b></TD>
<TD ALIGN=center width="2"><b><font size="1" color="#000000"></font></b></TD>
<TD width="15" align="center"><b><font size="1" color="#000000"></font></b></TD> </TR>
<tr valign="bottom">
<td align="center"><b></b></td>
<td colspan="2" align="center"><b><font size="1" color="#000000"></font></b> <hr size="2" color="#000000"> <b><font size="1" color="#000000"></font></b></td>
<td width="2" align="center"><b><font size="1" color="#000000"></font></b></td>
<td width="20" align="center"><b><font size="1" color="#000000"></font></b></td>
<td colspan="2" align="center"><b><font size="1" color="#000000"></font></b> <hr size="2" color="#000000"> <b><font size="1" color="#000000"></font></b></td>
<td width="2" align="center"><b><font size="1" color="#000000"></font></b></td>
<td width="15" align="center"><b><font size="1" color="#000000"></font></b></td> </tr>
<TR valign="bottom">
<TD><b><font size="2" color="#000000">Interest Income</font></b></TD>
<TD width="3">&nbsp;</TD>
<TD width="90">&nbsp;</TD>
<TD width="2">&nbsp;</TD>
<TD width="20">&nbsp;</TD>
<TD width="3">&nbsp;</TD>
<TD width="90">&nbsp;</TD>
<TD width="2">&nbsp;</TD>
<TD width="15">&nbsp;</TD> </TR>
<TR valign="bottom" bgcolor="#CCEEFF">
<TD><font size="2" color="#000000">&nbsp;&nbsp;&nbsp;&nbsp;Interest and fees on loans</font></TD>
<TD ALIGN=right width="3"><font size="2" color="#000000">$</font></TD>
<TD ALIGN=right width="90"><font size="2" color="#000000">49,382</font></TD>
<TD ALIGN=left width="2"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="20"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="3"><font size="2" color="#000000">$</font></TD>
<TD ALIGN=right width="90"><font size="2" color="#000000">81,175</font></TD>
<TD ALIGN=left width="2"><font size="2" color="#000000"></font></TD>
<TD width="15"><font size="2" color="#000000"></font></TD> </TR>
<TR valign="bottom">
<TD><font size="2" color="#000000">&nbsp;&nbsp;&nbsp;&nbsp;Interest on investment securities:</font></TD>
<TD ALIGN=right width="3"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="90"><font size="2" color="#000000"></font></TD>
<TD ALIGN=left width="2"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="20"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="3"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="90"><font size="2" color="#000000"></font></TD>
<TD ALIGN=left width="2"><font size="2" color="#000000"></font></TD>
<TD width="15"><font size="2" color="#000000"></font></TD> </TR>
<TR valign="bottom" bgcolor="#CCEEFF">
<TD><font size="2" color="#000000">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Taxable</font></TD>
<TD ALIGN=right width="3"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="90"><font size="2" color="#000000">9,687</font></TD>
<TD ALIGN=left width="2"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="20"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="3"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="90"><font size="2" color="#000000">8,004</font></TD>
<TD ALIGN=left width="2"><font size="2" color="#000000"></font></TD>
<TD width="15"><font size="2" color="#000000"></font></TD> </TR>
<TR valign="bottom">
<TD><font size="2" color="#000000">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Tax-exempt</font></TD>
<TD ALIGN=right width="3"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="90"><font size="2" color="#000000">1,415</font></TD>
<TD ALIGN=left width="2"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="20"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="3"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="90"><font size="2" color="#000000">1,767</font></TD>
<TD ALIGN=left width="2"><font size="2" color="#000000"></font></TD>
<TD width="15"><font size="2" color="#000000"></font></TD> </TR>
<TR valign="bottom" bgcolor="#CCEEFF">
<TD><font size="2" color="#000000">&nbsp;&nbsp;&nbsp;&nbsp;Interest on retained interests</font></TD>
<TD ALIGN=right width="3"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="90"><font size="2" color="#000000">5,797</font></TD>
<TD ALIGN=left width="2"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="20"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="3"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="90"><font size="2" color="#000000">2,296</font></TD>
<TD ALIGN=left width="2"><font size="2" color="#000000"></font></TD>
<TD width="15"><font size="2" color="#000000"></font></TD> </TR>
<TR valign="bottom">
<TD><font size="2" color="#000000">&nbsp;&nbsp;&nbsp;&nbsp;Interest on federal funds sold</font></TD>
<TD ALIGN=right width="3"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="90"><font size="2" color="#000000">367</font></TD>
<TD ALIGN=left width="2"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="20"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="3"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="90"><font size="2" color="#000000">155</font></TD>
<TD ALIGN=left width="2"><font size="2" color="#000000"></font></TD>
<TD width="15"><font size="2" color="#000000"></font></TD> </TR>
<tr valign="bottom">
<td><font size="2" color="#000000"></font></td>
<td align=right colspan="2"> <hr size="2" color="#000000"> <font size="2" color="#000000"></font></td>
<td align=left width="2"><font size="2" color="#000000"></font></td>
<td align=right width="20"><font size="2" color="#000000"></font></td>
<td align=right colspan="2"> <hr size="2" color="#000000"> <font size="2" color="#000000"></font></td>
<td align=left width="2"><font size="2" color="#000000"></font></td>
<td width="15"><font size="2" color="#000000"></font></td> </tr>
<TR valign="bottom" bgcolor="#CCEEFF">
<TD><font size="2" color="#000000">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>Total Interest Income</b></font></TD>
<TD ALIGN=right width="3"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="90"><font size="2" color="#000000">66,648</font></TD>
<TD ALIGN=left width="2"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="20"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="3"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="90"><font size="2" color="#000000">93,397</font></TD>
<TD ALIGN=left width="2"><font size="2" color="#000000"></font></TD>
<TD width="15"><font size="2" color="#000000"></font></TD> </TR>
<TR valign="bottom">
<TD><font size="2" color="#000000"><b>Interest Expense</b></font></TD>
<TD ALIGN=right width="3"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="90"><font size="2" color="#000000"></font></TD>
<TD ALIGN=left width="2"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="20"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="3"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="90"><font size="2" color="#000000"></font></TD>
<TD ALIGN=left width="2"><font size="2" color="#000000"></font></TD>
<TD width="15"><font size="2" color="#000000"></font></TD> </TR>
<TR valign="bottom" bgcolor="#CCEEFF">
<TD><font size="2" color="#000000">&nbsp;&nbsp;&nbsp;&nbsp;Interest on deposits</font></TD>
<TD ALIGN=right width="3"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="90"><font size="2" color="#000000">16,618</font></TD>
<TD ALIGN=left width="2"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="20"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="3"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="90"><font size="2" color="#000000">39,276</font></TD>
<TD ALIGN=left width="2"><font size="2" color="#000000"></font></TD>
<TD width="15"><font size="2" color="#000000"></font></TD> </TR>
<TR valign="bottom">
<TD><font size="2" color="#000000">&nbsp;&nbsp;&nbsp;&nbsp;Interest on short-term borrowings</font></TD>
<TD ALIGN=right width="3"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="90"><font size="2" color="#000000">1,141</font></TD>
<TD ALIGN=left width="2"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="20"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="3"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="90"><font size="2" color="#000000">5,817</font></TD>
<TD ALIGN=left width="2"><font size="2" color="#000000"></font></TD>
<TD width="15"><font size="2" color="#000000"></font></TD> </TR>
<TR valign="bottom" bgcolor="#CCEEFF">
<TD><font size="2" color="#000000">&nbsp;&nbsp;&nbsp;&nbsp;Interest on long-term debt</font></TD>
<TD ALIGN=right width="3"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="90"><font size="2" color="#000000">1,085</font></TD>
<TD ALIGN=left width="2"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="20"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="3"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="90"><font size="2" color="#000000">1,116</font></TD>
<TD ALIGN=left width="2"><font size="2" color="#000000"></font></TD>
<TD width="15"><font size="2" color="#000000"></font></TD> </TR>
<TR valign="bottom">
<TD><font size="2" color="#000000">&nbsp;&nbsp;&nbsp;&nbsp;Interest on trust preferred securities</font></TD>
<TD ALIGN=right width="3"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="90"><font size="2" color="#000000">4,301</font></TD>
<TD ALIGN=left width="2"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="20"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="3"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="90"><font size="2" color="#000000">4,010</font></TD>
<TD ALIGN=left width="2"><font size="2" color="#000000"></font></TD>
<TD width="15"><font size="2" color="#000000"></font></TD> </TR>
<tr valign="bottom">
<td><font size="2" color="#000000"></font></td>
<td align=right colspan="2"> <hr size="2" color="#000000"> <font size="2" color="#000000"></font></td>
<td align=left width="2"><font size="2" color="#000000"></font></td>
<td align=right width="20"><font size="2" color="#000000"></font></td>
<td align=right colspan="2"> <hr size="2" color="#000000"> <font size="2" color="#000000"></font></td>
<td align=left width="2"><font size="2" color="#000000"></font></td>
<td width="15"><font size="2" color="#000000"></font></td> </tr>
<tr valign="bottom" bgcolor="#CCEEFF">
<td><font size="2" color="#000000">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>Total Interest Expense</b></font></td>
<td align=right width="3"><font size="2" color="#000000"></font></td>
<td align=right width="90"><font size="2" color="#000000">23,145</font></td>
<td align=left width="2"><font size="2" color="#000000"></font></td>
<td align=right width="20"><font size="2" color="#000000"></font></td>
<td align=right width="3"><font size="2" color="#000000"></font></td>
<td align=right width="90"><font size="2" color="#000000">50,219</font></td>
<td align=left width="2"><font size="2" color="#000000"></font></td>
<td width="15"><font size="2" color="#000000"></font></td> </tr>
<TR valign="bottom">
<TD><font size="2" color="#000000"></font></TD>
<TD ALIGN=right colspan="2"> <hr size="2" color="#000000"> <font size="2" color="#000000"></font></TD>
<TD ALIGN=left width="2">&nbsp;</TD>
<TD ALIGN=right width="20">&nbsp;</TD>
<TD ALIGN=right colspan="2"> <hr size="2" color="#000000"> </TD>
<TD ALIGN=left width="2">&nbsp;</TD>
<TD width="15">&nbsp;</TD> </TR>
<TR valign="bottom" bgcolor="#CCEEFF">
<TD><font size="2" color="#000000">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>Net Interest Income</b></font></TD>
<TD ALIGN=right width="3"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="90"><font size="2" color="#000000">43,503</font></TD>
<TD ALIGN=left width="2"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="20"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="3"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="90"><font size="2" color="#000000">43,178</font></TD>
<TD ALIGN=left width="2"><font size="2" color="#000000"></font></TD>
<TD width="15"><font size="2" color="#000000"></font></TD> </TR>
<TR valign="bottom">
<TD><font size="2" color="#000000">Provision for loan losses</font></TD>
<TD ALIGN=right width="3"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="90"><font size="2" color="#000000">1,800</font></TD>
<TD ALIGN=left width="2"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="20"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="3"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="90"><font size="2" color="#000000">16,010</font></TD>
<TD ALIGN=left width="2"><font size="2" color="#000000"></font></TD>
<TD width="15"><font size="2" color="#000000"></font></TD> </TR>
<tr valign="bottom">
<td><font size="2" color="#000000"></font></td>
<td align=right colspan="2"> <hr size="2" color="#000000"> <font size="2" color="#000000"></font></td>
<td align=left width="2"><font size="2" color="#000000"></font></td>
<td align=right width="20"><font size="2" color="#000000"></font></td>
<td align=right colspan="2"> <hr size="2" color="#000000"> <font size="2" color="#000000"></font></td>
<td align=left width="2"><font size="2" color="#000000"></font></td>
<td width="15"><font size="2" color="#000000"></font></td> </tr>
<TR valign="bottom" bgcolor="#CCEEFF">
<TD><font size="2" color="#000000">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>Net Interest Income After Provision for Loan Losses</b></font></TD>
<TD ALIGN=right width="3"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="90"><font size="2" color="#000000">41,703</font></TD>
<TD ALIGN=left width="2"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="20"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="3"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="90"><font size="2" color="#000000">27,168</font></TD>
<TD ALIGN=left width="2"><font size="2" color="#000000"></font></TD>
<TD width="15"><font size="2" color="#000000"></font></TD> </TR>
<TR valign="bottom">
<TD><font size="2" color="#000000"><b>Non-Interest Income</b></font></TD>
<TD ALIGN=right width="3"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="90"><font size="2" color="#000000"></font></TD>
<TD ALIGN=left width="2"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="20"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="3"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="90"><font size="2" color="#000000"></font></TD>
<TD ALIGN=left width="2"><font size="2" color="#000000"></font></TD>
<TD width="15"><font size="2" color="#000000"></font></TD> </TR>
<TR valign="bottom" bgcolor="#CCEEFF">
<TD><font size="2" color="#000000">&nbsp;&nbsp;&nbsp;&nbsp;Investment securities gains</font></TD>
<TD ALIGN=right width="3"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="90"><font size="2" color="#000000">470</font></TD>
<TD ALIGN=left width="2"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="20"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="3"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="90"><font size="2" color="#000000">1,242</font></TD>
<TD ALIGN=left width="2"><font size="2" color="#000000"></font></TD>
<TD width="15"><font size="2" color="#000000"></font></TD> </TR>
<TR valign="bottom">
<TD><font size="2" color="#000000">&nbsp;&nbsp;&nbsp;&nbsp;Service charges</font></TD>
<TD ALIGN=right width="3"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="90"><font size="2" color="#000000">10,397</font></TD>
<TD ALIGN=left width="2"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="20"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="3"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="90"><font size="2" color="#000000">7,295</font></TD>
<TD ALIGN=left width="2"><font size="2" color="#000000"></font></TD>
<TD width="15"><font size="2" color="#000000"></font></TD> </TR>
<TR valign="bottom" bgcolor="#CCEEFF">
<TD><font size="2" color="#000000">&nbsp;&nbsp;&nbsp;&nbsp;Insurance commissions</font></TD>
<TD ALIGN=right width="3"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="90"><font size="2" color="#000000">1,037</font></TD>
<TD ALIGN=left width="2"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="20"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="3"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="90"><font size="2" color="#000000">1,175</font></TD>
<TD ALIGN=left width="2"><font size="2" color="#000000"></font></TD>
<TD width="15"><font size="2" color="#000000"></font></TD> </TR>
<TR valign="bottom">
<TD><font size="2" color="#000000">&nbsp;&nbsp;&nbsp;&nbsp;Trust fee income</font></TD>
<TD ALIGN=right width="3"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="90"><font size="2" color="#000000">670</font></TD>
<TD ALIGN=left width="2"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="20"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="3"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="90"><font size="2" color="#000000">570</font></TD>
<TD ALIGN=left width="2"><font size="2" color="#000000"></font></TD>
<TD width="15"><font size="2" color="#000000"></font></TD> </TR>
<TR valign="bottom" bgcolor="#CCEEFF">
<TD><font size="2" color="#000000">&nbsp;&nbsp;&nbsp;&nbsp;Mortgage banking income</font></TD>
<TD ALIGN=right width="3"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="90"><font size="2">375</font></TD>
<TD ALIGN=left width="2"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="20"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="3"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="90"><font size="2" color="#000000">3,411</font></TD>
<TD ALIGN=left width="2"><font size="2" color="#000000"></font></TD>
<TD width="15"><font size="2" color="#000000"></font></TD> </TR>
<TR valign="bottom">
<TD><font size="2" color="#000000">&nbsp;&nbsp;&nbsp;&nbsp;Other income</font></TD>
<TD ALIGN=right width="3"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="90"><font size="2" color="#000000">2,761</font></TD>
<TD ALIGN=left width="2"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="20"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="3"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="90"><font size="2" color="#000000">7,541</font></TD>
<TD ALIGN=left width="2"><font size="2" color="#000000"></font></TD>
<TD width="15"><font size="2" color="#000000"></font></TD> </TR>
<tr valign="bottom">
<td><font size="2" color="#000000"></font></td>
<td align=right colspan="2"> <hr size="2" color="#000000"> <font size="2" color="#000000"></font></td>
<td align=left width="2"><font size="2" color="#000000"></font></td>
<td align=right width="20"><font size="2" color="#000000"></font></td>
<td align=right colspan="2"> <hr size="2" color="#000000"> <font size="2" color="#000000"></font></td>
<td align=left width="2"><font size="2" color="#000000"></font></td>
<td width="15"><font size="2" color="#000000"></font></td> </tr>
<TR valign="bottom" bgcolor="#CCEEFF">
<TD><font size="2" color="#000000">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>Total Non-Interest Income</b></font></TD>
<TD ALIGN=right width="3"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="90"><font size="2" color="#000000">15,710</font></TD>
<TD ALIGN=left width="2"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="20"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="3"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="90"><font size="2" color="#000000">21,234</font></TD>
<TD ALIGN=left width="2"><font size="2" color="#000000"></font></TD>
<TD width="15"><font size="2" color="#000000"></font></TD> </TR>
<TR valign="bottom">
<TD><font size="2" color="#000000"><b>Non-Interest Expense</b></font></TD>
<TD ALIGN=right width="3"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="90"><font size="2" color="#000000"></font></TD>
<TD ALIGN=left width="2"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="20"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="3"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="90"><font size="2" color="#000000"></font></TD>
<TD ALIGN=left width="2"><font size="2" color="#000000"></font></TD>
<TD width="15"><font size="2" color="#000000"></font></TD> </TR>
<TR valign="bottom" bgcolor="#CCEEFF">
<TD><font size="2" color="#000000">&nbsp;&nbsp;&nbsp;&nbsp;Salaries and employee benefits</font></TD>
<TD ALIGN=right width="3"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="90"><font size="2" color="#000000">16,633</font></TD>
<TD ALIGN=left width="2"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="20"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="3"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="90"><font size="2" color="#000000">21,686</font></TD>
<TD ALIGN=left width="2"><font size="2" color="#000000"></font></TD>
<TD width="15"><font size="2" color="#000000"></font></TD> </TR>
<TR valign="bottom">
<TD><font size="2" color="#000000">&nbsp;&nbsp;&nbsp;&nbsp;Occupancy and equipment</font></TD>
<TD ALIGN=right width="3"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="90"><font size="2" color="#000000">3,266</font></TD>
<TD ALIGN=left width="2"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="20"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="3"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="90"><font size="2" color="#000000">4,959</font></TD>
<TD ALIGN=left width="2"><font size="2" color="#000000"></font></TD>
<TD width="15"><font size="2" color="#000000"></font></TD> </TR>
<TR valign="bottom" bgcolor="#CCEEFF">
<TD><font size="2" color="#000000">&nbsp;&nbsp;&nbsp;&nbsp;Depreciation</font></TD>
<TD ALIGN=right width="3"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="90"><font size="2" color="#000000">3,094</font></TD>
<TD ALIGN=left width="2"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="20"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="3"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="90"><font size="2" color="#000000">4,893</font></TD>
<TD ALIGN=left width="2"><font size="2" color="#000000"></font></TD>
<TD width="15"><font size="2" color="#000000"></font></TD> </TR>
<TR valign="bottom">
<TD><font size="2" color="#000000">&nbsp;&nbsp;&nbsp;&nbsp;Advertising</font></TD>
<TD ALIGN=right width="3"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="90"><font size="2" color="#000000">1,342</font></TD>
<TD ALIGN=left width="2"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="20"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="3"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="90"><font size="2" color="#000000">1,369</font></TD>
<TD ALIGN=left width="2"><font size="2" color="#000000"></font></TD>
<TD width="15"><font size="2" color="#000000"></font></TD> </TR>
<TR valign="bottom" bgcolor="#CCEEFF">
<TD><font size="2" color="#000000">&nbsp;&nbsp;&nbsp;&nbsp;Telecommunications</font></TD>
<TD ALIGN=right width="3"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="90"><font size="2" color="#000000">1,303</font></TD>
<TD ALIGN=left width="2"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="20"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="3"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="90"><font size="2" color="#000000">2,604</font></TD>
<TD ALIGN=left width="2"><font size="2" color="#000000"></font></TD>
<TD width="15"><font size="2" color="#000000"></font></TD> </TR>
<TR valign="bottom">
<TD><font size="2" color="#000000">&nbsp;&nbsp;&nbsp;&nbsp;Office supplies</font></TD>
<TD ALIGN=right width="3"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="90"><font size="2" color="#000000">742</font></TD>
<TD ALIGN=left width="2"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="20"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="3"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="90"><font size="2" color="#000000">1,040</font></TD>
<TD ALIGN=left width="2"><font size="2" color="#000000"></font></TD>
<TD width="15"><font size="2" color="#000000"></font></TD> </TR>
<TR valign="bottom" bgcolor="#CCEEFF">
<TD><font size="2" color="#000000">&nbsp;&nbsp;&nbsp;&nbsp;Postage and delivery</font></TD>
<TD ALIGN=right width="3"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="90"><font size="2" color="#000000">440</font></TD>
<TD ALIGN=left width="2"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="20"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="3"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="90"><font size="2" color="#000000">1,075</font></TD>
<TD ALIGN=left width="2"><font size="2" color="#000000"></font></TD>
<TD width="15"><font size="2" color="#000000"></font></TD> </TR>
<TR valign="bottom">
<TD><font size="2" color="#000000">&nbsp;&nbsp;&nbsp;&nbsp;Loan production office advisory fees</font></TD>
<TD ALIGN=right width="3"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="90"><font size="2" color="#000000">&#151;</font></TD>
<TD ALIGN=left width="2"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="20"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="3"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="90"><font size="2" color="#000000">2,197</font></TD>
<TD ALIGN=left width="2"><font size="2" color="#000000"></font></TD>
<TD width="15"><font size="2" color="#000000"></font></TD> </TR>
<TR valign="bottom" bgcolor="#CCEEFF">
<TD><font size="2" color="#000000">&nbsp;&nbsp;&nbsp;&nbsp;Professional fees and litigation expense</font></TD>
<TD ALIGN=right width="3"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="90"><font size="2" color="#000000">1,373</font></TD>
<TD ALIGN=left width="2"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="20"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="3"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="90"><font size="2" color="#000000">2,452</font></TD>
<TD ALIGN=left width="2"><font size="2" color="#000000"></font></TD>
<TD width="15"><font size="2" color="#000000"></font></TD> </TR>
<TR valign="bottom">
<TD><font size="2" color="#000000">&nbsp;&nbsp;&nbsp;&nbsp;Loss on disposal and impairment of fixed assets</font></TD>
<TD ALIGN=right width="3"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="90"><font size="2" color="#000000">&#151;</font></TD>
<TD ALIGN=left width="2"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="20"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="3"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="90"><font size="2" color="#000000">3,160</font></TD>
<TD ALIGN=left width="2"><font size="2" color="#000000"></font></TD>
<TD width="15"><font size="2" color="#000000"></font></TD> </TR>
<TR valign="bottom" bgcolor="#CCEEFF">
<TD><font size="2" color="#000000">&nbsp;&nbsp;&nbsp;&nbsp;Repossessed asset losses and expenses</font></TD>
<TD ALIGN=right width="3"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="90"><font size="2" color="#000000">642</font></TD>
<TD ALIGN=left width="2"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="20"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="3"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="90"><font size="2" color="#000000">919</font></TD>
<TD ALIGN=left width="2"><font size="2" color="#000000"></font></TD>
<TD width="15"><font size="2" color="#000000"></font></TD> </TR>
<TR valign="bottom">
<TD><font size="2" color="#000000">&nbsp;&nbsp;&nbsp;&nbsp;Insurance and regulatory</font></TD>
<TD ALIGN=right width="3"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="90"><font size="2" color="#000000">1,017</font></TD>
<TD ALIGN=left width="2"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="20"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="3"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="90"><font size="2" color="#000000">1,046</font></TD>
<TD ALIGN=left width="2"><font size="2" color="#000000"></font></TD>
<TD width="15"><font size="2" color="#000000"></font></TD> </TR>
<TR valign="bottom" bgcolor="#CCEEFF">
<TD><font size="2" color="#000000">&nbsp;&nbsp;&nbsp;&nbsp;Retained interest impairment</font></TD>
<TD ALIGN=right width="3"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="90"><font size="2" color="#000000">&#151;</font></TD>
<TD ALIGN=left width="2"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="20"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="3"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="90"><font size="2" color="#000000">2,182</font></TD>
<TD ALIGN=left width="2"><font size="2" color="#000000"></font></TD>
<TD width="15"><font size="2" color="#000000"></font></TD> </TR>
<TR valign="bottom">
<TD><font size="2" color="#000000">&nbsp;&nbsp;&nbsp;&nbsp;Other expenses</font></TD>
<TD ALIGN=right width="3"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="90"><font size="2" color="#000000">6,194</font></TD>
<TD ALIGN=left width="2"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="20"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="3"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="90"><font size="2" color="#000000">11,705</font></TD>
<TD ALIGN=left width="2"><font size="2" color="#000000"></font></TD>
<TD width="15"><font size="2" color="#000000"></font></TD> </TR>
<tr valign="bottom">
<td><font size="2" color="#000000"></font></td>
<td align=right colspan="2"> <hr size="2" color="#000000"> <font size="2" color="#000000"></font></td>
<td align=left width="2"><font size="2" color="#000000"></font></td>
<td align=right width="20"><font size="2" color="#000000"></font></td>
<td align=right colspan="2"> <hr size="2" color="#000000"> <font size="2" color="#000000"></font></td>
<td align=left width="2"><font size="2" color="#000000"></font></td>
<td width="15"><font size="2" color="#000000"></font></td> </tr>
<tr valign="bottom" bgcolor="#CCEEFF">
<td><font size="2" color="#000000">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>Total Non-Interest Expense</b></font></td>
<td align=right width="3"><font size="2" color="#000000"></font></td>
<td align=right width="90"><font size="2" color="#000000">36,046</font></td>
<td align=left width="2"><font size="2" color="#000000"></font></td>
<td align=right width="20"><font size="2" color="#000000"></font></td>
<td align=right width="3"><font size="2" color="#000000"></font></td>
<td align=right width="90"><font size="2" color="#000000">61,287</font></td>
<td align=left width="2"><font size="2" color="#000000"></font></td>
<td width="15"><font size="2" color="#000000"></font></td> </tr>
<TR valign="bottom">
<TD><font size="2" color="#000000"></font></TD>
<TD ALIGN=right colspan="2"> <hr size="2" color="#000000"> <font size="2" color="#000000"></font></TD>
<TD ALIGN=left width="2"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="20"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right colspan="2"> <hr size="2" color="#000000"> <font size="2" color="#000000"></font></TD>
<TD ALIGN=left width="2"><font size="2" color="#000000"></font></TD>
<TD width="15"><font size="2" color="#000000"></font></TD> </TR>
<TR valign="bottom" bgcolor="#CCEEFF">
<TD><font size="2" color="#000000">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>Income (Loss) Before Income Taxes and Cumulative Effect of Accounting<br>
</b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b></b><b>Change</b></font></TD>
<TD ALIGN=right width="3"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="90"><font size="2" color="#000000">21,367</font></TD>
<TD ALIGN=left width="2"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="20"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="3"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="90"><font size="2" color="#000000">(12,885</font></TD>
<TD ALIGN=left width="2"><font size="2" color="#000000">)</font></TD>
<TD width="15"><font size="2" color="#000000"></font></TD> </TR>
<TR valign="bottom">
<TD><font size="2" color="#000000">Income tax expense (benefit) </font></TD>
<TD ALIGN=right width="3"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="90"><font size="2" color="#000000">7,288</font></TD>
<TD ALIGN=left width="2"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="20"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="3"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="90"><font size="2" color="#000000">(5,070</font></TD>
<TD ALIGN=left width="2"><font size="2" color="#000000">)</font></TD>
<TD width="15"><font size="2" color="#000000"></font></TD> </TR>
<tr valign="bottom">
<td><font size="2" color="#000000"></font></td>
<td align=right colspan="2"> <hr size="2" color="#000000"> <font size="2" color="#000000"></font></td>
<td align=left width="2"><font size="2" color="#000000"></font></td>
<td align=right width="20"><font size="2" color="#000000"></font></td>
<td align=right colspan="2"><font size="2" color="#000000"></font> <hr size="2" color="#000000"> <font size="2" color="#000000"> </font></td>
<td align=left width="2">&nbsp;</td>
<td width="15"><font size="2" color="#000000"></font></td> </tr>
<TR valign="bottom" bgcolor="#CCEEFF">
<TD><font size="2" color="#000000">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>Income (Loss) Before Cumulative Effect of Accounting Change</b></font></TD>
<TD ALIGN=right width="3"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="90"><font size="2" color="#000000">14,079</font></TD>
<TD ALIGN=left width="2"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="20"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="3"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="90"><font size="2" color="#000000"> (7,815</font></TD>
<TD ALIGN=left width="2"><font size="2" color="#000000">)</font></TD>
<TD width="15"><font size="2" color="#000000"></font></TD> </TR>
<TR valign="bottom">
<TD><font size="2" color="#000000">Cumulative effect of accounting change, net of tax</font></TD>
<TD ALIGN=right width="3"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="90"><font size="2" color="#000000">&#151;</font></TD>
<TD ALIGN=left width="2"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="20"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="3"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="90"><font size="2" color="#000000">(17,985</font></TD>
<TD ALIGN=left width="2"><font size="2" color="#000000">)</font></TD>
<TD width="15"><font size="2" color="#000000"></font></TD> </TR>
<tr valign="bottom">
<td><font size="2" color="#000000"></font></td>
<td align=right colspan="2"> <hr size="2" color="#000000"> </td>
<td align=left width="2"><font size="2" color="#000000"></font></td>
<td align=right width="20">&nbsp;</td>
<td align=right colspan="2"> <hr size="2" color="#000000"> </td>
<td align=left width="2">&nbsp;</td>
<td width="15"><font size="2" color="#000000"></font></td> </tr>
<TR valign="bottom" bgcolor="#CCEEFF">
<TD><font size="2" color="#000000">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>Net Income (Loss)</b></font></TD>
<TD ALIGN=right width="3"><font size="2" color="#000000">$</font></TD>
<TD ALIGN=right width="90"><font size="2" color="#000000">14,079</font></TD>
<TD ALIGN=left width="2"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="20"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="3"><font size="2" color="#000000">$</font></TD>
<TD ALIGN=right width="90"><font size="2" color="#000000">(25,800</font></TD>
<TD ALIGN=left width="2"><font size="2" color="#000000">)</font></TD>
<TD width="15"><font size="2" color="#000000"></font></TD> </TR>
<tr valign="bottom">
<td><font size="2" color="#000000"></font></td>
<td align=right colspan="2"><font size="2" color="#000000"></font> <hr size="4" color="#000000"> <font size="2" color="#000000"></font></td>
<td align=left width="2"><font size="2" color="#000000"></font></td>
<td align=right width="20"><font size="2" color="#000000"></font></td>
<td align=right colspan="2"><font size="2" color="#000000"></font> <hr size="4" color="#000000"> <font size="2" color="#000000"></font></td>
<td align=left width="2"><font size="2" color="#000000"></font></td>
<td width="15"><font size="2" color="#000000"></font></td> </tr>
<TR valign="bottom">
<TD><font size="2" color="#000000"><b>Basic Earnings (Loss) per Share</b></font></TD>
<TD ALIGN=right width="3"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="90"><font size="2" color="#000000"></font></TD>
<TD ALIGN=left width="2"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="20"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="3"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="90"><font size="2" color="#000000"></font></TD>
<TD ALIGN=left width="2"><font size="2" color="#000000"></font></TD>
<TD width="15"><font size="2" color="#000000"></font></TD> </TR>
<TR valign="bottom" bgcolor="#CCEEFF">
<TD><font size="2" color="#000000">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Income (loss) before cumulative effect of accounting change</font></TD>
<TD ALIGN=right width="3"><font size="2" color="#000000">$</font></TD>
<TD ALIGN=right width="90"><font size="2" color="#000000">0.83</font></TD>
<TD ALIGN=left width="2"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="20"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="3"><font size="2" color="#000000">$</font></TD>
<TD ALIGN=right width="90"><font size="2" color="#000000"> (0.46</font></TD>
<TD ALIGN=left width="2"><font size="2" color="#000000">)</font></TD>
<TD width="15"><font size="2" color="#000000"></font></TD> </TR>
<TR valign="bottom">
<TD><font size="2" color="#000000">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Cumulative effect of accounting change</font></TD>
<TD ALIGN=right width="3"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="90"><font size="2" color="#000000">&#151;</font></TD>
<TD ALIGN=left width="2"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="20"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="3"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="90"><font size="2" color="#000000">(1.07</font></TD>
<TD ALIGN=left width="2"><font size="2" color="#000000">)</font></TD>
<TD width="15"><font size="2" color="#000000"></font></TD> </TR>
<tr valign="bottom">
<td><font size="2" color="#000000"></font></td>
<td align=right colspan="2"> <hr size="2" color="#000000"> </td>
<td align=left width="2"><font size="2" color="#000000"></font></td>
<td align=right width="20">&nbsp;</td>
<td align=right colspan="2"> <hr size="2" color="#000000"> <font size="2" color="#000000"> </font></td>
<td align=left width="2">&nbsp;</td>
<td width="15"><font size="2" color="#000000"></font></td> </tr>
<TR valign="bottom" bgcolor="#CCEEFF">
<TD><font size="2" color="#000000">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>Net Income (Loss) </b></font></TD>
<TD ALIGN=right width="3"><font size="2" color="#000000">$</font></TD>
<TD ALIGN=right width="90"><font size="2" color="#000000">0.83</font></TD>
<TD ALIGN=left width="2"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="20"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="3"><font size="2" color="#000000">$</font></TD>
<TD ALIGN=right width="90"><font size="2" color="#000000"> (1.53</font></TD>
<TD ALIGN=left width="2"><font size="2" color="#000000">)</font></TD>
<TD width="15"><font size="2" color="#000000"></font></TD> </TR>
<tr valign="bottom">
<td><font size="2" color="#000000"></font></td>
<td align=right colspan="2"><font size="2" color="#000000"></font> <hr size="4" color="#000000"> <font size="2" color="#000000"></font></td>
<td align=left width="2"><font size="2" color="#000000"></font></td>
<td align=right width="20"><font size="2" color="#000000"></font></td>
<td align=right colspan="2"><font size="2" color="#000000"></font> <hr size="4" color="#000000"> <font size="2" color="#000000"></font></td>
<td align=left width="2"><font size="2" color="#000000"></font></td>
<td width="15"><font size="2" color="#000000"></font></td> </tr>
<TR valign="bottom">
<TD><font size="2" color="#000000"><b>Diluted Earnings (Loss) per Share</b></font></TD>
<TD ALIGN=right width="3"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="90"><font size="2" color="#000000"></font></TD>
<TD ALIGN=left width="2"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="20"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="3"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="90"><font size="2" color="#000000"></font></TD>
<TD ALIGN=left width="2"><font size="2" color="#000000"></font></TD>
<TD width="15"><font size="2" color="#000000"></font></TD> </TR>
<TR valign="bottom" bgcolor="#CCEEFF">
<TD><font size="2" color="#000000">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Income (Loss) before cumulative effect of accounting change</font></TD>
<TD ALIGN=right width="3"><font size="2" color="#000000">$</font></TD>
<TD ALIGN=right width="90"><font size="2" color="#000000">0.82</font></TD>
<TD ALIGN=left width="2"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="20"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="3"><font size="2" color="#000000">$</font></TD>
<TD ALIGN=right width="90"><font size="2" color="#000000"> (0.46</font></TD>
<TD ALIGN=left width="2"><font size="2" color="#000000">)</font></TD>
<TD width="15"><font size="2" color="#000000"></font></TD> </TR>
<TR valign="bottom">
<TD><font size="2" color="#000000">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Cumulative effect of accounting change</font></TD>
<TD ALIGN=right width="3"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="90"><font size="2" color="#000000">&#151;</font></TD>
<TD ALIGN=left width="2"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="20"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="3"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="90"><font size="2" color="#000000">(1.07</font></TD>
<TD ALIGN=left width="2"><font size="2" color="#000000">)</font></TD>
<TD width="15"><font size="2" color="#000000"></font></TD> </TR>
<tr valign="bottom">
<td><font size="2" color="#000000"></font></td>
<td align=right colspan="2"> <hr size="2" color="#000000"> </td>
<td align=left width="2"><font size="2" color="#000000"></font></td>
<td align=right width="20">&nbsp;</td>
<td align=right colspan="2"> <hr size="2" color="#000000"> <font size="2" color="#000000"> </font></td>
<td align=left width="2">&nbsp;</td>
<td width="15"><font size="2" color="#000000"></font></td> </tr>
<TR valign="bottom" bgcolor="#CCEEFF">
<TD><font size="2" color="#000000">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>Net Income (Loss)</b></font></TD>
<TD ALIGN=right width="3"><font size="2" color="#000000">$</font></TD>
<TD ALIGN=right width="90"><font size="2" color="#000000">0.82</font></TD>
<TD ALIGN=left width="2"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="20"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="3"><font size="2" color="#000000">$</font></TD>
<TD ALIGN=right width="90"><font size="2" color="#000000"> (1.53</font></TD>
<TD ALIGN=left width="2"><font size="2" color="#000000">)</font></TD>
<TD width="15"><font size="2" color="#000000"></font></TD> </TR>
<tr valign="bottom">
<td><font size="2" color="#000000"></font></td>
<td align=right colspan="2"><font size="2" color="#000000"></font> <hr size="4" color="#000000"> <font size="2" color="#000000"></font></td>
<td align=left width="2"><font size="2" color="#000000"></font></td>
<td align=right width="20"><font size="2" color="#000000"></font></td>
<td align=right colspan="2"><font size="2" color="#000000"></font> <hr size="4" color="#000000"> <font size="2" color="#000000"></font></td>
<td align=left width="2"><font size="2" color="#000000"></font></td>
<td width="15"><font size="2" color="#000000"></font></td> </tr>
<TR valign="bottom">
<TD><font size="2" color="#000000"><b>Average Common Shares Outstanding:</b></font></TD>
<TD ALIGN=right width="3"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="90"><font size="2" color="#000000"></font></TD>
<TD ALIGN=left width="2"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="20"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="3"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="90"><font size="2" color="#000000"></font></TD>
<TD ALIGN=left width="2"><font size="2" color="#000000"></font></TD>
<TD width="15"><font size="2" color="#000000"></font></TD> </TR>
<tr valign="bottom" bgcolor="#CCEEFF">
<td><font size="2" color="#000000">&nbsp;&nbsp;&nbsp;&nbsp;Basic</font></td>
<td align=right width="3"><font size="2" color="#000000"></font></td>
<td align=right width="90"><font size="2" color="#000000">16,890</font></td>
<td align=left width="2"><font size="2" color="#000000"></font></td>
<td align=right width="20"><font size="2" color="#000000"></font></td>
<td align=right width="3"><font size="2" color="#000000"></font></td>
<td align=right width="90"><font size="2" color="#000000">16,888</font></td>
<td align=left width="2"><font size="2" color="#000000"></font></td>
<td width="15"><font size="2" color="#000000"></font></td> </tr>
<TR valign="bottom">
<TD>&nbsp;</TD>
<TD ALIGN=right colspan="2"> <hr size="4" color="#000000"> <font size="2" color="#000000"></font></TD>
<TD ALIGN=left width="2"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="20"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right colspan="2"> <hr size="4" color="#000000"> <font size="2" color="#000000"></font></TD>
<TD ALIGN=left width="2"><font size="2" color="#000000"></font></TD>
<TD width="15"><font size="2" color="#000000"></font></TD> </TR>
<tr valign="bottom" bgcolor="#CCEEFF">
<td><font size="2" color="#000000">&nbsp;&nbsp;&nbsp;&nbsp;Diluted</font></td>
<td align=right width="3"><font size="2" color="#000000"></font></td>
<td align=right width="90"><font size="2" color="#000000">17,074</font></td>
<td align=left width="2"><font size="2" color="#000000"></font></td>
<td align=right width="20"><font size="2" color="#000000"></font></td>
<td align=right width="3"><font size="2" color="#000000"></font></td>
<td align=right width="90"><font size="2" color="#000000">16,888</font></td>
<td align=left width="2"><font size="2" color="#000000"></font></td>
<td width="15"><font size="2" color="#000000"></font></td> </tr>
<TR valign="bottom">
<TD>&nbsp;</TD>
<TD ALIGN=right colspan="2"> <hr size="4" color="#000000"> <font size="2" color="#000000"></font></TD>
<TD ALIGN=left width="2"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="20"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right colspan="2"> <hr size="4" color="#000000"> <font size="2" color="#000000"></font></TD>
<TD ALIGN=left width="2"><font size="2" color="#000000"></font></TD>
<TD width="15"><font size="2" color="#000000"></font></TD> </TR> </TABLE> <p align="left"><font size="2" color="#000000"><i>See notes to consolidated financial statements.</i></font></p> <p align="center"><font size="2" color="#000000">5</font></p>

<p Style='page-break-before:always'>
<HR  SIZE="3" COLOR="#CCEEFF" WIDTH="100%" ALIGN="CENTER">
<h5 align="left"><a href="#toc">Table of Contents</a></h5>
 <p align="left"><font size="2" color="#000000"><b>
<a name="l48818tx3"></a>CONSOLIDATED STATEMENTS OF INCOME</b> <i>(Unaudited)</i><br> <b>CITY HOLDING COMPANY AND SUBSIDIARIES</b><br> <i>(in thousands, except earnings per share data)</i></font></p>
<TABLE BORDER=0 WIDTH="100%" CELLPADDING=0 CELLSPACING=0>
<TR valign="bottom" align="center">
<TD><b><font size="1" color="#000000"></font></b></TD>
<TD colspan="6"><b><font size="1" color="#000000"></font></b><b><font size="1" color="#000000">Three Months Ended June 30</font></b><b><font size="1" color="#000000"></font></b><b><font size="1" color="#000000"></font></b><b><font size="1"
color="#000000"></font></b><b><font size="1" color="#000000"></font></b></TD>
<TD width="2"><b><font size="1" color="#000000"></font></b></TD>
<TD width="15"><b><font size="1" color="#000000"></font></b></TD> </TR>
<TR valign="bottom" align="center">
<TD><b><font size="1" color="#000000"></font></b></TD>
<TD width="3"><b><font size="1" color="#000000"></font></b></TD>
<TD width="90"><b><font size="1" color="#000000">2002</font></b></TD>
<TD width="2"><b><font size="1" color="#000000"></font></b></TD>
<TD width="20"><b><font size="1" color="#000000"></font></b></TD>
<TD width="3"><b><font size="1" color="#000000"></font></b></TD>
<TD width="90"><b><font size="1" color="#000000">2001</font></b></TD>
<TD width="2"><b><font size="1" color="#000000"></font></b></TD>
<TD width="15"><b><font size="1" color="#000000"></font></b></TD> </TR>
<tr valign="bottom" align="center">
<td><b><font size="1" color="#000000"></font></b></td>
<td colspan="2"> <hr size="2" color="#000000"> </td>
<td width="2"></td>
<td width="20"><b><font size="1" color="#000000"></font></b></td>
<td colspan="2"><b><font size="1" color="#000000"></font></b> <hr size="2" color="#000000"> <b><font size="1" color="#000000"></font></b></td>
<td width="2"></td>
<td width="15"><b><font size="1" color="#000000"></font></b></td> </tr>
<TR valign="bottom">
<TD><font size="2" color="#000000"><b>Interest Income</b></font></TD>
<TD ALIGN=right width="3"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="90"><font size="2" color="#000000"></font></TD>
<TD ALIGN=left width="2"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="20"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="3"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="90"><font size="2" color="#000000"></font></TD>
<TD ALIGN=left width="2"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="15"><font size="2" color="#000000"></font></TD> </TR>
<TR valign="bottom" bgcolor="#CCEEFF">
<TD><font size="2" color="#000000">&nbsp;&nbsp;&nbsp;&nbsp;Interest and fees on loans</font></TD>
<TD ALIGN=right width="3"><font size="2" color="#000000">$</font></TD>
<TD ALIGN=right width="90"><font size="2" color="#000000">23,809</font></TD>
<TD ALIGN=left width="2"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="20"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="3"><font size="2" color="#000000">$</font></TD>
<TD ALIGN=right width="90"><font size="2" color="#000000">39,119</font></TD>
<TD ALIGN=left width="2"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="15"><font size="2" color="#000000"></font></TD> </TR>
<TR valign="bottom">
<TD><font size="2" color="#000000">&nbsp;&nbsp;&nbsp;&nbsp;Interest on investment securities:</font></TD>
<TD ALIGN=right width="3"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="90"><font size="2" color="#000000"></font></TD>
<TD ALIGN=left width="2"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="20"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="3"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="90"><font size="2" color="#000000"></font></TD>
<TD ALIGN=left width="2"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="15"><font size="2" color="#000000"></font></TD> </TR>
<TR valign="bottom" bgcolor="#CCEEFF">
<TD><font size="2" color="#000000">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Taxable</font></TD>
<TD ALIGN=right width="3"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="90"><font size="2" color="#000000">5,102</font></TD>
<TD ALIGN=left width="2"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="20"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="3"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="90"><font size="2" color="#000000">3,605</font></TD>
<TD ALIGN=left width="2"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="15"><font size="2" color="#000000"></font></TD> </TR>
<TR valign="bottom">
<TD><font size="2" color="#000000">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Tax-exempt</font></TD>
<TD ALIGN=right width="3"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="90"><font size="2" color="#000000">684</font></TD>
<TD ALIGN=left width="2"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="20"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="3"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="90"><font size="2" color="#000000">855</font></TD>
<TD ALIGN=left width="2"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="15"><font size="2" color="#000000"></font></TD> </TR>
<TR valign="bottom" bgcolor="#CCEEFF">
<TD><font size="2" color="#000000">&nbsp;&nbsp;&nbsp;&nbsp;Interest on retained interests</font></TD>
<TD ALIGN=right width="3"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="90"><font size="2" color="#000000">2,991</font></TD>
<TD ALIGN=left width="2"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="20"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="3"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="90"><font size="2" color="#000000">2,251</font></TD>
<TD ALIGN=left width="2"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="15"><font size="2" color="#000000"></font></TD> </TR>
<TR valign="bottom">
<TD><font size="2" color="#000000">&nbsp;&nbsp;&nbsp;&nbsp;Interest on federal funds sold</font></TD>
<TD ALIGN=right width="3"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="90"><font size="2" color="#000000">181</font></TD>
<TD ALIGN=left width="2"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="20"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="3"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="90"><font size="2" color="#000000">123</font></TD>
<TD ALIGN=left width="2"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="15"><font size="2" color="#000000"></font></TD> </TR>
<tr valign="bottom">
<td><font size="2" color="#000000"></font></td>
<td align=right colspan="2"> <hr size="2" color="#000000"> <font size="2" color="#000000"></font></td>
<td align=left width="2"></td>
<td align=right width="20"><font size="2" color="#000000"></font></td>
<td align=right colspan="2"> <hr size="2" color="#000000"> <font size="2" color="#000000"></font></td>
<td align=left width="2"><font size="2" color="#000000"></font></td>
<td align=right width="15"><font size="2" color="#000000"></font></td> </tr>
<TR valign="bottom" bgcolor="#CCEEFF">
<TD><font size="2" color="#000000">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>Total Interest Income</b></font></TD>
<TD ALIGN=right width="3"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="90"><font size="2" color="#000000">32,767</font></TD>
<TD ALIGN=left width="2"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="20"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="3"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="90"><font size="2" color="#000000">45,953</font></TD>
<TD ALIGN=left width="2"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="15"><font size="2" color="#000000"></font></TD> </TR>
<TR valign="bottom">
<TD><font size="2" color="#000000"><b>Interest Expense</b></font></TD>
<TD ALIGN=right width="3"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="90"><font size="2" color="#000000"></font></TD>
<TD ALIGN=left width="2"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="20"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="3"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="90"><font size="2" color="#000000"></font></TD>
<TD ALIGN=left width="2"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="15"><font size="2" color="#000000"></font></TD> </TR>
<TR valign="bottom" bgcolor="#CCEEFF">
<TD><font size="2" color="#000000">&nbsp;&nbsp;&nbsp;&nbsp;Interest on deposits</font></TD>
<TD ALIGN=right width="3"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="90"><font size="2" color="#000000">7,640</font></TD>
<TD ALIGN=left width="2"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="20"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="3"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="90"><font size="2" color="#000000">18,568</font></TD>
<TD ALIGN=left width="2"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="15"><font size="2" color="#000000"></font></TD> </TR>
<TR valign="bottom">
<TD><font size="2" color="#000000">&nbsp;&nbsp;&nbsp;&nbsp;Interest on short-term borrowings</font></TD>
<TD ALIGN=right width="3"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="90"><font size="2" color="#000000">525</font></TD>
<TD ALIGN=left width="2"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="20"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="3"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="90"><font size="2" color="#000000">2,408</font></TD>
<TD ALIGN=left width="2"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="15"><font size="2" color="#000000"></font></TD> </TR>
<TR valign="bottom" bgcolor="#CCEEFF">
<TD><font size="2" color="#000000">&nbsp;&nbsp;&nbsp;&nbsp;Interest on long-term debt</font></TD>
<TD ALIGN=right width="3"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="90"><font size="2" color="#000000">539</font></TD>
<TD ALIGN=left width="2"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="20"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="3"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="90"><font size="2" color="#000000">402</font></TD>
<TD ALIGN=left width="2"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="15"><font size="2" color="#000000"></font></TD> </TR>
<TR valign="bottom">
<TD><font size="2" color="#000000">&nbsp;&nbsp;&nbsp;&nbsp;Interest on trust preferred securities</font></TD>
<TD ALIGN=right width="3"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="90"><font size="2" color="#000000">2,183</font></TD>
<TD ALIGN=left width="2"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="20"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="3"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="90"><font size="2" color="#000000">2,005</font></TD>
<TD ALIGN=left width="2"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="15"><font size="2" color="#000000"></font></TD> </TR>
<tr valign="bottom">
<td><font size="2" color="#000000"></font></td>
<td align=right colspan="2"> <hr size="2" color="#000000"> <font size="2" color="#000000"></font></td>
<td align=left width="2"><font size="2" color="#000000"></font></td>
<td align=right width="20"><font size="2" color="#000000"></font></td>
<td align=right colspan="2"> <hr size="2" color="#000000"> <font size="2" color="#000000"></font></td>
<td align=left width="2"><font size="2" color="#000000"></font></td>
<td align=right width="15"><font size="2" color="#000000"></font></td> </tr>
<TR valign="bottom" bgcolor="#CCEEFF">
<TD><font size="2" color="#000000">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>Total Interest Expense</b></font></TD>
<TD ALIGN=right width="3"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="90"><font size="2" color="#000000">10,887</font></TD>
<TD ALIGN=left width="2"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="20"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="3"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="90"><font size="2" color="#000000">23,383</font></TD>
<TD ALIGN=left width="2"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="15"><font size="2" color="#000000"></font></TD> </TR>
<tr valign="bottom">
<td><font size="2" color="#000000"></font></td>
<td align=right colspan="2"> <hr size="2" color="#000000"> <font size="2" color="#000000"></font></td>
<td align=left width="2"><font size="2" color="#000000"></font></td>
<td align=right width="20"><font size="2" color="#000000"></font></td>
<td align=right colspan="2"> <hr size="2" color="#000000"> <font size="2" color="#000000"></font></td>
<td align=left width="2"><font size="2" color="#000000"></font></td>
<td align=right width="15"><font size="2" color="#000000"></font></td> </tr>
<TR valign="bottom" bgcolor="#CCEEFF">
<TD><font size="2" color="#000000">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>Net Interest Income</b></font></TD>
<TD ALIGN=right width="3"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="90"><font size="2" color="#000000">21,880</font></TD>
<TD ALIGN=left width="2"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="20"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="3"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="90"><font size="2" color="#000000">22,570</font></TD>
<TD ALIGN=left width="2"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="15"><font size="2" color="#000000"></font></TD> </TR>
<TR valign="bottom">
<TD><font size="2" color="#000000">Provision for loan losses</font></TD>
<TD ALIGN=right width="3"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="90"><font size="2" color="#000000">900</font></TD>
<TD ALIGN=left width="2"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="20"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="3"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="90"><font size="2" color="#000000">10,280</font></TD>
<TD ALIGN=left width="2"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="15"><font size="2" color="#000000"></font></TD> </TR>
<tr valign="bottom">
<td><font size="2" color="#000000"></font></td>
<td align=right colspan="2"> <hr size="2" color="#000000"> <font size="2" color="#000000"></font></td>
<td align=left width="2"><font size="2" color="#000000"></font></td>
<td align=right width="20"><font size="2" color="#000000"></font></td>
<td align=right colspan="2"> <hr size="2" color="#000000"> <font size="2" color="#000000"></font></td>
<td align=left width="2"><font size="2" color="#000000"></font></td>
<td align=right width="15"><font size="2" color="#000000"></font></td> </tr>
<TR valign="bottom" bgcolor="#CCEEFF">
<TD><font size="2" color="#000000">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>Net Interest Income After Provision for Loan Losses</b></font></TD>
<TD ALIGN=right width="3"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="90"><font size="2" color="#000000">20,980</font></TD>
<TD ALIGN=left width="2"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="20"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="3"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="90"><font size="2" color="#000000">12,290</font></TD>
<TD ALIGN=left width="2"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="15"><font size="2" color="#000000"></font></TD> </TR>
<TR valign="bottom">
<TD><font size="2" color="#000000"><b>Non-Interest Income</b></font></TD>
<TD ALIGN=right width="3"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="90"><font size="2" color="#000000"></font></TD>
<TD ALIGN=left width="2"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="20"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="3"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="90"><font size="2" color="#000000"></font></TD>
<TD ALIGN=left width="2"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="15"><font size="2" color="#000000"></font></TD> </TR>
<TR valign="bottom" bgcolor="#CCEEFF">
<TD><font size="2" color="#000000">&nbsp;&nbsp;&nbsp;&nbsp;Investment securities gains</font></TD>
<TD ALIGN=right width="3"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="90"><font size="2" color="#000000">238</font></TD>
<TD ALIGN=left width="2"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="20"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="3"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="90"><font size="2" color="#000000">421</font></TD>
<TD ALIGN=left width="2"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="15"><font size="2" color="#000000"></font></TD> </TR>
<TR valign="bottom">
<TD><font size="2" color="#000000">&nbsp;&nbsp;&nbsp;&nbsp;Service charges</font></TD>
<TD ALIGN=right width="3"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="90"><font size="2" color="#000000">5,768</font></TD>
<TD ALIGN=left width="2"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="20"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="3"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="90"><font size="2" color="#000000">4,361</font></TD>
<TD ALIGN=left width="2"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="15"><font size="2" color="#000000"></font></TD> </TR>
<TR valign="bottom" bgcolor="#CCEEFF">
<TD><font size="2" color="#000000">&nbsp;&nbsp;&nbsp;&nbsp;Insurance commissions</font></TD>
<TD ALIGN=right width="3"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="90"><font size="2" color="#000000">532</font></TD>
<TD ALIGN=left width="2"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="20"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="3"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="90"><font size="2" color="#000000">626</font></TD>
<TD ALIGN=left width="2"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="15"><font size="2" color="#000000"></font></TD> </TR>
<TR valign="bottom">
<TD><font size="2" color="#000000">&nbsp;&nbsp;&nbsp;&nbsp;Trust fee income</font></TD>
<TD ALIGN=right width="3"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="90"><font size="2" color="#000000">354</font></TD>
<TD ALIGN=left width="2"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="20"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="3"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="90"><font size="2" color="#000000">300</font></TD>
<TD ALIGN=left width="2"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="15"><font size="2" color="#000000"></font></TD> </TR>
<TR valign="bottom" bgcolor="#CCEEFF">
<TD><font size="2" color="#000000">&nbsp;&nbsp;&nbsp;&nbsp;Mortgage banking income</font></TD>
<TD ALIGN=right width="3"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="90"><font size="2">189</font></TD>
<TD ALIGN=left width="2"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="20"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="3"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="90"><font size="2" color="#000000">1,634</font></TD>
<TD ALIGN=left width="2"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="15"><font size="2" color="#000000"></font></TD> </TR>
<TR valign="bottom">
<TD><font size="2" color="#000000">&nbsp;&nbsp;&nbsp;&nbsp;Other income</font></TD>
<TD ALIGN=right width="3"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="90"><font size="2" color="#000000">1,615</font></TD>
<TD ALIGN=left width="2"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="20"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="3"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="90"><font size="2" color="#000000">5,178</font></TD>
<TD ALIGN=left width="2"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="15"><font size="2" color="#000000"></font></TD> </TR>
<tr valign="bottom">
<td><font size="2" color="#000000"></font></td>
<td align=right colspan="2"> <hr size="2" color="#000000"> <font size="2" color="#000000"></font></td>
<td align=left width="2"><font size="2" color="#000000"></font></td>
<td align=right width="20"><font size="2" color="#000000"></font></td>
<td align=right colspan="2"> <hr size="2" color="#000000"> <font size="2" color="#000000"></font></td>
<td align=left width="2"><font size="2" color="#000000"></font></td>
<td align=right width="15"><font size="2" color="#000000"></font></td> </tr>
<TR valign="bottom" bgcolor="#CCEEFF">
<TD><font size="2" color="#000000">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>Total Non-Interest Income</b></font></TD>
<TD ALIGN=right width="3"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="90"><font size="2" color="#000000">8,696</font></TD>
<TD ALIGN=left width="2"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="20"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="3"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="90"><font size="2" color="#000000">12,520</font></TD>
<TD ALIGN=left width="2"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="15"><font size="2" color="#000000"></font></TD> </TR>
<TR valign="bottom">
<TD><font size="2" color="#000000"><b>Non-Interest Expense</b></font></TD>
<TD ALIGN=right width="3"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="90"><font size="2" color="#000000"></font></TD>
<TD ALIGN=left width="2"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="20"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="3"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="90"><font size="2" color="#000000"></font></TD>
<TD ALIGN=left width="2"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="15"><font size="2" color="#000000"></font></TD> </TR>
<TR valign="bottom" bgcolor="#CCEEFF">
<TD><font size="2" color="#000000">&nbsp;&nbsp;&nbsp;&nbsp;Salaries and employee benefits</font></TD>
<TD ALIGN=right width="3"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="90"><font size="2" color="#000000">7,995</font></TD>
<TD ALIGN=left width="2"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="20"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="3"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="90"><font size="2" color="#000000">10,235</font></TD>
<TD ALIGN=left width="2"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="15"><font size="2" color="#000000"></font></TD> </TR>
<TR valign="bottom">
<TD><font size="2" color="#000000">&nbsp;&nbsp;&nbsp;&nbsp;Occupancy and equipment</font></TD>
<TD ALIGN=right width="3"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="90"><font size="2" color="#000000">1,638</font></TD>
<TD ALIGN=left width="2"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="20"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="3"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="90"><font size="2" color="#000000">2,491</font></TD>
<TD ALIGN=left width="2"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="15"><font size="2" color="#000000"></font></TD> </TR>
<TR valign="bottom" bgcolor="#CCEEFF">
<TD><font size="2" color="#000000">&nbsp;&nbsp;&nbsp;&nbsp;Depreciation</font></TD>
<TD ALIGN=right width="3"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="90"><font size="2" color="#000000">1,497</font></TD>
<TD ALIGN=left width="2"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="20"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="3"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="90"><font size="2" color="#000000">2,416</font></TD>
<TD ALIGN=left width="2"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="15"><font size="2" color="#000000"></font></TD> </TR>
<TR valign="bottom">
<TD><font size="2" color="#000000">&nbsp;&nbsp;&nbsp;&nbsp;Advertising</font></TD>
<TD ALIGN=right width="3"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="90"><font size="2" color="#000000">699</font></TD>
<TD ALIGN=left width="2"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="20"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="3"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="90"><font size="2" color="#000000">772</font></TD>
<TD ALIGN=left width="2"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="15"><font size="2" color="#000000"></font></TD> </TR>
<TR valign="bottom" bgcolor="#CCEEFF">
<TD><font size="2" color="#000000">&nbsp;&nbsp;&nbsp;&nbsp;Telecommunications</font></TD>
<TD ALIGN=right width="3"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="90"><font size="2" color="#000000">614</font></TD>
<TD ALIGN=left width="2"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="20"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="3"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="90"><font size="2" color="#000000">1,081</font></TD>
<TD ALIGN=left width="2"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="15"><font size="2" color="#000000"></font></TD> </TR>
<TR valign="bottom">
<TD><font size="2" color="#000000">&nbsp;&nbsp;&nbsp;&nbsp;Office supplies</font></TD>
<TD ALIGN=right width="3"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="90"><font size="2" color="#000000">405</font></TD>
<TD ALIGN=left width="2"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="20"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="3"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="90"><font size="2" color="#000000">368</font></TD>
<TD ALIGN=left width="2"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="15"><font size="2" color="#000000"></font></TD> </TR>
<TR valign="bottom" bgcolor="#CCEEFF">
<TD><font size="2" color="#000000">&nbsp;&nbsp;&nbsp;&nbsp;Postage and delivery</font></TD>
<TD ALIGN=right width="3"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="90"><font size="2" color="#000000">217</font></TD>
<TD ALIGN=left width="2"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="20"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="3"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="90"><font size="2" color="#000000">656</font></TD>
<TD ALIGN=left width="2"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="15"><font size="2" color="#000000"></font></TD> </TR>
<TR valign="bottom">
<TD><font size="2" color="#000000">&nbsp;&nbsp;&nbsp;&nbsp;Loan production office advisory fees</font></TD>
<TD ALIGN=right width="3"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="90"><font size="2" color="#000000">&#151;</font></TD>
<TD ALIGN=left width="2"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="20"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="3"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="90"><font size="2" color="#000000">889</font></TD>
<TD ALIGN=left width="2"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="15"><font size="2" color="#000000"></font></TD> </TR>
<TR valign="bottom" bgcolor="#CCEEFF">
<TD><font size="2" color="#000000">&nbsp;&nbsp;&nbsp;&nbsp;Professional fees and litigation expense</font></TD>
<TD ALIGN=right width="3"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="90"><font size="2" color="#000000">733</font></TD>
<TD ALIGN=left width="2"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="20"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="3"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="90"><font size="2" color="#000000">1,162</font></TD>
<TD ALIGN=left width="2"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="15"><font size="2" color="#000000"></font></TD> </TR>
<TR valign="bottom">
<TD><font size="2" color="#000000">&nbsp;&nbsp;&nbsp;&nbsp;Loss on disposal and impairment of fixed assets</font></TD>
<TD ALIGN=right width="3"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="90"><font size="2" color="#000000">&#151;</font></TD>
<TD ALIGN=left width="2"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="20"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="3"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="90"><font size="2" color="#000000">3,160</font></TD>
<TD ALIGN=left width="2"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="15"><font size="2" color="#000000"></font></TD> </TR>
<TR valign="bottom" bgcolor="#CCEEFF">
<TD><font size="2" color="#000000">&nbsp;&nbsp;&nbsp;&nbsp;Repossessed asset losses and expenses</font></TD>
<TD ALIGN=right width="3"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="90"><font size="2" color="#000000">295</font></TD>
<TD ALIGN=left width="2"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="20"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="3"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="90"><font size="2" color="#000000">486</font></TD>
<TD ALIGN=left width="2"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="15"><font size="2" color="#000000"></font></TD> </TR>
<TR valign="bottom">
<TD><font size="2" color="#000000">&nbsp;&nbsp;&nbsp;&nbsp;Insurance and regulatory</font></TD>
<TD ALIGN=right width="3"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="90"><font size="2" color="#000000">490</font></TD>
<TD ALIGN=left width="2"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="20"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="3"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="90"><font size="2" color="#000000">503</font></TD>
<TD ALIGN=left width="2"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="15"><font size="2" color="#000000"></font></TD> </TR>
<TR valign="bottom" bgcolor="#CCEEFF">
<TD><font size="2" color="#000000">&nbsp;&nbsp;&nbsp;&nbsp;Retained interest impairment</font></TD>
<TD ALIGN=right width="3"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="90"><font size="2" color="#000000">&#151;</font></TD>
<TD ALIGN=left width="2"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="20"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="3"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="90"><font size="2" color="#000000">&#151;</font></TD>
<TD ALIGN=left width="2"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="15"><font size="2" color="#000000"></font></TD> </TR>
<TR valign="bottom">
<TD><font size="2" color="#000000">&nbsp;&nbsp;&nbsp;&nbsp;Other expenses</font></TD>
<TD ALIGN=right width="3"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="90"><font size="2" color="#000000">3,291</font></TD>
<TD ALIGN=left width="2"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="20"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="3"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="90"><font size="2" color="#000000">4,191</font></TD>
<TD ALIGN=left width="2"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="15"><font size="2" color="#000000"></font></TD> </TR>
<tr valign="bottom">
<td><font size="2" color="#000000"></font></td>
<td align=right colspan="2"> <hr size="2" color="#000000"> <font size="2" color="#000000"></font></td>
<td align=left width="2"><font size="2" color="#000000"></font></td>
<td align=right width="20"><font size="2" color="#000000"></font></td>
<td align=right colspan="2"> <hr size="2" color="#000000"> <font size="2" color="#000000"></font></td>
<td align=left width="2"><font size="2" color="#000000"></font></td>
<td align=right width="15"><font size="2" color="#000000"></font></td> </tr>
<tr valign="bottom" bgcolor="#CCEEFF">
<td><font size="2" color="#000000">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>Total Non-Interest Expense</b></font></td>
<td align=right width="3"><font size="2" color="#000000"></font></td>
<td align=right width="90"><font size="2" color="#000000">17,874</font></td>
<td align=left width="2"><font size="2" color="#000000"></font></td>
<td align=right width="20"><font size="2" color="#000000"></font></td>
<td align=right width="3"><font size="2" color="#000000"></font></td>
<td align=right width="90"><font size="2" color="#000000">28,410</font></td>
<td align=left width="2"><font size="2" color="#000000"></font></td>
<td align=right width="15"><font size="2" color="#000000"></font></td> </tr>
<TR valign="bottom">
<TD><font size="2" color="#000000"></font></TD>
<TD ALIGN=right colspan="2"> <hr size="2" color="#000000"> <font size="2" color="#000000"></font></TD>
<TD ALIGN=left width="2">&nbsp;</TD>
<TD ALIGN=right width="20">&nbsp;</TD>
<TD ALIGN=right colspan="2"> <hr size="2" color="#000000"> </TD>
<TD ALIGN=left width="2">&nbsp;</TD>
<TD ALIGN=right width="15">&nbsp;</TD> </TR>
<TR valign="bottom" bgcolor="#CCEEFF">
<TD><font size="2" color="#000000">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>Income (Loss) Before Income Taxes and Cumulative Effect of Accounting Change</b></font></TD>
<TD ALIGN=right width="3"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="90"><font size="2" color="#000000">11,802</font></TD>
<TD ALIGN=left width="2"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="20"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="3"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="90"><font size="2" color="#000000">(3,600</font></TD>
<TD ALIGN=left width="2"><font size="2" color="#000000">)</font></TD>
<TD ALIGN=right width="15"><font size="2" color="#000000"></font></TD> </TR>
<TR valign="bottom">
<TD><font size="2" color="#000000">Income tax expense (benefit) </font></TD>
<TD ALIGN=right width="3"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="90"><font size="2" color="#000000">4,131</font></TD>
<TD ALIGN=left width="2"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="20"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="3"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="90"><font size="2" color="#000000">(1,530</font></TD>
<TD ALIGN=left width="2"><font size="2" color="#000000">)</font></TD>
<TD ALIGN=right width="15"><font size="2" color="#000000"></font></TD> </TR>
<tr valign="bottom">
<td><font size="2" color="#000000"></font></td>
<td align=right colspan="2"><font size="2" color="#000000"></font> <hr size="2" color="#000000"> <font size="2" color="#000000"> </font></td>
<td align=left width="2"><font size="2" color="#000000"></font></td>
<td align=right width="20"><font size="2" color="#000000"></font></td>
<td align=right colspan="2"><font size="2" color="#000000"></font> <hr size="2" color="#000000"> <font size="2" color="#000000"> </font></td>
<td align=left width="2">&nbsp;</td>
<td align=right width="15"><font size="2" color="#000000"></font></td> </tr>
<TR valign="bottom" bgcolor="#CCEEFF">
<TD><font size="2" color="#000000">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>Income (Loss) Before Cumulative Effect of Accounting Change</b></font></TD>
<TD ALIGN=right width="3"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="90"><font size="2" color="#000000"> 7,671</font></TD>
<TD ALIGN=left width="2"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="20"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="3"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="90"><font size="2" color="#000000"> (2,070</font></TD>
<TD ALIGN=left width="2"><font size="2" color="#000000">)</font></TD>
<TD ALIGN=right width="15"><font size="2" color="#000000"></font></TD> </TR>
<TR valign="bottom">
<TD><font size="2" color="#000000">Cumulative effect of accounting change, net of tax</font></TD>
<TD ALIGN=right width="3"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="90"><font size="2" color="#000000">&#151;</font></TD>
<TD ALIGN=left width="2"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="20"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="3"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="90"><font size="2" color="#000000">(17,985</font></TD>
<TD ALIGN=left width="2"><font size="2" color="#000000">)</font></TD>
<TD ALIGN=right width="15"><font size="2" color="#000000"></font></TD> </TR>
<tr valign="bottom">
<td><font size="2" color="#000000"></font></td>
<td align=right colspan="2"> <hr size="2" color="#000000"> <font size="2" color="#000000"> </font></td>
<td align=left width="2"><font size="2" color="#000000"></font></td>
<td align=right width="20">&nbsp;</td>
<td align=right colspan="2"> <hr size="2" color="#000000"> </td>
<td align=left width="2">&nbsp;</td>
<td align=right width="15"><font size="2" color="#000000"></font></td> </tr>
<tr valign="bottom" bgcolor="#CCEEFF">
<td><font size="2" color="#000000">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>Net Income (Loss)</b></font></td>
<td align=right width="3"><font size="2" color="#000000">$</font></td>
<td align=right width="90"><font size="2" color="#000000"> 7,671</font></td>
<td align=left width="2"><font size="2" color="#000000"></font></td>
<td align=right width="20"><font size="2" color="#000000"></font></td>
<td align=right width="3"><font size="2" color="#000000">$</font></td>
<td align=right width="90"><font size="2" color="#000000">(20,055</font></td>
<td align=left width="2"><font size="2" color="#000000">)</font></td>
<td align=right width="15"><font size="2" color="#000000"></font></td> </tr>
<TR valign="bottom">
<TD><font size="2" color="#000000"></font></TD>
<TD ALIGN=right colspan="2"> <hr size="4" color="#000000"> <font size="2" color="#000000"> </font></TD>
<TD ALIGN=left width="2"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="20">&nbsp;</TD>
<TD ALIGN=right colspan="2"> <hr size="4" color="#000000"> </TD>
<TD ALIGN=left width="2">&nbsp;</TD>
<TD ALIGN=right width="15"><font size="2" color="#000000"></font></TD> </TR>
<TR valign="bottom">
<TD><font size="2" color="#000000"><b>Basic Earnings (Loss) per Share</b></font></TD>
<TD ALIGN=right width="3"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="90"><font size="2" color="#000000"></font></TD>
<TD ALIGN=left width="2"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="20"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="3"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="90"><font size="2" color="#000000"></font></TD>
<TD ALIGN=left width="2"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="15"><font size="2" color="#000000"></font></TD> </TR>
<TR valign="bottom" bgcolor="#CCEEFF">
<TD><font size="2" color="#000000">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Income (loss) before cumulative effect of accounting change</font></TD>
<TD ALIGN=right width="3"><font size="2" color="#000000">$</font></TD>
<TD ALIGN=right width="90"><font size="2" color="#000000"> 0.45</font></TD>
<TD ALIGN=left width="2"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="20"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="3"><font size="2" color="#000000">$</font></TD>
<TD ALIGN=right width="90"><font size="2" color="#000000"> (0.12</font></TD>
<TD ALIGN=left width="2"><font size="2" color="#000000">)</font></TD>
<TD ALIGN=right width="15"><font size="2" color="#000000"></font></TD> </TR>
<TR valign="bottom">
<TD><font size="2" color="#000000">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Cumulative effect of accounting change</font></TD>
<TD ALIGN=right width="3"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="90"><font size="2" color="#000000">&#151;</font></TD>
<TD ALIGN=left width="2"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="20"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="3"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="90"><font size="2" color="#000000">(1.07</font></TD>
<TD ALIGN=left width="2"><font size="2" color="#000000">)</font></TD>
<TD ALIGN=right width="15"><font size="2" color="#000000"></font></TD> </TR>
<tr valign="bottom">
<td><font size="2" color="#000000"></font></td>
<td align=right colspan="2"> <hr size="2" color="#000000"> <font size="2" color="#000000"> </font></td>
<td align=left width="2"><font size="2" color="#000000"></font></td>
<td align=right width="20">&nbsp;</td>
<td align=right colspan="2"> <hr size="2" color="#000000"> <font size="2" color="#000000"> </font></td>
<td align=left width="2">&nbsp;</td>
<td align=right width="15"><font size="2" color="#000000"></font></td> </tr>
<TR valign="bottom" bgcolor="#CCEEFF">
<TD><font size="2" color="#000000">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>Net Income (Loss) </b></font></TD>
<TD ALIGN=right width="3"><font size="2" color="#000000">$</font></TD>
<TD ALIGN=right width="90"><font size="2" color="#000000"> 0.45</font></TD>
<TD ALIGN=left width="2"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="20"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="3"><font size="2" color="#000000">$</font></TD>
<TD ALIGN=right width="90"><font size="2" color="#000000"> (1.19</font></TD>
<TD ALIGN=left width="2"><font size="2" color="#000000">)</font></TD>
<TD ALIGN=right width="15"><font size="2" color="#000000"></font></TD> </TR>
<tr valign="bottom">
<td><font size="2" color="#000000"></font></td>
<td align=right colspan="2"><font size="2" color="#000000"></font> <hr size="4" color="#000000"> <font size="2" color="#000000"></font></td>
<td align=left width="2"><font size="2" color="#000000"></font></td>
<td align=right width="20"><font size="2" color="#000000"></font></td>
<td align=right colspan="2"><font size="2" color="#000000"></font> <hr size="4" color="#000000"> <font size="2" color="#000000"></font></td>
<td align=left width="2"><font size="2" color="#000000"></font></td>
<td align=right width="15"><font size="2" color="#000000"></font></td> </tr>
<TR valign="bottom">
<TD><font size="2" color="#000000"><b>Diluted Earnings (Loss) per Share</b></font></TD>
<TD ALIGN=right width="3"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="90"><font size="2" color="#000000"></font></TD>
<TD ALIGN=left width="2"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="20"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="3"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="90"><font size="2" color="#000000"></font></TD>
<TD ALIGN=left width="2"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="15"><font size="2" color="#000000"></font></TD> </TR>
<TR valign="bottom" bgcolor="#CCEEFF">
<TD><font size="2" color="#000000">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Income (Loss) before cumulative effect of accounting change</font></TD>
<TD ALIGN=right width="3"><font size="2" color="#000000">$</font></TD>
<TD ALIGN=right width="90"><font size="2" color="#000000"> 0.45</font></TD>
<TD ALIGN=left width="2"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="20"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="3"><font size="2" color="#000000">$</font></TD>
<TD ALIGN=right width="90"><font size="2" color="#000000"> (0.12</font></TD>
<TD ALIGN=left width="2"><font size="2" color="#000000">)</font></TD>
<TD ALIGN=right width="15"><font size="2" color="#000000"></font></TD> </TR>
<TR valign="bottom">
<TD><font size="2" color="#000000">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Cumulative effect of accounting change</font></TD>
<TD ALIGN=right width="3"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="90"><font size="2" color="#000000">&#151;</font></TD>
<TD ALIGN=left width="2"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="20"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="3"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="90"><font size="2" color="#000000">(1.07</font></TD>
<TD ALIGN=left width="2"><font size="2" color="#000000">)</font></TD>
<TD ALIGN=right width="15"><font size="2" color="#000000"></font></TD> </TR>
<tr valign="bottom">
<td><font size="2" color="#000000"></font></td>
<td align=right colspan="2"> <hr size="2" color="#000000"> <font size="2" color="#000000"> </font></td>
<td align=left width="2"><font size="2" color="#000000"></font></td>
<td align=right width="20">&nbsp;</td>
<td align=right colspan="2"> <hr size="2" color="#000000"> <font size="2" color="#000000"> </font></td>
<td align=left width="2">&nbsp;</td>
<td align=right width="15"><font size="2" color="#000000"></font></td> </tr>
<TR valign="bottom" bgcolor="#CCEEFF">
<TD><font size="2" color="#000000">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>Net Income (Loss)</b></font></TD>
<TD ALIGN=right width="3"><font size="2" color="#000000">$</font></TD>
<TD ALIGN=right width="90"><font size="2" color="#000000"> 0.45</font></TD>
<TD ALIGN=left width="2"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="20"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="3"><font size="2" color="#000000">$</font></TD>
<TD ALIGN=right width="90"><font size="2" color="#000000"> (1.19</font></TD>
<TD ALIGN=left width="2"><font size="2" color="#000000">)</font></TD>
<TD ALIGN=right width="15"><font size="2" color="#000000"></font></TD> </TR>
<tr valign="bottom">
<td><font size="2" color="#000000"></font></td>
<td align=right colspan="2"><font size="2" color="#000000"></font> <hr size="4" color="#000000"> <font size="2" color="#000000"></font></td>
<td align=left width="2"><font size="2" color="#000000"></font></td>
<td align=right width="20"><font size="2" color="#000000"></font></td>
<td align=right colspan="2"><font size="2" color="#000000"></font> <hr size="4" color="#000000"> <font size="2" color="#000000"></font></td>
<td align=left width="2"><font size="2" color="#000000"></font></td>
<td align=right width="15"><font size="2" color="#000000"></font></td> </tr>
<TR valign="bottom">
<TD><font size="2" color="#000000"><b>Average Common Shares Outstanding:</b></font></TD>
<TD ALIGN=right width="3"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="90"><font size="2" color="#000000"></font></TD>
<TD ALIGN=left width="2"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="20"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="3"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="90"><font size="2" color="#000000"></font></TD>
<TD ALIGN=left width="2"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="15"><font size="2" color="#000000"></font></TD> </TR>
<TR valign="bottom" bgcolor="#CCEEFF">
<TD><font size="2" color="#000000">&nbsp;&nbsp;&nbsp;&nbsp;Basic</font></TD>
<TD ALIGN=right width="3"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="90"><font size="2" color="#000000">16,892</font></TD>
<TD ALIGN=left width="2"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="20"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="3"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="90"><font size="2" color="#000000">16,888</font></TD>
<TD ALIGN=left width="2"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="15"><font size="2" color="#000000"></font></TD> </TR>
<tr valign="bottom">
<td><font size="2" color="#000000"></font></td>
<td align=right colspan="2"><font size="2" color="#000000"></font> <hr size="4" color="#000000"> <font size="2" color="#000000"></font></td>
<td align=left width="2"><font size="2" color="#000000"></font></td>
<td align=right width="20"><font size="2" color="#000000"></font></td>
<td align=right colspan="2"><font size="2" color="#000000"></font> <hr size="4" color="#000000"> <font size="2" color="#000000"></font></td>
<td align=left width="2"><font size="2" color="#000000"></font></td>
<td align=right width="15"><font size="2" color="#000000"></font></td> </tr>
<tr valign="bottom" bgcolor="#CCEEFF">
<td><font size="2" color="#000000">&nbsp;&nbsp;&nbsp;&nbsp;Diluted</font></td>
<td align=right width="3"><font size="2" color="#000000"></font></td>
<td align=right width="90"><font size="2" color="#000000">17,133</font></td>
<td align=left width="2"><font size="2" color="#000000"></font></td>
<td align=right width="20"><font size="2" color="#000000"></font></td>
<td align=right width="3"><font size="2" color="#000000"></font></td>
<td align=right width="90"><font size="2" color="#000000">16,888</font></td>
<td align=left width="2"><font size="2" color="#000000"></font></td>
<td align=right width="15"><font size="2" color="#000000"></font></td> </tr>
<tr valign="bottom">
<td><font size="2" color="#000000"></font></td>
<td align=right colspan="2"><font size="2" color="#000000"></font> <hr size="4" color="#000000"> <font size="2" color="#000000"></font></td>
<td align=left width="2"><font size="2" color="#000000"></font></td>
<td align=right width="20"><font size="2" color="#000000"></font></td>
<td align=right colspan="2"><font size="2" color="#000000"></font> <hr size="4" color="#000000"> <font size="2" color="#000000"></font></td>
<td align=left width="2"><font size="2" color="#000000"></font></td>
<td align=right width="15"><font size="2" color="#000000"></font></td> </tr> </TABLE> <p><i><font size="2" color="#000000">See notes to consolidated financial statements.</font></i></p> <p align="center"><font size="2" color="#000000">6</font></p>

<p Style='page-break-before:always'>
<HR  SIZE="3" COLOR="#CCEEFF" WIDTH="100%" ALIGN="CENTER">
<h5 align="left"><a href="#toc">Table of Contents</a></h5>
 <p><font size="2" color="#000000"><b><font face="Times New Roman, Times, serif">
<a name="l48818tx4"></a>CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY</font></b> <font face="Times New Roman, Times, serif"><i>(Unaudited)<br> </i></font></font><font face="Times New Roman, Times, serif"><b><font size="2"
color="#000000">CITY HOLDING COMPANY AND SUBSIDIARIES<br> SIX MONTHS ENDED JUNE 30, 2002 AND 2001<br> </font></b><i><font size="2" color="#000000">(in thousands)</font></i></font></p>
<TABLE BORDER=0 CELLPADDING=0 CELLSPACING=0 width="100%">
<TR valign="bottom" align="center">
<TD><font size="1" color="#000000" face="Times New Roman, Times, serif"></font></TD>
<TD>&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD colspan="2" nowrap><font size="1" color="#000000" face="Times New Roman, Times, serif"> Common&nbsp;Stock</font> <hr size="2" color="#000000" width="100%"> </TD>
<TD><font size="1" color="#000000" face="Times New Roman, Times, serif">&nbsp;&nbsp;&nbsp;&nbsp;</font></TD>
<TD colspan="2" nowrap><font size="1" color="#000000" face="Times New Roman, Times, serif"> Capital&nbsp;Surplus</font> <hr size="2" color="#000000" width="100%"> </TD>
<TD><font size="1" color="#000000" face="Times New Roman, Times, serif">&nbsp;&nbsp;&nbsp;</font></TD>
<TD colspan="2" nowrap><font size="1" color="#000000" face="Times New Roman, Times, serif"> Retained&nbsp;Earnings</font> <hr size="2" color="#000000" width="100%"> </TD>
<TD><font size="1" color="#000000" face="Times New Roman, Times, serif">&nbsp;&nbsp;</font></TD>
<TD><font size="1" color="#000000" face="Times New Roman, Times, serif"></font></TD>
<TD colspan="2" nowrap><font size="1" color="#000000" face="Times New Roman, Times, serif"> Treasury&nbsp;Stock</font> <hr size="2" color="#000000" width="100%"> </TD>
<TD><font size="1" color="#000000" face="Times New Roman, Times, serif">&nbsp;&nbsp;</font></TD>
<TD><font size="1" color="#000000" face="Times New Roman, Times, serif"></font></TD>
<TD colspan="2" nowrap><font size="1" color="#000000" face="Times New Roman, Times, serif">Accumulated Other<br> Comprehensive <br> Income</font> <hr size="2" color="#000000" width="100%"> </TD>
<TD><font size="1" color="#000000" face="Times New Roman, Times, serif">&nbsp;&nbsp;&nbsp;&nbsp;</font></TD>
<TD colspan="2" nowrap><font size="1" color="#000000" face="Times New Roman, Times, serif"> Total&nbsp;Stockholders'<br> Equity</font> <hr size="2" color="#000000" width="100%"> </TD>
<TD><font size="1" color="#000000" face="Times New Roman, Times, serif"></font></TD> </TR>
<TR valign="bottom" bgcolor="#CCEEFF">
<TD><font size="2" color="#000000" face="Times New Roman, Times, serif">Balances at December 31, 2001</font></TD>
<TD>&nbsp;</TD>
<TD ALIGN=right><font size="2" color="#000000" face="Times New Roman, Times, serif">$</font></TD>
<TD ALIGN=right><font size="2" color="#000000" face="Times New Roman, Times, serif">42,232</font></TD>
<TD ALIGN=left><font size="2" color="#000000" face="Times New Roman, Times, serif"></font></TD>
<TD ALIGN=right><font size="2" color="#000000" face="Times New Roman, Times, serif">$</font></TD>
<TD ALIGN=right><font size="2" color="#000000" face="Times New Roman, Times, serif">59,174</font></TD>
<TD ALIGN=left><font size="2" color="#000000" face="Times New Roman, Times, serif"></font></TD>
<TD ALIGN=right><font size="2" color="#000000" face="Times New Roman, Times, serif">$</font></TD>
<TD ALIGN=right><font size="2" color="#000000" face="Times New Roman, Times, serif">41,152</font></TD>
<TD ALIGN=left><font size="2" color="#000000" face="Times New Roman, Times, serif"></font></TD>
<TD ALIGN=right><font size="2" color="#000000" face="Times New Roman, Times, serif"></font></TD>
<TD ALIGN=right><font size="2" color="#000000" face="Times New Roman, Times, serif">$</font></TD>
<TD ALIGN=right><font size="2" color="#000000" face="Times New Roman, Times, serif"> (136</font></TD>
<TD ALIGN=left><font size="2" color="#000000" face="Times New Roman, Times, serif">)</font></TD>
<TD ALIGN=right><font size="2" color="#000000" face="Times New Roman, Times, serif"></font></TD>
<TD ALIGN=right><font size="2" color="#000000" face="Times New Roman, Times, serif">$</font></TD>
<TD ALIGN=right><font size="2" color="#000000" face="Times New Roman, Times, serif">3,927</font></TD>
<TD ALIGN=left><font size="2" color="#000000" face="Times New Roman, Times, serif"></font></TD>
<TD ALIGN=right><font size="2" color="#000000" face="Times New Roman, Times, serif">$</font></TD>
<TD ALIGN=right><font size="2" color="#000000" face="Times New Roman, Times, serif">146,349</font></TD>
<TD ALIGN=left><font size="2" color="#000000" face="Times New Roman, Times, serif"></font></TD> </TR>
<TR valign="bottom">
<TD><font size="2" color="#000000" face="Times New Roman, Times, serif">Comprehensive income:</font></TD>
<TD>&nbsp;</TD>
<TD ALIGN=right><font size="2" color="#000000" face="Times New Roman, Times, serif"></font></TD>
<TD ALIGN=right><font size="2" color="#000000" face="Times New Roman, Times, serif"></font></TD>
<TD ALIGN=left><font size="2" color="#000000" face="Times New Roman, Times, serif"></font></TD>
<TD ALIGN=right><font size="2" color="#000000" face="Times New Roman, Times, serif"></font></TD>
<TD ALIGN=right><font size="2" color="#000000" face="Times New Roman, Times, serif"></font></TD>
<TD ALIGN=left><font size="2" color="#000000" face="Times New Roman, Times, serif"></font></TD>
<TD ALIGN=right><font size="2" color="#000000" face="Times New Roman, Times, serif"></font></TD>
<TD ALIGN=right><font size="2" color="#000000" face="Times New Roman, Times, serif"></font></TD>
<TD ALIGN=left><font size="2" color="#000000" face="Times New Roman, Times, serif"></font></TD>
<TD ALIGN=right><font size="2" color="#000000" face="Times New Roman, Times, serif"></font></TD>
<TD ALIGN=right><font size="2" color="#000000" face="Times New Roman, Times, serif"></font></TD>
<TD ALIGN=right><font size="2" color="#000000" face="Times New Roman, Times, serif"></font></TD>
<TD ALIGN=left><font size="2" color="#000000" face="Times New Roman, Times, serif"></font></TD>
<TD ALIGN=right><font size="2" color="#000000" face="Times New Roman, Times, serif"></font></TD>
<TD ALIGN=right><font size="2" color="#000000" face="Times New Roman, Times, serif"></font></TD>
<TD ALIGN=right><font size="2" color="#000000" face="Times New Roman, Times, serif"></font></TD>
<TD ALIGN=left><font size="2" color="#000000" face="Times New Roman, Times, serif"></font></TD>
<TD ALIGN=right><font size="2" color="#000000" face="Times New Roman, Times, serif"></font></TD>
<TD ALIGN=right><font size="2" color="#000000" face="Times New Roman, Times, serif"></font></TD>
<TD ALIGN=left><font size="2" color="#000000" face="Times New Roman, Times, serif"></font></TD> </TR>
<TR valign="bottom" bgcolor="#CCEEFF">
<TD><font size="2" color="#000000" face="Times New Roman, Times, serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net income</font></TD>
<TD>&nbsp;</TD>
<TD ALIGN=right><font size="2" color="#000000" face="Times New Roman, Times, serif"></font></TD>
<TD ALIGN=right><font size="2" color="#000000" face="Times New Roman, Times, serif"></font></TD>
<TD ALIGN=left><font size="2" color="#000000" face="Times New Roman, Times, serif"></font></TD>
<TD ALIGN=right><font size="2" color="#000000" face="Times New Roman, Times, serif"></font></TD>
<TD ALIGN=right><font size="2" color="#000000" face="Times New Roman, Times, serif"></font></TD>
<TD ALIGN=left><font size="2" color="#000000" face="Times New Roman, Times, serif"></font></TD>
<TD ALIGN=right><font size="2" color="#000000" face="Times New Roman, Times, serif"></font></TD>
<TD ALIGN=right><font size="2" color="#000000" face="Times New Roman, Times, serif">14,079</font></TD>
<TD ALIGN=left><font size="2" color="#000000" face="Times New Roman, Times, serif"></font></TD>
<TD ALIGN=right><font size="2" color="#000000" face="Times New Roman, Times, serif"></font></TD>
<TD ALIGN=right><font size="2" color="#000000" face="Times New Roman, Times, serif"></font></TD>
<TD ALIGN=right><font size="2" color="#000000" face="Times New Roman, Times, serif"></font></TD>
<TD ALIGN=left><font size="2" color="#000000" face="Times New Roman, Times, serif"></font></TD>
<TD ALIGN=right><font size="2" color="#000000" face="Times New Roman, Times, serif"></font></TD>
<TD ALIGN=right><font size="2" color="#000000" face="Times New Roman, Times, serif"></font></TD>
<TD ALIGN=right><font size="2" color="#000000" face="Times New Roman, Times, serif"></font></TD>
<TD ALIGN=left><font size="2" color="#000000" face="Times New Roman, Times, serif"></font></TD>
<TD ALIGN=right><font size="2" color="#000000" face="Times New Roman, Times, serif"></font></TD>
<TD ALIGN=right><font size="2" color="#000000" face="Times New Roman, Times, serif">14,079</font></TD>
<TD ALIGN=left><font size="2" color="#000000" face="Times New Roman, Times, serif"></font></TD> </TR>
<TR valign="bottom">
<TD><font size="2" color="#000000" face="Times New Roman, Times, serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other comprehensive<br> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; income,&nbsp;net of deferred<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;income tax expense <br> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; of $474:</font></TD>
<TD>&nbsp;</TD>
<TD ALIGN=right><font size="2" color="#000000" face="Times New Roman, Times, serif"></font></TD>
<TD ALIGN=right><font size="2" color="#000000" face="Times New Roman, Times, serif"></font></TD>
<TD ALIGN=left><font size="2" color="#000000" face="Times New Roman, Times, serif"></font></TD>
<TD ALIGN=right><font size="2" color="#000000" face="Times New Roman, Times, serif"></font></TD>
<TD ALIGN=right><font size="2" color="#000000" face="Times New Roman, Times, serif"></font></TD>
<TD ALIGN=left><font size="2" color="#000000" face="Times New Roman, Times, serif"></font></TD>
<TD ALIGN=right><font size="2" color="#000000" face="Times New Roman, Times, serif"></font></TD>
<TD ALIGN=right><font size="2" color="#000000" face="Times New Roman, Times, serif"></font></TD>
<TD ALIGN=left><font size="2" color="#000000" face="Times New Roman, Times, serif"></font></TD>
<TD ALIGN=right><font size="2" color="#000000" face="Times New Roman, Times, serif"></font></TD>
<TD ALIGN=right><font size="2" color="#000000" face="Times New Roman, Times, serif"></font></TD>
<TD ALIGN=right><font size="2" color="#000000" face="Times New Roman, Times, serif"></font></TD>
<TD ALIGN=left><font size="2" color="#000000" face="Times New Roman, Times, serif"></font></TD>
<TD ALIGN=right><font size="2" color="#000000" face="Times New Roman, Times, serif"></font></TD>
<TD ALIGN=right><font size="2" color="#000000" face="Times New Roman, Times, serif"></font></TD>
<TD ALIGN=right><font size="2" color="#000000" face="Times New Roman, Times, serif"></font></TD>
<TD ALIGN=left><font size="2" color="#000000" face="Times New Roman, Times, serif"></font></TD>
<TD ALIGN=right><font size="2" color="#000000" face="Times New Roman, Times, serif"></font></TD>
<TD ALIGN=right><font size="2" color="#000000" face="Times New Roman, Times, serif"></font></TD>
<TD ALIGN=left><font size="2" color="#000000" face="Times New Roman, Times, serif"></font></TD> </TR>
<TR valign="bottom" bgcolor="#CCEEFF">
<TD nowrap><font size="2" color="#000000" face="Times New Roman, Times, serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net unrealized gain on <br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; available-for-sale<br> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;securities of $715, <br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; net of reclassification&nbsp;<br> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; adjustment for gains<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; included in net income<br> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; of $4</font></TD>
<TD nowrap>&nbsp;</TD>
<TD ALIGN=right><font size="2" color="#000000" face="Times New Roman, Times, serif"></font></TD>
<TD ALIGN=right><font size="2" color="#000000" face="Times New Roman, Times, serif"></font></TD>
<TD ALIGN=left><font size="2" color="#000000" face="Times New Roman, Times, serif"></font></TD>
<TD ALIGN=right><font size="2" color="#000000" face="Times New Roman, Times, serif"></font></TD>
<TD ALIGN=right><font size="2" color="#000000" face="Times New Roman, Times, serif"></font></TD>
<TD ALIGN=left><font size="2" color="#000000" face="Times New Roman, Times, serif"></font></TD>
<TD ALIGN=right><font size="2" color="#000000" face="Times New Roman, Times, serif"></font></TD>
<TD ALIGN=right><font size="2" color="#000000" face="Times New Roman, Times, serif"></font></TD>
<TD ALIGN=left><font size="2" color="#000000" face="Times New Roman, Times, serif"></font></TD>
<TD ALIGN=right><font size="2" color="#000000" face="Times New Roman, Times, serif"></font></TD>
<TD ALIGN=right><font size="2" color="#000000" face="Times New Roman, Times, serif"></font></TD>
<TD ALIGN=right><font size="2" color="#000000" face="Times New Roman, Times, serif"></font></TD>
<TD ALIGN=left><font size="2" color="#000000" face="Times New Roman, Times, serif"></font></TD>
<TD ALIGN=right><font size="2" color="#000000" face="Times New Roman, Times, serif"></font></TD>
<TD ALIGN=right><font size="2" color="#000000" face="Times New Roman, Times, serif"></font></TD>
<TD ALIGN=right><font size="2" color="#000000" face="Times New Roman, Times, serif">711</font></TD>
<TD ALIGN=left><font size="2" color="#000000" face="Times New Roman, Times, serif"></font></TD>
<TD ALIGN=right><font size="2" color="#000000" face="Times New Roman, Times, serif"></font></TD>
<TD ALIGN=right><font size="2" color="#000000" face="Times New Roman, Times, serif"> 711</font></TD>
<TD ALIGN=left><font size="2" color="#000000" face="Times New Roman, Times, serif"></font></TD> </TR>
<tr valign="bottom">
<td><font face="Times New Roman, Times, serif"></font></td>
<td>&nbsp;</td>
<td align=right><font size="2" color="#000000" face="Times New Roman, Times, serif"></font></td>
<td align=right><font size="2" color="#000000" face="Times New Roman, Times, serif"></font></td>
<td align=left><font size="2" color="#000000" face="Times New Roman, Times, serif"></font></td>
<td align=right><font size="2" color="#000000" face="Times New Roman, Times, serif"></font></td>
<td align=right><font size="2" color="#000000" face="Times New Roman, Times, serif"></font></td>
<td align=left><font size="2" color="#000000" face="Times New Roman, Times, serif"></font></td>
<td align=right><font size="2" color="#000000" face="Times New Roman, Times, serif"></font></td>
<td align=right><font size="2" color="#000000" face="Times New Roman, Times, serif"></font></td>
<td align=left><font size="2" color="#000000" face="Times New Roman, Times, serif"></font></td>
<td align=right><font size="2" color="#000000" face="Times New Roman, Times, serif"></font></td>
<td align=right><font size="2" color="#000000" face="Times New Roman, Times, serif"></font></td>
<td align=right><font size="2" color="#000000" face="Times New Roman, Times, serif"></font></td>
<td align=left><font size="2" color="#000000" face="Times New Roman, Times, serif"></font></td>
<td align=right><font size="2" color="#000000" face="Times New Roman, Times, serif"></font></td>
<td align=right><font size="2" color="#000000" face="Times New Roman, Times, serif"></font></td>
<td align=right><font size="2" color="#000000" face="Times New Roman, Times, serif"></font></td>
<td align=left><font size="2" color="#000000" face="Times New Roman, Times, serif"></font></td>
<td align=right colspan="2"> <hr size="2" color="#000000"> </td>
<td align=left><font size="2" color="#000000" face="Times New Roman, Times, serif"></font></td> </tr>
<TR valign="bottom" bgcolor="#CCEEFF">
<TD><font size="2" color="#000000" face="Times New Roman, Times, serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total comprehensive income</font></TD>
<TD>&nbsp;</TD>
<TD ALIGN=right><font size="2" color="#000000" face="Times New Roman, Times, serif"></font></TD>
<TD ALIGN=right><font size="2" color="#000000" face="Times New Roman, Times, serif"></font></TD>
<TD ALIGN=left><font size="2" color="#000000" face="Times New Roman, Times, serif"></font></TD>
<TD ALIGN=right><font size="2" color="#000000" face="Times New Roman, Times, serif"></font></TD>
<TD ALIGN=right><font size="2" color="#000000" face="Times New Roman, Times, serif"></font></TD>
<TD ALIGN=left><font size="2" color="#000000" face="Times New Roman, Times, serif"></font></TD>
<TD ALIGN=right><font size="2" color="#000000" face="Times New Roman, Times, serif"></font></TD>
<TD ALIGN=right><font size="2" color="#000000" face="Times New Roman, Times, serif"></font></TD>
<TD ALIGN=left><font size="2" color="#000000" face="Times New Roman, Times, serif"></font></TD>
<TD ALIGN=right><font size="2" color="#000000" face="Times New Roman, Times, serif"></font></TD>
<TD ALIGN=right><font size="2" color="#000000" face="Times New Roman, Times, serif"></font></TD>
<TD ALIGN=right><font size="2" color="#000000" face="Times New Roman, Times, serif"></font></TD>
<TD ALIGN=left><font size="2" color="#000000" face="Times New Roman, Times, serif"></font></TD>
<TD ALIGN=right><font size="2" color="#000000" face="Times New Roman, Times, serif"></font></TD>
<TD ALIGN=right><font size="2" color="#000000" face="Times New Roman, Times, serif"></font></TD>
<TD ALIGN=right><font size="2" color="#000000" face="Times New Roman, Times, serif"></font></TD>
<TD ALIGN=left><font size="2" color="#000000" face="Times New Roman, Times, serif"></font></TD>
<TD ALIGN=right><font size="2" color="#000000" face="Times New Roman, Times, serif"></font></TD>
<TD ALIGN=right><font size="2" color="#000000" face="Times New Roman, Times, serif">14,790</font></TD>
<TD ALIGN=left><font size="2" color="#000000" face="Times New Roman, Times, serif"></font></TD> </TR>
<TR valign="bottom">
<TD><font size="2" color="#000000" face="Times New Roman, Times, serif">Cash dividends declared <br> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ($0.15/share)</font></TD>
<TD>&nbsp;</TD>
<TD ALIGN=right><font size="2" color="#000000" face="Times New Roman, Times, serif"></font></TD>
<TD ALIGN=right><font size="2" color="#000000" face="Times New Roman, Times, serif"></font></TD>
<TD ALIGN=left><font size="2" color="#000000" face="Times New Roman, Times, serif"></font></TD>
<TD ALIGN=right><font size="2" color="#000000" face="Times New Roman, Times, serif"></font></TD>
<TD ALIGN=right><font size="2" color="#000000" face="Times New Roman, Times, serif"></font></TD>
<TD ALIGN=left><font size="2" color="#000000" face="Times New Roman, Times, serif"></font></TD>
<TD ALIGN=right><font size="2" color="#000000" face="Times New Roman, Times, serif"></font></TD>
<TD ALIGN=right><font size="2" color="#000000" face="Times New Roman, Times, serif">(2,536</font></TD>
<TD ALIGN=left><font size="2" color="#000000" face="Times New Roman, Times, serif">)</font></TD>
<TD ALIGN=right><font size="2" color="#000000" face="Times New Roman, Times, serif"></font></TD>
<TD ALIGN=right><font size="2" color="#000000" face="Times New Roman, Times, serif"></font></TD>
<TD ALIGN=right><font size="2" color="#000000" face="Times New Roman, Times, serif"></font></TD>
<TD ALIGN=left><font size="2" color="#000000" face="Times New Roman, Times, serif"></font></TD>
<TD ALIGN=right><font size="2" color="#000000" face="Times New Roman, Times, serif"></font></TD>
<TD ALIGN=right><font size="2" color="#000000" face="Times New Roman, Times, serif"></font></TD>
<TD ALIGN=right><font size="2" color="#000000" face="Times New Roman, Times, serif"></font></TD>
<TD ALIGN=left><font size="2" color="#000000" face="Times New Roman, Times, serif"></font></TD>
<TD ALIGN=right><font size="2" color="#000000" face="Times New Roman, Times, serif"></font></TD>
<TD ALIGN=right><font size="2" color="#000000" face="Times New Roman, Times, serif">(2,536</font></TD>
<TD ALIGN=left><font size="2" color="#000000" face="Times New Roman, Times, serif">)</font></TD> </TR>
<TR valign="bottom" bgcolor="#CCEEFF">
<TD><font size="2" color="#000000" face="Times New Roman, Times, serif">Exercise of 17,500 stock options</font></TD>
<TD>&nbsp;</TD>
<TD ALIGN=right><font size="2" color="#000000" face="Times New Roman, Times, serif"></font></TD>
<TD ALIGN=right><font size="2" color="#000000" face="Times New Roman, Times, serif">31</font></TD>
<TD ALIGN=left><font size="2" color="#000000" face="Times New Roman, Times, serif"></font></TD>
<TD ALIGN=right><font size="2" color="#000000" face="Times New Roman, Times, serif"></font></TD>
<TD ALIGN=right><font size="2" color="#000000" face="Times New Roman, Times, serif">58</font></TD>
<TD ALIGN=left><font size="2" color="#000000" face="Times New Roman, Times, serif"></font></TD>
<TD ALIGN=right><font size="2" color="#000000" face="Times New Roman, Times, serif"></font></TD>
<TD ALIGN=right><font size="2" color="#000000" face="Times New Roman, Times, serif"></font></TD>
<TD ALIGN=left><font size="2" color="#000000" face="Times New Roman, Times, serif"></font></TD>
<TD ALIGN=right><font size="2" color="#000000" face="Times New Roman, Times, serif"></font></TD>
<TD ALIGN=right><font size="2" color="#000000" face="Times New Roman, Times, serif"></font></TD>
<TD ALIGN=right><font size="2" color="#000000" face="Times New Roman, Times, serif">136</font></TD>
<TD ALIGN=left><font size="2" color="#000000" face="Times New Roman, Times, serif"></font></TD>
<TD ALIGN=right><font size="2" color="#000000" face="Times New Roman, Times, serif"></font></TD>
<TD ALIGN=right><font size="2" color="#000000" face="Times New Roman, Times, serif"></font></TD>
<TD ALIGN=right><font size="2" color="#000000" face="Times New Roman, Times, serif"></font></TD>
<TD ALIGN=left><font size="2" color="#000000" face="Times New Roman, Times, serif"></font></TD>
<TD ALIGN=right><font size="2" color="#000000" face="Times New Roman, Times, serif"></font></TD>
<TD ALIGN=right><font size="2" color="#000000" face="Times New Roman, Times, serif">225</font></TD>
<TD ALIGN=left><font size="2" color="#000000" face="Times New Roman, Times, serif"></font></TD> </TR>
<tr valign="bottom">
<td><font face="Times New Roman, Times, serif"></font></td>
<td>&nbsp;</td>
<td align=right colspan="2"> <hr size="2" color="#000000"> </td>
<td align=left><font size="2" color="#000000" face="Times New Roman, Times, serif"></font></td>
<td align=right colspan="2"> <hr size="2" color="#000000"> </td>
<td align=left><font size="2" color="#000000" face="Times New Roman, Times, serif"></font></td>
<td align=right colspan="2"> <hr size="2" color="#000000"> </td>
<td align=left><font size="2" color="#000000" face="Times New Roman, Times, serif"></font></td>
<td align=right><font size="2" color="#000000" face="Times New Roman, Times, serif"></font></td>
<td align=right colspan="2"> <hr size="2" color="#000000"> </td>
<td align=left><font size="2" color="#000000" face="Times New Roman, Times, serif"></font></td>
<td align=right><font size="2" color="#000000" face="Times New Roman, Times, serif"></font></td>
<td align=right colspan="2"> <hr size="2" color="#000000"> </td>
<td align=left><font size="2" color="#000000" face="Times New Roman, Times, serif"></font></td>
<td align=right colspan="2"> <hr size="2" color="#000000"> </td>
<td align=left><font size="2" color="#000000" face="Times New Roman, Times, serif"></font></td> </tr>
<TR valign="bottom" bgcolor="#CCEEFF">
<TD><font size="2" color="#000000" face="Times New Roman, Times, serif">Balances at June 30, 2002</font></TD>
<TD>&nbsp;</TD>
<TD ALIGN=right><font size="2" color="#000000" face="Times New Roman, Times, serif">$</font></TD>
<TD ALIGN=right><font size="2" color="#000000" face="Times New Roman, Times, serif">42,263</font></TD>
<TD ALIGN=left><font size="2" color="#000000" face="Times New Roman, Times, serif"></font></TD>
<TD ALIGN=right><font size="2" color="#000000" face="Times New Roman, Times, serif">$</font></TD>
<TD ALIGN=right><font size="2" color="#000000" face="Times New Roman, Times, serif">59,232</font></TD>
<TD ALIGN=left><font size="2" color="#000000" face="Times New Roman, Times, serif"></font></TD>
<TD ALIGN=right><font size="2" color="#000000" face="Times New Roman, Times, serif">$</font></TD>
<TD ALIGN=right><font size="2" color="#000000" face="Times New Roman, Times, serif">52,695</font></TD>
<TD ALIGN=left><font size="2" color="#000000" face="Times New Roman, Times, serif"></font></TD>
<TD ALIGN=right><font size="2" color="#000000" face="Times New Roman, Times, serif"></font></TD>
<TD ALIGN=right><font size="2" color="#000000" face="Times New Roman, Times, serif">$</font></TD>
<TD ALIGN=right><font size="2" color="#000000" face="Times New Roman, Times, serif">&#151;</font></TD>
<TD ALIGN=left><font size="2" color="#000000" face="Times New Roman, Times, serif"></font></TD>
<TD ALIGN=right><font size="2" color="#000000" face="Times New Roman, Times, serif"></font></TD>
<TD ALIGN=right><font size="2" color="#000000" face="Times New Roman, Times, serif"></font></TD>
<TD ALIGN=right><font size="2" color="#000000" face="Times New Roman, Times, serif">$4,638</font></TD>
<TD ALIGN=left><font size="2" color="#000000" face="Times New Roman, Times, serif"></font></TD>
<TD ALIGN=right><font size="2" color="#000000" face="Times New Roman, Times, serif">$</font></TD>
<TD ALIGN=right><font size="2" color="#000000" face="Times New Roman, Times, serif">158,828</font></TD>
<TD ALIGN=left><font size="2" color="#000000" face="Times New Roman, Times, serif"></font></TD> </TR>
<TR valign="bottom">
<TD><font size="2" color="#000000" face="Times New Roman, Times, serif"></font></TD>
<TD>&nbsp;</TD>
<TD ALIGN=right colspan="2"> <hr size="4" color="#000000"> </TD>
<TD ALIGN=left><font size="2" color="#000000" face="Times New Roman, Times, serif"></font></TD>
<TD ALIGN=right colspan="2"> <hr size="4" color="#000000"> </TD>
<TD ALIGN=left><font size="2" color="#000000" face="Times New Roman, Times, serif"></font></TD>
<TD ALIGN=right colspan="2"> <hr size="4" color="#000000"> </TD>
<TD ALIGN=left><font size="2" color="#000000" face="Times New Roman, Times, serif"></font></TD>
<TD ALIGN=right><font size="2" color="#000000" face="Times New Roman, Times, serif"></font></TD>
<TD ALIGN=right colspan="2"> <hr size="4" color="#000000"> </TD>
<TD ALIGN=left><font size="2" color="#000000" face="Times New Roman, Times, serif"></font></TD>
<TD ALIGN=right><font size="2" color="#000000" face="Times New Roman, Times, serif"></font></TD>
<TD ALIGN=right colspan="2"> <hr size="4" color="#000000"> </TD>
<TD ALIGN=left><font size="2" color="#000000" face="Times New Roman, Times, serif"></font></TD>
<TD ALIGN=right colspan="2"> <hr size="4" color="#000000"> </TD>
<TD ALIGN=left><font size="2" color="#000000" face="Times New Roman, Times, serif"></font></TD> </TR> </TABLE> <br>
<TABLE BORDER=0 CELLPADDING=0 CELLSPACING=0 width="100%">
<TR valign="bottom" align="center">
<TD><font size="1" color="#000000" face="Times New Roman, Times, serif"></font></TD>
<TD>&nbsp;&nbsp;</TD>
<TD colspan="2"><font size="1" color="#000000" face="Times New Roman, Times, serif"> Common&nbsp;Stock</font> <hr size="2" color="#000000"> </TD>
<TD><font size="1" face="Times New Roman, Times, serif">&nbsp;&nbsp;</font></TD>
<TD colspan="2"><font size="1" color="#000000" face="Times New Roman, Times, serif"> Capital&nbsp;Surplus</font> <hr size="2" color="#000000"> </TD>
<TD><font size="1" face="Times New Roman, Times, serif">&nbsp;&nbsp;</font></TD>
<TD colspan="2"><font size="1" color="#000000" face="Times New Roman, Times, serif"> Retained&nbsp;Earnings</font> <hr size="2" color="#000000"> </TD>
<TD><font size="1" face="Times New Roman, Times, serif"></font></TD>
<TD>&nbsp;&nbsp;</TD>
<TD colspan="2"><font size="1" color="#000000" face="Times New Roman, Times, serif"> Treasury&nbsp;Stock</font> <hr size="2" color="#000000"> </TD>
<TD><font size="1" face="Times New Roman, Times, serif"></font></TD>
<TD>&nbsp;&nbsp;</TD>
<TD colspan="2"><font size="1" color="#000000" face="Times New Roman, Times, serif">Accumulated&nbsp;Other<br> Comprehensive<br> (Loss) Income</font> <hr size="2" color="#000000"> </TD>
<TD><font size="1" face="Times New Roman, Times, serif"></font></TD>
<TD>&nbsp;</TD>
<TD colspan="2"><font size="1" color="#000000" face="Times New Roman, Times, serif"> Total&nbsp;Stockholders' Equity</font> <hr size="2" color="#000000"> </TD>
<TD><font size="1" face="Times New Roman, Times, serif"></font></TD> </TR>
<TR valign="bottom" bgcolor="#CCEEFF">
<TD><font size="2" color="#000000" face="Times New Roman, Times, serif">Balances at December 31, 2000</font></TD>
<TD>&nbsp;</TD>
<TD ALIGN=right><font size="2" color="#000000" face="Times New Roman, Times, serif">$</font></TD>
<TD ALIGN=right><font size="2" color="#000000" face="Times New Roman, Times, serif">42,232</font></TD>
<TD ALIGN=left><font size="2" color="#000000" face="Times New Roman, Times, serif"></font></TD>
<TD ALIGN=right><font size="2" color="#000000" face="Times New Roman, Times, serif">$</font></TD>
<TD ALIGN=right><font size="2" color="#000000" face="Times New Roman, Times, serif">59,174</font></TD>
<TD ALIGN=left><font size="2" color="#000000" face="Times New Roman, Times, serif"></font></TD>
<TD ALIGN=right><font size="2" color="#000000" face="Times New Roman, Times, serif">$</font></TD>
<TD ALIGN=right><font size="2" color="#000000" face="Times New Roman, Times, serif">67,152</font></TD>
<TD ALIGN=left><font size="2" color="#000000" face="Times New Roman, Times, serif"></font></TD>
<TD ALIGN=left>&nbsp;</TD>
<TD ALIGN=right><font size="2" color="#000000" face="Times New Roman, Times, serif">$</font></TD>
<TD ALIGN=right><font size="2" color="#000000" face="Times New Roman, Times, serif"> (136</font></TD>
<TD ALIGN=left><font size="2" color="#000000" face="Times New Roman, Times, serif">)</font></TD>
<TD ALIGN=left>&nbsp;</TD>
<TD ALIGN=right><font size="2" color="#000000" face="Times New Roman, Times, serif">$</font></TD>
<TD ALIGN=right><font size="2" color="#000000" face="Times New Roman, Times, serif"> (4,965</font></TD>
<TD ALIGN=left><font size="2" color="#000000" face="Times New Roman, Times, serif">)</font></TD>
<TD ALIGN=left>&nbsp;</TD>
<TD ALIGN=right><font size="2" color="#000000" face="Times New Roman, Times, serif">$</font></TD>
<TD ALIGN=right><font size="2" color="#000000" face="Times New Roman, Times, serif">163,457</font></TD>
<TD ALIGN=left><font size="2" color="#000000" face="Times New Roman, Times, serif"></font></TD> </TR>
<TR valign="bottom">
<TD><font size="2" color="#000000" face="Times New Roman, Times, serif">Comprehensive income:</font></TD>
<TD>&nbsp;</TD>
<TD ALIGN=right><font size="2" color="#000000" face="Times New Roman, Times, serif"></font></TD>
<TD ALIGN=right><font size="2" color="#000000" face="Times New Roman, Times, serif"></font></TD>
<TD ALIGN=left><font size="2" color="#000000" face="Times New Roman, Times, serif"></font></TD>
<TD ALIGN=right><font size="2" color="#000000" face="Times New Roman, Times, serif"></font></TD>
<TD ALIGN=right><font size="2" color="#000000" face="Times New Roman, Times, serif"></font></TD>
<TD ALIGN=left><font size="2" color="#000000" face="Times New Roman, Times, serif"></font></TD>
<TD ALIGN=right><font size="2" color="#000000" face="Times New Roman, Times, serif"></font></TD>
<TD ALIGN=right><font size="2" color="#000000" face="Times New Roman, Times, serif"></font></TD>
<TD ALIGN=left><font size="2" color="#000000" face="Times New Roman, Times, serif"></font></TD>
<TD ALIGN=left>&nbsp;</TD>
<TD ALIGN=right><font size="2" color="#000000" face="Times New Roman, Times, serif"></font></TD>
<TD ALIGN=right><font size="2" color="#000000" face="Times New Roman, Times, serif"></font></TD>
<TD ALIGN=left><font size="2" color="#000000" face="Times New Roman, Times, serif"></font></TD>
<TD ALIGN=left>&nbsp;</TD>
<TD ALIGN=right><font size="2" color="#000000" face="Times New Roman, Times, serif"></font></TD>
<TD ALIGN=right><font size="2" color="#000000" face="Times New Roman, Times, serif"></font></TD>
<TD ALIGN=left><font size="2" color="#000000" face="Times New Roman, Times, serif"></font></TD>
<TD ALIGN=left>&nbsp;</TD>
<TD ALIGN=right><font size="2" color="#000000" face="Times New Roman, Times, serif"></font></TD>
<TD ALIGN=right><font size="2" color="#000000" face="Times New Roman, Times, serif"></font></TD>
<TD ALIGN=left><font size="2" color="#000000" face="Times New Roman, Times, serif"></font></TD> </TR>
<TR valign="bottom" bgcolor="#CCEEFF">
<TD><font size="2" color="#000000" face="Times New Roman, Times, serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net loss</font></TD>
<TD>&nbsp;</TD>
<TD ALIGN=right><font size="2" color="#000000" face="Times New Roman, Times, serif"></font></TD>
<TD ALIGN=right><font size="2" color="#000000" face="Times New Roman, Times, serif"></font></TD>
<TD ALIGN=left><font size="2" color="#000000" face="Times New Roman, Times, serif"></font></TD>
<TD ALIGN=right><font size="2" color="#000000" face="Times New Roman, Times, serif"></font></TD>
<TD ALIGN=right><font size="2" color="#000000" face="Times New Roman, Times, serif"></font></TD>
<TD ALIGN=left><font size="2" color="#000000" face="Times New Roman, Times, serif"></font></TD>
<TD ALIGN=right><font size="2" color="#000000" face="Times New Roman, Times, serif"></font></TD>
<TD ALIGN=right><font size="2" color="#000000" face="Times New Roman, Times, serif">(25,800</font></TD>
<TD ALIGN=left><font size="2" color="#000000" face="Times New Roman, Times, serif">)</font></TD>
<TD ALIGN=left>&nbsp;</TD>
<TD ALIGN=right><font size="2" color="#000000" face="Times New Roman, Times, serif"></font></TD>
<TD ALIGN=right><font size="2" color="#000000" face="Times New Roman, Times, serif"></font></TD>
<TD ALIGN=left><font size="2" color="#000000" face="Times New Roman, Times, serif"></font></TD>
<TD ALIGN=left>&nbsp;</TD>
<TD ALIGN=right><font size="2" color="#000000" face="Times New Roman, Times, serif"></font></TD>
<TD ALIGN=right><font size="2" color="#000000" face="Times New Roman, Times, serif"></font></TD>
<TD ALIGN=left><font size="2" color="#000000" face="Times New Roman, Times, serif"></font></TD>
<TD ALIGN=left>&nbsp;</TD>
<TD ALIGN=right><font size="2" color="#000000" face="Times New Roman, Times, serif"></font></TD>
<TD ALIGN=right><font size="2" color="#000000" face="Times New Roman, Times, serif">(25,800</font></TD>
<TD ALIGN=left><font size="2" color="#000000" face="Times New Roman, Times, serif">)</font></TD> </TR>
<TR valign="bottom">
<TD><font size="2" color="#000000" face="Times New Roman, Times, serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other comprehensive loss, net <br> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; of deferred&nbsp;income
tax<br> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; benefit of $6,145:</font></TD>
<TD>&nbsp;</TD>
<TD ALIGN=right><font size="2" color="#000000" face="Times New Roman, Times, serif"></font></TD>
<TD ALIGN=right><font size="2" color="#000000" face="Times New Roman, Times, serif"></font></TD>
<TD ALIGN=left><font size="2" color="#000000" face="Times New Roman, Times, serif"></font></TD>
<TD ALIGN=right><font size="2" color="#000000" face="Times New Roman, Times, serif"></font></TD>
<TD ALIGN=right><font size="2" color="#000000" face="Times New Roman, Times, serif"></font></TD>
<TD ALIGN=left><font size="2" color="#000000" face="Times New Roman, Times, serif"></font></TD>
<TD ALIGN=right><font size="2" color="#000000" face="Times New Roman, Times, serif"></font></TD>
<TD ALIGN=right><font size="2" color="#000000" face="Times New Roman, Times, serif"></font></TD>
<TD ALIGN=left><font size="2" color="#000000" face="Times New Roman, Times, serif"></font></TD>
<TD ALIGN=left>&nbsp;</TD>
<TD ALIGN=right><font size="2" color="#000000" face="Times New Roman, Times, serif"></font></TD>
<TD ALIGN=right><font size="2" color="#000000" face="Times New Roman, Times, serif"></font></TD>
<TD ALIGN=left><font size="2" color="#000000" face="Times New Roman, Times, serif"></font></TD>
<TD ALIGN=left>&nbsp;</TD>
<TD ALIGN=right><font size="2" color="#000000" face="Times New Roman, Times, serif"></font></TD>
<TD ALIGN=right><font size="2" color="#000000" face="Times New Roman, Times, serif"></font></TD>
<TD ALIGN=left><font size="2" color="#000000" face="Times New Roman, Times, serif"></font></TD>
<TD ALIGN=left>&nbsp;</TD>
<TD ALIGN=right><font size="2" color="#000000" face="Times New Roman, Times, serif"></font></TD>
<TD ALIGN=right><font size="2" color="#000000" face="Times New Roman, Times, serif"></font></TD>
<TD ALIGN=left><font size="2" color="#000000" face="Times New Roman, Times, serif"></font></TD> </TR>
<TR valign="bottom" bgcolor="#CCEEFF">
<TD nowrap><font size="2" color="#000000" face="Times New Roman, Times, serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net unrealized gain on<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; available-for-sale<br> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;securities and retained<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; interests of $9,511, net<br> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; of reclassification<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; adjustment for gains<br> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; included in net income<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; of $294</font></TD>
<TD nowrap>&nbsp;</TD>
<TD ALIGN=right><font size="2" color="#000000" face="Times New Roman, Times, serif"></font></TD>
<TD ALIGN=right><font size="2" color="#000000" face="Times New Roman, Times, serif"></font></TD>
<TD ALIGN=left><font size="2" color="#000000" face="Times New Roman, Times, serif"></font></TD>
<TD ALIGN=right><font size="2" color="#000000" face="Times New Roman, Times, serif"></font></TD>
<TD ALIGN=right><font size="2" color="#000000" face="Times New Roman, Times, serif"></font></TD>
<TD ALIGN=left><font size="2" color="#000000" face="Times New Roman, Times, serif"></font></TD>
<TD ALIGN=right><font size="2" color="#000000" face="Times New Roman, Times, serif"></font></TD>
<TD ALIGN=right><font size="2" color="#000000" face="Times New Roman, Times, serif"></font></TD>
<TD ALIGN=left><font size="2" color="#000000" face="Times New Roman, Times, serif"></font></TD>
<TD ALIGN=left>&nbsp;</TD>
<TD ALIGN=right><font size="2" color="#000000" face="Times New Roman, Times, serif"></font></TD>
<TD ALIGN=right><font size="2" color="#000000" face="Times New Roman, Times, serif"></font></TD>
<TD ALIGN=left><font size="2" color="#000000" face="Times New Roman, Times, serif"></font></TD>
<TD ALIGN=left>&nbsp;</TD>
<TD ALIGN=right><font size="2" color="#000000" face="Times New Roman, Times, serif"></font></TD>
<TD ALIGN=right><font size="2" color="#000000" face="Times New Roman, Times, serif"> 9,217</font></TD>
<TD ALIGN=left><font size="2" color="#000000" face="Times New Roman, Times, serif"></font></TD>
<TD ALIGN=left>&nbsp;</TD>
<TD ALIGN=right><font size="2" color="#000000" face="Times New Roman, Times, serif"></font></TD>
<TD ALIGN=right><font size="2" color="#000000" face="Times New Roman, Times, serif"> 9,217</font></TD>
<TD ALIGN=left><font size="2" color="#000000" face="Times New Roman, Times, serif"></font></TD> </TR>
<tr valign="bottom" align="center">
<td><font size="1" color="#000000" face="Times New Roman, Times, serif"></font></td>
<td>&nbsp;</td>
<td colspan="2"><font size="1" color="#000000" face="Times New Roman, Times, serif"></font> <font size="1" color="#000000" face="Times New Roman, Times, serif"></font></td>
<td><font size="1" color="#000000" face="Times New Roman, Times, serif"></font></td>
<td colspan="2"><font size="1" color="#000000" face="Times New Roman, Times, serif"></font> <font size="1" color="#000000" face="Times New Roman, Times, serif"></font></td>
<td><font size="1" color="#000000" face="Times New Roman, Times, serif"></font></td>
<td colspan="2"><font size="1" color="#000000" face="Times New Roman, Times, serif"></font> <font size="1" color="#000000" face="Times New Roman, Times, serif"></font></td>
<td><font size="1" color="#000000" face="Times New Roman, Times, serif"></font></td>
<td>&nbsp;</td>
<td colspan="2"><font size="1" color="#000000" face="Times New Roman, Times, serif"></font> <font size="1" color="#000000" face="Times New Roman, Times, serif"> </font></td>
<td><font size="1" color="#000000" face="Times New Roman, Times, serif"></font></td>
<td>&nbsp;</td>
<td colspan="2"><font size="1" color="#000000" face="Times New Roman, Times, serif"></font> <font size="1" color="#000000" face="Times New Roman, Times, serif"></font></td>
<td><font size="1" color="#000000" face="Times New Roman, Times, serif"></font></td>
<td>&nbsp;</td>
<td colspan="2"> <hr size="2" color="#000000"> </td>
<td><font size="1" color="#000000" face="Times New Roman, Times, serif"></font></td> </tr>
<TR valign="bottom" bgcolor="#CCEEFF">
<TD><font size="2" color="#000000" face="Times New Roman, Times, serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total comprehensive loss</font></TD>
<TD>&nbsp;</TD>
<TD ALIGN=right><font size="2" color="#000000" face="Times New Roman, Times, serif"></font></TD>
<TD ALIGN=right><font size="2" color="#000000" face="Times New Roman, Times, serif"></font></TD>
<TD ALIGN=left><font size="2" color="#000000" face="Times New Roman, Times, serif"></font></TD>
<TD ALIGN=right><font size="2" color="#000000" face="Times New Roman, Times, serif"></font></TD>
<TD ALIGN=right><font size="2" color="#000000" face="Times New Roman, Times, serif"></font></TD>
<TD ALIGN=left><font size="2" color="#000000" face="Times New Roman, Times, serif"></font></TD>
<TD ALIGN=right><font size="2" color="#000000" face="Times New Roman, Times, serif"></font></TD>
<TD ALIGN=right><font size="2" color="#000000" face="Times New Roman, Times, serif"></font></TD>
<TD ALIGN=left><font size="2" color="#000000" face="Times New Roman, Times, serif"></font></TD>
<TD ALIGN=left>&nbsp;</TD>
<TD ALIGN=right><font size="2" color="#000000" face="Times New Roman, Times, serif"></font></TD>
<TD ALIGN=right><font size="2" color="#000000" face="Times New Roman, Times, serif"></font></TD>
<TD ALIGN=left><font size="2" color="#000000" face="Times New Roman, Times, serif"></font></TD>
<TD ALIGN=left>&nbsp;</TD>
<TD ALIGN=right><font size="2" color="#000000" face="Times New Roman, Times, serif"></font></TD>
<TD ALIGN=right><font size="2" color="#000000" face="Times New Roman, Times, serif"></font></TD>
<TD ALIGN=left><font size="2" color="#000000" face="Times New Roman, Times, serif"></font></TD>
<TD ALIGN=left>&nbsp;</TD>
<TD ALIGN=right><font size="2" color="#000000" face="Times New Roman, Times, serif"></font></TD>
<TD ALIGN=right><font size="2" color="#000000" face="Times New Roman, Times, serif">(16,583</font></TD>
<TD ALIGN=left><font size="2" color="#000000" face="Times New Roman, Times, serif">)</font></TD> </TR>
<tr valign="bottom" align="center">
<td><font size="1" color="#000000" face="Times New Roman, Times, serif"></font></td>
<td>&nbsp;</td>
<td colspan="2"> <hr size="2" color="#000000"> </td>
<td><font size="1" color="#000000" face="Times New Roman, Times, serif"></font></td>
<td colspan="2"> <hr size="2" color="#000000"> </td>
<td><font size="1" color="#000000" face="Times New Roman, Times, serif"></font></td>
<td colspan="2"> <hr size="2" color="#000000"> </td>
<td><font size="1" color="#000000" face="Times New Roman, Times, serif"></font></td>
<td>&nbsp;</td>
<td colspan="2"> <hr size="2" color="#000000"> </td>
<td><font size="1" color="#000000" face="Times New Roman, Times, serif"></font></td>
<td>&nbsp;</td>
<td colspan="2"> <hr size="2" color="#000000"> </td>
<td><font size="1" color="#000000" face="Times New Roman, Times, serif"></font></td>
<td>&nbsp;</td>
<td colspan="2"> <hr size="2" color="#000000"> </td>
<td><font size="1" color="#000000" face="Times New Roman, Times, serif"></font></td> </tr>
<TR valign="bottom" bgcolor="#CCEEFF">
<TD><font size="2" color="#000000" face="Times New Roman, Times, serif">Balances at June 30, 2001</font></TD>
<TD>&nbsp;</TD>
<TD ALIGN=right><font size="2" color="#000000" face="Times New Roman, Times, serif">$</font></TD>
<TD ALIGN=right><font size="2" color="#000000" face="Times New Roman, Times, serif">42,232</font></TD>
<TD ALIGN=left><font size="2" color="#000000" face="Times New Roman, Times, serif"></font></TD>
<TD ALIGN=right><font size="2" color="#000000" face="Times New Roman, Times, serif">$</font></TD>
<TD ALIGN=right><font size="2" color="#000000" face="Times New Roman, Times, serif">59,174</font></TD>
<TD ALIGN=left><font size="2" color="#000000" face="Times New Roman, Times, serif"></font></TD>
<TD ALIGN=right><font size="2" color="#000000" face="Times New Roman, Times, serif">$</font></TD>
<TD ALIGN=right><font size="2" color="#000000" face="Times New Roman, Times, serif">41,352</font></TD>
<TD ALIGN=left><font size="2" color="#000000" face="Times New Roman, Times, serif"></font></TD>
<TD ALIGN=left>&nbsp;</TD>
<TD ALIGN=right><font size="2" color="#000000" face="Times New Roman, Times, serif">$</font></TD>
<TD ALIGN=right><font size="2" color="#000000" face="Times New Roman, Times, serif"> (136</font></TD>
<TD ALIGN=left><font size="2" color="#000000" face="Times New Roman, Times, serif">)</font></TD>
<TD ALIGN=left>&nbsp;</TD>
<TD ALIGN=right><font size="2" color="#000000" face="Times New Roman, Times, serif">$</font></TD>
<TD ALIGN=right><font size="2" color="#000000" face="Times New Roman, Times, serif">4,252</font></TD>
<TD ALIGN=left><font size="2" color="#000000" face="Times New Roman, Times, serif"></font></TD>
<TD ALIGN=left>&nbsp;</TD>
<TD ALIGN=right><font size="2" color="#000000" face="Times New Roman, Times, serif">$</font></TD>
<TD ALIGN=right><font size="2" color="#000000" face="Times New Roman, Times, serif">146,874</font></TD>
<TD ALIGN=left><font size="2" color="#000000" face="Times New Roman, Times, serif"></font></TD> </TR>
<tr valign="bottom" align="center">
<td><font size="1" color="#000000" face="Times New Roman, Times, serif"></font></td>
<td>&nbsp;</td>
<td colspan="2"> <hr size="4" color="#000000"> </td>
<td><font size="1" color="#000000" face="Times New Roman, Times, serif"></font></td>
<td colspan="2"> <hr size="4" color="#000000"> </td>
<td><font size="1" color="#000000" face="Times New Roman, Times, serif"></font></td>
<td colspan="2"> <hr size="4" color="#000000"> </td>
<td><font size="1" color="#000000" face="Times New Roman, Times, serif"></font></td>
<td>&nbsp;</td>
<td colspan="2"> <hr size="4" color="#000000"> </td>
<td><font size="1" color="#000000" face="Times New Roman, Times, serif"></font></td>
<td>&nbsp;</td>
<td colspan="2"> <hr size="4" color="#000000"> </td>
<td><font size="1" color="#000000" face="Times New Roman, Times, serif"></font></td>
<td>&nbsp;</td>
<td colspan="2"> <hr size="4" color="#000000"> </td>
<td><font size="1" color="#000000" face="Times New Roman, Times, serif"></font></td> </tr> </TABLE> <p><font size="2" color="#000000"><i>See notes to consolidated financial statements.</i></font></p> <p align="center"><font size="2"
color="#000000">7</font></p>

<p Style='page-break-before:always'>
<HR  SIZE="3" COLOR="#CCEEFF" WIDTH="100%" ALIGN="CENTER">
<h5 align="left"><a href="#toc">Table of Contents</a></h5>
 <p><font size="2" color="#000000"><b>
<a name="l48818tx5"></a>CONSOLIDATED STATEMENTS OF CASH FLOWS</b> <i>(Unaudited)<br> </i><b>CITY HOLDING COMPANY AND SUBSIDIARIES<br> </b> </font><i><font size="2" color="#000000">(in thousands)</font></i></p>
<TABLE BORDER=0 WIDTH="100%" CELLPADDING=0 CELLSPACING=0>
<TR valign="bottom" align="center">
<TD><b><font size="1" color="#000000"></font></b></TD>
<TD width="3"><b><font size="1" color="#000000"></font></b></TD>
<TD colspan="5"><b><font size="1" color="#000000">Six Months Ended June 30</font></b><b><font size="1"></font></b><b><font size="1"></font></b><b><font size="1" color="#000000"></font></b><b><font size="1" color="#000000"></font></b></TD>
<TD width="2"><b><font size="1"></font></b></TD>
<TD width="15"><b><font size="1"></font></b></TD> </TR>
<TR valign="bottom" align="center">
<TD><b><font size="1" color="#000000"></font></b></TD>
<TD width="3"><b><font size="1" color="#000000"></font></b></TD>
<TD width="90"><b><font size="1" color="#000000">2002</font></b></TD>
<TD width="2"><b><font size="1" color="#000000"></font></b></TD>
<TD width="20"><b><font size="1" color="#000000"></font></b></TD>
<TD width="3"><b><font size="1" color="#000000"></font></b></TD>
<TD width="90"><b><font size="1" color="#000000">2001</font></b></TD>
<TD width="2"><b><font size="1" color="#000000"></font></b></TD>
<TD width="15"><b><font size="1" color="#000000"></font></b></TD> </TR>
<TR valign="bottom" align="center">
<TD><b><font size="1" color="#000000"></font></b></TD>
<TD colspan="2"><b><font size="1" color="#000000"></font></b> <hr size="2" color="#000000"> <b><font size="1" color="#000000"></font></b></TD>
<TD width="2"><b><font size="1" color="#000000"></font></b></TD>
<TD width="20"><b><font size="1" color="#000000"></font></b></TD>
<TD colspan="2"><b><font size="1" color="#000000"></font></b> <hr size="2" color="#000000"> <b><font size="1" color="#000000"></font></b></TD>
<TD width="2"><b><font size="1" color="#000000"></font></b></TD>
<TD width="15"><b><font size="1" color="#000000"></font></b></TD> </TR>
<TR valign="bottom">
<TD><font size="2" color="#000000"><b>Operating Activities</b></font></TD>
<TD ALIGN=right width="3"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="90"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="2"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="20"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="3"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="90"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="2"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="15"><font size="2" color="#000000"></font></TD> </TR>
<TR valign="bottom" bgcolor="#CCEEFF">
<TD><font size="2" color="#000000">Net income (loss)</font></TD>
<TD ALIGN=right width="3"><font size="2" color="#000000">$</font></TD>
<TD ALIGN=right width="90"><font size="2" color="#000000"> 14,079</font></TD>
<TD ALIGN=right width="2"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="20"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="3"><font size="2" color="#000000">$</font></TD>
<TD ALIGN=right width="90"><font size="2" color="#000000"> (25,800</font></TD>
<TD ALIGN=right width="2"><font size="2" color="#000000">)</font></TD>
<TD ALIGN=right width="15"><font size="2" color="#000000"></font></TD> </TR>
<TR valign="bottom">
<TD><font size="2" color="#000000">Cumulative effect of accounting change, net of tax</font></TD>
<TD ALIGN=right width="3"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="90"><font size="2" color="#000000">&#151;</font></TD>
<TD ALIGN=right width="2"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="20"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="3"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="90"><font size="2" color="#000000"> 17,985</font></TD>
<TD ALIGN=right width="2"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="15"><font size="2" color="#000000"></font></TD> </TR>
<tr valign="bottom" align="center">
<td><b><font size="1" color="#000000"></font></b></td>
<td colspan="2"><b><font size="1" color="#000000"></font></b> <hr size="2" color="#000000"> <b><font size="1" color="#000000"></font></b></td>
<td width="2"><b><font size="1" color="#000000"></font></b></td>
<td width="20"><b><font size="1" color="#000000"></font></b></td>
<td colspan="2"><b><font size="1" color="#000000"></font></b> <hr size="2" color="#000000"> <b><font size="1" color="#000000"></font></b></td>
<td width="2"><b><font size="1" color="#000000"></font></b></td>
<td width="15"><b><font size="1" color="#000000"></font></b></td> </tr>
<TR valign="bottom" bgcolor="#CCEEFF">
<TD><font size="2" color="#000000">Net income (loss) before cumulative effective of accounting change</font></TD>
<TD ALIGN=right width="3"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="90"><font size="2" color="#000000">14,079</font></TD>
<TD ALIGN=right width="2"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="20"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="3"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="90"><font size="2" color="#000000">(7,815</font></TD>
<TD ALIGN=right width="2"><font size="2" color="#000000">)</font></TD>
<TD ALIGN=right width="15"><font size="2" color="#000000"></font></TD> </TR>
<TR valign="bottom">
<TD><font size="2" color="#000000">Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:</font></TD>
<TD ALIGN=right width="3"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="90"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="2"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="20"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="3"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="90"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="2"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="15"><font size="2" color="#000000"></font></TD> </TR>
<TR valign="bottom" bgcolor="#CCEEFF">
<TD><font size="2" color="#000000">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net amortization</font></TD>
<TD ALIGN=right width="3"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="90"><font size="2" color="#000000">350</font></TD>
<TD ALIGN=right width="2"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="20"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="3"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="90"><font size="2" color="#000000">475</font></TD>
<TD ALIGN=right width="2"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="15"><font size="2" color="#000000"></font></TD> </TR>
<TR valign="bottom">
<TD><font size="2" color="#000000">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Provision for depreciation</font></TD>
<TD ALIGN=right width="3"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="90"><font size="2" color="#000000">3,094</font></TD>
<TD ALIGN=right width="2"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="20"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="3"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="90"><font size="2" color="#000000">4,893</font></TD>
<TD ALIGN=right width="2"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="15"><font size="2" color="#000000"></font></TD> </TR>
<TR valign="bottom" bgcolor="#CCEEFF">
<TD><font size="2" color="#000000">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Provision for loan losses</font></TD>
<TD ALIGN=right width="3"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="90"><font size="2" color="#000000">1,800</font></TD>
<TD ALIGN=right width="2"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="20"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="3"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="90"><font size="2" color="#000000">16,010</font></TD>
<TD ALIGN=right width="2"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="15"><font size="2" color="#000000"></font></TD> </TR>
<TR valign="bottom">
<TD><font size="2" color="#000000">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Deferred income tax expense (benefit)</font></TD>
<TD ALIGN=right width="3"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="90"><font size="2" color="#000000">12,332</font></TD>
<TD ALIGN=right width="2"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="20"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="3"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="90"><font size="2" color="#000000">(9,046</font></TD>
<TD ALIGN=right width="2"><font size="2" color="#000000">)</font></TD>
<TD ALIGN=right width="15"><font size="2" color="#000000"></font></TD> </TR>
<TR valign="bottom" bgcolor="#CCEEFF">
<TD><font size="2" color="#000000">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Loans originated for sale</font></TD>
<TD ALIGN=right width="3"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="90"><font size="2" color="#000000">&#151;</font></TD>
<TD ALIGN=right width="2"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="20"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="3"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="90"><font size="2" color="#000000">(92,935</font></TD>
<TD ALIGN=right width="2"><font size="2" color="#000000">)</font></TD>
<TD ALIGN=right width="15"><font size="2" color="#000000"></font></TD> </TR>
<TR valign="bottom">
<TD><font size="2" color="#000000">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Proceeds from loans sold</font></TD>
<TD ALIGN=right width="3"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="90"><font size="2" color="#000000">2,929</font></TD>
<TD ALIGN=right width="2"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="20"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="3"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="90"><font size="2" color="#000000">97,659</font></TD>
<TD ALIGN=right width="2"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="15"><font size="2" color="#000000"></font></TD> </TR>
<TR valign="bottom" bgcolor="#CCEEFF">
<TD><font size="2" color="#000000">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Realized gains on loans sold</font></TD>
<TD ALIGN=right width="3"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="90"><font size="2" color="#000000">(445</font></TD>
<TD ALIGN=right width="2"><font size="2" color="#000000">)</font></TD>
<TD ALIGN=right width="20"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="3"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="90"><font size="2" color="#000000">(2,568</font></TD>
<TD ALIGN=right width="2"><font size="2" color="#000000">)</font></TD>
<TD ALIGN=right width="15"><font size="2" color="#000000"></font></TD> </TR>
<TR valign="bottom">
<TD><font size="2" color="#000000">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Realized investment securities gains</font></TD>
<TD ALIGN=right width="3"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="90"><font size="2" color="#000000">(470</font></TD>
<TD ALIGN=right width="2"><font size="2" color="#000000">)</font></TD>
<TD ALIGN=right width="20"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="3"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="90"><font size="2" color="#000000">(1,242</font></TD>
<TD ALIGN=right width="2"><font size="2" color="#000000">)</font></TD>
<TD ALIGN=right width="15"><font size="2" color="#000000"></font></TD> </TR>
<TR valign="bottom" bgcolor="#CCEEFF">
<TD><font size="2" color="#000000">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Increase in retained interests</font></TD>
<TD ALIGN=right width="3"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="90"><font size="2" color="#000000">(5,659</font></TD>
<TD ALIGN=right width="2"><font size="2" color="#000000">)</font></TD>
<TD ALIGN=right width="20"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="3"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="90"><font size="2" color="#000000">114</font></TD>
<TD ALIGN=right width="2"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="15"><font size="2" color="#000000"></font></TD> </TR>
<TR valign="bottom">
<TD><font size="2" color="#000000">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Decrease in accrued interest receivable</font></TD>
<TD ALIGN=right width="3"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="90"><font size="2" color="#000000">930</font></TD>
<TD ALIGN=right width="2"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="20"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="3"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="90"><font size="2" color="#000000">3,255</font></TD>
<TD ALIGN=right width="2"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="15"><font size="2" color="#000000"></font></TD> </TR>
<TR valign="bottom" bgcolor="#CCEEFF">
<TD><font size="2" color="#000000">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Increase in other assets</font></TD>
<TD ALIGN=right width="3"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="90"><font size="2" color="#000000">(5,904</font></TD>
<TD ALIGN=right width="2"><font size="2" color="#000000">)</font></TD>
<TD ALIGN=right width="20"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="3"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="90"><font size="2" color="#000000">(1,922</font></TD>
<TD ALIGN=right width="2"><font size="2" color="#000000">)</font></TD>
<TD ALIGN=right width="15"><font size="2" color="#000000"></font></TD> </TR>
<TR valign="bottom">
<TD><font size="2" color="#000000">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Decrease in other liabilities</font></TD>
<TD ALIGN=right width="3"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="90"><font size="2" color="#000000">(42</font></TD>
<TD ALIGN=right width="2"><font size="2" color="#000000">)</font></TD>
<TD ALIGN=right width="20"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="3"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="90"><font size="2" color="#000000">(16,674</font></TD>
<TD ALIGN=right width="2"><font size="2" color="#000000">)</font></TD>
<TD ALIGN=right width="15"><font size="2" color="#000000"></font></TD> </TR>
<tr valign="bottom" align="center">
<td><b><font size="1" color="#000000"></font></b></td>
<td colspan="2"><b><font size="1" color="#000000"></font></b> <hr size="2" color="#000000"> <b><font size="1" color="#000000"></font></b></td>
<td width="2"><b><font size="1" color="#000000"></font></b></td>
<td width="20"><b><font size="1" color="#000000"></font></b></td>
<td colspan="2"><b><font size="1" color="#000000"></font></b> <hr size="2" color="#000000"> <b><font size="1" color="#000000"></font></b></td>
<td width="2"><b><font size="1" color="#000000"></font></b></td>
<td width="15"><b><font size="1" color="#000000"></font></b></td> </tr>
<TR valign="bottom" bgcolor="#CCEEFF">
<TD><font size="2" color="#000000">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>Net Cash Provided by (Used in) Operating Activities</b></font></TD>
<TD ALIGN=right width="3"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="90"><font size="2" color="#000000">22,994</font></TD>
<TD ALIGN=right width="2"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="20"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="3"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="90"><font size="2" color="#000000">(9,796</font></TD>
<TD ALIGN=right width="2"><font size="2" color="#000000">)</font></TD>
<TD ALIGN=right width="15"><font size="2" color="#000000"></font></TD> </TR>
<TR valign="bottom">
<TD><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="3"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="90"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="2"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="20"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="3"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="90"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="2"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="15"><font size="2" color="#000000"></font></TD> </TR>
<TR valign="bottom" bgcolor="#CCEEFF">
<TD><font size="2" color="#000000"><b>Investing Activities</b></font></TD>
<TD ALIGN=right width="3"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="90"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="2"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="20"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="3"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="90"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="2"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="15"><font size="2" color="#000000"></font></TD> </TR>
<TR valign="bottom">
<TD><font size="2" color="#000000">&nbsp;&nbsp;&nbsp;&nbsp;Proceeds from sales of securities available for sale</font></TD>
<TD ALIGN=right width="3"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="90"><font size="2" color="#000000">150,015</font></TD>
<TD ALIGN=right width="2"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="20"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="3"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="90"><font size="2" color="#000000">104,120</font></TD>
<TD ALIGN=right width="2"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="15"><font size="2" color="#000000"></font></TD> </TR>
<TR valign="bottom" bgcolor="#CCEEFF">
<TD><font size="2" color="#000000">&nbsp;&nbsp;&nbsp;&nbsp;Proceeds from maturities and calls of securities available for sale</font></TD>
<TD ALIGN=right width="3"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="90"><font size="2" color="#000000">49,629</font></TD>
<TD ALIGN=right width="2"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="20"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="3"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="90"><font size="2" color="#000000">119,649</font></TD>
<TD ALIGN=right width="2"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="15"><font size="2" color="#000000"></font></TD> </TR>
<TR valign="bottom">
<TD><font size="2" color="#000000">&nbsp;&nbsp;&nbsp;&nbsp;Purchases of securities available for sale</font></TD>
<TD ALIGN=right width="3"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="90"><font size="2" color="#000000">(270,381</font></TD>
<TD ALIGN=right width="2"><font size="2" color="#000000">)</font></TD>
<TD ALIGN=right width="20"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="3"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="90"><font size="2" color="#000000">(122,178</font></TD>
<TD ALIGN=right width="2"><font size="2" color="#000000">)</font></TD>
<TD ALIGN=right width="15"><font size="2" color="#000000"></font></TD> </TR>
<TR valign="bottom" bgcolor="#CCEEFF">
<TD><font size="2" color="#000000">&nbsp;&nbsp;&nbsp;&nbsp;Proceeds from maturities and calls of held-to-maturity securities</font></TD>
<TD ALIGN=right width="3"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="90"><font size="2" color="#000000">650</font></TD>
<TD ALIGN=right width="2"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="20"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="3"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="90"><font size="2" color="#000000">&#151;</font></TD>
<TD ALIGN=right width="2"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="15"><font size="2" color="#000000"></font></TD> </TR>
<TR valign="bottom">
<TD><font size="2" color="#000000">&nbsp;&nbsp;&nbsp;&nbsp;Purchases of held-to-maturity securities</font></TD>
<TD ALIGN=right width="3"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="90"><font size="2" color="#000000">(29,032</font></TD>
<TD ALIGN=right width="2"><font size="2" color="#000000">)</font></TD>
<TD ALIGN=right width="20"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="3"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="90"><font size="2" color="#000000">&#151;</font></TD>
<TD ALIGN=right width="2"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="15"><font size="2" color="#000000"></font></TD> </TR>
<TR valign="bottom" bgcolor="#CCEEFF">
<TD><font size="2" color="#000000">&nbsp;&nbsp;&nbsp;&nbsp;Net decrease in loans</font></TD>
<TD ALIGN=right width="3"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="90"><font size="2" color="#000000">148,136</font></TD>
<TD ALIGN=right width="2"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="20"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="3"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="90"><font size="2" color="#000000">168,415</font></TD>
<TD ALIGN=right width="2"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="15"><font size="2" color="#000000"></font></TD> </TR>
<TR valign="bottom">
<TD><font size="2" color="#000000">&nbsp;&nbsp;&nbsp;&nbsp;Net (increase) decrease in premises and equipment</font></TD>
<TD ALIGN=right width="3"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="90"><font size="2" color="#000000">(127</font></TD>
<TD ALIGN=right width="2"><font size="2" color="#000000">)</font></TD>
<TD ALIGN=right width="20"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="3"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="90"><font size="2" color="#000000">1,201</font></TD>
<TD ALIGN=right width="2"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="15"><font size="2" color="#000000"></font></TD> </TR>
<tr valign="bottom" align="center">
<td><b><font size="1" color="#000000"></font></b></td>
<td colspan="2"><b><font size="1" color="#000000"></font></b> <hr size="2" color="#000000"> <b><font size="1" color="#000000"></font></b></td>
<td width="2"><b><font size="1" color="#000000"></font></b></td>
<td width="20"><b><font size="1" color="#000000"></font></b></td>
<td colspan="2"><b><font size="1" color="#000000"></font></b> <hr size="2" color="#000000"> <b><font size="1" color="#000000"></font></b></td>
<td width="2"><b><font size="1" color="#000000"></font></b></td>
<td width="15"><b><font size="1" color="#000000"></font></b></td> </tr>
<TR valign="bottom" bgcolor="#CCEEFF">
<TD><font size="2" color="#000000">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>Net Cash Provided by Investing Activities</b></font></TD>
<TD ALIGN=right width="3"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="90"><font size="2" color="#000000">48,890</font></TD>
<TD ALIGN=right width="2"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="20"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="3"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="90"><font size="2" color="#000000">271,207</font></TD>
<TD ALIGN=right width="2"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="15"><font size="2" color="#000000"></font></TD> </TR>
<TR valign="bottom">
<TD><font size="2" color="#000000"><b>Financing Activities</b></font></TD>
<TD ALIGN=right width="3"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="90"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="2"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="20"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="3"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="90"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="2"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="15"><font size="2" color="#000000"></font></TD> </TR>
<TR valign="bottom" bgcolor="#CCEEFF">
<TD><font size="2" color="#000000">&nbsp;&nbsp;&nbsp;&nbsp;Net (decrease) increase in noninterest-bearing deposits</font></TD>
<TD ALIGN=right width="3"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="90"><font size="2" color="#000000">(4,240</font></TD>
<TD ALIGN=right width="2"><font size="2" color="#000000">)</font></TD>
<TD ALIGN=right width="20"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="3"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="90"><font size="2" color="#000000">5,726</font></TD>
<TD ALIGN=right width="2"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="15"><font size="2" color="#000000"></font></TD> </TR>
<TR valign="bottom">
<TD><font size="2" color="#000000">&nbsp;&nbsp;&nbsp;&nbsp;Net decrease in interest-bearing deposits</font></TD>
<TD ALIGN=right width="3"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="90"><font size="2" color="#000000">(74,896</font></TD>
<TD ALIGN=right width="2"><font size="2" color="#000000">)</font></TD>
<TD ALIGN=right width="20"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="3"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="90"><font size="2" color="#000000">(130,774</font></TD>
<TD ALIGN=right width="2"><font size="2" color="#000000">)</font></TD>
<TD ALIGN=right width="15"><font size="2" color="#000000"></font></TD> </TR>
<TR valign="bottom" bgcolor="#CCEEFF">
<TD><font size="2" color="#000000">&nbsp;&nbsp;&nbsp;&nbsp;Net decrease in short-term borrowings</font></TD>
<TD ALIGN=right width="3"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="90"><font size="2" color="#000000">(15,668</font></TD>
<TD ALIGN=right width="2"><font size="2" color="#000000">)</font></TD>
<TD ALIGN=right width="20"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="3"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="90"><font size="2" color="#000000">(95,687</font></TD>
<TD ALIGN=right width="2"><font size="2" color="#000000">)</font></TD>
<TD ALIGN=right width="15"><font size="2" color="#000000"></font></TD> </TR>
<TR valign="bottom">
<TD><font size="2" color="#000000">&nbsp;&nbsp;&nbsp;&nbsp;Proceeds from long-term debt</font></TD>
<TD ALIGN=right width="3"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="90"><font size="2" color="#000000">10,000</font></TD>
<TD ALIGN=right width="2"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="20"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="3"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="90"><font size="2" color="#000000">&#151;</font></TD>
<TD ALIGN=right width="2"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="15"><font size="2" color="#000000"></font></TD> </TR>
<TR valign="bottom" bgcolor="#CCEEFF">
<TD><font size="2" color="#000000">&nbsp;&nbsp;&nbsp;&nbsp;Repayment of long-term debt</font></TD>
<TD ALIGN=right width="3"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="90"><font size="2" color="#000000">&#151;</font></TD>
<TD ALIGN=right width="2"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="20"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="3"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="90"><font size="2" color="#000000">(1,600</font></TD>
<TD ALIGN=right width="2"><font size="2" color="#000000">)</font></TD>
<TD ALIGN=right width="15"><font size="2" color="#000000"></font></TD> </TR>
<TR valign="bottom">
<TD><font size="2" color="#000000">&nbsp;&nbsp;&nbsp;&nbsp;Exercise of stock options</font></TD>
<TD ALIGN=right width="3"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="90"><font size="2" color="#000000">225</font></TD>
<TD ALIGN=right width="2"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="20"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="3"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="90"><font size="2" color="#000000">&#151;</font></TD>
<TD ALIGN=right width="2"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="15"><font size="2" color="#000000"></font></TD> </TR>
<tr valign="bottom" align="center">
<td><b><font size="1" color="#000000"></font></b></td>
<td colspan="2"><b><font size="1" color="#000000"></font></b> <hr size="2" color="#000000"> <b><font size="1" color="#000000"></font></b></td>
<td width="2"><b><font size="1" color="#000000"></font></b></td>
<td width="20"><b><font size="1" color="#000000"></font></b></td>
<td colspan="2"><b><font size="1" color="#000000"></font></b> <hr size="2" color="#000000"> <b><font size="1" color="#000000"></font></b></td>
<td width="2"><b><font size="1" color="#000000"></font></b></td>
<td width="15"><b><font size="1" color="#000000"></font></b></td> </tr>
<TR valign="bottom" bgcolor="#CCEEFF">
<TD><font size="2" color="#000000">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>Net Cash Used in Financing Activities</b></font></TD>
<TD ALIGN=right width="3"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="90"><font size="2" color="#000000">(84,579</font></TD>
<TD ALIGN=right width="2"><font size="2" color="#000000">)</font></TD>
<TD ALIGN=right width="20"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="3"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="90"><font size="2" color="#000000">(222,335</font></TD>
<TD ALIGN=right width="2"><font size="2" color="#000000">)</font></TD>
<TD ALIGN=right width="15"><font size="2" color="#000000"></font></TD> </TR>
<tr valign="bottom" align="center">
<td><b><font size="1" color="#000000"></font></b></td>
<td colspan="2"><b><font size="1" color="#000000"></font></b> <hr size="2" color="#000000"> <b><font size="1" color="#000000"></font></b></td>
<td width="2"><b><font size="1" color="#000000"></font></b></td>
<td width="20"><b><font size="1" color="#000000"></font></b></td>
<td colspan="2"><b><font size="1" color="#000000"></font></b> <hr size="2" color="#000000"> <b><font size="1" color="#000000"></font></b></td>
<td width="2"><b><font size="1" color="#000000"></font></b></td>
<td width="15"><b><font size="1" color="#000000"></font></b></td> </tr>
<TR valign="bottom" bgcolor="#CCEEFF">
<TD><font size="2" color="#000000">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>(Decrease) Increase in Cash and Cash Equivalents</b></font></TD>
<TD ALIGN=right width="3"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="90"><font size="2" color="#000000">(12,695</font></TD>
<TD ALIGN=right width="2"><font size="2" color="#000000">)</font></TD>
<TD ALIGN=right width="20"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="3"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="90"><font size="2" color="#000000">39,076</font></TD>
<TD ALIGN=right width="2"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="15"><font size="2" color="#000000"></font></TD> </TR>
<TR valign="bottom">
<TD><font size="2" color="#000000">Cash and Cash Equivalents at beginning of period</font></TD>
<TD ALIGN=right width="3"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="90"><font size="2" color="#000000">170,327</font></TD>
<TD ALIGN=right width="2"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="20"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="3"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="90"><font size="2" color="#000000">90,628</font></TD>
<TD ALIGN=right width="2"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="15"><font size="2" color="#000000"></font></TD> </TR>
<tr valign="bottom" align="center">
<td><b><font size="1" color="#000000"></font></b></td>
<td colspan="2"><b><font size="1" color="#000000"></font></b> <hr size="2" color="#000000"> <b><font size="1" color="#000000"></font></b></td>
<td width="2"><b><font size="1" color="#000000"></font></b></td>
<td width="20"><b><font size="1" color="#000000"></font></b></td>
<td colspan="2"><b><font size="1" color="#000000"></font></b> <hr size="2" color="#000000"> <b><font size="1" color="#000000"></font></b></td>
<td width="2"><b><font size="1" color="#000000"></font></b></td>
<td width="15"><b><font size="1" color="#000000"></font></b></td> </tr>
<tr valign="bottom" bgcolor="#CCEEFF">
<td><font size="2" color="#000000">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>Cash and Cash Equivalents at end of period</b></font></td>
<td align=right width="3"><font size="2" color="#000000">$</font></td>
<td align=right width="90"><font size="2" color="#000000"> 157,632</font></td>
<td align=right width="2"><font size="2" color="#000000"></font></td>
<td align=right width="20"><font size="2" color="#000000"></font></td>
<td align=right width="3"><font size="2" color="#000000">$</font></td>
<td align=right width="90"><font size="2" color="#000000"> 129,704</font></td>
<td align=right width="2"><font size="2" color="#000000"></font></td>
<td align=right width="15"><font size="2" color="#000000"></font></td> </tr>
<tr valign="bottom" align="center">
<td><b><font size="1" color="#000000"></font></b></td>
<td colspan="2"><b><font size="1" color="#000000"></font></b> <hr size="4" color="#000000"> <b><font size="1" color="#000000"></font></b></td>
<td width="2"><b><font size="1" color="#000000"></font></b></td>
<td width="20"><b><font size="1" color="#000000"></font></b></td>
<td colspan="2"><b><font size="1" color="#000000"></font></b> <hr size="4" color="#000000"> <b><font size="1" color="#000000"></font></b></td>
<td width="2"><b><font size="1" color="#000000"></font></b></td>
<td width="15"><b><font size="1" color="#000000"></font></b></td> </tr> </TABLE> <p><i><font size="2" color="#000000">See notes to consolidated financial statements.</font></i></p> <p align="center"><font size="2" color="#000000">8</font></p>

<p Style='page-break-before:always'>
<HR  SIZE="3" COLOR="#CCEEFF" WIDTH="100%" ALIGN="CENTER">
<h5 align="left"><a href="#toc">Table of Contents</a></h5>
 <p><font size="2" color="#000000"><b>
<a name="l48818tx6"></a>NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)</b></font></p> <p><font size="2" color="#000000"><b>June 30, 2002</b></font></p> <p><font size="2" color="#000000"><b>NOTE A - BASIS OF PRESENTATION</b></font></p>
<p><font size="2" color="#000000">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The accompanying consolidated financial statements, which are unaudited, include all the accounts of City Holding Company (&quot;the Parent Company&quot;) and its
wholly-owned subsidiaries (collectively, &quot;the Company&quot;). All material intercompany transactions have been eliminated. The consolidated financial statements include all adjustments that, in the opinion of management, are necessary for a
fair presentation of the results of operations and financial condition for each of the periods presented. Such adjustments are of a normal recurring nature. The results of operations for the six months ended June 30, 2002, are not necessarily
indicative of the results of operations that can be expected for the year ending December 31, 2002. The Company's accounting and reporting policies conform with generally accepted accounting principles for interim financial information and with the
instructions to Form 10-Q and Article 10 of Regulation S-X. Such policies require management to make estimates and develop assumptions that affect the amounts reported in the consolidated financial statements and related footnotes. Actual results
could differ from management's estimates. Certain amounts in the unaudited consolidated financial statements have been reclassified. Such reclassifications had no impact on net income or stockholders' equity in any period presented.</font></p>
<p><font size="2" color="#000000">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The consolidated balance sheet as of December 31, 2001 has been extracted from audited financial statements included in the Company's 2001 Annual Report to
Stockholders. Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States have been omitted. These financial statements should be
read in conjunction with the financial statements and notes thereto included in the 2001 Annual Report of the Company.</font></p> <p><font size="2" color="#000000"><b>NOTE B - INVESTMENTS</b></font></p> <p><font size="2"
color="#000000">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;During 2002, the Company initiated an investment strategy to invest up to $50.00 million in trust preferred securities issued by other financial institutions. Only those securities
issued by financial institutions that satisfy various asset size, profitability, and equity-to-asset ratio criteria, as pre-established by management, are evaluated for potential investment. Securities acquired were predominantly investment grade or
were reviewed and approved for investment by the Company's executive loan committee. Through June 30, 2002, the Company has invested $29.03 million, classified as held-to-maturity, and $3.50 million, classified as available-for-sale, pursuant to
this strategy.</font></p> <p><font size="2" color="#000000">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;During the second quarter of 2002, the Company transferred debt securities with an estimated fair value of $37.14 million and a book value of
$36.03 million from the &quot;available-for-sale&quot; classification to the &quot;held-to-maturity&quot; category. Transfers of debt securities into the held-to-maturity category from the available-for-sale classification are made at fair value at
the date of transfer. The unrealized holding gain of $1.11 million at the date of the transfer is retained in the other comprehensive income section of stockholders' equity and in the carrying value of the held-to-maturity securities. Such amounts
are amortized over the remaining life of the security.</font></p> <p align="center"><font size="2" color="#000000">9</font></p>

<p Style='page-break-before:always'>
<HR  SIZE="3" COLOR="#CCEEFF" WIDTH="100%" ALIGN="CENTER">
<h5 align="left"><a href="#toc">Table of Contents</a></h5>
 <p><font size="2" color="#000000"><b>NOTE C - SECURITIZATIONS and RETAINED INTERESTS</b></font></p> <p><font size="2" color="#000000">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Between 1997 and 1999, the Company
completed six securitization transactions involving approximately $759.76 million of fixed-rate, junior lien mortgage loans. The table below summarizes information regarding delinquencies, net credit losses, and outstanding collateral balances of
securitized loans for the dates presented:</font></p>
<TABLE BORDER=0 WIDTH="100%" CELLPADDING=0 CELLSPACING=0>
<TR valign="bottom" align="center">
<TD><b><font size="1" color="#000000"></font></b></TD>
<TD width="3"><b><font size="1" color="#000000"></font></b></TD>
<TD width="90"><b><font size="1" color="#000000">June 30,</font></b></TD>
<TD width="2"><b><font size="1" color="#000000"></font></b></TD>
<TD width="20"><b><font size="1" color="#000000"></font></b></TD>
<TD width="3"><b><font size="1" color="#000000"></font></b></TD>
<TD width="90"><b><font size="1" color="#000000">June 30,</font></b></TD>
<TD width="2"><b><font size="1" color="#000000"></font></b></TD>
<TD width="20"><b><font size="1" color="#000000"></font></b></TD>
<TD width="3"><b><font size="1" color="#000000"></font></b></TD>
<TD width="90"><b><font size="1" color="#000000">December 31,</font></b></TD>
<TD width="2"><b><font size="1" color="#000000"></font></b></TD>
<TD width="15"><b><font size="1" color="#000000"></font></b></TD> </TR>
<TR valign="bottom" align="center">
<TD><b><font size="1" color="#000000"></font></b></TD>
<TD width="3"><b><font size="1" color="#000000"></font></b></TD>
<TD width="90"><b><font size="1" color="#000000">2002</font></b></TD>
<TD width="2"><b><font size="1" color="#000000"></font></b></TD>
<TD width="20"><b><font size="1" color="#000000"></font></b></TD>
<TD width="3"><b><font size="1" color="#000000"></font></b></TD>
<TD width="90"><b><font size="1" color="#000000">2001</font></b></TD>
<TD width="2"><b><font size="1" color="#000000"></font></b></TD>
<TD width="20"><b><font size="1" color="#000000"></font></b></TD>
<TD width="3"><b><font size="1" color="#000000"></font></b></TD>
<TD width="90"><b><font size="1" color="#000000">2001</font></b></TD>
<TD width="2"><b><font size="1" color="#000000"></font></b></TD>
<TD width="15"><b><font size="1" color="#000000"></font></b></TD> </TR>
<tr valign="bottom" align="center">
<td><b><font size="1" color="#000000"></font></b></td>
<td colspan="2"><b><font size="1" color="#000000"></font></b> <hr size="2" color="#000000"> <b><font size="1" color="#000000"></font></b></td>
<td width="2"><b><font size="1" color="#000000"></font></b></td>
<td width="20"><b><font size="1" color="#000000"></font></b></td>
<td colspan="2"> <hr size="2" color="#000000"> <b><font size="1" color="#000000"></font></b></td>
<td width="2"><b><font size="1" color="#000000"></font></b></td>
<td width="20"><b><font size="1" color="#000000"></font></b></td>
<td colspan="2"><b><font size="1" color="#000000"></font></b> <hr size="2" color="#000000"> <b><font size="1" color="#000000"></font></b></td>
<td width="2"><b><font size="1" color="#000000"></font></b></td>
<td width="15"><b><font size="1" color="#000000"></font></b></td> </tr>
<TR valign="bottom" align="center">
<TD><b><font size="1" color="#000000"></font></b></TD>
<TD width="3"><b><font size="1" color="#000000"></font></b></TD>
<TD width="90"><b><font size="1" color="#000000"></font></b></TD>
<TD width="2"><b><font size="1" color="#000000"></font></b></TD>
<TD width="20"><b><font size="1" color="#000000"></font></b></TD>
<TD width="3"><b><font size="1" color="#000000"></font></b></TD>
<TD width="90"><font size="1" color="#000000"><i>(in thousands)</i></font></TD>
<TD width="2"><b><font size="1" color="#000000"></font></b></TD>
<TD width="20"><b><font size="1" color="#000000"></font></b></TD>
<TD width="3"><b><font size="1" color="#000000"></font></b></TD>
<TD width="90"><b><font size="1" color="#000000"></font></b></TD>
<TD width="2"><b><font size="1" color="#000000"></font></b></TD>
<TD width="15"><b><font size="1" color="#000000"></font></b></TD> </TR>
<TR valign="bottom" bgcolor="#CCEEFF">
<TD><font size="2" color="#000000">Total principal amount of loans outstanding</font></TD>
<TD ALIGN=right width="3"><font size="2" color="#000000">$</font></TD>
<TD ALIGN=right width="90"><font size="2" color="#000000">285,737</font></TD>
<TD ALIGN=left width="2"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="20"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="3"><font size="2" color="#000000">$</font></TD>
<TD ALIGN=right width="90"><font size="2" color="#000000">451,863</font></TD>
<TD ALIGN=left width="2"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="20"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="3"><font size="2" color="#000000">$</font></TD>
<TD ALIGN=right width="90"><font size="2" color="#000000">362,051</font></TD>
<TD ALIGN=left width="2"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="15"><font size="2" color="#000000"></font></TD> </TR>
<TR valign="bottom">
<TD><font size="2" color="#000000">Principal amount of loans 60 days or more past due</font></TD>
<TD ALIGN=right width="3"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="90"><font size="2" color="#000000">6,212</font></TD>
<TD ALIGN=left width="2"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="20"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="3"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="90"><font size="2" color="#000000">14,232</font></TD>
<TD ALIGN=left width="2"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="20"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="3"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="90"><font size="2" color="#000000">12,544</font></TD>
<TD ALIGN=left width="2"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="15"><font size="2" color="#000000"></font></TD> </TR>
<TR valign="bottom" bgcolor="#CCEEFF">
<TD><font size="2" color="#000000">Net credit losses during the period (year-to-date)</font></TD>
<TD ALIGN=right width="3"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="90"><font size="2" color="#000000">8,773</font></TD>
<TD ALIGN=left width="2"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="20"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="3"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="90"><font size="2" color="#000000">11,466</font></TD>
<TD ALIGN=left width="2"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="20"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="3"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="90"><font size="2" color="#000000">23,793</font></TD>
<TD ALIGN=left width="2"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="15"><font size="2" color="#000000"></font></TD> </TR> </TABLE> <p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<font size="2" color="#000000">The principal amount of loans outstanding is not included in the Consolidated
Balance Sheets of the Company.</font></p> <p><font size="2" color="#000000">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As of June 30, 2002 and December 31, 2001, the Company reported retained interests in its securitizations of approximately
$76.93 million and $71.27 million, respectively. The value of the retained interests is determined using cash flow modeling techniques that incorporate key assumptions related to default, prepayment, and discount rates. Key assumptions used in
estimating the fair value of the Company's retained interests as of June 30, 2002 and December 31, 2001, were as follows:</font></p>
<TABLE BORDER=0 WIDTH="100%" CELLPADDING=0 CELLSPACING=0>
<TR valign="bottom" align="center">
<TD><b><font size="1" color="#000000"></font></b></TD>
<TD width="3"><b><font size="1" color="#000000"></font></b></TD>
<TD width="90"><b><font size="1" color="#000000">June 30</font></b></TD>
<TD width="2"><b><font size="1" color="#000000"></font></b></TD>
<TD width="20"><b><font size="1" color="#000000"></font></b></TD>
<TD width="3"><b><font size="1" color="#000000"></font></b></TD>
<TD width="90"><b><font size="1" color="#000000">December 31</font></b></TD>
<TD width="2"><b><font size="1" color="#000000"></font></b></TD>
<TD width="15"><b><font size="1" color="#000000"></font></b></TD> </TR>
<TR valign="bottom" align="center">
<TD><b><font size="1" color="#000000"></font></b></TD>
<TD width="3"><b><font size="1" color="#000000"></font></b></TD>
<TD width="90"><b><font size="1" color="#000000">2002</font></b></TD>
<TD width="2"><b><font size="1" color="#000000"></font></b></TD>
<TD width="20"><b><font size="1" color="#000000"></font></b></TD>
<TD width="3"><b><font size="1" color="#000000"></font></b></TD>
<TD width="90"><b><font size="1" color="#000000">2001</font></b></TD>
<TD width="2"><b><font size="1" color="#000000"></font></b></TD>
<TD width="15"><b><font size="1" color="#000000"></font></b></TD> </TR>
<TR valign="bottom" align="center">
<TD><b><font size="1" color="#000000"></font></b></TD>
<TD colspan="2"><b><font size="1" color="#000000"></font></b> <hr size="2" color="#000000"> <b><font size="1" color="#000000"></font></b></TD>
<TD width="2"><b><font size="1" color="#000000"></font></b></TD>
<TD width="20"><b><font size="1" color="#000000"></font></b></TD>
<TD colspan="2"><b><font size="1" color="#000000"></font></b> <hr size="2" color="#000000"> <b><font size="1" color="#000000"></font></b></TD>
<TD width="2"><b><font size="1" color="#000000"></font></b></TD>
<TD width="15"><b><font size="1" color="#000000"></font></b></TD> </TR>
<TR valign="bottom" bgcolor="#CCEEFF">
<TD><font size="2" color="#000000">Prepayment speed (CPR)</font></TD>
<TD ALIGN=right width="3"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="90"><font size="2" color="#000000">16.00</font></TD>
<TD ALIGN=left width="2"><font size="2" color="#000000">%</font></TD>
<TD ALIGN=right width="20"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="3"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="90"><font size="2" color="#000000">16.00</font></TD>
<TD ALIGN=left width="2"><font size="2" color="#000000">%</font></TD>
<TD ALIGN=right width="15"><font size="2" color="#000000"></font></TD> </TR>
<TR valign="bottom">
<TD><font size="2" color="#000000">Weighted average cumulative defaults</font></TD>
<TD ALIGN=right width="3"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="90"><font size="2" color="#000000">14.69</font></TD>
<TD ALIGN=left width="2"><font size="2" color="#000000">%</font></TD>
<TD ALIGN=right width="20"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="3"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="90"><font size="2" color="#000000">15.59</font></TD>
<TD ALIGN=left width="2"><font size="2" color="#000000">%</font></TD>
<TD ALIGN=right width="15"><font size="2" color="#000000"></font></TD> </TR>
<TR valign="bottom" bgcolor="#CCEEFF">
<TD><font size="2" color="#000000">Weighted average discount rate</font></TD>
<TD ALIGN=right width="3"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="90"><font size="2" color="#000000">14.00</font></TD>
<TD ALIGN=left width="2"><font size="2" color="#000000">%</font></TD>
<TD ALIGN=right width="20"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="3"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="90"><font size="2" color="#000000">14.00</font></TD>
<TD ALIGN=left width="2"><font size="2" color="#000000">%</font></TD>
<TD ALIGN=right width="15"><font size="2" color="#000000"></font></TD> </TR> </TABLE> <p><font size="2" color="#000000">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Prepayment speed (CPR), or constant prepayment rate, represents the annualized
monthly prepayment amount as a percentage of the previous month's outstanding loan balance minus the scheduled principal payment. Weighted average cumulative defaults represents the percentage of actual loan defaults experienced life-to-date plus
forecasted loan defaults projected over the remaining life of the collateral loans, divided by the original collateral balance. The weighted average discount rate represents the interest rate used to compute the present value of the undiscounted
future cash flows expected to be received by the Company.</font></p> <p><font size="2" color="#000000">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The estimated fair value of the retained interests and the accrual of interest income is based on
the expectation of when, and how much, cash will be received in the future. Therefore, while the book value of the assets at June 30, 2002 was $76.93 million, the estimated fair value was $86.08 million. This divergence was the result of the
securitized loans experiencing actual prepayments greater than forecasted and actual defaults less than forecasted. As a result, the Company is required to increase the rate at which it accrues income over the life of the retained interest using the
effective yield method. Currently, the retained interest assets generate relatively little cash for the Company, but, as illustrated in the table below, the Company expects that it will receive significant amounts of cash from these assets in future
periods. During the second quarter of 2002, the Company received its first cash remittance, approximately $0.12 million, from the retained interests. The following table reflects the Company's projection, as of June 30, 2002 and using the
aforementioned modeling assumptions, of the timing and amount of cash flows forecasted to be derived from the retained interest assets:</font></p> <p align="center"><font size="2" color="#000000">10</font></p>

<p Style='page-break-before:always'>
<HR  SIZE="3" COLOR="#CCEEFF" WIDTH="100%" ALIGN="CENTER">
<h5 align="left"><a href="#toc">Table of Contents</a></h5>

<TABLE BORDER=0 WIDTH="75%" CELLPADDING=0 CELLSPACING=0 align="center">
<TR valign="bottom" align="center">
<TD width="150">&nbsp;</TD>
<TD width="623"><font size="1" color="#000000"></font></TD>
<TD width="3"><font size="1" color="#000000"></font></TD>
<TD width="228"><font size="1" color="#000000">Undiscounted Cash Flows Forecasted to be Received</font></TD>
<TD width="2"><font size="1" color="#000000"></font></TD>
<TD width="15"><font size="1" color="#000000"></font></TD> </TR>
<tr valign="bottom" align="center">
<td width="150">&nbsp;</td>
<td width="623"><font size="1" color="#000000"></font></td>
<td colspan="2"> <hr size="2" color="#000000"> </td>
<td width="2"><font size="1" color="#000000"></font></td>
<td width="15"><font size="1" color="#000000"></font></td> </tr>
<TR valign="bottom" align="center">
<TD width="150">&nbsp;</TD>
<TD width="623"><font size="1" color="#000000"></font></TD>
<TD width="19"><font size="1" color="#000000"></font></TD>
<TD width="228"><font size="1" color="#000000"><i>(in thousands)</i></font></TD>
<TD width="2"><font size="1" color="#000000"></font></TD>
<TD width="15"><font size="1" color="#000000"></font></TD> </TR>
<TR valign="bottom">
<TD align="center" width="150">&nbsp;</TD>
<TD align="center" width="623"><font size="2"></font></TD>
<TD ALIGN=right width="19"><font size="2"></font></TD>
<TD ALIGN=right width="228"><font size="2"></font></TD>
<TD ALIGN=left width="2"><font size="2"></font></TD>
<TD ALIGN=right width="15"><font size="2"></font></TD> </TR>
<TR valign="bottom" bgcolor="#CCEEFF">
<TD align="center" width="150">&nbsp;</TD>
<TD align="center" width="623"><font size="2">Remainder of 2002</font></TD>
<TD ALIGN=right width="19"><font size="2">$</font></TD>
<TD ALIGN=right width="228"><font size="2"> 741</font></TD>
<TD ALIGN=left width="2"><font size="2"></font></TD>
<TD ALIGN=right width="15"><font size="2"></font></TD> </TR>
<TR valign="bottom">
<TD align="center" width="150">&nbsp;</TD>
<TD align="center" width="623"><font size="2">2003</font></TD>
<TD ALIGN=right width="19"><font size="2"></font></TD>
<TD ALIGN=right width="228"><font size="2">4,788</font></TD>
<TD ALIGN=left width="2"><font size="2"></font></TD>
<TD ALIGN=right width="15"><font size="2"></font></TD> </TR>
<TR valign="bottom" bgcolor="#CCEEFF">
<TD align="center" width="150">&nbsp;</TD>
<TD align="center" width="623"><font size="2">2004</font></TD>
<TD ALIGN=right width="19"><font size="2"></font></TD>
<TD ALIGN=right width="228"><font size="2">20,127</font></TD>
<TD ALIGN=left width="2"><font size="2"></font></TD>
<TD ALIGN=right width="15"><font size="2"></font></TD> </TR>
<TR valign="bottom">
<TD align="center" width="150">&nbsp;</TD>
<TD align="center" width="623"><font size="2">2005</font></TD>
<TD ALIGN=right width="19"><font size="2"></font></TD>
<TD ALIGN=right width="228"><font size="2">21,689</font></TD>
<TD ALIGN=left width="2"><font size="2"></font></TD>
<TD ALIGN=right width="15"><font size="2"></font></TD> </TR>
<TR valign="bottom" bgcolor="#CCEEFF">
<TD align="center" width="150">&nbsp;</TD>
<TD align="center" width="623"><font size="2">2006</font></TD>
<TD ALIGN=right width="19"><font size="2"></font></TD>
<TD ALIGN=right width="228"><font size="2">23,625</font></TD>
<TD ALIGN=left width="2"><font size="2"></font></TD>
<TD ALIGN=right width="15"><font size="2"></font></TD> </TR>
<TR valign="bottom">
<TD align="center" width="150">&nbsp;</TD>
<TD align="center" width="623"><font size="2">2007</font></TD>
<TD ALIGN=right width="19"><font size="2"></font></TD>
<TD ALIGN=right width="228"><font size="2">19,651</font></TD>
<TD ALIGN=left width="2"><font size="2"></font></TD>
<TD ALIGN=right width="15"><font size="2"></font></TD> </TR>
<TR valign="bottom" bgcolor="#CCEEFF">
<TD align="center" width="150">&nbsp;</TD>
<TD align="center" width="623"><font size="2">Thereafter</font></TD>
<TD ALIGN=right width="19"><font size="2"></font></TD>
<TD ALIGN=right width="228"><font size="2">91,532</font></TD>
<TD ALIGN=left width="2"><font size="2"></font></TD>
<TD ALIGN=right width="15"><font size="2"></font></TD> </TR>
<tr valign="bottom" align="center">
<td width="150">&nbsp;</td>
<td width="623"><font size="1" color="#000000"></font></td>
<td colspan="2"> <hr size="2" color="#000000"> </td>
<td width="2"><font size="1" color="#000000"></font></td>
<td width="15"><font size="1" color="#000000"></font></td> </tr>
<tr valign="bottom" bgcolor="#CCEEFF">
<td align="center" width="150">&nbsp;</td>
<td align="center" width="623"><font size="2">Total</font></td>
<td align=right width="19"><font size="2">$</font></td>
<td align=right width="228"><font size="2">181,883</font></td>
<td align=left width="2"><font size="2"></font></td>
<td align=right width="15"><font size="2"></font></td> </tr>
<TR valign="bottom">
<TD align="center" width="150">&nbsp;</TD>
<TD align="center" width="623">&nbsp;</TD>
<TD ALIGN=right colspan="2"> <hr size="4" color="#000000"> </TD>
<TD ALIGN=left width="2"><font size="2"></font></TD>
<TD ALIGN=right width="15"><font size="2"></font></TD> </TR> </TABLE> <p><font size="2" color="#000000">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Any deviation in the actual prepayment or default rate in future periods from the aforementioned
assumed prepayment and default rates will result in a variation in the undiscounted cash flows forecast to be received. For example, should the cumulative default rate exceed the assumed weighted average of 14.69% as of June 30, 2002, the timing of
the receipt of cash flows by the Company will likely be delayed and the amount of cash ultimately received by the Company will likely be less than noted above. Similarly, should the prepayment rate exceed 16.00% CPR, the timing of the receipt of
cash flows by the Company will likely accelerate. However, accelerating the timing and/or amount of cash flows to be received by the Company does not inherently result in additional income being recorded in future periods.</font></p> <p><font
size="2" color="#000000">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;At June 30, 2002, the sensitivity of the current estimated fair value of retained interests to immediate 10% and 20% adverse changes were as follows:</font><br> </p>
<TABLE BORDER=0 WIDTH="75%" CELLPADDING=0 CELLSPACING=0 align="center">
<TR valign="bottom" align="center">
<TD><font size="1" color="#000000"></font></TD>
<TD width="3"><font size="1" color="#000000"></font></TD>
<TD width="90"><i><font size="1" color="#000000">(in thousands)</font></i></TD>
<TD width="2"><font size="1" color="#000000"></font></TD>
<TD width="15"><font size="1" color="#000000"></font></TD> </TR>
<TR valign="bottom" bgcolor="#CCEEFF">
<TD><font size="2">Estimated fair value at June 30, 2002</font></TD>
<TD ALIGN=right width="3"><font size="2">$</font></TD>
<TD ALIGN=right width="90"><font size="2"> 86,078</font></TD>
<TD ALIGN=left width="2"><font size="2"></font></TD>
<TD ALIGN=right width="15"><font size="2"></font></TD> </TR>
<TR valign="bottom">
<TD>&nbsp;</TD>
<TD ALIGN=right width="3">&nbsp;</TD>
<TD ALIGN=right width="90">&nbsp;</TD>
<TD ALIGN=left width="2">&nbsp;</TD>
<TD ALIGN=right width="15">&nbsp;</TD> </TR>
<TR valign="bottom">
<TD><font size="2"> Discount rate:</font></TD>
<TD ALIGN=right width="3"><font size="2"></font></TD>
<TD ALIGN=right width="90"><font size="2"></font></TD>
<TD ALIGN=left width="2"><font size="2"></font></TD>
<TD ALIGN=right width="15"><font size="2"></font></TD> </TR>
<TR valign="bottom" bgcolor="#CCEEFF">
<TD><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;Impact on fair value of 10% adverse change</font></TD>
<TD ALIGN=right width="3"><font size="2"></font></TD>
<TD ALIGN=right width="90"><font size="2">(5,273</font></TD>
<TD ALIGN=left width="2"><font size="2">)</font></TD>
<TD ALIGN=right width="15"><font size="2"></font></TD> </TR>
<TR valign="bottom">
<TD><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;Impact on fair value of 20% adverse change</font></TD>
<TD ALIGN=right width="3"><font size="2"></font></TD>
<TD ALIGN=right width="90"><font size="2">(10,094</font></TD>
<TD ALIGN=left width="2"><font size="2">)</font></TD>
<TD ALIGN=right width="15"><font size="2"></font></TD> </TR>
<TR valign="bottom" bgcolor="#CCEEFF">
<TD><font size="2">Default curve:</font></TD>
<TD ALIGN=right width="3"><font size="2"></font></TD>
<TD ALIGN=right width="90"><font size="2"></font></TD>
<TD ALIGN=left width="2"><font size="2"></font></TD>
<TD ALIGN=right width="15"><font size="2"></font></TD> </TR>
<TR valign="bottom">
<TD><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;Impact on fair value of 10% adverse change</font></TD>
<TD ALIGN=right width="3"><font size="2"></font></TD>
<TD ALIGN=right width="90"><font size="2">(3,666</font></TD>
<TD ALIGN=left width="2"><font size="2">)</font></TD>
<TD ALIGN=right width="15"><font size="2"></font></TD> </TR>
<TR valign="bottom" bgcolor="#CCEEFF">
<TD><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;Impact on fair value of 20% adverse change</font></TD>
<TD ALIGN=right width="3"><font size="2"></font></TD>
<TD ALIGN=right width="90"><font size="2">(6,876</font></TD>
<TD ALIGN=left width="2"><font size="2">)</font></TD>
<TD ALIGN=right width="15"><font size="2"></font></TD> </TR>
<TR valign="bottom">
<TD><font size="2">Prepayment curve:</font></TD>
<TD ALIGN=right width="3"><font size="2"></font></TD>
<TD ALIGN=right width="90"><font size="2"></font></TD>
<TD ALIGN=left width="2"><font size="2"></font></TD>
<TD ALIGN=right width="15"><font size="2"></font></TD> </TR>
<TR valign="bottom" bgcolor="#CCEEFF">
<TD><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;Impact on fair value of 10% adverse change</font></TD>
<TD ALIGN=right width="3"><font size="2"></font></TD>
<TD ALIGN=right width="90"><font size="2">(855</font></TD>
<TD ALIGN=left width="2"><font size="2">)</font></TD>
<TD ALIGN=right width="15"><font size="2"></font></TD> </TR>
<TR valign="bottom">
<TD><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;Impact on fair value of 20% adverse change</font></TD>
<TD ALIGN=right width="3"><font size="2"></font></TD>
<TD ALIGN=right width="90"><font size="2">(1,715</font></TD>
<TD ALIGN=left width="2"><font size="2">)</font></TD>
<TD ALIGN=right width="15"><font size="2"></font></TD> </TR> </TABLE> <p><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<font color="#000000">The aforementioned sensitivity analyses are hypothetical. As these figures indicate, any
change in estimated fair value based on a 10% variation in assumptions cannot be extrapolated because the relationship of the change in assumption to the change in fair value is not linear. Also, in this table, the effect of a variation in a
particular assumption on the fair value of the retained interests is calculated independent from any change in another assumption; in reality, changes in one factor may result in changes in another, which may magnify or counteract the
sensitivities.</font></font></p> <p><font size="2"><b><font color="#000000">NOTE D - SHORT-TERM BORROWINGS</font></b></font></p> <p><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<font color="#000000">Short-term borrowings include
securities sold under agreement to repurchase of $111.54 million and $127.20 million as of June 30, 2002 and December 31, 2001, respectively. Securities sold under agreement to repurchase were sold </font></font></p> <p align="center"><font size="2"
color="#000000">11</font></p>

<p Style='page-break-before:always'>
<HR  SIZE="3" COLOR="#CCEEFF" WIDTH="100%" ALIGN="CENTER">
<h5 align="left"><a href="#toc">Table of Contents</a></h5>
 <p><font size="2" color="#000000">to corporate and government customers as an alternative to available deposit products. The underlying securities included in repurchase agreements remain under the Company's control
during the effective period of the agreements.</font></p> <p><b><font size="2" color="#000000">NOTE E - LONG TERM DEBT</font></b></p> <p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<font color="#000000" size="2">Through City National, the
Company maintains long-term financing from the Federal Home Loan Bank as follows:<br> </font><font color="#000000"> </font> </p>
<TABLE BORDER=0 WIDTH="100%" CELLPADDING=0 CELLSPACING=0>
<TR ALIGN=center valign="bottom">
<TD width="23"><b><font size="1" color="#000000"></font></b></TD>
<TD width="232"><b><font size="1" color="#000000"></font></b></TD>
<TD width="5"><b><font size="1" color="#000000"></font></b></TD>
<TD width="51"><b><font size="1" color="#000000"></font></b></TD>
<TD width="23"><b><font size="1" color="#000000"></font></b></TD>
<TD width="232"><b><font size="1" color="#000000">June 30, 2002</font></b></TD>
<TD width="5"><b><font size="1" color="#000000"></font></b></TD>
<TD width="51"><b><font size="1" color="#000000"></font></b></TD>
<TD width="7"><b><font size="1" color="#000000"></font></b></TD>
<TD width="232"><b><font size="1" color="#000000"></font></b></TD>
<TD width="25"><b><font size="1" color="#000000"></font></b></TD>
<TD width="62"><b><font size="1" color="#000000"></font></b></TD>
<TD width="7"><b><font size="1" color="#000000"></font></b></TD>
<TD width="232"><b><font size="1" color="#000000"></font></b></TD>
<TD width="5"><b><font size="1" color="#000000"></font></b></TD>
<TD width="47"><b><font size="1" color="#000000"></font></b></TD> </TR>
<TR ALIGN=center valign="bottom">
<TD width="23"><b><font size="1" color="#000000"></font></b></TD>
<TD width="232"><b><font size="1" color="#000000">Amount</font></b></TD>
<TD width="5"><b><font size="1" color="#000000"></font></b></TD>
<TD width="51"><b><font size="1" color="#000000"></font></b></TD>
<TD width="23"><b><font size="1" color="#000000"></font></b></TD>
<TD width="232"><b><font size="1" color="#000000">Amount</font></b></TD>
<TD width="5"><b><font size="1" color="#000000"></font></b></TD>
<TD width="51"><b><font size="1" color="#000000"></font></b></TD>
<TD width="7"><b><font size="1" color="#000000"></font></b></TD>
<TD width="232"><b><font size="1" color="#000000"></font></b></TD>
<TD width="25"><b><font size="1" color="#000000"></font></b></TD>
<TD width="62"><b><font size="1" color="#000000"></font></b></TD>
<TD width="7"><b><font size="1" color="#000000"></font></b></TD>
<TD width="232"><b><font size="1" color="#000000"></font></b></TD>
<TD width="5"><b><font size="1" color="#000000"></font></b></TD>
<TD width="47"><b><font size="1" color="#000000"></font></b></TD> </TR>
<TR ALIGN=center valign="bottom">
<TD width="23"><b><font size="1" color="#000000"></font></b></TD>
<TD width="232"><b><font size="1" color="#000000">Available</font></b></TD>
<TD width="5"><b><font size="1" color="#000000"></font></b></TD>
<TD width="51"><b><font size="1" color="#000000"></font></b></TD>
<TD width="23"><b><font size="1" color="#000000"></font></b></TD>
<TD width="232"><b><font size="1" color="#000000">Outstanding</font></b></TD>
<TD width="5"><b><font size="1" color="#000000"></font></b></TD>
<TD width="51"><b><font size="1" color="#000000"></font></b></TD>
<TD width="7"><b><font size="1" color="#000000"></font></b></TD>
<TD width="232"><b><font size="1" color="#000000">Interest Rate</font></b></TD>
<TD width="25"><b><font size="1" color="#000000"></font></b></TD>
<TD width="62"><b><font size="1" color="#000000"></font></b></TD>
<TD width="7"><b><font size="1" color="#000000"></font></b></TD>
<TD width="232"><b><font size="1" color="#000000">Maturity Date</font></b></TD>
<TD width="5"><b><font size="1" color="#000000"></font></b></TD>
<TD width="47"><b><font size="1" color="#000000"></font></b></TD> </TR>
<tr align=center valign="bottom">
<td colspan="2"> <hr size="2" color="#000000"> </td>
<td width="5"><b><font size="1" color="#000000"></font></b></td>
<td width="51"><b><font size="1" color="#000000"></font></b></td>
<td colspan="2"> <hr size="2" color="#000000"> </td>
<td width="5"><b><font size="1" color="#000000"></font></b></td>
<td width="51"><b><font size="1" color="#000000"></font></b></td>
<td colspan="2"> <hr size="2" color="#000000"> </td>
<td width="25"><b><font size="1" color="#000000"></font></b></td>
<td width="62"><b><font size="1" color="#000000"></font></b></td>
<td colspan="2"> <hr size="2" color="#000000"> </td>
<td width="5"><b><font size="1" color="#000000"></font></b></td>
<td width="47"><b><font size="1" color="#000000"></font></b></td> </tr>
<TR ALIGN=right valign="bottom">
<TD ALIGN=center colspan="6"><font size="2"></font><font size="2"><i><font size="1">(in thousands)</font></i></font><font size="2"></font><font size="2"></font><font size="2"></font><font size="2"></font></TD>
<TD ALIGN=left width="5"><font size="2"></font></TD>
<TD ALIGN=right width="51"><font size="2"></font></TD>
<TD ALIGN=right width="7"><font size="2"></font></TD>
<TD ALIGN=right width="232"><font size="2"></font></TD>
<TD ALIGN=left width="25"><font size="2"></font></TD>
<TD ALIGN=right width="62"><font size="2"></font></TD>
<TD ALIGN=right width="7"><font size="2"></font></TD>
<TD ALIGN=right width="232"><font size="2"></font></TD>
<TD ALIGN=left width="5"><font size="2"></font></TD>
<TD ALIGN=right width="47"><font size="2"></font></TD> </TR>
<TR ALIGN=right valign="bottom">
<TD ALIGN=right width="23"><font size="2"></font></TD>
<TD ALIGN=right width="232"><font size="2"></font></TD>
<TD ALIGN=left width="5"><font size="2"></font></TD>
<TD ALIGN=right width="51"><font size="2"></font></TD>
<TD ALIGN=right width="23"><font size="2"></font></TD>
<TD ALIGN=right width="232"><font size="2"></font></TD>
<TD ALIGN=left width="5"><font size="2"></font></TD>
<TD ALIGN=right width="51"><font size="2"></font></TD>
<TD ALIGN=right width="7"><font size="2"></font></TD>
<TD ALIGN=right width="232"><font size="2"></font></TD>
<TD ALIGN=left width="25"><font size="2"></font></TD>
<TD ALIGN=right width="62"><font size="2"></font></TD>
<TD ALIGN=right width="7"><font size="2"></font></TD>
<TD ALIGN=right width="232"><font size="2"></font></TD>
<TD ALIGN=left width="5"><font size="2"></font></TD>
<TD ALIGN=right width="47"><font size="2"></font></TD> </TR>
<TR ALIGN=right valign="bottom" bgcolor="#CCEEFF">
<TD ALIGN=right width="23"><font size="2">$</font></TD>
<TD ALIGN=right width="232"><font size="2"> 10,000</font></TD>
<TD ALIGN=left width="5"><font size="2"></font></TD>
<TD ALIGN=right width="51"><font size="2"></font></TD>
<TD ALIGN=right width="23"><font size="2">$</font></TD>
<TD ALIGN=right width="232"><font size="2"> 10,000</font></TD>
<TD ALIGN=left width="5"><font size="2"></font></TD>
<TD ALIGN=right width="51"><font size="2"></font></TD>
<TD ALIGN=right width="7"><font size="2"></font></TD>
<TD ALIGN=right width="232"><font size="2">3.49</font></TD>
<TD ALIGN=left width="25"> <div align="left"><font size="2">%</font></div> </TD>
<TD ALIGN=right width="62"><font size="2"></font></TD>
<TD ALIGN=right width="7"><font size="2"></font></TD>
<TD ALIGN=right width="232"><font size="2">January 2004</font></TD>
<TD ALIGN=left width="5"><font size="2"></font></TD>
<TD ALIGN=right width="47"><font size="2"></font></TD> </TR>
<TR ALIGN=right valign="bottom">
<TD ALIGN=right width="23"><font size="2"></font></TD>
<TD ALIGN=right width="232"><font size="2"> 5,000</font></TD>
<TD ALIGN=left width="5"><font size="2"></font></TD>
<TD ALIGN=right width="51"><font size="2"></font></TD>
<TD ALIGN=right width="23"><font size="2"></font></TD>
<TD ALIGN=right width="232"><font size="2"> 5,000</font></TD>
<TD ALIGN=left width="5"><font size="2"></font></TD>
<TD ALIGN=right width="51"><font size="2"></font></TD>
<TD ALIGN=right width="7"><font size="2"></font></TD>
<TD ALIGN=right width="232"><font size="2">5.48</font></TD>
<TD ALIGN=left width="25"><font size="2"></font></TD>
<TD ALIGN=right width="62"><font size="2"></font></TD>
<TD ALIGN=right width="7"><font size="2"></font></TD>
<TD ALIGN=right width="232"><font size="2">February 2008</font></TD>
<TD ALIGN=left width="5"><font size="2"></font></TD>
<TD ALIGN=right width="47"><font size="2"></font></TD> </TR>
<TR ALIGN=right valign="bottom" bgcolor="#CCEEFF">
<TD ALIGN=right width="23"><font size="2"></font></TD>
<TD ALIGN=right width="232"><font size="2">10,000</font></TD>
<TD ALIGN=left width="5"><font size="2"></font></TD>
<TD ALIGN=right width="51"><font size="2"></font></TD>
<TD ALIGN=right width="23"><font size="2"></font></TD>
<TD ALIGN=right width="232"><font size="2">10,000</font></TD>
<TD ALIGN=left width="5"><font size="2"></font></TD>
<TD ALIGN=right width="51"><font size="2"></font></TD>
<TD ALIGN=right width="7"><font size="2"></font></TD>
<TD ALIGN=right width="232"><font size="2">4.86</font></TD>
<TD ALIGN=left width="25"><font size="2"></font></TD>
<TD ALIGN=right width="62"><font size="2"></font></TD>
<TD ALIGN=right width="7"><font size="2"></font></TD>
<TD ALIGN=right width="232"><font size="2">October 2008</font></TD>
<TD ALIGN=left width="5"><font size="2"></font></TD>
<TD ALIGN=right width="47"><font size="2"></font></TD> </TR>
<tr align=right valign="bottom">
<td align=right width="23"><font size="2"></font></td>
<td align=right width="232">&nbsp;</td>
<td align=left width="5">&nbsp;</td>
<td align=right width="51">&nbsp;</td>
<td align=right colspan="2"> <hr size="2" color="#000000"> </td>
<td align=left width="5">&nbsp;</td>
<td align=right width="51">&nbsp;</td>
<td align=right width="7"><font size="2"></font></td>
<td align=right width="232"><font size="2"></font></td>
<td align=left width="25"><font size="2"></font></td>
<td align=right width="62"><font size="2"></font></td>
<td align=right width="7"><font size="2"></font></td>
<td align=right width="232"><font size="2"></font></td>
<td align=left width="5"><font size="2"></font></td>
<td align=right width="47"><font size="2"></font></td> </tr>
<tr align=right valign="bottom" bgcolor="#CCEEFF">
<td align=right width="23"><font size="2"></font></td>
<td align=right width="232"><font size="2"></font></td>
<td align=left width="5"><font size="2"></font></td>
<td align=right width="51"><font size="2"></font></td>
<td align=right width="23"><font size="2">$</font></td>
<td align=right width="232"><font size="2"> 25,000</font></td>
<td align=left width="5"><font size="2"></font></td>
<td align=right width="51"><font size="2"></font></td>
<td align=right width="7"><font size="2"></font></td>
<td align=right width="232"><font size="2"></font></td>
<td align=left width="25"><font size="2"></font></td>
<td align=right width="62"><font size="2"></font></td>
<td align=right width="7"><font size="2"></font></td>
<td align=right width="232"><font size="2"></font></td>
<td align=left width="5"><font size="2"></font></td>
<td align=right width="47"><font size="2"></font></td> </tr>
<TR ALIGN=right valign="bottom">
<TD ALIGN=right width="23"><font size="2"></font></TD>
<TD ALIGN=right width="232"><font size="2"></font></TD>
<TD ALIGN=left width="5"><font size="2"></font></TD>
<TD ALIGN=right width="51"><font size="2"></font></TD>
<TD ALIGN=right colspan="2"> <hr size="4" color="#000000"> </TD>
<TD ALIGN=left width="5"></TD>
<TD ALIGN=right width="51"></TD>
<TD ALIGN=right width="7"></TD>
<TD ALIGN=right width="232"></TD>
<TD ALIGN=left width="25"><font size="2"></font></TD>
<TD ALIGN=right width="62"><font size="2"></font></TD>
<TD ALIGN=right width="7"><font size="2"></font></TD>
<TD ALIGN=right width="232"><font size="2"></font></TD>
<TD ALIGN=left width="5"><font size="2"></font></TD>
<TD ALIGN=right width="47"><font size="2"></font></TD> </TR> </TABLE> <p><font size="2" color="#000000">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As of June 30, 2002 and December 31, 2001, the Company also included $11.55 million and $14.33
million, respectively, in its Long Term Debt representing a fully-collateralized obligation outstanding with Freddie Mac. Collateral for this obligation includes a pool of qualifying, first lien mortgage loans that were sold to Freddie Mac with full
recourse. The outstanding balance of this financing will decline as the principal balances of the underlying loans are repaid. Because the loans were sold with full recourse, the outstanding principal balance of the underlying loan pool is included
in the Company's loan portfolio.</font></p> <p><font size="2" color="#000000"><b>NOTE F - TRUST PREFERRED SECURITIES</b></font></p> <p><font size="2" color="#000000">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Company has formed two
statutory business trusts under the laws of the state of Delaware. The trusts are 100% owned finance subsidiaries of the Company and exist for the exclusive purpose of (i) issuing trust preferred capital securities (&quot;Capital Securities&quot;),
which represent preferred undivided beneficial interests in the assets of the trusts, (ii) using the proceeds from the sale of the Capital Securities to acquire junior subordinated debentures (&quot;Debentures&quot;) issued by the Company, and (iii)
engaging in only those activities necessary or incidental thereto. The Debentures are the sole assets of the trusts and the Company's payments under the Debentures are the sole source of revenue of the trusts. The Debentures and the related income
statement effects are eliminated in the Company's consolidated financial statements.</font></p> <p><font size="2" color="#000000">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Company has irrevocably and unconditionally guaranteed the
obligations of the trusts, but only to the extent of funds held by the trusts. Distributions on the Capital Securities are cumulative. The Company has the option to defer payment of the distributions for an extended period up to five years, so long
as the Company is not in default as to the terms of the Debentures. In June 2001, the Company was prohibited by the Federal Reserve Bank of Richmond (the &quot;FRBR&quot;) from making scheduled periodic dividend payments to either of the trusts.
Generally, the FRBR's policy is that bank holding companies pay dividends out of earnings in the prior four quarters. Therefore, the FRBR required the Company to defer payment to the Capital Trusts. During the second quarter of 2002 the Company
received approval from the FRBR to pay current and previously deferred interest payments on both City Holding Capital Trust and City Holding Capital Trust II preferred securities. On July 31, 2002, the Company remitted interest payments
approximating $9.76 million to the Capital Trusts including interest on previously deferred payments. Although cash payments had been deferred, the Company continued to accrue and record interest expense in its Consolidated Statements of Income.
Pursuant to the terms of the Capital Securities, interest was also accrued on the unpaid interest at interest rates equivalent to the stated interest rates for each issue.</font></p> <p align="center"><font size="2" color="#000000">12</font></p>

<p Style='page-break-before:always'>
<HR  SIZE="3" COLOR="#CCEEFF" WIDTH="100%" ALIGN="CENTER">
<h5 align="left"><a href="#toc">Table of Contents</a></h5>
 <p><font size="2" color="#000000">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Capital Securities are subject to mandatory redemption to the extent of any early redemption of the Debentures and upon maturity of
the Debentures, as outlined below. The following table summarizes the Company's two trusts:</font></p>
<TABLE BORDER=0 CELLPADDING=0 CELLSPACING=0 WIDTH="90%">
<TR valign="bottom" align="center">
<TD><font size="1" color="#000000"> Trust</font></TD>
<TD><font size="1" color="#000000"></font></TD>
<TD><font size="1" color="#000000"> Amount</font></TD>
<TD><font size="1"></font></TD>
<TD><font size="1"></font></TD>
<TD><font size="1" color="#000000"> Rate</font></TD>
<TD><font size="1"></font></TD>
<TD>&nbsp;</TD>
<TD><font size="1"></font></TD>
<TD><font size="1" color="#000000"> Payment Frequency</font></TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD><font size="1" color="#000000"></font></TD>
<TD><font size="1" color="#000000">Liquidation Value <br> per Share</font></TD>
<TD><font size="1"></font></TD>
<TD><font size="1"></font></TD>
<TD><font size="1" color="#000000"> Issuance Date</font></TD>
<TD><font size="1"></font></TD>
<TD><font size="1"></font></TD>
<TD><font size="1" color="#000000">Stated Maturity Date</font></TD>
<TD><font size="1" color="#000000"></font></TD> </TR>
<TR valign="bottom" align="center">
<TD> <hr size="2" color="#000000"> <font size="1" color="#000000"></font></TD>
<TD colspan="2"><font size="1" color="#000000"></font> <hr size="2" color="#000000"> <font size="1" color="#000000"></font></TD>
<TD><font size="1" color="#000000">&nbsp;&nbsp;</font></TD>
<TD colspan="2"><font size="1" color="#000000"></font> <hr size="2" color="#000000"> <font size="1" color="#000000"></font></TD>
<TD><font size="1" color="#000000"></font></TD>
<TD><font size="1" color="#000000">&nbsp;&nbsp;</font></TD>
<TD colspan="2"><font size="1" color="#000000"></font> <hr size="2" color="#000000"> <font size="1" color="#000000"></font></TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD colspan="2"> <hr size="2" color="#000000"> <font size="1" color="#000000"></font></TD>
<TD><font size="1" color="#000000">&nbsp;&nbsp;</font></TD>
<TD colspan="2"><font size="1" color="#000000"></font> <hr size="2" color="#000000"> <font size="1" color="#000000"></font></TD>
<TD><font size="1" color="#000000">&nbsp;&nbsp;</font></TD>
<TD colspan="2"><font size="1" color="#000000"></font> <hr size="2" color="#000000"> <font size="1" color="#000000"></font></TD>
<TD><font size="1" color="#000000"></font></TD> </TR>
<TR valign="bottom" bgcolor="#CCEEFF">
<TD nowrap><font size="2" color="#000000">City Holding Capital Trust</font></TD>
<TD ALIGN=right><font size="2" color="#000000">$</font></TD>
<TD ALIGN=right><font size="2" color="#000000">30,000</font></TD>
<TD ALIGN=right><font size="2" color="#000000"></font></TD>
<TD ALIGN=right><font size="2" color="#000000"></font></TD>
<TD ALIGN=right><font size="2" color="#000000">9.150</font></TD>
<TD ALIGN=left><font size="2" color="#000000">%</font></TD>
<TD ALIGN=right><font size="2" color="#000000"></font></TD>
<TD ALIGN=right><font size="2" color="#000000"></font></TD>
<TD ALIGN=right><font size="2" color="#000000">Semi-annually</font></TD>
<TD ALIGN=left>&nbsp;</TD>
<TD ALIGN=right>&nbsp;</TD>
<TD ALIGN=right><font size="2" color="#000000">$</font></TD>
<TD ALIGN=right><font size="2" color="#000000">1,000</font></TD>
<TD ALIGN=left><font size="2" color="#000000"></font></TD>
<TD ALIGN=right><font size="2" color="#000000"></font></TD>
<TD ALIGN=right><font size="2" color="#000000">March 1998</font></TD>
<TD ALIGN=left><font size="2" color="#000000"></font></TD>
<TD ALIGN=right><font size="2" color="#000000"></font></TD>
<TD ALIGN=right nowrap><font size="2" color="#000000">April 2028 </font></TD>
<TD ALIGN=left><font size="2" color="#000000">(a)</font></TD> </TR>
<TR valign="bottom">
<TD nowrap><font size="2" color="#000000">City Holding Capital Trust II</font></TD>
<TD ALIGN=right><font size="2" color="#000000"></font></TD>
<TD ALIGN=right><font size="2" color="#000000">57,500</font></TD>
<TD ALIGN=right><font size="2" color="#000000"></font></TD>
<TD ALIGN=right><font size="2" color="#000000"></font></TD>
<TD ALIGN=right><font size="2" color="#000000">9.125</font></TD>
<TD ALIGN=left><font size="2" color="#000000"></font></TD>
<TD ALIGN=right><font size="2" color="#000000"></font></TD>
<TD ALIGN=right><font size="2" color="#000000"></font></TD>
<TD ALIGN=right><font size="2" color="#000000">Quarterly</font></TD>
<TD ALIGN=left>&nbsp;</TD>
<TD ALIGN=right><font size="2" color="#000000">&nbsp;</font></TD>
<TD ALIGN=right><font size="2" color="#000000"></font></TD>
<TD ALIGN=right><font size="2" color="#000000">25</font></TD>
<TD ALIGN=left><font size="2" color="#000000"></font></TD>
<TD ALIGN=right><font size="2" color="#000000"></font></TD>
<TD ALIGN=right nowrap><font size="2" color="#000000">October 1998</font></TD>
<TD ALIGN=left><font size="2" color="#000000"></font></TD>
<TD ALIGN=right><font size="2" color="#000000"></font></TD>
<TD ALIGN=right nowrap><font size="2" color="#000000">October 2028 </font></TD>
<TD ALIGN=left><font size="2" color="#000000">(b)</font></TD> </TR>
<tr valign="bottom">
<td><font size="2" color="#000000"></font></td>
<td align=right colspan="2"> <hr size="2" color="#000000"> </td>
<td align=right><font size="2" color="#000000"></font></td>
<td align=right><font size="2" color="#000000"></font></td>
<td align=right><font size="2" color="#000000"></font></td>
<td align=left><font size="2" color="#000000"></font></td>
<td align=right><font size="2" color="#000000"></font></td>
<td align=right><font size="2" color="#000000"></font></td>
<td align=right><font size="2" color="#000000"></font></td>
<td align=left>&nbsp;</td>
<td align=right>&nbsp;</td>
<td align=right><font size="2" color="#000000"></font></td>
<td align=right><font size="2" color="#000000"></font></td>
<td align=left><font size="2" color="#000000"></font></td>
<td align=right><font size="2" color="#000000"></font></td>
<td align=right><font size="2" color="#000000"></font></td>
<td align=left><font size="2" color="#000000"></font></td>
<td align=right><font size="2" color="#000000"></font></td>
<td align=right><font size="2" color="#000000"></font></td>
<td align=left><font size="2" color="#000000"></font></td> </tr>
<tr valign="bottom" bgcolor="#CCEEFF">
<td><font size="2" color="#000000"></font></td>
<td align=right><font size="2" color="#000000">$</font></td>
<td align=right><font size="2" color="#000000">87,500</font></td>
<td align=right><font size="2" color="#000000"></font></td>
<td align=right><font size="2" color="#000000"></font></td>
<td align=right><font size="2" color="#000000"></font></td>
<td align=left><font size="2" color="#000000"></font></td>
<td align=right><font size="2" color="#000000"></font></td>
<td align=right><font size="2" color="#000000"></font></td>
<td align=right><font size="2" color="#000000"></font></td>
<td align=left>&nbsp;</td>
<td align=right>&nbsp;</td>
<td align=right><font size="2" color="#000000"></font></td>
<td align=right><font size="2" color="#000000"></font></td>
<td align=left><font size="2" color="#000000"></font></td>
<td align=right><font size="2" color="#000000"></font></td>
<td align=right><font size="2" color="#000000"></font></td>
<td align=left><font size="2" color="#000000"></font></td>
<td align=right><font size="2" color="#000000"></font></td>
<td align=right><font size="2" color="#000000"></font></td>
<td align=left><font size="2" color="#000000"></font></td> </tr>
<TR valign="bottom">
<TD><font size="2" color="#000000"></font></TD>
<TD ALIGN=right colspan="2"> <hr size="4" color="#000000"> </TD>
<TD ALIGN=right><font size="2" color="#000000"></font></TD>
<TD ALIGN=right><font size="2" color="#000000"></font></TD>
<TD ALIGN=right><font size="2" color="#000000"></font></TD>
<TD ALIGN=left><font size="2" color="#000000"></font></TD>
<TD ALIGN=right><font size="2" color="#000000"></font></TD>
<TD ALIGN=right><font size="2" color="#000000"></font></TD>
<TD ALIGN=right><font size="2" color="#000000"></font></TD>
<TD ALIGN=left>&nbsp;</TD>
<TD ALIGN=right>&nbsp;</TD>
<TD ALIGN=right><font size="2" color="#000000"></font></TD>
<TD ALIGN=right><font size="2" color="#000000"></font></TD>
<TD ALIGN=left><font size="2" color="#000000"></font></TD>
<TD ALIGN=right><font size="2" color="#000000"></font></TD>
<TD ALIGN=right><font size="2" color="#000000"></font></TD>
<TD ALIGN=left><font size="2" color="#000000"></font></TD>
<TD ALIGN=right><font size="2" color="#000000"></font></TD>
<TD ALIGN=right><font size="2" color="#000000"></font></TD>
<TD ALIGN=left><font size="2" color="#000000"></font></TD> </TR> </TABLE> <br>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
<tr valign="top">
<td width="5%" align="right"><font size="2" color="#000000">(a)&nbsp;&nbsp;</font></td>
<td width="95%"><font size="2" color="#000000"> Redeemable prior to maturity at the option of the Company (i) on or after April, 1, 2008, in whole at any time or in part from time to time, at declining redemption prices ranging from 104.58% to
100.00% on April 1, 2018 and thereafter, (ii) in whole, but not in part, at any time within 90 days following the occurrence and during the continuation of certain pre-defined events.<br> <br> </font></td> </tr>
<tr valign="top">
<td width="5%" align="right"><font size="2" color="#000000">(b)&nbsp;&nbsp;</font></td>
<td width="95%"><font size="2" color="#000000"> Redeemable prior to maturity at the option of the Company (i) on or after October 31, 2003, in whole at any time or in part from time to time, or (ii) prior to October 31, 2003, in whole, but not in
part, at any time within 90 days following the occurrence and during the continuation of certain pre-defined events.</font></td> </tr> </table> <p> <font size="2" color="#000000">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The obligations
outstanding under the aforementioned trusts are classified as &quot;Corporation-obligated mandatorily redeemable preferred securities of subsidiary trusts holding solely junior subordinated debentures of City Holding Company&quot; in the liabilities
section of the Consolidated Balance Sheets. Distributions on the capital securities are recorded in the Consolidated Statements of Income as interest expense. The Company's interest payments on the debentures are fully tax-deductible.</font></p>
<p><font size="2" color="#000000"><b>NOTE G - COMMITMENTS AND CONTINGENT LIABILITIES</b></font></p> <p><font size="2" color="#000000">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In the normal course of business, certain financial products are
offered by the Company to accommodate the financial needs of its customers. Loan commitments (lines of credit) represent the principal off-balance sheet financial product offered by the Company. At June 30, 2002, commitments outstanding to extend
credit totaled approximately $174.62 million. To a much lesser extent, the Company offers standby letters of credit, which require payments to be made on behalf of customers when certain specified future events occur. Amounts outstanding pursuant to
such standby letters of credit were $3.70 million as of June 30, 2002. Substantially all standby letters of credit have historically expired unfunded.</font></p> <p><font size="2" color="#000000">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Both
of the above arrangements have credit risks essentially the same as that involved in extending loans to customers and are subject to the Company's standard credit policies. Collateral is obtained based on management's credit assessment of the
customer. Management does not anticipate any material losses as a result of these commitments.</font></p> <p align="center"><font size="2" color="#000000">13</font></p>

<p Style='page-break-before:always'>
<HR  SIZE="3" COLOR="#CCEEFF" WIDTH="100%" ALIGN="CENTER">
<h5 align="left"><a href="#toc">Table of Contents</a></h5>
 <p> <font size="2" color="#000000"><b>NOTE H - INTANGIBLE ASSETS</b></font></p> <p><font size="2" color="#000000">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In June 2001, the Financial Accounting Standards Board
issued Statement No. 142, <i>Goodwill and Other Intangible Assets</i>. Statement No. 142 supersedes Accounting Principles Board Opinion No. 17, Intangible Assets and carries forward its provisions related to internally developed intangible assets
without reconsideration. Under Statement No. 142, certain goodwill and indefinite lived intangible assets are no longer amortized but are reviewed annually, or more frequently if impairment indicators arise, for impairment. Goodwill is required to
be tested for impairment between the annual tests if an event occurs or circumstances change that more-likely-than-not reduce the fair value of a reporting unit below its carrying value. An indefinite lived intangible asset is required to be tested
for impairment between the annual tests if an event occurs or circumstances change indicating that the asset might be impaired. Separable intangible assets that have finite lives will continue to be amortized over their useful lives, for which
Statement 142 does not impose a limit. Effective January 1, 2002, the Company ceased amortization of certain goodwill in accordance with Statement No. 142.</font></p> <p><font size="2"
color="#000000">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following table depicts the pro forma effect of Statement 142 on earnings and earnings per share for the six months and three months ended June 30:</font><br> </p>
<TABLE BORDER=0 WIDTH="75%" CELLPADDING=0 CELLSPACING=0 align="center">
<TR valign="bottom" align="center">
<TD><font size="1" color="#000000"></font></TD>
<TD colspan="6"><font size="1" color="#000000">Six Months Ended June 30,</font></TD>
<TD width="2"><b><font size="1" color="#000000"></font></b></TD>
<TD width="15"><b><font size="1" color="#000000"></font></b></TD> </TR>
<TR valign="bottom" align="center">
<TD><font size="1" color="#000000"></font></TD>
<TD width="3"><b><font size="1" color="#000000"></font></b></TD>
<TD width="90"><font size="1" color="#000000">2002</font></TD>
<TD width="2"><b><font size="1" color="#000000"></font></b></TD>
<TD width="20"><b><font size="1" color="#000000"></font></b></TD>
<TD width="3"><b><font size="1" color="#000000"></font></b></TD>
<TD width="90"><font size="1" color="#000000">2001</font></TD>
<TD width="2"><b><font size="1" color="#000000"></font></b></TD>
<TD width="15"><b><font size="1" color="#000000"></font></b></TD> </TR>
<tr valign="bottom" align="center">
<td><font size="1" color="#000000"></font></td>
<td colspan="2"> <hr size="2" color="#000000"> </td>
<td width="2"><font size="1" color="#000000"></font></td>
<td width="20"><font size="1" color="#000000"></font></td>
<td colspan="2"> <hr size="2" color="#000000"> </td>
<td width="2"><font size="1" color="#000000"></font></td>
<td width="15"><font size="1" color="#000000"></font></td> </tr>
<TR valign="bottom" align="center">
<TD><font size="1" color="#000000"></font></TD>
<TD colspan="6"><font size="1" color="#000000"><i>(in thousands, except per share data)</i></font></TD>
<TD width="2"><font size="1" color="#000000"></font></TD>
<TD width="15"><font size="1" color="#000000"></font></TD> </TR>
<tr valign="bottom">
<td>&nbsp;</td>
<td align=right width="3">&nbsp;</td>
<td align=right width="90">&nbsp;</td>
<td align=left width="2"><font size="2" color="#000000"></font></td>
<td align=right width="20"><font size="2" color="#000000"></font></td>
<td align=right width="3">&nbsp;</td>
<td align=right width="90"><font size="2" color="#000000"> </font></td>
<td align=left width="2">&nbsp;</td>
<td align=right width="15"><font size="2" color="#000000"></font></td> </tr>
<TR valign="bottom">
<TD bgcolor="#CCEEFF"><font size="2" color="#000000">&nbsp;&nbsp;&nbsp;&nbsp;Reported net income (loss)</font></TD>
<TD ALIGN=right width="3" bgcolor="#CCEEFF"><font size="2" color="#000000">$</font></TD>
<TD ALIGN=right width="90" bgcolor="#CCEEFF"><font size="2" color="#000000">14,079</font></TD>
<TD ALIGN=left width="2" bgcolor="#CCEEFF"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="20" bgcolor="#CCEEFF"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="3" bgcolor="#CCEEFF"><font size="2" color="#000000">$</font></TD>
<TD ALIGN=right width="90" bgcolor="#CCEEFF"><font size="2" color="#000000"> (25,800</font></TD>
<TD ALIGN=left width="2" bgcolor="#CCEEFF"><font size="2" color="#000000">)</font></TD>
<TD ALIGN=right width="15" bgcolor="#CCEEFF"><font size="2" color="#000000"></font></TD> </TR>
<TR valign="bottom">
<TD><font size="2" color="#000000">&nbsp;&nbsp;&nbsp;&nbsp;Add back goodwill amortization, net of tax</font></TD>
<TD ALIGN=right width="3"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="90"><font size="2" color="#000000">&#151;</font></TD>
<TD ALIGN=left width="2"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="20"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="3"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="90"><font size="2" color="#000000">219</font></TD>
<TD ALIGN=left width="2"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="15"><font size="2" color="#000000"></font></TD> </TR>
<tr valign="bottom" align="center">
<td><font size="1" color="#000000"></font></td>
<td colspan="2"> <hr size="2" color="#000000"> </td>
<td width="2"><font size="1" color="#000000"></font></td>
<td width="20"><font size="1" color="#000000"></font></td>
<td colspan="2"> <hr size="2" color="#000000"> </td>
<td width="2"><font size="1" color="#000000"></font></td>
<td width="15"><font size="1" color="#000000"></font></td> </tr>
<TR valign="bottom">
<TD bgcolor="#CCEEFF"><font size="2" color="#000000">&nbsp;&nbsp;&nbsp;&nbsp;Adjusted net income (loss)</font></TD>
<TD ALIGN=right width="3" bgcolor="#CCEEFF"><font size="2" color="#000000">$</font></TD>
<TD ALIGN=right width="90" bgcolor="#CCEEFF"><font size="2" color="#000000">14,079</font></TD>
<TD ALIGN=left width="2" bgcolor="#CCEEFF"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="20" bgcolor="#CCEEFF"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="3" bgcolor="#CCEEFF"><font size="2" color="#000000">$</font></TD>
<TD ALIGN=right width="90" bgcolor="#CCEEFF"><font size="2" color="#000000"> (25,581</font></TD>
<TD ALIGN=left width="2" bgcolor="#CCEEFF"><font size="2" color="#000000">)</font></TD>
<TD ALIGN=right width="15" bgcolor="#CCEEFF"><font size="2" color="#000000"></font></TD> </TR>
<tr valign="bottom" align="center">
<td><font size="1" color="#000000"></font></td>
<td colspan="2"> <hr size="4" color="#000000"> </td>
<td width="2"><font size="1" color="#000000"></font></td>
<td width="20"><font size="1" color="#000000"></font></td>
<td colspan="2"> <hr size="4" color="#000000"> </td>
<td width="2"><font size="1" color="#000000"></font></td>
<td width="15"><font size="1" color="#000000"></font></td> </tr>
<TR valign="bottom">
<TD><font size="2" color="#000000">&nbsp;&nbsp;&nbsp;&nbsp;Basic and diluted earnings per share:</font></TD>
<TD ALIGN=right width="3"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="90"><font size="2" color="#000000"></font></TD>
<TD ALIGN=left width="2"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="20"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="3"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="90"><font size="2" color="#000000"></font></TD>
<TD ALIGN=left width="2"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="15"><font size="2" color="#000000"></font></TD> </TR>
<TR valign="bottom">
<TD bgcolor="#CCEEFF"><font size="2" color="#000000">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Reported net income (loss)</font></TD>
<TD ALIGN=right width="3" bgcolor="#CCEEFF"><font size="2" color="#000000">$</font></TD>
<TD ALIGN=right width="90" bgcolor="#CCEEFF"><font size="2" color="#000000">0.83</font></TD>
<TD ALIGN=left width="2" bgcolor="#CCEEFF"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="20" bgcolor="#CCEEFF"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="3" bgcolor="#CCEEFF"><font size="2" color="#000000">$</font></TD>
<TD ALIGN=right width="90" bgcolor="#CCEEFF"><font size="2" color="#000000"> (1.53</font></TD>
<TD ALIGN=left width="2" bgcolor="#CCEEFF"><font size="2" color="#000000">)</font></TD>
<TD ALIGN=right width="15" bgcolor="#CCEEFF"><font size="2" color="#000000"></font></TD> </TR>
<TR valign="bottom">
<TD><font size="2" color="#000000">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Goodwill amortization, net of tax</font></TD>
<TD ALIGN=right width="3"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="90"><font size="2" color="#000000">&#151;</font></TD>
<TD ALIGN=left width="2"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="20"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="3"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="90"><font size="2" color="#000000">0.02</font></TD>
<TD ALIGN=left width="2"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="15"><font size="2" color="#000000"></font></TD> </TR>
<tr valign="bottom" align="center">
<td><font size="1" color="#000000"></font></td>
<td colspan="2"> <hr size="2" color="#000000"> </td>
<td width="2"><font size="1" color="#000000"></font></td>
<td width="20"><font size="1" color="#000000"></font></td>
<td colspan="2"> <hr size="2" color="#000000"> </td>
<td width="2"><font size="1" color="#000000"></font></td>
<td width="15"><font size="1" color="#000000"></font></td> </tr>
<TR valign="bottom">
<TD bgcolor="#CCEEFF"><font size="2" color="#000000">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Adjusted net income (loss)</font></TD>
<TD ALIGN=right width="3" bgcolor="#CCEEFF"><font size="2" color="#000000">$</font></TD>
<TD ALIGN=right width="90" bgcolor="#CCEEFF"><font size="2" color="#000000">0.83</font></TD>
<TD ALIGN=left width="2" bgcolor="#CCEEFF"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="20" bgcolor="#CCEEFF"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="3" bgcolor="#CCEEFF"><font size="2" color="#000000">$</font></TD>
<TD ALIGN=right width="90" bgcolor="#CCEEFF"><font size="2" color="#000000"> (1.51</font></TD>
<TD ALIGN=left width="2" bgcolor="#CCEEFF"><font size="2" color="#000000">)</font></TD>
<TD ALIGN=right width="15" bgcolor="#CCEEFF"><font size="2" color="#000000"></font></TD> </TR>
<tr valign="bottom" align="center">
<td><font size="1" color="#000000"></font></td>
<td colspan="2"> <hr size="4" color="#000000"> </td>
<td width="2"><font size="1" color="#000000"></font></td>
<td width="20"><font size="1" color="#000000"></font></td>
<td colspan="2"> <hr size="4" color="#000000"> </td>
<td width="2"><font size="1" color="#000000"></font></td>
<td width="15"><font size="1" color="#000000"></font></td> </tr>
<TR valign="bottom" align="center">
<TD>&nbsp;</TD>
<TD colspan="6"><font size="1" color="#000000">Three Months Ended June 30,</font></TD>
<TD width="2"><b></b></TD>
<TD width="15"><b></b></TD> </TR>
<TR valign="bottom" align="center">
<TD>&nbsp;</TD>
<TD width="3"><b></b></TD>
<TD width="90"><font size="1" color="#000000">2002</font></TD>
<TD width="2"><b></b></TD>
<TD width="20"><b></b></TD>
<TD width="3"><b></b></TD>
<TD width="90"><font size="1" color="#000000">2001</font></TD>
<TD width="2"><b></b></TD>
<TD width="15"><b></b></TD> </TR>
<TR valign="bottom">
<TD><font size="2" color="#000000"></font></TD>
<TD ALIGN=center colspan="6"><font size="2" color="#000000"><i>(in thousands, except per share data)</i></font><font size="2" color="#000000"></font></TD>
<TD ALIGN=left width="2"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="15"><font size="2" color="#000000"></font></TD> </TR>
<TR valign="bottom">
<TD><font size="2" color="#000000">&nbsp;&nbsp;</font></TD>
<TD ALIGN=right width="3"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="90"><font size="2" color="#000000"></font></TD>
<TD ALIGN=left width="2"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="20"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="3"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="90"><font size="2" color="#000000"></font></TD>
<TD ALIGN=left width="2"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="15"><font size="2" color="#000000"></font></TD> </TR>
<TR valign="bottom">
<TD bgcolor="#CCEEFF"><font size="2" color="#000000">&nbsp;&nbsp;&nbsp;&nbsp;Reported net income (loss)</font></TD>
<TD ALIGN=right width="3" bgcolor="#CCEEFF"><font size="2" color="#000000">$</font></TD>
<TD ALIGN=right width="90" bgcolor="#CCEEFF"><font size="2" color="#000000">7,671</font></TD>
<TD ALIGN=left width="2" bgcolor="#CCEEFF"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="20" bgcolor="#CCEEFF"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="3" bgcolor="#CCEEFF"><font size="2" color="#000000">$</font></TD>
<TD ALIGN=right width="90" bgcolor="#CCEEFF"><font size="2" color="#000000"> (20,055</font></TD>
<TD ALIGN=left width="2" bgcolor="#CCEEFF"><font size="2" color="#000000">)</font></TD>
<TD ALIGN=right width="15" bgcolor="#CCEEFF"><font size="2" color="#000000"></font></TD> </TR>
<TR valign="bottom">
<TD><font size="2" color="#000000">&nbsp;&nbsp;&nbsp;&nbsp;Add back goodwill amortization, net of tax</font></TD>
<TD ALIGN=right width="3"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="90"><font size="2" color="#000000">&#151;</font></TD>
<TD ALIGN=left width="2"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="20"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="3"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="90"><font size="2" color="#000000">109</font></TD>
<TD ALIGN=left width="2"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="15"><font size="2" color="#000000"></font></TD> </TR>
<tr valign="bottom" align="center">
<td><font size="1" color="#000000"></font></td>
<td colspan="2"> <hr size="2" color="#000000"> </td>
<td width="2"><font size="1" color="#000000"></font></td>
<td width="20"><font size="1" color="#000000"></font></td>
<td colspan="2"> <hr size="2" color="#000000"> </td>
<td width="2"><font size="1" color="#000000"></font></td>
<td width="15"><font size="1" color="#000000"></font></td> </tr>
<TR valign="bottom">
<TD bgcolor="#CCEEFF"><font size="2" color="#000000">&nbsp;&nbsp;&nbsp;&nbsp;Adjusted net income (loss)</font></TD>
<TD ALIGN=right width="3" bgcolor="#CCEEFF"><font size="2" color="#000000">$</font></TD>
<TD ALIGN=right width="90" bgcolor="#CCEEFF"><font size="2" color="#000000">7,671</font></TD>
<TD ALIGN=left width="2" bgcolor="#CCEEFF"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="20" bgcolor="#CCEEFF"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="3" bgcolor="#CCEEFF"><font size="2" color="#000000">$</font></TD>
<TD ALIGN=right width="90" bgcolor="#CCEEFF"><font size="2" color="#000000"> (19,946</font></TD>
<TD ALIGN=left width="2" bgcolor="#CCEEFF"><font size="2" color="#000000">)</font></TD>
<TD ALIGN=right width="15" bgcolor="#CCEEFF"><font size="2" color="#000000"></font></TD> </TR>
<tr valign="bottom" align="center">
<td><font size="1" color="#000000"></font></td>
<td colspan="2"> <hr size="4" color="#000000"> </td>
<td width="2"><font size="1" color="#000000"></font></td>
<td width="20"><font size="1" color="#000000"></font></td>
<td colspan="2"> <hr size="4" color="#000000"> </td>
<td width="2"><font size="1" color="#000000"></font></td>
<td width="15"><font size="1" color="#000000"></font></td> </tr>
<TR valign="bottom">
<TD><font size="2" color="#000000">&nbsp;&nbsp;&nbsp;&nbsp;Basic and diluted earnings per share:</font></TD>
<TD ALIGN=right width="3"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="90"><font size="2" color="#000000"></font></TD>
<TD ALIGN=left width="2"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="20"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="3"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="90"><font size="2" color="#000000"></font></TD>
<TD ALIGN=left width="2"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="15"><font size="2" color="#000000"></font></TD> </TR>
<TR valign="bottom">
<TD bgcolor="#CCEEFF"><font size="2" color="#000000">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Reported net income (loss)</font></TD>
<TD ALIGN=right width="3" bgcolor="#CCEEFF"><font size="2" color="#000000">$</font></TD>
<TD ALIGN=right width="90" bgcolor="#CCEEFF"><font size="2" color="#000000">0.45</font></TD>
<TD ALIGN=left width="2" bgcolor="#CCEEFF"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="20" bgcolor="#CCEEFF"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="3" bgcolor="#CCEEFF"><font size="2" color="#000000">$</font></TD>
<TD ALIGN=right width="90" bgcolor="#CCEEFF"><font size="2" color="#000000"> (1.19</font></TD>
<TD ALIGN=left width="2" bgcolor="#CCEEFF"><font size="2" color="#000000">)</font></TD>
<TD ALIGN=right width="15" bgcolor="#CCEEFF"><font size="2" color="#000000"></font></TD> </TR>
<TR valign="bottom">
<TD><font size="2" color="#000000">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Goodwill amortization, net of tax</font></TD>
<TD ALIGN=right width="3"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="90"><font size="2" color="#000000">&#151;</font></TD>
<TD ALIGN=left width="2"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="20"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="3"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="90"><font size="2" color="#000000">0.01</font></TD>
<TD ALIGN=left width="2"><font size="2" color="#000000"></font></TD>
<TD ALIGN=right width="15"><font size="2" color="#000000"></font></TD> </TR>
<tr valign="bottom" align="center">
<td><font size="1" color="#000000"></font></td>
<td colspan="2"> <hr size="2" color="#000000"> </td>
<td width="2"><font size="1" color="#000000"></font></td>
<td width="20"><font size="1" color="#000000"></font></td>
<td colspan="2"> <hr size="2" color="#000000"> </td>
<td width="2"><font size="1" color="#000000"></font></td>
<td width="15"><font size="1" color="#000000"></font></td> </tr>
<tr valign="bottom">
<td bgcolor="#CCEEFF"><font size="2" color="#000000">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Adjusted net income (loss)</font></td>
<td align=right width="3" bgcolor="#CCEEFF"><font size="2" color="#000000">$</font></td>
<td align=right width="90" bgcolor="#CCEEFF"><font size="2" color="#000000">0.45</font></td>
<td align=left width="2" bgcolor="#CCEEFF"><font size="2" color="#000000"></font></td>
<td align=right width="20" bgcolor="#CCEEFF"><font size="2" color="#000000"></font></td>
<td align=right width="3" bgcolor="#CCEEFF"><font size="2" color="#000000">$</font></td>
<td align=right width="90" bgcolor="#CCEEFF"><font size="2" color="#000000"> (1.18</font></td>
<td align=left width="2" bgcolor="#CCEEFF"><font size="2" color="#000000">)</font></td>
<td align=right width="15" bgcolor="#CCEEFF"><font size="2" color="#000000"></font></td> </tr>
<tr valign="bottom" align="center">
<td><font size="1" color="#000000"></font></td>
<td colspan="2"> <hr size="4" color="#000000"> </td>
<td width="2"><font size="1" color="#000000"></font></td>
<td width="20"><font size="1" color="#000000"></font></td>
<td colspan="2"> <hr size="4" color="#000000"> </td>
<td width="2"><font size="1" color="#000000"></font></td>
<td width="15"><font size="1" color="#000000"></font></td> </tr> </TABLE> <p align="center"><font size="2" color="#000000">14</font></p>

<p Style='page-break-before:always'>
<HR  SIZE="3" COLOR="#CCEEFF" WIDTH="100%" ALIGN="CENTER">
<h5 align="left"><a href="#toc">Table of Contents</a></h5>
 <p><font size="2" color="#000000">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As of June 30, 2002 and December 31, 2001, the carrying amount of goodwill approximated $5.49 million. Of the total recorded value of
goodwill, $3.02 million is directly attributable to the Company's insurance-related operations and the remaining $2.47 million is attributable to the Company's branch network. Core deposit intangibles approximated $1.39 million and $1.55 million as
of June 30, 2002 and December 31, 2001, respectively. The amortization expense for core deposit intangibles for each of the next five years is as follows:</font></p>
<table width="75%" border="0" cellspacing="0" cellpadding="0" align="center">
<tr valign="bottom" align="center">
<td width="77%"><font size="1" color="#000000"></font></td>
<td width="3"><font size="1" color="#000000"></font></td>
<td width="90"><b><font size="1" color="#000000">Projected Amortization Expense</font></b></td>
<td width="2"><b><font size="1" color="#000000"></font></b></td>
<td width="15"><b><font size="1" color="#000000"></font></b></td> </tr>
<tr valign="bottom" align="center">
<td width="77%"><font size="1" color="#000000"></font></td>
<td colspan="2"><font size="1" color="#000000"></font> <hr size="2" color="#000000"> <b><font size="1" color="#000000"></font></b></td>
<td width="2"><b><font size="1" color="#000000"></font></b></td>
<td width="15"><b><font size="1" color="#000000"></font></b></td> </tr>
<tr valign="bottom" align="center">
<td width="77%"><font size="1" color="#000000"></font></td>
<td width="3"><font size="1" color="#000000"></font></td>
<td width="90"><b><font size="1" color="#000000"><i>(in thousands)</i></font></b></td>
<td width="2"><b><font size="1" color="#000000"></font></b></td>
<td width="15"><b><font size="1" color="#000000"></font></b></td> </tr>
<tr valign="bottom" bgcolor="#CCEEFF">
<td width="77%" align="center"><font size="2" color="#000000">Remainder of 2002</font></td>
<td width="3" align="right"><font size="2" color="#000000">$</font></td>
<td width="90" align="right"><font size="2" color="#000000">156</font></td>
<td width="2" align="left"><font size="2" color="#000000"></font></td>
<td width="15" align="left"><font size="2" color="#000000"></font></td> </tr>
<tr valign="bottom">
<td width="77%" align="center"><font size="2" color="#000000">2003</font></td>
<td width="3" align="right"><font size="2" color="#000000"></font></td>
<td width="90" align="right"><font size="2" color="#000000">312</font></td>
<td width="2" align="left"><font size="2" color="#000000"></font></td>
<td width="15" align="left"><font size="2" color="#000000"></font></td> </tr>
<tr valign="bottom" bgcolor="#CCEEFF">
<td width="77%" align="center"><font size="2" color="#000000">2004</font></td>
<td width="3" align="right"><font size="2" color="#000000"></font></td>
<td width="90" align="right"><font size="2" color="#000000">312</font></td>
<td width="2" align="left"><font size="2" color="#000000"></font></td>
<td width="15" align="left"><font size="2" color="#000000"></font></td> </tr>
<tr valign="bottom">
<td width="77%" align="center"><font size="2" color="#000000">2005</font></td>
<td width="3" align="right"><font size="2" color="#000000"></font></td>
<td width="90" align="right"><font size="2" color="#000000">312</font></td>
<td width="2" align="left"><font size="2" color="#000000"></font></td>
<td width="15" align="left"><font size="2" color="#000000"></font></td> </tr>
<tr valign="bottom" bgcolor="#CCEEFF">
<td width="77%" align="center"><font size="2" color="#000000">2006</font></td>
<td width="3" align="right"><font size="2" color="#000000"></font></td>
<td width="90" align="right"><font size="2" color="#000000">302</font></td>
<td width="2" align="left"><font size="2" color="#000000"></font></td>
<td width="15" align="left"><font size="2" color="#000000"></font></td> </tr>
<tr valign="bottom">
<td width="77%" align="center"><font size="2" color="#000000"></font></td>
<td colspan="2" align="right"><font size="2" color="#000000"></font> <hr size="2" color="#000000"> <font size="2" color="#000000"></font></td>
<td width="2" align="left"><font size="2" color="#000000"></font></td>
<td width="15" align="left"><font size="2" color="#000000"></font></td> </tr>
<tr valign="bottom" bgcolor="#CCEEFF">
<td width="77%" align="center"><font size="2" color="#000000"><b>Total</b></font></td>
<td width="3" align="right"><font size="2" color="#000000">$</font></td>
<td width="90" align="right"><font size="2" color="#000000">1,394</font></td>
<td width="2" align="left"><font size="2" color="#000000"></font></td>
<td width="15" align="left"><font size="2" color="#000000"></font></td> </tr>
<tr valign="bottom">
<td width="77%" align="center"><font size="2" color="#000000"></font></td>
<td colspan="2" align="right"><font size="2" color="#000000"></font> <hr size="4" color="#000000"> <font size="2" color="#000000"></font></td>
<td width="2" align="left"><font size="2" color="#000000"></font></td>
<td width="15" align="left"><font size="2" color="#000000"></font></td> </tr> </table> <p><font size="2" color="#000000">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Statement No. 142 requires a transitional impairment test to be applied to all
goodwill and other indefinite lived intangible assets within the first six months after adoption. The impairment test involves identifying separate reporting units based on the reporting structure of the Company, then assigning all assets and
liabilities, including goodwill, to these units. Goodwill is assigned based on the reporting unit benefiting from the factors that gave rise to the goodwill. The Company has performed its transitional impairment tests on its goodwill assets and has
concluded that the recorded value of the Company's goodwill is not impaired as of June 30, 2002.</font></p> <p><font size="2" color="#000000"><b>NOTE I - SEGMENT INFORMATION</b></font></p> <p><font size="2"
color="#000000">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Prior to 2002, the Company operated three business segments: community banking, mortgage banking, and other financial services. These business segments were primarily identified by the
products or services offered and the channels through which the product or service was offered. The community banking operations consisted of various community banks that offered customers traditional banking products and services through various
delivery channels. The mortgage banking operations included the origination, acquisition, servicing, and sale of mortgage loans. The other financial services business segment consisted of nontraditional services offered to customers, such as
investment advisory, insurance, and internet technology products. Another defined business segment of the Company was corporate support which included the parent company and other support needs.</font></p> <p><font size="2"
color="#000000">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;During 2001, the Company completed a comprehensive reorganization plan that changed the Company's business model and refocused attention and resources on the Company's core West
Virginia community banking franchise. As part of this reorganization, the Company completed its exit from mortgage banking activities, sold its internet service and direct mail divisions, sold its investment brokerage accounts, and sold its
California banking operations. As a result of this reorganization, the Company maintains City National Bank of West Virginia as its sole operating subsidiary and, beginning January 1, 2002, the Company no longer maintains multiple reportable
business segments.</font></p> <center> <font size="2">15</font><br> </center>

<p Style='page-break-before:always'>
<HR  SIZE="3" COLOR="#CCEEFF" WIDTH="100%" ALIGN="CENTER">
<h5 align="left"><a href="#toc">Table of Contents</a></h5>
 <p><font size="2" face="Times New Roman, Times, serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Selected segment information for the six and three month periods ended June 30, 2001 is included in the following table:</font></p>
<table border=0 width="100%" cellpadding=0 cellspacing="0">
<tr valign="bottom">
<td width="322" height="9" align="center"> <div align="center"><font face="Times New Roman, Times, serif"><b><font size="2"><i>(in thousands)</i></font></b></font></div> </td>
<td width="6" height="9" align="center"><font face="Times New Roman, Times, serif"></font></td>
<td width="86" height="9" align="center"> <div align="center"><font face="Times New Roman, Times, serif"><b><font face="Times New Roman, Times, serif"><b><font size="1">Community</font></b></font><font size="1"><br> Banking</font></b></font></div>
</td>
<td width="4" height="9" align="left"> <div align="center"><font face="Times New Roman, Times, serif"><font size="2"><font size="2"><font size="2"></font></font></font></font></div> </td>
<td width="18" height="9" align="center"> <div align="center"><font face="Times New Roman, Times, serif"></font></div> </td>
<td width="6" height="9" align="center"> <div align="center"><font face="Times New Roman, Times, serif"></font></div> </td>
<td width="86" height="9" align="center"> <div align="center"><font face="Times New Roman, Times, serif"><b><font face="Times New Roman, Times, serif"><b><font size="1">Mortgage<br> </font></b></font><font size="1">Banking</font></b></font></div>
</td>
<td width="4" height="9" align="left"> <div align="center"><font face="Times New Roman, Times, serif"></font></div> </td>
<td width="18" height="9" align="center"> <div align="center"><font face="Times New Roman, Times, serif"></font></div> </td>
<td width="6" height="9" align="center"> <div align="center"><font face="Times New Roman, Times, serif"></font></div> </td>
<td width="86" height="9" align="center"> <div align="center"><font face="Times New Roman, Times, serif"><b><font face="Times New Roman, Times, serif"><b><font face="Times New Roman, Times, serif"><b><font size="1">Other</font></b></font><font
size="1"><br> Financial</font></b></font><font size="1"><br> Services</font></b></font></div> </td>
<td width="4" height="9" align="left"> <div align="center"><font face="Times New Roman, Times, serif"></font></div> </td>
<td width="18" height="9" align="center"> <div align="center"><font face="Times New Roman, Times, serif"></font></div> </td>
<td width="6" height="9" align="center"> <div align="center"><font face="Times New Roman, Times, serif"></font></div> </td>
<td width="86" height="9" align="center"> <div align="center"><font face="Times New Roman, Times, serif"><b><font face="Times New Roman, Times, serif"><b><font size="1">General</font></b></font><font size="1"><br> Corporate</font></b></font></div>
</td>
<td width="5" height="9" align="center"> <div align="center"><font face="Times New Roman, Times, serif"></font></div> </td>
<td width="18" height="9" align="center"> <div align="center"><font face="Times New Roman, Times, serif"></font></div> </td>
<td width="6" height="9" align="center"> <div align="center"><font face="Times New Roman, Times, serif"></font></div> </td>
<td width="53" height="9" align="center"> <div align="center"><font face="Times New Roman, Times, serif"><b><font size="1">Eliminations</font></b></font></div> </td>
<td colspan="3" height="9" align="center"> <div align="center"><font face="Times New Roman, Times, serif"></font></div> </td>
<td height="9" align="left" width="6"><font face="Times New Roman, Times, serif"></font></td>
<td height="9" align="center" width="86"><font face="Times New Roman, Times, serif"><b><font size="1">Consolidated</font></b></font></td>
<td height="9" align="left" width="4"><font face="Times New Roman, Times, serif"></font></td>
<td width="1" height="9" align="left">&nbsp;</td> </tr>
<tr valign="bottom">
<td width="322"><font face="Times New Roman, Times, serif"></font></td>
<td colspan="2"> <hr color="#000000" size="2"> </td>
<td width="4" align="left"><font face="Times New Roman, Times, serif" size="2"></font></td>
<td width="18"><font face="Times New Roman, Times, serif"></font></td>
<td colspan="2"> <hr color="#000000" size="2"> </td>
<td width="4" align="left"><font face="Times New Roman, Times, serif"></font></td>
<td width="18"><font face="Times New Roman, Times, serif"></font></td>
<td colspan="2"> <hr color="#000000" size="2"> </td>
<td width="4" align="left"><font face="Times New Roman, Times, serif"></font></td>
<td width="18"><font face="Times New Roman, Times, serif"></font></td>
<td colspan="2"> <hr color="#000000" size="2"> </td>
<td width="5" align="center"><font face="Times New Roman, Times, serif"></font></td>
<td width="18"><font face="Times New Roman, Times, serif"></font></td>
<td colspan="2"> <hr color="#000000" size="2"> </td>
<td width="4" align="left"><font face="Times New Roman, Times, serif"></font></td>
<td width="1"><font face="Times New Roman, Times, serif"></font></td>
<td width="18"><font face="Times New Roman, Times, serif"></font></td>
<td colspan="2" align="left"> <hr color="#000000" size="2"> </td>
<td width="4" align="left"><font face="Times New Roman, Times, serif"></font></td>
<td width="1">&nbsp;</td> </tr>
<tr valign="bottom" align="right">
<td width="322" align="left"><font size="2" face="Times New Roman, Times, serif"><b>For the six months ended June 30, 2001 </b></font></td>
<td width="6"><font face="Times New Roman, Times, serif" size="2"></font></td>
<td width="86"><font face="Times New Roman, Times, serif" size="2"></font></td>
<td width="4" align="left"><font face="Times New Roman, Times, serif" size="2"></font></td>
<td width="18"><font face="Times New Roman, Times, serif" size="2"></font></td>
<td width="6"><font face="Times New Roman, Times, serif" size="2"></font></td>
<td width="86"><font face="Times New Roman, Times, serif" size="2"></font></td>
<td width="4" align="left"><font face="Times New Roman, Times, serif" size="2"></font></td>
<td width="18"><font face="Times New Roman, Times, serif" size="2"></font></td>
<td width="6"><font face="Times New Roman, Times, serif" size="2"></font></td>
<td width="86"><font face="Times New Roman, Times, serif" size="2"></font></td>
<td width="4" align="left"><font face="Times New Roman, Times, serif" size="2"></font></td>
<td width="18"><font face="Times New Roman, Times, serif" size="2"></font></td>
<td width="6"><font face="Times New Roman, Times, serif" size="2"></font></td>
<td width="86"><font face="Times New Roman, Times, serif" size="2"></font></td>
<td width="5" align="center"><font face="Times New Roman, Times, serif" size="2"></font></td>
<td width="18"><font face="Times New Roman, Times, serif" size="2"></font></td>
<td width="6"><font face="Times New Roman, Times, serif" size="2"></font></td>
<td width="53"><font face="Times New Roman, Times, serif" size="2"></font></td>
<td width="4" align="left"><font face="Times New Roman, Times, serif" size="2"></font></td>
<td width="1"><font face="Times New Roman, Times, serif" size="2"></font></td>
<td width="18"><font face="Times New Roman, Times, serif" size="2"></font></td>
<td width="6" align="left"><font face="Times New Roman, Times, serif" size="2"></font></td>
<td width="86"><font face="Times New Roman, Times, serif" size="2"></font></td>
<td width="4" align="left"><font face="Times New Roman, Times, serif" size="2"></font></td>
<td width="1"><font size="2"></font></td> </tr>
<tr valign="bottom" bgcolor="#cceeff" align="right">
<td width="322" align="left"><font size="2" face="Times New Roman, Times, serif">Net interest income (expense)</font></td>
<td width="6"><font size="2" face="Times New Roman, Times, serif">$</font></td>
<td width="86"> <div align="right"><font size="2" face="Times New Roman, Times, serif"> 48,885</font></div> </td>
<td width="4" align="left"> <div align="left"><font face="Times New Roman, Times, serif"><font size="2"><font size="2"><font size="2"><font size="2"></font></font></font></font></font></div> </td>
<td width="18"><font face="Times New Roman, Times, serif" size="2"></font></td>
<td width="6"><font size="2" face="Times New Roman, Times, serif">$</font></td>
<td width="86"> <div align="right"><font size="2" face="Times New Roman, Times, serif"> (4,568</font></div> </td>
<td width="4" align="left"> <div align="left"><font size="2" face="Times New Roman, Times, serif">)</font></div> </td>
<td width="18"><font face="Times New Roman, Times, serif" size="2"></font></td>
<td width="6"><font size="2" face="Times New Roman, Times, serif">$</font></td>
<td width="86"> <div align="right"><font size="2" face="Times New Roman, Times, serif"> (37</font></div> </td>
<td width="4" align="left"><font size="2" face="Times New Roman, Times, serif">)</font></td>
<td width="18"><font face="Times New Roman, Times, serif" size="2"></font></td>
<td width="6"><font size="2" face="Times New Roman, Times, serif">$</font></td>
<td width="86"> <div align="right"><font size="2" face="Times New Roman, Times, serif">(1,102</font></div> </td>
<td width="5" align="center"> <div align="left"><font size="2" face="Times New Roman, Times, serif">)</font></div> </td>
<td width="18"><font face="Times New Roman, Times, serif" size="2"></font></td>
<td width="6"><font size="2" face="Times New Roman, Times, serif">$</font></td>
<td width="53"> <div align="right"><font face="Times New Roman, Times, serif" size="2">&#151;</font></div> </td>
<td width="4" align="left"><font face="Times New Roman, Times, serif" size="2"></font></td>
<td width="1"><font face="Times New Roman, Times, serif" size="2"></font></td>
<td width="18"><font face="Times New Roman, Times, serif" size="2"></font></td>
<td width="6" align="left"><font size="2" face="Times New Roman, Times, serif">$</font></td>
<td width="86"> <div align="right"><font size="2" face="Times New Roman, Times, serif"> 43,178</font></div> </td>
<td width="4" align="left"><font face="Times New Roman, Times, serif" size="2"></font></td>
<td width="1"><font size="2"></font></td> </tr>
<tr valign="bottom" align="right">
<td width="322" align="left"><font size="2" face="Times New Roman, Times, serif">Provision for loan losses</font></td>
<td width="6"><font face="Times New Roman, Times, serif" size="2"></font></td>
<td width="86"> <div align="right"><font size="2" face="Times New Roman, Times, serif">16,010</font></div> </td>
<td width="4" align="left"> <div align="left"><font face="Times New Roman, Times, serif"><font size="2"><font size="2"><font size="2"><font size="2"></font></font></font></font></font></div> </td>
<td width="18"><font face="Times New Roman, Times, serif" size="2"></font></td>
<td width="6"><font face="Times New Roman, Times, serif" size="2"></font></td>
<td width="86"> <div align="right"><font face="Times New Roman, Times, serif" size="2">&#151;</font></div> </td>
<td width="4" align="left"> <div align="left"><font face="Times New Roman, Times, serif"><font size="2"></font></font></div> </td>
<td width="18"><font face="Times New Roman, Times, serif" size="2"></font></td>
<td width="6"><font face="Times New Roman, Times, serif" size="2"></font></td>
<td width="86"> <div align="right"><font face="Times New Roman, Times, serif" size="2">&#151;</font></div> </td>
<td width="4" align="left"><font face="Times New Roman, Times, serif" size="2"></font></td>
<td width="18"><font face="Times New Roman, Times, serif" size="2"></font></td>
<td width="6"><font face="Times New Roman, Times, serif" size="2"></font></td>
<td width="86"> <div align="right"><font face="Times New Roman, Times, serif" size="2">&#151;</font></div> </td>
<td width="5" align="center"> <div align="left"><font face="Times New Roman, Times, serif"><font size="2"></font></font></div> </td>
<td width="18"><font face="Times New Roman, Times, serif" size="2"></font></td>
<td width="6"><font face="Times New Roman, Times, serif" size="2"></font></td>
<td width="53"> <div align="right"><font face="Times New Roman, Times, serif" size="2">&#151;</font></div> </td>
<td width="4" align="left"><font face="Times New Roman, Times, serif" size="2"></font></td>
<td width="1"><font face="Times New Roman, Times, serif" size="2"></font></td>
<td width="18"><font face="Times New Roman, Times, serif" size="2"></font></td>
<td width="6" align="left"><font face="Times New Roman, Times, serif" size="2"></font></td>
<td width="86"> <div align="right"><font size="2" face="Times New Roman, Times, serif">16,010</font></div> </td>
<td width="4" align="left"><font face="Times New Roman, Times, serif" size="2"></font></td>
<td width="1"><font size="2"></font></td> </tr>
<tr valign="bottom" align="right">
<td width="322" align="left"><font face="Times New Roman, Times, serif"></font></td>
<td colspan="2"> <hr color="#000000" size="2"> </td>
<td width="4" align="left"><font face="Times New Roman, Times, serif" size="2"></font></td>
<td width="18"><font face="Times New Roman, Times, serif"></font></td>
<td colspan="2"> <hr color="#000000" size="2"> </td>
<td width="4" align="left"><font face="Times New Roman, Times, serif"></font></td>
<td width="18"><font face="Times New Roman, Times, serif"></font></td>
<td colspan="2"> <hr color="#000000" size="2"> </td>
<td width="4" align="left"><font face="Times New Roman, Times, serif"></font></td>
<td width="18"><font face="Times New Roman, Times, serif"></font></td>
<td colspan="2"> <hr color="#000000" size="2"> </td>
<td width="5" align="center"><font face="Times New Roman, Times, serif"></font></td>
<td width="18"><font face="Times New Roman, Times, serif"></font></td>
<td colspan="2"> <hr color="#000000" size="2"> </td>
<td width="4" align="left"><font face="Times New Roman, Times, serif"></font></td>
<td width="1"><font face="Times New Roman, Times, serif"></font></td>
<td width="18"><font face="Times New Roman, Times, serif"></font></td>
<td colspan="2" align="left"> <hr color="#000000" size="2"> </td>
<td width="4" align="left"><font face="Times New Roman, Times, serif"></font></td>
<td width="1">&nbsp;</td> </tr>
<tr valign="bottom" bgcolor="#cceeff" align="right">
<td width="322" align="left"><font size="2" face="Times New Roman, Times, serif">Net interest income after provision for loan losses</font></td>
<td width="6"><font face="Times New Roman, Times, serif"></font></td>
<td width="86"> <div align="right"><font size="2" face="Times New Roman, Times, serif">32,875</font></div> </td>
<td width="4" align="left"> <div align="left"><font face="Times New Roman, Times, serif"><font size="2"><font size="2"><font size="2"></font></font></font></font></div> </td>
<td width="18"><font face="Times New Roman, Times, serif"></font></td>
<td width="6"><font face="Times New Roman, Times, serif"></font></td>
<td width="86"> <div align="right"><font size="2" face="Times New Roman, Times, serif">(4,568</font></div> </td>
<td width="4" align="left"> <div align="left"><font size="2" face="Times New Roman, Times, serif">)</font></div> </td>
<td width="18"><font face="Times New Roman, Times, serif"></font></td>
<td width="6"><font face="Times New Roman, Times, serif"></font></td>
<td width="86"> <div align="right"><font size="2" face="Times New Roman, Times, serif">(37</font></div> </td>
<td width="4" align="left"><font size="2" face="Times New Roman, Times, serif">)</font></td>
<td width="18"><font face="Times New Roman, Times, serif"></font></td>
<td width="6"><font face="Times New Roman, Times, serif"></font></td>
<td width="86"> <div align="right"><font size="2" face="Times New Roman, Times, serif">(1,102</font></div> </td>
<td width="5" align="center"> <div align="left"><font size="2" face="Times New Roman, Times, serif">)</font></div> </td>
<td width="18"><font face="Times New Roman, Times, serif"></font></td>
<td width="6"><font face="Times New Roman, Times, serif"></font></td>
<td width="53"> <div align="right"><font face="Times New Roman, Times, serif">&#151;</font></div> </td>
<td width="4" align="left"><font face="Times New Roman, Times, serif"></font></td>
<td width="1"><font face="Times New Roman, Times, serif"></font></td>
<td width="18"><font face="Times New Roman, Times, serif"></font></td>
<td width="6" align="left"><font face="Times New Roman, Times, serif"></font></td>
<td width="86"> <div align="right"><font size="2" face="Times New Roman, Times, serif">27,168</font></div> </td>
<td width="4" align="left"><font face="Times New Roman, Times, serif"></font></td>
<td width="1">&nbsp;</td> </tr>
<tr valign="bottom" align="right">
<td width="322" align="left"><font size="2" face="Times New Roman, Times, serif">Other income</font></td>
<td width="6"><font face="Times New Roman, Times, serif"></font></td>
<td width="86"> <div align="right"><font size="2" face="Times New Roman, Times, serif">12,979</font></div> </td>
<td width="4" align="left"> <div align="left"><font face="Times New Roman, Times, serif"><font size="2"><font size="2"><font size="2"></font></font></font></font></div> </td>
<td width="18"><font face="Times New Roman, Times, serif"></font></td>
<td width="6"><font face="Times New Roman, Times, serif"></font></td>
<td width="86"> <div align="right"><font size="2" face="Times New Roman, Times, serif">2,364</font></div> </td>
<td width="4" align="left"> <div align="left"><font face="Times New Roman, Times, serif"></font></div> </td>
<td width="18"><font face="Times New Roman, Times, serif"></font></td>
<td width="6"><font face="Times New Roman, Times, serif"></font></td>
<td width="86"> <div align="right"><font size="2" face="Times New Roman, Times, serif">6,652</font></div> </td>
<td width="4" align="left"><font face="Times New Roman, Times, serif"></font></td>
<td width="18"><font face="Times New Roman, Times, serif"></font></td>
<td width="6"><font face="Times New Roman, Times, serif"></font></td>
<td width="86"> <div align="right"><font size="2" face="Times New Roman, Times, serif">2,473</font></div> </td>
<td width="5" align="center"> <div align="left"><font face="Times New Roman, Times, serif"></font></div> </td>
<td width="18"><font face="Times New Roman, Times, serif"></font></td>
<td width="6"><font face="Times New Roman, Times, serif"></font></td>
<td width="53" align="right"> <font size="2" face="Times New Roman, Times, serif">(3,234</font></td>
<td width="4" align="left"><font size="2" face="Times New Roman, Times, serif">)</font></td>
<td width="1"><font face="Times New Roman, Times, serif"></font></td>
<td width="18"><font face="Times New Roman, Times, serif"></font></td>
<td width="6" align="left"><font face="Times New Roman, Times, serif"></font></td>
<td width="86"> <div align="right"><font size="2" face="Times New Roman, Times, serif">21,234</font></div> </td>
<td width="4" align="left"><font face="Times New Roman, Times, serif"></font></td>
<td width="1">&nbsp;</td> </tr>
<tr valign="bottom" bgcolor="#cceeff" align="right">
<td width="322" align="left"><font size="2" face="Times New Roman, Times, serif">Other expenses</font></td>
<td width="6"><font face="Times New Roman, Times, serif"></font></td>
<td width="86"> <div align="right"><font size="2" face="Times New Roman, Times, serif">47,291</font></div> </td>
<td width="4" align="left"> <div align="left"><font face="Times New Roman, Times, serif"><font size="2"><font size="2"><font size="2"></font></font></font></font></div> </td>
<td width="18"><font face="Times New Roman, Times, serif"></font></td>
<td width="6"><font face="Times New Roman, Times, serif"></font></td>
<td width="86"> <div align="right"><font size="2" face="Times New Roman, Times, serif">6,776</font></div> </td>
<td width="4" align="left"> <div align="left"><font face="Times New Roman, Times, serif"></font></div> </td>
<td width="18"><font face="Times New Roman, Times, serif"></font></td>
<td width="6"><font face="Times New Roman, Times, serif"></font></td>
<td width="86"> <div align="right"><font size="2" face="Times New Roman, Times, serif">5,689</font></div> </td>
<td width="4" align="left"><font face="Times New Roman, Times, serif"></font></td>
<td width="18"><font face="Times New Roman, Times, serif"></font></td>
<td width="6"><font face="Times New Roman, Times, serif"></font></td>
<td width="86"> <div align="right"><font size="2" face="Times New Roman, Times, serif">4,765</font></div> </td>
<td width="5" align="center"> <div align="left"><font face="Times New Roman, Times, serif"></font></div> </td>
<td width="18"><font face="Times New Roman, Times, serif"></font></td>
<td width="6"><font face="Times New Roman, Times, serif"></font></td>
<td width="53" align="left"> <div align="right"><font size="2" face="Times New Roman, Times, serif">(3,234</font></div> </td>
<td width="4" align="left"><font size="2" face="Times New Roman, Times, serif">)</font></td>
<td width="1"><font face="Times New Roman, Times, serif"></font></td>
<td width="18"><font face="Times New Roman, Times, serif"></font></td>
<td width="6" align="left"><font face="Times New Roman, Times, serif"></font></td>
<td width="86"> <div align="right"><font size="2" face="Times New Roman, Times, serif">61,287</font></div> </td>
<td width="4" align="left"><font face="Times New Roman, Times, serif"></font></td>
<td width="1">&nbsp;</td> </tr>
<tr valign="bottom" align="right">
<td width="322" align="left"><font face="Times New Roman, Times, serif"></font></td>
<td colspan="2"> <hr color="#000000" size="2"> </td>
<td width="4" align="left"><font face="Times New Roman, Times, serif" size="2"></font></td>
<td width="18"><font face="Times New Roman, Times, serif"></font></td>
<td colspan="2"> <hr color="#000000" size="2"> </td>
<td width="4" align="left"><font face="Times New Roman, Times, serif"></font></td>
<td width="18"><font face="Times New Roman, Times, serif"></font></td>
<td colspan="2"> <hr color="#000000" size="2"> </td>
<td width="4" align="left"><font face="Times New Roman, Times, serif"></font></td>
<td width="18"><font face="Times New Roman, Times, serif"></font></td>
<td colspan="2"> <hr color="#000000" size="2"> </td>
<td width="5" align="center"><font face="Times New Roman, Times, serif"></font></td>
<td width="18"><font face="Times New Roman, Times, serif"></font></td>
<td colspan="2"> <hr color="#000000" size="2"> </td>
<td width="4" align="left"><font face="Times New Roman, Times, serif"></font></td>
<td width="1"><font face="Times New Roman, Times, serif"></font></td>
<td width="18"><font face="Times New Roman, Times, serif"></font></td>
<td colspan="2" align="left"> <hr color="#000000" size="2"> </td>
<td width="4" align="left"><font face="Times New Roman, Times, serif"></font></td>
<td width="1">&nbsp;</td> </tr>
<tr valign="bottom" bgcolor="#cceeff" align="right">
<td width="322" align="left" nowrap><font size="2" face="Times New Roman, Times, serif">(<b>Loss) income before income taxes and cumulative<br> </b>&nbsp;&nbsp;&nbsp;<b>effect of &nbsp;accounting change</b></font></td>
<td width="6"><font face="Times New Roman, Times, serif" size="2"></font></td>
<td width="86"> <div align="right"><font size="2" face="Times New Roman, Times, serif"> (1,437</font></div> </td>
<td width="4" align="left"> <div align="left"><font size="2" face="Times New Roman, Times, serif">)</font></div> </td>
<td width="18"><font face="Times New Roman, Times, serif" size="2"></font></td>
<td width="6"><font face="Times New Roman, Times, serif" size="2"></font></td>
<td width="86"> <div align="right"><font size="2" face="Times New Roman, Times, serif">(8,980</font></div> </td>
<td width="4" align="left"> <div align="left"><font size="2" face="Times New Roman, Times, serif">)</font></div> </td>
<td width="18"><font face="Times New Roman, Times, serif" size="2"></font></td>
<td width="6"><font face="Times New Roman, Times, serif" size="2"></font></td>
<td width="86"> <div align="right"><font size="2" face="Times New Roman, Times, serif">926</font></div> </td>
<td width="4" align="left"><font face="Times New Roman, Times, serif" size="2"></font></td>
<td width="18"><font face="Times New Roman, Times, serif" size="2"></font></td>
<td width="6"><font face="Times New Roman, Times, serif" size="2"></font></td>
<td width="86"> <div align="right"><font size="2" face="Times New Roman, Times, serif">(3,394</font></div> </td>
<td width="5" align="center"> <div align="left"><font size="2" face="Times New Roman, Times, serif">)</font></div> </td>
<td width="18"><font face="Times New Roman, Times, serif" size="2"></font></td>
<td width="6"><font face="Times New Roman, Times, serif" size="2"></font></td>
<td width="53"> <div align="right"><font face="Times New Roman, Times, serif" size="2">&#151;</font></div> </td>
<td width="4" align="left"><font face="Times New Roman, Times, serif" size="2"></font></td>
<td width="1"><font face="Times New Roman, Times, serif" size="2"></font></td>
<td width="18"><font face="Times New Roman, Times, serif" size="2"></font></td>
<td width="6" align="left"><font face="Times New Roman, Times, serif" size="2"></font></td>
<td width="86"> <div align="right"><font size="2" face="Times New Roman, Times, serif">(12,885</font></div> </td>
<td width="4" align="left"><font size="2" face="Times New Roman, Times, serif">)</font></td>
<td width="1"><font size="2"></font></td> </tr>
<tr valign="bottom" align="right">
<td width="322" align="left"><font size="2" face="Times New Roman, Times, serif">Income tax (benefit) expense </font></td>
<td width="6"><font face="Times New Roman, Times, serif" size="2"></font></td>
<td width="86"> <div align="right"><font size="2" face="Times New Roman, Times, serif">(448</font></div> </td>
<td width="4" align="left"> <div align="left"><font size="2" face="Times New Roman, Times, serif">)</font></div> </td>
<td width="18"><font face="Times New Roman, Times, serif" size="2"></font></td>
<td width="6"><font face="Times New Roman, Times, serif" size="2"></font></td>
<td width="86"> <div align="right"><font size="2" face="Times New Roman, Times, serif">(3,834</font></div> </td>
<td width="4" align="left"> <div align="left"><font size="2" face="Times New Roman, Times, serif">)</font></div> </td>
<td width="18"><font face="Times New Roman, Times, serif" size="2"></font></td>
<td width="6"><font face="Times New Roman, Times, serif" size="2"></font></td>
<td width="86"> <div align="right"><font size="2" face="Times New Roman, Times, serif">596</font></div> </td>
<td width="4" align="left"><font face="Times New Roman, Times, serif" size="2"></font></td>
<td width="18"><font face="Times New Roman, Times, serif" size="2"></font></td>
<td width="6"><font face="Times New Roman, Times, serif" size="2"></font></td>
<td width="86"> <div align="right"><font size="2" face="Times New Roman, Times, serif">(1,384</font></div> </td>
<td width="5" align="center"> <div align="left"><font size="2" face="Times New Roman, Times, serif">)</font></div> </td>
<td width="18"><font face="Times New Roman, Times, serif" size="2"></font></td>
<td width="6"><font face="Times New Roman, Times, serif" size="2"></font></td>
<td width="53"> <div align="right"><font face="Times New Roman, Times, serif" size="2">&#151;</font></div> </td>
<td width="4" align="left"><font face="Times New Roman, Times, serif" size="2"></font></td>
<td width="1"><font face="Times New Roman, Times, serif" size="2"></font></td>
<td width="18"><font face="Times New Roman, Times, serif" size="2"></font></td>
<td width="6" align="left"><font face="Times New Roman, Times, serif" size="2"></font></td>
<td width="86"> <div align="right"><font size="2" face="Times New Roman, Times, serif">(5,070</font></div> </td>
<td width="4" align="left"><font size="2" face="Times New Roman, Times, serif">)</font></td>
<td width="1"><font size="2"></font></td> </tr>
<tr valign="bottom" align="right">
<td width="322" align="left"><font face="Times New Roman, Times, serif" size="2"></font></td>
<td colspan="2"> <hr color="#000000" size="2"> </td>
<td width="4" align="left"><font face="Times New Roman, Times, serif" size="2"></font></td>
<td width="18"><font face="Times New Roman, Times, serif" size="2"></font></td>
<td colspan="2"> <hr color="#000000" size="2"> </td>
<td width="4" align="left"><font face="Times New Roman, Times, serif" size="2"></font></td>
<td width="18"><font face="Times New Roman, Times, serif" size="2"></font></td>
<td colspan="2"> <hr color="#000000" size="2"> </td>
<td width="4" align="left"><font face="Times New Roman, Times, serif" size="2"></font></td>
<td width="18"><font face="Times New Roman, Times, serif" size="2"></font></td>
<td colspan="2"> <hr color="#000000" size="2"> </td>
<td width="5" align="center"><font face="Times New Roman, Times, serif" size="2"></font></td>
<td width="18"><font face="Times New Roman, Times, serif" size="2"></font></td>
<td colspan="2"> <hr color="#000000" size="2"> </td>
<td width="4" align="left"><font face="Times New Roman, Times, serif" size="2"></font></td>
<td width="1"><font face="Times New Roman, Times, serif" size="2"></font></td>
<td width="18"><font face="Times New Roman, Times, serif" size="2"></font></td>
<td colspan="2" align="left"> <hr color="#000000" size="2"> </td>
<td width="4" align="left"><font face="Times New Roman, Times, serif" size="2"></font></td>
<td width="1"><font size="2"></font></td> </tr>
<tr valign="bottom" bgcolor="#cceeff" align="right">
<td width="322" align="left"><font size="2" face="Times New Roman, Times, serif">(Loss) income before cumulative effect of accounting &nbsp;&nbsp;&nbsp;change</font></td>
<td width="6"><font face="Times New Roman, Times, serif" size="2"></font></td>
<td width="86"> <div align="right"><font size="2" face="Times New Roman, Times, serif"> (989</font></div> </td>
<td width="4" align="left"> <div align="left"><font size="2" face="Times New Roman, Times, serif">)</font></div> </td>
<td width="18"><font face="Times New Roman, Times, serif" size="2"></font></td>
<td width="6"><font face="Times New Roman, Times, serif" size="2"></font></td>
<td width="86"> <div align="right"><font size="2" face="Times New Roman, Times, serif">(5,146</font></div> </td>
<td width="4" align="left"> <div align="left"><font size="2" face="Times New Roman, Times, serif">)</font></div> </td>
<td width="18"><font face="Times New Roman, Times, serif" size="2"></font></td>
<td width="6"><font face="Times New Roman, Times, serif" size="2"></font></td>
<td width="86"> <div align="right"><font size="2" face="Times New Roman, Times, serif">330</font></div> </td>
<td width="4" align="left"><font face="Times New Roman, Times, serif" size="2"></font></td>
<td width="18"><font face="Times New Roman, Times, serif" size="2"></font></td>
<td width="6"><font face="Times New Roman, Times, serif" size="2"></font></td>
<td width="86"> <div align="right"><font size="2" face="Times New Roman, Times, serif">(2,010</font></div> </td>
<td width="5" align="center"> <div align="left"><font size="2" face="Times New Roman, Times, serif">)</font></div> </td>
<td width="18"><font face="Times New Roman, Times, serif" size="2"></font></td>
<td width="6"><font face="Times New Roman, Times, serif" size="2"></font></td>
<td width="53"> <div align="right"><font face="Times New Roman, Times, serif" size="2">&#151;</font></div> </td>
<td width="4" align="left"><font face="Times New Roman, Times, serif" size="2"></font></td>
<td width="1"><font face="Times New Roman, Times, serif" size="2"></font></td>
<td width="18"><font face="Times New Roman, Times, serif" size="2"></font></td>
<td width="6" align="left"><font face="Times New Roman, Times, serif" size="2"></font></td>
<td width="86"> <div align="right"><font size="2" face="Times New Roman, Times, serif">(7,815</font></div> </td>
<td width="4" align="left"><font size="2" face="Times New Roman, Times, serif">)</font></td>
<td width="1"><font size="2"></font></td> </tr>
<tr valign="bottom" align="right">
<td width="322" align="left"><font size="2" face="Times New Roman, Times, serif">Cumulative effect of accounting change, net of tax</font></td>
<td width="6"><font face="Times New Roman, Times, serif" size="2"></font></td>
<td width="86"> <div align="right"><font size="2" face="Times New Roman, Times, serif">&#151;-</font></div> </td>
<td width="4" align="left"> <div align="left"><font face="Times New Roman, Times, serif"><font size="2"><font size="2"><font size="2"><font size="2"></font></font></font></font></font></div> </td>
<td width="18"><font face="Times New Roman, Times, serif" size="2"></font></td>
<td width="6"><font face="Times New Roman, Times, serif" size="2"></font></td>
<td width="86"> <div align="right"><font size="2" face="Times New Roman, Times, serif">(17,985</font></div> </td>
<td width="4" align="left"> <div align="left"><font size="2" face="Times New Roman, Times, serif">)</font></div> </td>
<td width="18"><font face="Times New Roman, Times, serif" size="2"></font></td>
<td width="6"><font face="Times New Roman, Times, serif" size="2"></font></td>
<td width="86"> <div align="right"><font face="Times New Roman, Times, serif" size="2">&#151;</font></div> </td>
<td width="4" align="left"><font face="Times New Roman, Times, serif" size="2"></font></td>
<td width="18"><font face="Times New Roman, Times, serif" size="2"></font></td>
<td width="6"><font face="Times New Roman, Times, serif" size="2"></font></td>
<td width="86"> <div align="right"><font face="Times New Roman, Times, serif" size="2">&#151;</font></div> </td>
<td width="5" align="center"> <div align="left"><font face="Times New Roman, Times, serif"><font size="2"></font></font></div> </td>
<td width="18"><font face="Times New Roman, Times, serif" size="2"></font></td>
<td width="6"><font face="Times New Roman, Times, serif" size="2"></font></td>
<td width="53"> <div align="right"><font face="Times New Roman, Times, serif" size="2">&#151;</font></div> </td>
<td width="4" align="left"><font face="Times New Roman, Times, serif" size="2"></font></td>
<td width="1"><font face="Times New Roman, Times, serif" size="2"></font></td>
<td width="18"><font face="Times New Roman, Times, serif" size="2"></font></td>
<td width="6" align="left"><font face="Times New Roman, Times, serif" size="2"></font></td>
<td width="86"> <div align="right"><font size="2" face="Times New Roman, Times, serif">(17,985</font></div> </td>
<td width="4" align="left"><font size="2" face="Times New Roman, Times, serif">)</font></td>
<td width="1"><font size="2"></font></td> </tr>
<tr valign="bottom" align="right">
<td width="322" align="left"><font face="Times New Roman, Times, serif"></font></td>
<td colspan="2"> <hr color="#000000" size="2"> </td>
<td width="4" align="left"><font face="Times New Roman, Times, serif" size="2"></font></td>
<td width="18"><font face="Times New Roman, Times, serif"></font></td>
<td colspan="2"> <hr color="#000000" size="2"> </td>
<td width="4" align="left"><font face="Times New Roman, Times, serif"></font></td>
<td width="18"><font face="Times New Roman, Times, serif"></font></td>
<td colspan="2"> <hr color="#000000" size="2"> </td>
<td width="4" align="left"><font face="Times New Roman, Times, serif"></font></td>
<td width="18"><font face="Times New Roman, Times, serif"></font></td>
<td colspan="2"> <hr color="#000000" size="2"> </td>
<td width="5" align="center"><font face="Times New Roman, Times, serif"></font></td>
<td width="18"><font face="Times New Roman, Times, serif"></font></td>
<td colspan="2"> <hr color="#000000" size="2"> </td>
<td width="4" align="left"><font face="Times New Roman, Times, serif"></font></td>
<td width="1"><font face="Times New Roman, Times, serif"></font></td>
<td width="18"><font face="Times New Roman, Times, serif"></font></td>
<td colspan="2" align="left"> <hr color="#000000" size="2"> </td>
<td width="4" align="left"><font face="Times New Roman, Times, serif"></font></td>
<td width="1">&nbsp;</td> </tr>
<tr valign="bottom" bgcolor="#cceeff" align="right">
<td width="322" align="left"><font size="2" face="Times New Roman, Times, serif"><b>Net (Loss) income</b> </font></td>
<td width="6"><font size="2" face="Times New Roman, Times, serif">$</font></td>
<td width="86"> <div align="right"><font size="2" face="Times New Roman, Times, serif"> (989</font></div> </td>
<td width="4" align="left"> <div align="left"><font size="2" face="Times New Roman, Times, serif">)</font></div> </td>
<td width="18"><font face="Times New Roman, Times, serif"></font></td>
<td width="6"><font size="2" face="Times New Roman, Times, serif">$</font></td>
<td width="86"> <div align="right"><font size="2" face="Times New Roman, Times, serif"> (23,131</font></div> </td>
<td width="4" align="left"> <div align="left"><font size="2" face="Times New Roman, Times, serif">)</font></div> </td>
<td width="18"><font face="Times New Roman, Times, serif"></font></td>
<td width="6"><font size="2" face="Times New Roman, Times, serif">$</font></td>
<td width="86"> <div align="right"><font size="2" face="Times New Roman, Times, serif"> 330</font></div> </td>
<td width="4" align="left"><font face="Times New Roman, Times, serif"></font></td>
<td width="18"><font face="Times New Roman, Times, serif"></font></td>
<td width="6"><font size="2" face="Times New Roman, Times, serif">$</font></td>
<td width="86"> <div align="right"><font size="2" face="Times New Roman, Times, serif">(2,010</font></div> </td>
<td width="5" align="center"> <div align="left"><font size="2" face="Times New Roman, Times, serif">)</font></div> </td>
<td width="18"><font face="Times New Roman, Times, serif"></font></td>
<td width="6"><font size="2" face="Times New Roman, Times, serif">$</font></td>
<td width="53"> <div align="right"><font face="Times New Roman, Times, serif">&#151;</font></div> </td>
<td width="4" align="left"><font face="Times New Roman, Times, serif"></font></td>
<td width="1"><font face="Times New Roman, Times, serif"></font></td>
<td width="18"><font face="Times New Roman, Times, serif"></font></td>
<td width="6" align="left"><font size="2" face="Times New Roman, Times, serif">$</font></td>
<td width="86"> <div align="right"><font size="2" face="Times New Roman, Times, serif"> (25,800</font></div> </td>
<td width="4" align="left"><font size="2" face="Times New Roman, Times, serif">)</font></td>
<td width="1">&nbsp;</td> </tr>
<tr valign="bottom" align="right">
<td width="322" align="left"><font face="Times New Roman, Times, serif"></font></td>
<td colspan="2"> <hr color="#000000" size="4"> </td>
<td width="4" align="left"><font face="Times New Roman, Times, serif" size="2"></font></td>
<td width="18"><font face="Times New Roman, Times, serif"></font></td>
<td colspan="2"> <hr color="#000000" size="4"> </td>
<td width="4" align="left"><font face="Times New Roman, Times, serif"></font></td>
<td width="18"><font face="Times New Roman, Times, serif"></font></td>
<td colspan="2"> <hr color="#000000" size="4"> </td>
<td width="4" align="left"><font face="Times New Roman, Times, serif"></font></td>
<td width="18"><font face="Times New Roman, Times, serif"></font></td>
<td colspan="2"> <hr color="#000000" size="4"> </td>
<td width="5" align="center"><font face="Times New Roman, Times, serif"></font></td>
<td width="18"><font face="Times New Roman, Times, serif"></font></td>
<td colspan="2"> <hr color="#000000" size="4"> </td>
<td width="4" align="left"><font face="Times New Roman, Times, serif"></font></td>
<td width="1"><font face="Times New Roman, Times, serif"></font></td>
<td width="18"><font face="Times New Roman, Times, serif"></font></td>
<td colspan="2" align="left"> <hr color="#000000" size="4"> </td>
<td width="4" align="left"><font face="Times New Roman, Times, serif"></font></td>
<td width="1">&nbsp;</td> </tr>
<tr valign="bottom" bgcolor="#cceeff" align="right">
<td width="322" align="left"><font size="2" face="Times New Roman, Times, serif">Average assets</font></td>
<td width="6"><font size="2" face="Times New Roman, Times, serif">$</font></td>
<td width="86"> <div align="right"><font size="2" face="Times New Roman, Times, serif">2,528,493</font></div> </td>
<td width="4" align="left"> <div align="left"><font face="Times New Roman, Times, serif"><font size="2"><font size="2"><font size="2"></font></font></font></font></div> </td>
<td width="18"><font face="Times New Roman, Times, serif"></font></td>
<td width="6"><font size="2" face="Times New Roman, Times, serif">$</font></td>
<td width="86"> <div align="right"><font size="2" face="Times New Roman, Times, serif">116,392</font></div> </td>
<td width="4" align="left"> <div align="left"><font face="Times New Roman, Times, serif"></font></div> </td>
<td width="18"><font face="Times New Roman, Times, serif"></font></td>
<td width="6"><font size="2" face="Times New Roman, Times, serif">$</font></td>
<td width="86"> <div align="right"><font size="2" face="Times New Roman, Times, serif">8,415</font></div> </td>
<td width="4" align="left"><font face="Times New Roman, Times, serif"></font></td>
<td width="18"><font face="Times New Roman, Times, serif"></font></td>
<td width="6"><font size="2" face="Times New Roman, Times, serif">$</font></td>
<td width="86"> <div align="right"><font size="2" face="Times New Roman, Times, serif"> 7,133</font></div> </td>
<td width="5" align="center"> <div align="left"><font face="Times New Roman, Times, serif"></font></div> </td>
<td width="18"><font face="Times New Roman, Times, serif"></font></td>
<td width="6"><font size="2" face="Times New Roman, Times, serif">$</font></td>
<td width="53" align="left"> <div align="right"><font size="2" face="Times New Roman, Times, serif">(120,759</font></div> </td>
<td width="4" align="left"><font size="2" face="Times New Roman, Times, serif">)</font></td>
<td width="1"><font face="Times New Roman, Times, serif"></font></td>
<td width="18"><font face="Times New Roman, Times, serif"></font></td>
<td width="6" align="left"><font size="2" face="Times New Roman, Times, serif">$</font></td>
<td width="86"> <div align="right"><font size="2" face="Times New Roman, Times, serif">2,539,674</font></div> </td>
<td width="4" align="left"><font face="Times New Roman, Times, serif"></font></td>
<td width="1">&nbsp;</td> </tr>
<tr valign="bottom" align="right">
<td width="322" align="left"><font face="Times New Roman, Times, serif"></font></td>
<td colspan="2"> <hr color="#000000" size="4"> </td>
<td width="4" align="left"><font face="Times New Roman, Times, serif" size="2"></font></td>
<td width="18"><font face="Times New Roman, Times, serif"></font></td>
<td colspan="2"> <hr color="#000000" size="4"> </td>
<td width="4" align="left"><font face="Times New Roman, Times, serif"></font></td>
<td width="18"><font face="Times New Roman, Times, serif"></font></td>
<td colspan="2"> <hr color="#000000" size="4"> </td>
<td width="4" align="left"><font face="Times New Roman, Times, serif"></font></td>
<td width="18"><font face="Times New Roman, Times, serif"></font></td>
<td colspan="2"> <hr color="#000000" size="4"> </td>
<td width="5" align="center"><font face="Times New Roman, Times, serif"></font></td>
<td width="18"><font face="Times New Roman, Times, serif"></font></td>
<td colspan="2"> <hr color="#000000" size="4"> </td>
<td width="4" align="left"><font face="Times New Roman, Times, serif"></font></td>
<td width="1"><font face="Times New Roman, Times, serif"></font></td>
<td width="18"><font face="Times New Roman, Times, serif"></font></td>
<td colspan="2" align="left"> <hr color="#000000" size="4"> </td>
<td width="4" align="left"><font face="Times New Roman, Times, serif"></font></td>
<td width="1">&nbsp;</td> </tr>
<tr>
<td width="322"> </td> </tr> </table> <p align="center">&nbsp;</p>
<table border=0 width="100%" cellpadding=0 cellspacing="0">
<tr valign="bottom">
<td width="309" height="9"> <div align="center"><font size="1" face="Times New Roman, Times, serif"><b><i><font size="2">(in thousands)</font></i></b></font></div> </td>
<td width="6" height="9"><font face="Times New Roman, Times, serif"><b><font size="1"></font></b></font></td>
<td width="84" height="9"> <div align="center"><font size="1" face="Times New Roman, Times, serif"><b>Community<br> Banking</b></font></div> </td>
<td width="4" height="9" align="left"> <div align="center"><font size="2"><font size="1"><font size="1"><b><font size="1"><font face="Times New Roman, Times, serif"></font></font></b></font></font></font></div> </td>
<td width="16" height="9"> <div align="center"><font size="1"><font size="1"><b><font size="1"><font face="Times New Roman, Times, serif"></font></font></b></font></font></div> </td>
<td width="6" height="9"> <div align="center"><font size="2"><font size="1"><font size="1"><b><font size="1"><font face="Times New Roman, Times, serif"></font></font></b></font></font></font></div> </td>
<td width="83" height="9"> <div align="center"><font size="1" face="Times New Roman, Times, serif"><b>Mortgage<br> Banking</b></font></div> </td>
<td width="4" height="9" align="left"> <div align="center"><font size="2"><font size="1"><font size="1"><b><font size="1"><font face="Times New Roman, Times, serif"></font></font></b></font></font></font></div> </td>
<td width="16" height="9"> <div align="center"><font size="2"><font size="1"><font size="1"><b><font size="1"><font face="Times New Roman, Times, serif"></font></font></b></font></font></font></div> </td>
<td width="6" height="9"> <div align="center"><font size="2"><font size="1"><font size="1"><b><font size="1"><font face="Times New Roman, Times, serif"></font></font></b></font></font></font></div> </td>
<td width="82" height="9"> <div align="center"><font size="1" face="Times New Roman, Times, serif"><b>Other<br> Financial<br> Services</b></font></div> </td>
<td width="1" height="9" align="left"> <div align="center"><font size="2"><font size="2"><font size="1"><font size="1"><b><font size="1"><font face="Times New Roman, Times, serif"></font></font></b></font></font></font></font></div> </td>
<td width="16" height="9"> <div align="center"><font size="2"><font size="1"><font size="1"><b><font size="1"><font face="Times New Roman, Times, serif"></font></font></b></font></font></font></div> </td>
<td width="6" height="9"> <div align="center"><font size="2"><font size="1"><font size="1"><b><font size="1"><font face="Times New Roman, Times, serif"></font></font></b></font></font></font></div> </td>
<td width="83" height="9"> <div align="center"><font size="1" face="Times New Roman, Times, serif"><b>General<br> Corporate</b></font></div> </td>
<td width="5" height="9" align="left"> <div align="center"><font size="2"><font size="2"><font size="2"><font size="1"><font size="2"><font size="2"><font size="1"><b><font size="1"><font
face="Times New Roman, Times, serif"></font></font></b></font></font></font></font></font></font></font></div> </td>
<td width="16" height="9"> <div align="center"><font size="2"><font size="1"><font size="1"><b><font size="1"><font face="Times New Roman, Times, serif"></font></font></b></font></font></font></div> </td>
<td width="6" height="9"> <div align="center"><font size="2"><font size="1"><font size="1"><b><font size="1"><font face="Times New Roman, Times, serif"></font></font></b></font></font></font></div> </td>
<td width="84" height="9"> <div align="center"><font size="1" face="Times New Roman, Times, serif"><b>Eliminations</b></font></div> </td>
<td height="9" align="left"> <div align="center"><font size="1" face="Times New Roman, Times, serif"></font></div> </td>
<td height="9" align="left">&nbsp;</td>
<td height="9" align="left">&nbsp;</td>
<td colspan="2" height="9" align="left"> <center> <font size="1" face="Times New Roman, Times, serif"><b>Consolidated</b></font> </center> </td>
<td height="9" align="left">&nbsp;</td>
<td width="2" height="9" align="left">&nbsp;</td> </tr>
<tr valign="bottom">
<td width="309"><font face="Times New Roman, Times, serif" size="2"></font></td>
<td colspan="2"> <hr color="#000000" size="2"> </td>
<td width="4" align="left"><font face="Times New Roman, Times, serif" size="2"></font></td>
<td width="16"><font face="Times New Roman, Times, serif" size="2"></font></td>
<td colspan="2"> <hr color="#000000" size="2"> </td>
<td width="4" align="left"><font face="Times New Roman, Times, serif" size="2"></font></td>
<td width="16"><font face="Times New Roman, Times, serif" size="2"></font></td>
<td colspan="2"> <hr color="#000000" size="2"> </td>
<td width="1" align="left"><font size="2" face="Times New Roman, Times, serif"></font></td>
<td width="16"><font face="Times New Roman, Times, serif" size="2"></font></td>
<td colspan="2"> <hr color="#000000" size="2"> </td>
<td width="5" align="left"> <div align="left"><font size="2"><font face="Times New Roman, Times, serif"><font size="2"></font></font></font></div> </td>
<td width="16"><font face="Times New Roman, Times, serif" size="2"></font></td>
<td colspan="2"> <hr color="#000000" size="2"> </td>
<td width="5" align="left"><font face="Times New Roman, Times, serif" size="2"></font></td>
<td width="1" align="left"><font face="Times New Roman, Times, serif" size="2"></font></td>
<td width="17" align="left"><font face="Times New Roman, Times, serif" size="2"></font></td>
<td colspan="2"> <hr color="#000000" size="2"> </td>
<td width="4" align="left"><font face="Times New Roman, Times, serif" size="2"></font></td>
<td width="2"><font size="2"></font></td> </tr>
<tr valign="bottom">
<td width="309" align="left"><font size="2" face="Times New Roman, Times, serif"><b>For the six months ended June 30, 2001 </b></font></td>
<td width="6"><font size="2" face="Times New Roman, Times, serif"></font></td>
<td width="84"><font size="2" face="Times New Roman, Times, serif"></font></td>
<td width="4" align="left"><font size="2" face="Times New Roman, Times, serif"></font></td>
<td width="16"><font size="2" face="Times New Roman, Times, serif"></font></td>
<td width="6"><font size="2" face="Times New Roman, Times, serif"></font></td>
<td width="83"> <div align="right"><font size="2"><font size="2"><font size="2"><font face="Times New Roman, Times, serif"><font size="2"></font></font></font></font></font></div> </td>
<td width="4" align="left"><font size="2" face="Times New Roman, Times, serif"></font></td>
<td width="16"><font size="2" face="Times New Roman, Times, serif"></font></td>
<td width="6"><font size="2" face="Times New Roman, Times, serif"></font></td>
<td width="82"> <div align="right"><font size="2"><font size="2"><font size="2"><font face="Times New Roman, Times, serif"><font size="2"></font></font></font></font></font></div> </td>
<td width="1" align="left"><font size="2" face="Times New Roman, Times, serif"></font></td>
<td width="16"><font size="2" face="Times New Roman, Times, serif"></font></td>
<td width="6"><font size="2" face="Times New Roman, Times, serif"></font></td>
<td width="83"> <div align="right"><font size="2"><font size="2"><font size="2"><font face="Times New Roman, Times, serif"><font size="2"></font></font></font></font></font></div> </td>
<td width="5" align="left"> <div align="left"><font size="2"><font size="2"><font size="2"><font face="Times New Roman, Times, serif"><font size="2"></font></font></font></font></font></div> </td>
<td width="16"><font size="2" face="Times New Roman, Times, serif"></font></td>
<td width="6"><font size="2" face="Times New Roman, Times, serif"></font></td>
<td width="84" align="right"><font size="2" face="Times New Roman, Times, serif"></font></td>
<td width="5" align="left"><font size="2" face="Times New Roman, Times, serif"></font></td>
<td width="1" align="left"><font size="2" face="Times New Roman, Times, serif"></font></td>
<td width="17" align="left"><font size="2" face="Times New Roman, Times, serif"></font></td>
<td width="6" align="right"><font size="2" face="Times New Roman, Times, serif"></font></td>
<td width="84" align="right"> <div align="right"><font size="2"><font size="2"><font size="2"><font size="2"><font face="Times New Roman, Times, serif"><font size="2"></font></font></font></font></font></font></div> </td>
<td width="4" align="left"><font size="2" face="Times New Roman, Times, serif"></font></td>
<td width="2"><font size="2"></font></td> </tr>
<tr valign="bottom" bgcolor="#cceeff">
<td width="309" align="left"><font size="2" face="Times New Roman, Times, serif">Net interest income (expense)</font></td>
<td width="6" align="right"> <div align="right"><font size="2" face="Times New Roman, Times, serif">$</font></div> </td>
<td width="84" align="right"> <div align="right"><font size="2" face="Times New Roman, Times, serif">24,222</font></div> </td>
<td width="4" align="left"> <div align="left"><font size="2"><font size="2"><font size="2"><font face="Times New Roman, Times, serif"><font size="2"></font></font></font></font></font></div> </td>
<td width="16" align="right"><font size="2" face="Times New Roman, Times, serif"></font></td>
<td width="6" align="right"><font size="2" face="Times New Roman, Times, serif">$</font></td>
<td width="83" align="right"> <div align="right"><font size="2" face="Times New Roman, Times, serif">(1,117</font></div> </td>
<td width="4" align="left"> <div align="left"><font size="2" face="Times New Roman, Times, serif">)</font></div> </td>
<td width="16" align="right"><font size="2" face="Times New Roman, Times, serif"></font></td>
<td width="6" align="right"><font size="2" face="Times New Roman, Times, serif">$</font></td>
<td width="82" align="right"> <div align="right"><font size="2" face="Times New Roman, Times, serif">17</font></div> </td>
<td width="1" align="left"><font size="2" face="Times New Roman, Times, serif"></font></td>
<td width="16" align="right"><font size="2" face="Times New Roman, Times, serif"></font></td>
<td width="6" align="right"><font size="2" face="Times New Roman, Times, serif">$</font></td>
<td width="83" align="right"> <div align="right"><font size="2" face="Times New Roman, Times, serif">(552</font></div> </td>
<td width="5" align="left"> <div align="left"><font size="2" face="Times New Roman, Times, serif">)</font></div> </td>
<td width="16" align="right"><font size="2" face="Times New Roman, Times, serif"></font></td>
<td width="6" align="right"><font size="2" face="Times New Roman, Times, serif">$</font></td>
<td width="84" align="right"> <div align="right"><font size="2" face="Times New Roman, Times, serif">&#151;</font></div> </td>
<td width="5" align="left"><font size="2" face="Times New Roman, Times, serif"></font></td>
<td width="1" align="left"><font size="2" face="Times New Roman, Times, serif"></font></td>
<td width="17" align="right"><font size="2" face="Times New Roman, Times, serif"></font></td>
<td width="6" align="right"><font size="2" face="Times New Roman, Times, serif">$</font></td>
<td width="84" align="right"> <div align="right"><font size="2" face="Times New Roman, Times, serif"> 22,570</font></div> </td>
<td width="4" align="left"><font size="2" face="Times New Roman, Times, serif"></font></td>
<td width="2"><font size="2"></font></td> </tr>
<tr valign="bottom">
<td width="309" align="left"><font size="2" face="Times New Roman, Times, serif">Provision for loan losses</font></td>
<td width="6" align="right"> <div align="right"><font size="2"><font size="2"><font face="Times New Roman, Times, serif"><font size="2"></font></font></font></font></div> </td>
<td width="84" align="right"> <div align="right"><font size="2" face="Times New Roman, Times, serif">10,280</font></div> </td>
<td width="4" align="left"> <div align="left"><font size="2"><font size="2"><font size="2"><font face="Times New Roman, Times, serif"><font size="2"></font></font></font></font></font></div> </td>
<td width="16" align="right"><font size="2" face="Times New Roman, Times, serif"></font></td>
<td width="6" align="right"><font size="2" face="Times New Roman, Times, serif"></font></td>
<td width="83" align="right"> <div align="right"><font size="2" face="Times New Roman, Times, serif">&#151;</font></div> </td>
<td width="4" align="left"> <div align="left"><font size="2"><font size="2"><font size="2"><font size="2"><font face="Times New Roman, Times, serif"><font size="2"></font></font></font></font></font></font></div> </td>
<td width="16" align="right"><font size="2" face="Times New Roman, Times, serif"></font></td>
<td width="6" align="right"><font size="2" face="Times New Roman, Times, serif"></font></td>
<td width="82" align="right"> <div align="right"><font size="2" face="Times New Roman, Times, serif">&#151;</font></div> </td>
<td width="1" align="left"><font size="2" face="Times New Roman, Times, serif"></font></td>
<td width="16" align="right"><font size="2" face="Times New Roman, Times, serif"></font></td>
<td width="6" align="right"><font size="2" face="Times New Roman, Times, serif"></font></td>
<td width="83" align="right"> <div align="right"><font size="2" face="Times New Roman, Times, serif">&#151;</font></div> </td>
<td width="5" align="left"> <div align="left"><font size="2"><font size="2"><font size="2"><font size="2"><font size="2"><font size="2"><font size="2"><font size="2"><font face="Times New Roman, Times, serif"><font
size="2"></font></font></font></font></font></font></font></font></font></font></div> </td>
<td width="16" align="right"><font size="2" face="Times New Roman, Times, serif"></font></td>
<td width="6" align="right"><font size="2" face="Times New Roman, Times, serif"></font></td>
<td width="84" align="right"> <div align="right"><font size="2" face="Times New Roman, Times, serif">&#151;</font></div> </td>
<td width="5" align="left"><font size="2" face="Times New Roman, Times, serif"></font></td>
<td width="1" align="left"><font size="2" face="Times New Roman, Times, serif"></font></td>
<td width="17" align="right"><font size="2" face="Times New Roman, Times, serif"></font></td>
<td width="6" align="right"><font size="2" face="Times New Roman, Times, serif"></font></td>
<td width="84" align="right"> <div align="right"><font size="2" face="Times New Roman, Times, serif">10,280</font></div> </td>
<td width="4" align="left"><font size="2" face="Times New Roman, Times, serif"></font></td>
<td width="2"><font size="2"></font></td> </tr>
<tr valign="bottom">
<td width="309" align="left"><font face="Times New Roman, Times, serif" size="2"></font></td>
<td colspan="2" align="right"> <hr color="#000000" size="2" align="right"> </td>
<td width="4" align="left"><font size="2" face="Times New Roman, Times, serif"></font></td>
<td width="16" align="right"><font size="2" face="Times New Roman, Times, serif"></font></td>
<td colspan="2" align="right"> <hr color="#000000" size="2"> </td>
<td width="4" align="left"><font size="2" face="Times New Roman, Times, serif"></font></td>
<td width="16" align="right"><font size="2" face="Times New Roman, Times, serif"></font></td>
<td colspan="2" align="right"> <hr color="#000000" size="2"> </td>
<td width="1" align="left"><font size="2" face="Times New Roman, Times, serif"></font></td>
<td width="16" align="right"><font size="2" face="Times New Roman, Times, serif"></font></td>
<td colspan="2" align="right"> <hr color="#000000" size="2"> </td>
<td width="5" align="left"> <div align="left"><font size="2"><font size="2"><font face="Times New Roman, Times, serif"><font size="2"></font></font></font></font></div> </td>
<td width="16" align="right"><font size="2" face="Times New Roman, Times, serif"></font></td>
<td colspan="2" align="right"> <hr color="#000000" size="2"> </td>
<td width="5" align="left"><font size="2" face="Times New Roman, Times, serif"></font></td>
<td width="1" align="left"><font face="Times New Roman, Times, serif" size="2"></font></td>
<td width="17" align="right"><font size="2" face="Times New Roman, Times, serif"></font></td>
<td colspan="2" align="right"> <hr color="#000000" size="2"> </td>
<td width="4" align="left"><font face="Times New Roman, Times, serif" size="2"></font></td>
<td width="2"><font size="2"></font></td> </tr>
<tr valign="bottom" bgcolor="#cceeff">
<td width="309" align="left"><font face="Times New Roman, Times, serif" size="2">Net interest income after provision for loan losses</font></td>
<td width="6" align="right"> <div align="right"><font size="2"><font face="Times New Roman, Times, serif"><font size="2"><font size="2"></font></font></font></font></div> </td>
<td width="84" align="right"> <div align="right"><font size="2" face="Times New Roman, Times, serif">13,942</font></div> </td>
<td width="4" align="left"> <div align="left"><font size="2"><font size="2"><font face="Times New Roman, Times, serif"><font size="2"><font size="2"></font></font></font></font></font></div> </td>
<td width="16" align="right"><font size="2" face="Times New Roman, Times, serif"></font></td>
<td width="6" align="right"><font size="2" face="Times New Roman, Times, serif"></font></td>
<td width="83" align="right"> <div align="right"><font size="2" face="Times New Roman, Times, serif">(1,117</font></div> </td>
<td width="4" align="left"> <div align="left"><font size="2" face="Times New Roman, Times, serif">)</font></div> </td>
<td width="16" align="right"><font size="2" face="Times New Roman, Times, serif"></font></td>
<td width="6" align="right"><font size="2" face="Times New Roman, Times, serif"></font></td>
<td width="82" align="right"> <div align="right"><font size="2" face="Times New Roman, Times, serif">17</font></div> </td>
<td width="1" align="left"><font size="2" face="Times New Roman, Times, serif"></font></td>
<td width="16" align="right"><font size="2" face="Times New Roman, Times, serif"></font></td>
<td width="6" align="right"><font size="2" face="Times New Roman, Times, serif"></font></td>
<td width="83" align="right"> <div align="right"><font size="2" face="Times New Roman, Times, serif">(552</font></div> </td>
<td width="5" align="left"> <div align="left"><font size="2" face="Times New Roman, Times, serif">)</font></div> </td>
<td width="16" align="right"><font size="2" face="Times New Roman, Times, serif"></font></td>
<td width="6" align="right"><font size="2" face="Times New Roman, Times, serif"></font></td>
<td width="84" align="right"> <div align="right"><font size="2" face="Times New Roman, Times, serif">&#151;</font></div> </td>
<td width="5" align="left"><font size="2" face="Times New Roman, Times, serif"></font></td>
<td width="1" align="left"><font face="Times New Roman, Times, serif" size="2"></font></td>
<td width="17" align="right"><font size="2" face="Times New Roman, Times, serif"></font></td>
<td width="6" align="right"><font size="2" face="Times New Roman, Times, serif"></font></td>
<td width="84" align="right"> <div align="right"><font size="2" face="Times New Roman, Times, serif">12,290</font></div> </td>
<td width="4" align="left"><font size="2" face="Times New Roman, Times, serif"></font></td>
<td width="2"><font size="2"></font></td> </tr>
<tr valign="bottom">
<td width="309" align="left"><font size="2" face="Times New Roman, Times, serif">Other income</font></td>
<td width="6" align="right"> <div align="right"><font size="2"><font face="Times New Roman, Times, serif"><font size="2"><font size="2"></font></font></font></font></div> </td>
<td width="84" align="right"> <div align="right"><font size="2" face="Times New Roman, Times, serif">7,131</font></div> </td>
<td width="4" align="left"> <div align="left"><font size="2"><font size="2"><font face="Times New Roman, Times, serif"><font size="2"><font size="2"></font></font></font></font></font></div> </td>
<td width="16" align="right"><font size="2" face="Times New Roman, Times, serif"></font></td>
<td width="6" align="right"><font size="2" face="Times New Roman, Times, serif"></font></td>
<td width="83" align="right"> <div align="right"><font size="2" face="Times New Roman, Times, serif">1,221</font></div> </td>
<td width="4" align="left"> <div align="left"><font size="2"><font size="2"><font size="2"><font face="Times New Roman, Times, serif"><font size="2"><font size="2"></font></font></font></font></font></font></div> </td>
<td width="16" align="right"><font size="2" face="Times New Roman, Times, serif"></font></td>
<td width="6" align="right"><font size="2" face="Times New Roman, Times, serif"></font></td>
<td width="82" align="right"> <div align="right"><font size="2" face="Times New Roman, Times, serif">4,335</font></div> </td>
<td width="1" align="left"><font size="2" face="Times New Roman, Times, serif"></font></td>
<td width="16" align="right"><font size="2" face="Times New Roman, Times, serif"></font></td>
<td width="6" align="right"><font size="2" face="Times New Roman, Times, serif"></font></td>
<td width="83" align="right"> <div align="right"><font size="2" face="Times New Roman, Times, serif">1,249</font></div> </td>
<td width="5" align="left"> <div align="left"><font size="2"><font size="2"><font size="2"><font size="2"><font size="2"><font size="2"><font size="2"><font face="Times New Roman, Times, serif"><font size="2"><font
size="2"></font></font></font></font></font></font></font></font></font></font></div> </td>
<td width="16" align="right"><font size="2" face="Times New Roman, Times, serif"></font></td>
<td width="6" align="right"><font size="2" face="Times New Roman, Times, serif"></font></td>
<td width="84" align="right"> <div align="right"><font size="2" face="Times New Roman, Times, serif">(1,416</font></div> </td>
<td width="5" align="left"><font size="2" face="Times New Roman, Times, serif">)</font></td>
<td width="1" align="left"><font face="Times New Roman, Times, serif" size="2"></font></td>
<td width="17" align="right"><font size="2" face="Times New Roman, Times, serif"></font></td>
<td width="6" align="right"><font size="2" face="Times New Roman, Times, serif"></font></td>
<td width="84" align="right"> <div align="right"><font size="2" face="Times New Roman, Times, serif">12,520</font></div> </td>
<td width="4" align="left"><font size="2" face="Times New Roman, Times, serif"></font></td>
<td width="2"><font size="2"></font></td> </tr>
<tr valign="bottom" bgcolor="#cceeff">
<td width="309" align="left"><font size="2" face="Times New Roman, Times, serif">Other expenses</font></td>
<td width="6" align="right"> <div align="right"><font size="2"><font face="Times New Roman, Times, serif"><font size="2"><font size="2"></font></font></font></font></div> </td>
<td width="84" align="right"> <div align="right"><font size="2" face="Times New Roman, Times, serif">25,765</font></div> </td>
<td width="4" align="left"> <div align="left"><font size="2"><font size="2"><font face="Times New Roman, Times, serif"><font size="2"><font size="2"></font></font></font></font></font></div> </td>
<td width="16" align="right"><font size="2" face="Times New Roman, Times, serif"></font></td>
<td width="6" align="right"><font size="2" face="Times New Roman, Times, serif"></font></td>
<td width="83" align="right"> <div align="right"><font size="2" face="Times New Roman, Times, serif">1,297</font></div> </td>
<td width="4" align="left"> <div align="left"><font size="2"><font size="2"><font size="2"><font face="Times New Roman, Times, serif"><font size="2"><font size="2"></font></font></font></font></font></font></div> </td>
<td width="16" align="right"><font size="2" face="Times New Roman, Times, serif"></font></td>
<td width="6" align="right"><font size="2" face="Times New Roman, Times, serif"></font></td>
<td width="82" align="right"> <div align="right"><font size="2" face="Times New Roman, Times, serif">1,011</font></div> </td>
<td width="1" align="left"><font size="2" face="Times New Roman, Times, serif"></font></td>
<td width="16" align="right"><font size="2" face="Times New Roman, Times, serif"></font></td>
<td width="6" align="right"><font size="2" face="Times New Roman, Times, serif"></font></td>
<td width="83" align="right"> <div align="right"><font size="2" face="Times New Roman, Times, serif">1,753</font></div> </td>
<td width="5" align="left"> <div align="left"><font size="2"><font size="2"><font size="2"><font size="2"><font size="2"><font size="2"><font size="2"><font face="Times New Roman, Times, serif"><font size="2"><font
size="2"></font></font></font></font></font></font></font></font></font></font></div> </td>
<td width="16" align="right"><font size="2" face="Times New Roman, Times, serif"></font></td>
<td width="6" align="right"><font size="2" face="Times New Roman, Times, serif"></font></td>
<td width="84" align="right"> <div align="right"><font size="2" face="Times New Roman, Times, serif">(1,416</font></div> </td>
<td width="5" align="left"><font size="2" face="Times New Roman, Times, serif">)</font></td>
<td width="1" align="left"><font face="Times New Roman, Times, serif" size="2"></font></td>
<td width="17" align="right"><font size="2" face="Times New Roman, Times, serif"></font></td>
<td width="6" align="right"><font size="2" face="Times New Roman, Times, serif"></font></td>
<td width="84" align="right"> <div align="right"><font size="2" face="Times New Roman, Times, serif">28,410</font></div> </td>
<td width="4" align="left"><font size="2" face="Times New Roman, Times, serif"></font></td>
<td width="2"><font size="2"></font></td> </tr>
<tr valign="bottom">
<td width="309" align="left"><font face="Times New Roman, Times, serif" size="2"></font></td>
<td colspan="2" align="right"> <hr color="#000000" size="2" align="right"> </td>
<td width="4" align="left"><font size="2" face="Times New Roman, Times, serif"></font></td>
<td width="16" align="right"><font size="2" face="Times New Roman, Times, serif"></font></td>
<td colspan="2" align="right"> <hr color="#000000" size="2"> </td>
<td width="4" align="left"><font size="2" face="Times New Roman, Times, serif"></font></td>
<td width="16" align="right"><font size="2" face="Times New Roman, Times, serif"></font></td>
<td colspan="2" align="right"> <hr color="#000000" size="2"> </td>
<td width="1" align="left"><font size="2" face="Times New Roman, Times, serif"></font></td>
<td width="16" align="right"><font size="2" face="Times New Roman, Times, serif"></font></td>
<td colspan="2" align="right"> <hr color="#000000" size="2"> </td>
<td width="5" align="left"> <div align="left"><font size="2"><font size="2"><font face="Times New Roman, Times, serif"><font size="2"></font></font></font></font></div> </td>
<td width="16" align="right"><font size="2" face="Times New Roman, Times, serif"></font></td>
<td colspan="2" align="right"> <hr color="#000000" size="2"> </td>
<td width="5" align="left"><font size="2" face="Times New Roman, Times, serif"></font></td>
<td width="1" align="left"><font face="Times New Roman, Times, serif" size="2"></font></td>
<td width="17" align="right"><font size="2" face="Times New Roman, Times, serif"></font></td>
<td colspan="2" align="right"> <hr color="#000000" size="2"> </td>
<td width="4" align="left"><font face="Times New Roman, Times, serif" size="2"></font></td>
<td width="2"><font size="2"></font></td> </tr>
<tr valign="bottom" bgcolor="#cceeff">
<td width="309" align="left"><font size="2" face="Times New Roman, Times, serif">(Loss) income before income taxes and cumulative effect of accounting change</font></td>
<td width="6" align="right"> <div align="right"><font size="2"><font face="Times New Roman, Times, serif"><font size="2"><font size="2"></font></font></font></font></div> </td>
<td width="84" align="right"> <div align="right"><font size="2" face="Times New Roman, Times, serif">(4,692</font></div> </td>
<td width="4" align="left"> <div align="left"><font size="2" face="Times New Roman, Times, serif">)</font></div> </td>
<td width="16" align="right"><font size="2" face="Times New Roman, Times, serif"></font></td>
<td width="6" align="right"><font size="2" face="Times New Roman, Times, serif"></font></td>
<td width="83" align="right"> <div align="right"><font size="2" face="Times New Roman, Times, serif">(1,193</font></div> </td>
<td width="4" align="left"> <div align="left"><font size="2" face="Times New Roman, Times, serif">)</font></div> </td>
<td width="16" align="right"><font size="2" face="Times New Roman, Times, serif"></font></td>
<td width="6" align="right"><font size="2" face="Times New Roman, Times, serif"></font></td>
<td width="82" align="right"> <div align="right"><font size="2" face="Times New Roman, Times, serif">3,341</font></div> </td>
<td width="1" align="left"><font size="2" face="Times New Roman, Times, serif"></font></td>
<td width="16" align="right"><font size="2" face="Times New Roman, Times, serif"></font></td>
<td width="6" align="right"><font size="2" face="Times New Roman, Times, serif"></font></td>
<td width="83" align="right"> <div align="right"><font size="2" face="Times New Roman, Times, serif">(1,056</font></div> </td>
<td width="5" align="left"> <div align="left"><font size="2" face="Times New Roman, Times, serif">)</font></div> </td>
<td width="16" align="right"><font size="2" face="Times New Roman, Times, serif"></font></td>
<td width="6" align="right"><font size="2" face="Times New Roman, Times, serif"></font></td>
<td width="84" align="right"> <div align="right"><font size="2" face="Times New Roman, Times, serif">&#151;</font></div> </td>
<td width="5" align="left"><font size="2" face="Times New Roman, Times, serif"></font></td>
<td width="1" align="left"><font face="Times New Roman, Times, serif" size="2"></font></td>
<td width="17" align="right"><font size="2" face="Times New Roman, Times, serif"></font></td>
<td width="6" align="right"><font size="2" face="Times New Roman, Times, serif"></font></td>
<td width="84" align="right"> <div align="right"><font size="2" face="Times New Roman, Times, serif">(3,600</font></div> </td>
<td width="4" align="left"><font size="2" face="Times New Roman, Times, serif">)</font></td>
<td width="2"><font size="2"></font></td> </tr>
<tr valign="bottom">
<td width="309" align="left"><font face="Times New Roman, Times, serif" size="2">Income tax (benefit) expense </font></td>
<td width="6" align="right"> <div align="right"><font size="2"><font face="Times New Roman, Times, serif"><font size="2"><font size="2"></font></font></font></font></div> </td>
<td width="84" align="right"> <div align="right"><font size="2" face="Times New Roman, Times, serif">(1,861</font></div> </td>
<td width="4" align="left"><font size="2" face="Times New Roman, Times, serif">)</font></td>
<td width="16" align="right"><font size="2" face="Times New Roman, Times, serif"></font></td>
<td width="6" align="right"><font size="2" face="Times New Roman, Times, serif"></font></td>
<td width="83" align="right"> <div align="right"><font size="2" face="Times New Roman, Times, serif">(605</font></div> </td>
<td width="4" align="left"><font size="2" face="Times New Roman, Times, serif">)</font></td>
<td width="16" align="right"><font size="2" face="Times New Roman, Times, serif"></font></td>
<td width="6" align="right"><font size="2" face="Times New Roman, Times, serif"></font></td>
<td width="82" align="right"> <div align="right"><font size="2" face="Times New Roman, Times, serif">1,383</font></div> </td>
<td width="1" align="left"><font size="2" face="Times New Roman, Times, serif"></font></td>
<td width="16" align="right"><font size="2" face="Times New Roman, Times, serif"></font></td>
<td width="6" align="right"><font size="2" face="Times New Roman, Times, serif"></font></td>
<td width="83" align="right"> <div align="right"><font size="2" face="Times New Roman, Times, serif">(447</font></div> </td>
<td width="5" align="left"> <div align="left"><font size="2" face="Times New Roman, Times, serif">)</font></div> </td>
<td width="16" align="right"><font size="2" face="Times New Roman, Times, serif"></font></td>
<td width="6" align="right"><font size="2" face="Times New Roman, Times, serif"></font></td>
<td width="84" align="right"><font size="2" face="Times New Roman, Times, serif"></font></td>
<td width="5" align="left"><font size="2" face="Times New Roman, Times, serif"></font></td>
<td width="1" align="left"><font face="Times New Roman, Times, serif" size="2"></font></td>
<td width="17" align="right"><font size="2" face="Times New Roman, Times, serif"></font></td>
<td width="6" align="right"><font size="2" face="Times New Roman, Times, serif"></font></td>
<td width="84" align="right"> <div align="right"><font size="2" face="Times New Roman, Times, serif">(1,530</font></div> </td>
<td width="4" align="left"><font face="Times New Roman, Times, serif" size="2"></font></td>
<td width="2"><font size="2"></font></td> </tr>
<tr valign="bottom">
<td width="309" align="left"><font face="Times New Roman, Times, serif" size="2"></font></td>
<td colspan="2" align="right"> <hr color="#000000" size="2" align="right"> </td>
<td width="4" align="left"><font size="2" face="Times New Roman, Times, serif"></font></td>
<td width="16" align="right"><font size="2" face="Times New Roman, Times, serif"></font></td>
<td colspan="2" align="right"> <hr color="#000000" size="2"> </td>
<td width="4" align="left"><font size="2" face="Times New Roman, Times, serif"></font></td>
<td width="16" align="right"><font size="2" face="Times New Roman, Times, serif"></font></td>
<td colspan="2" align="right"> <hr color="#000000" size="2"> </td>
<td width="1" align="left"><font size="2" face="Times New Roman, Times, serif"></font></td>
<td width="16" align="right"><font size="2" face="Times New Roman, Times, serif"></font></td>
<td colspan="2" align="right"> <hr color="#000000" size="2"> </td>
<td width="5" align="left"> <div align="left"><font size="2"><font size="2"><font face="Times New Roman, Times, serif"><font size="2"></font></font></font></font></div> </td>
<td width="16" align="right"><font size="2" face="Times New Roman, Times, serif"></font></td>
<td colspan="2" align="right"> <hr color="#000000" size="2"> </td>
<td width="5" align="left"><font size="2" face="Times New Roman, Times, serif"></font></td>
<td width="1" align="left"><font face="Times New Roman, Times, serif" size="2"></font></td>
<td width="17" align="right"><font size="2" face="Times New Roman, Times, serif"></font></td>
<td colspan="2" align="right"> <hr color="#000000" size="2"> </td>
<td width="4" align="left"><font face="Times New Roman, Times, serif" size="2"></font></td>
<td width="2"><font size="2"></font></td> </tr>
<tr valign="bottom" bgcolor="#cceeff">
<td width="309" align="left" nowrap><font face="Times New Roman, Times, serif" size="2"><b>(Loss) income before cumulative effect of accounting change</b></font></td>
<td width="6" align="right"> <div align="right"><font size="2"><font face="Times New Roman, Times, serif"><font size="2"><font size="2"></font></font></font></font></div> </td>
<td width="84" align="right"> <div align="right"><font size="2" face="Times New Roman, Times, serif">(2,831</font></div> </td>
<td width="4" align="left"> <div align="left"><font size="2" face="Times New Roman, Times, serif">)</font></div> </td>
<td width="16" align="right"><font size="2" face="Times New Roman, Times, serif"></font></td>
<td width="6" align="right"><font size="2" face="Times New Roman, Times, serif"></font></td>
<td width="83" align="right"> <div align="right"><font size="2" face="Times New Roman, Times, serif">(588</font></div> </td>
<td width="4" align="left"> <div align="left"><font size="2" face="Times New Roman, Times, serif">)</font></div> </td>
<td width="16" align="right"><font size="2" face="Times New Roman, Times, serif"></font></td>
<td width="6" align="right"><font size="2" face="Times New Roman, Times, serif"></font></td>
<td width="82" align="right"> <div align="right"><font size="2" face="Times New Roman, Times, serif">1,958</font></div> </td>
<td width="1" align="left"><font size="2" face="Times New Roman, Times, serif"></font></td>
<td width="16" align="right"><font size="2" face="Times New Roman, Times, serif"></font></td>
<td width="6" align="right"><font size="2" face="Times New Roman, Times, serif"></font></td>
<td width="83" align="right"> <div align="right"><font size="2" face="Times New Roman, Times, serif">(609</font></div> </td>
<td width="5" align="left"> <div align="left"><font size="2" face="Times New Roman, Times, serif">)</font></div> </td>
<td width="16" align="right"><font size="2" face="Times New Roman, Times, serif"></font></td>
<td width="6" align="right"><font size="2" face="Times New Roman, Times, serif"></font></td>
<td width="84" align="right"> <div align="right"><font size="2" face="Times New Roman, Times, serif">&#151;</font></div> </td>
<td width="5" align="left"><font size="2" face="Times New Roman, Times, serif"></font></td>
<td width="1" align="left"><font face="Times New Roman, Times, serif" size="2"></font></td>
<td width="17" align="right"><font size="2" face="Times New Roman, Times, serif"></font></td>
<td width="6" align="right"><font size="2" face="Times New Roman, Times, serif"></font></td>
<td width="84" align="right"> <div align="right"><font size="2" face="Times New Roman, Times, serif">(2,070</font></div> </td>
<td width="4" align="left"><font size="2" face="Times New Roman, Times, serif">)</font></td>
<td width="2"><font size="2"></font></td> </tr>
<tr valign="bottom">
<td width="309" align="left"><font size="2" face="Times New Roman, Times, serif">Cumulative effect of accounting change, net of tax</font></td>
<td width="6" align="right"> <div align="right"><font size="2"><font face="Times New Roman, Times, serif"><font size="2"><font size="2"></font></font></font></font></div> </td>
<td width="84" align="right"> <div align="right"><font size="2" face="Times New Roman, Times, serif">&#151;</font></div> </td>
<td width="4" align="left"> <div align="left"><font size="2"><font face="Times New Roman, Times, serif"><font size="2"><font size="2"></font></font></font></font></div> </td>
<td width="16" align="right"><font size="2" face="Times New Roman, Times, serif"></font></td>
<td width="6" align="right"><font size="2" face="Times New Roman, Times, serif"></font></td>
<td width="83" align="right"> <div align="right"><font size="2" face="Times New Roman, Times, serif">(17,985</font></div> </td>
<td width="4" align="left"> <div align="left"><font size="2" face="Times New Roman, Times, serif">)</font></div> </td>
<td width="16" align="right"><font size="2" face="Times New Roman, Times, serif"></font></td>
<td width="6" align="right"><font size="2" face="Times New Roman, Times, serif"></font></td>
<td width="82" align="right"> <div align="right"><font size="2" face="Times New Roman, Times, serif">&#151;</font></div> </td>
<td width="1" align="left"><font size="2" face="Times New Roman, Times, serif"></font></td>
<td width="16" align="right"><font size="2" face="Times New Roman, Times, serif"></font></td>
<td width="6" align="right"><font size="2" face="Times New Roman, Times, serif"></font></td>
<td width="83" align="right"> <div align="right"><font size="2"><font face="Times New Roman, Times, serif"><font size="2"><font size="2"></font></font></font></font></div> </td>
<td width="5" align="left"> <div align="left"><font size="2"><font size="2"><font size="2"><font face="Times New Roman, Times, serif"><font size="2"><font size="2"></font></font></font></font></font></font></div> </td>
<td width="16" align="right"><font size="2" face="Times New Roman, Times, serif"></font></td>
<td width="6" align="right"><font size="2" face="Times New Roman, Times, serif"></font></td>
<td width="84" align="right"> <div align="right"><font size="2" face="Times New Roman, Times, serif">&#151;</font></div> </td>
<td width="5" align="left"><font size="2" face="Times New Roman, Times, serif"></font></td>
<td width="1" align="left"><font face="Times New Roman, Times, serif" size="2"></font></td>
<td width="17" align="right"><font size="2" face="Times New Roman, Times, serif"></font></td>
<td width="6" align="right"><font size="2" face="Times New Roman, Times, serif"></font></td>
<td width="84" align="right"> <div align="right"><font size="2" face="Times New Roman, Times, serif">(17,985</font></div> </td>
<td width="4" align="left"><font size="2" face="Times New Roman, Times, serif">)</font></td>
<td width="2"><font size="2"></font></td> </tr>
<tr valign="bottom">
<td width="309" align="left"><font face="Times New Roman, Times, serif" size="2"></font></td>
<td colspan="2" align="right"> <hr color="#000000" size="2" align="right"> </td>
<td width="4" align="left"><font size="2" face="Times New Roman, Times, serif"></font></td>
<td width="16" align="right"><font size="2" face="Times New Roman, Times, serif"></font></td>
<td colspan="2" align="right"> <hr color="#000000" size="2"> </td>
<td width="4" align="left"><font size="2" face="Times New Roman, Times, serif"></font></td>
<td width="16" align="right"><font size="2" face="Times New Roman, Times, serif"></font></td>
<td colspan="2" align="right"> <hr color="#000000" size="2"> </td>
<td width="1" align="left"><font size="2" face="Times New Roman, Times, serif"></font></td>
<td width="16" align="right"><font size="2" face="Times New Roman, Times, serif"></font></td>
<td colspan="2" align="right"> <hr color="#000000" size="2"> </td>
<td width="5" align="left"> <div align="left"><font size="2"><font size="2"><font face="Times New Roman, Times, serif"><font size="2"></font></font></font></font></div> </td>
<td width="16" align="right"><font size="2" face="Times New Roman, Times, serif"></font></td>
<td colspan="2" align="right"> <hr color="#000000" size="2"> </td>
<td width="5" align="left"><font size="2" face="Times New Roman, Times, serif"></font></td>
<td width="1" align="left"><font face="Times New Roman, Times, serif" size="2"></font></td>
<td width="17" align="right"><font size="2" face="Times New Roman, Times, serif"></font></td>
<td colspan="2" align="right"> <hr color="#000000" size="2"> </td>
<td width="4" align="left"><font face="Times New Roman, Times, serif" size="2"></font></td>
<td width="2"><font size="2"></font></td> </tr>
<tr valign="bottom" bgcolor="#cceeff">
<td width="309" align="left"><font size="2" face="Times New Roman, Times, serif"><b>Net (Loss) income</b> </font></td>
<td width="6" align="right"> <div align="right"><font size="2" face="Times New Roman, Times, serif">$</font></div> </td>
<td width="84" align="right"> <div align="right"><font size="2" face="Times New Roman, Times, serif"> (2,831</font></div> </td>
<td width="4" align="left"> <div align="left"><font size="2" face="Times New Roman, Times, serif">)</font></div> </td>
<td width="16" align="right"><font size="2" face="Times New Roman, Times, serif"></font></td>
<td width="6" align="right"><font size="2" face="Times New Roman, Times, serif">$</font></td>
<td width="83" align="right"> <div align="right"><font size="2" face="Times New Roman, Times, serif"> (18,573</font></div> </td>
<td width="4" align="left"> <div align="left"><font size="2" face="Times New Roman, Times, serif">)</font></div> </td>
<td width="16" align="right"><font size="2" face="Times New Roman, Times, serif"></font></td>
<td width="6" align="right"><font size="2" face="Times New Roman, Times, serif">$</font></td>
<td width="82" align="right"> <div align="right"><font size="2" face="Times New Roman, Times, serif"> $1,958</font></div> </td>
<td width="1" align="left"><font size="2" face="Times New Roman, Times, serif"></font></td>
<td width="16" align="right"><font size="2" face="Times New Roman, Times, serif"></font></td>
<td width="6" align="right"><font size="2" face="Times New Roman, Times, serif">$</font></td>
<td width="83" align="right"> <div align="right"><font size="2" face="Times New Roman, Times, serif">(609</font></div> </td>
<td width="5" align="left"> <div align="left"><font size="2" face="Times New Roman, Times, serif">)</font></div> </td>
<td width="16" align="right"><font size="2" face="Times New Roman, Times, serif"></font></td>
<td width="6" align="right"><font size="2" face="Times New Roman, Times, serif">$</font></td>
<td width="84" align="right"> <div align="right"><font size="2" face="Times New Roman, Times, serif">&#151;</font></div> </td>
<td width="5" align="left"><font size="2" face="Times New Roman, Times, serif"></font></td>
<td width="1" align="left"><font face="Times New Roman, Times, serif" size="2"></font></td>
<td width="17" align="right"><font size="2" face="Times New Roman, Times, serif"></font></td>
<td width="6" align="right"><font size="2" face="Times New Roman, Times, serif">$</font></td>
<td width="84" align="right"> <div align="right"><font size="2" face="Times New Roman, Times, serif"> (20,055</font></div> </td>
<td width="4" align="left"><font size="2" face="Times New Roman, Times, serif">)</font></td>
<td width="2"><font size="2"></font></td> </tr>
<tr valign="bottom">
<td width="309" align="left"><font face="Times New Roman, Times, serif" size="2"></font></td>
<td colspan="2" align="right"> <hr color="#000000" size="4" align="right"> </td>
<td width="4" align="left"><font size="2" face="Times New Roman, Times, serif"></font></td>
<td width="16" align="right"><font size="2" face="Times New Roman, Times, serif"></font></td>
<td colspan="2" align="right"> <hr color="#000000" size="4"> </td>
<td width="4" align="left"><font size="2" face="Times New Roman, Times, serif"></font></td>
<td width="16" align="right"><font size="2" face="Times New Roman, Times, serif"></font></td>
<td colspan="2" align="right"> <hr color="#000000" size="4"> </td>
<td width="1" align="left"><font size="2" face="Times New Roman, Times, serif"></font></td>
<td width="16" align="right"><font size="2" face="Times New Roman, Times, serif"></font></td>
<td colspan="2" align="right"> <hr color="#000000" size="4"> </td>
<td width="5" align="left"> <div align="left"><font size="2"><font size="2"><font face="Times New Roman, Times, serif"><font size="2"></font></font></font></font></div> </td>
<td width="16" align="right"><font size="2" face="Times New Roman, Times, serif"></font></td>
<td colspan="2" align="right"> <hr color="#000000" size="4"> </td>
<td width="5" align="left"><font size="2" face="Times New Roman, Times, serif"></font></td>
<td width="1" align="left"><font face="Times New Roman, Times, serif" size="2"></font></td>
<td width="17" align="right"><font size="2" face="Times New Roman, Times, serif"></font></td>
<td colspan="2" align="right"> <hr color="#000000" size="4"> </td>
<td width="4" align="left"><font face="Times New Roman, Times, serif" size="2"></font></td>
<td width="2"><font size="2"></font></td> </tr>
<tr valign="bottom" bgcolor="#cceeff">
<td width="309" align="left"><font size="2" face="Times New Roman, Times, serif">Average assets</font></td>
<td width="6" align="right"> <div align="right"><font size="2" face="Times New Roman, Times, serif">$</font></div> </td>
<td width="84" align="right"> <div align="right"><font size="2" face="Times New Roman, Times, serif">2,466,254</font></div> </td>
<td width="4" align="left"> <div align="left"><font size="2"><font size="2"><font face="Times New Roman, Times, serif"><font size="2"></font></font></font></font></div> </td>
<td width="16" align="right"><font size="2" face="Times New Roman, Times, serif"></font></td>
<td width="6" align="right"><font size="2" face="Times New Roman, Times, serif">$</font></td>
<td width="83" align="right"> <div align="right"><font size="2" face="Times New Roman, Times, serif">112,511</font></div> </td>
<td width="4" align="left"> <div align="left"><font size="2"><font size="2"><font size="2"><font face="Times New Roman, Times, serif"><font size="2"></font></font></font></font></font></div> </td>
<td width="16" align="right"><font size="2" face="Times New Roman, Times, serif"></font></td>
<td width="6" align="right"><font size="2" face="Times New Roman, Times, serif">$</font></td>
<td width="82" align="right"> <div align="right"><font size="2" face="Times New Roman, Times, serif">$8,597</font></div> </td>
<td width="1" align="left"><font size="2" face="Times New Roman, Times, serif"></font></td>
<td width="16" align="right"><font size="2" face="Times New Roman, Times, serif"></font></td>
<td width="6" align="right"><font size="2" face="Times New Roman, Times, serif">$</font></td>
<td width="83" align="right"> <div align="right"><font size="2" face="Times New Roman, Times, serif"> $6,961</font></div> </td>
<td width="5" align="left"> <div align="left"><font size="2"><font size="2"><font size="2"><font size="2"><font size="2"><font size="2"><font size="2"><font face="Times New Roman, Times, serif"><font
size="2"></font></font></font></font></font></font></font></font></font></div> </td>
<td width="16" align="right"><font size="2" face="Times New Roman, Times, serif"></font></td>
<td width="6" align="right"><font size="2" face="Times New Roman, Times, serif">$</font></td>
<td width="84" align="right"> <div align="right"><font size="2" face="Times New Roman, Times, serif">(124,067</font></div> </td>
<td width="5" align="left"><font size="2" face="Times New Roman, Times, serif">)</font></td>
<td width="1" align="left"><font face="Times New Roman, Times, serif" size="2"></font></td>
<td width="17" align="right"><font size="2" face="Times New Roman, Times, serif"></font></td>
<td width="6" align="right"><font size="2" face="Times New Roman, Times, serif">$</font></td>
<td width="84" align="right"> <div align="right"><font size="2" face="Times New Roman, Times, serif">2,470,256</font></div> </td>
<td width="4" align="left"><font size="2" face="Times New Roman, Times, serif"></font></td>
<td width="2"><font size="2"></font></td> </tr>
<tr valign="bottom">
<td width="309" align="left"><font face="Times New Roman, Times, serif" size="2"></font></td>
<td colspan="2" align="right"> <hr color="#000000" size="4" align="right"> </td>
<td width="4" align="left"><font size="2" face="Times New Roman, Times, serif"></font></td>
<td width="16" align="right"><font size="2" face="Times New Roman, Times, serif"></font></td>
<td colspan="2" align="right"> <hr color="#000000" size="4"> </td>
<td width="4" align="left"><font size="2" face="Times New Roman, Times, serif"></font></td>
<td width="16" align="right"><font size="2" face="Times New Roman, Times, serif"></font></td>
<td colspan="2" align="right"> <hr color="#000000" size="4"> </td>
<td width="1" align="left"><font size="2" face="Times New Roman, Times, serif"></font></td>
<td width="16" align="right"><font size="2" face="Times New Roman, Times, serif"></font></td>
<td colspan="2" align="right"> <hr color="#000000" size="4"> </td>
<td width="5" align="left"> <div align="left"><font size="2"><font size="2"><font face="Times New Roman, Times, serif"><font size="2"></font></font></font></font></div> </td>
<td width="16" align="right"><font size="2" face="Times New Roman, Times, serif"></font></td>
<td colspan="2" align="right"> <hr color="#000000" size="4"> </td>
<td width="5" align="left"><font size="2" face="Times New Roman, Times, serif"></font></td>
<td width="1" align="left"><font face="Times New Roman, Times, serif" size="2"></font></td>
<td width="17" align="right"><font size="2" face="Times New Roman, Times, serif"></font></td>
<td colspan="2" align="right"> <hr color="#000000" size="4"> </td>
<td width="4" align="left"><font face="Times New Roman, Times, serif" size="2"></font></td>
<td width="2"><font size="2"></font></td> </tr>
<tr>
<td width="309"> </td> </tr> </table> <p>&nbsp;</p> <p align="center"><font size="2">16</font></p>

<p Style='page-break-before:always'>
<HR  SIZE="3" COLOR="#CCEEFF" WIDTH="100%" ALIGN="CENTER">
<h5 align="left"><a href="#toc">Table of Contents</a></h5>
 <p><font size="2"><b>NOTE J - EARNINGS PER SHARE</b></font></p> <p><font size="2">The following table sets forth the computation of basic and diluted earnings per share:</font></p> &nbsp;
<table border=0 cellpadding=0 cellspacing="0" width="100%">
<tr>
<td>&nbsp;</td>
<td colspan="11"> <div align="center"><b><font size="1">Six months ended June 30, </font></b></div> </td> </tr>
<tr>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td> <div align="center"><b><font size="2">2002</font></b></div> </td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td> <div align="right"></div> </td>
<td> <div align="center"><b><font size="2">2001</font></b></div> </td>
<td align="left">&nbsp;</td>
<td> <div align="center"></div> </td> </tr>
<tr>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td colspan="2"> <hr color="#000000" size="2" align="right"> </td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td colspan="2"> <hr color="#000000" size="2" align="right"> </td>
<td align="left">&nbsp;</td>
<td>&nbsp; </td> </tr>
<tr>
<td>&nbsp;</td>
<td colspan="11"> <div align="center"><font size="2"><i><b><font size="1">(in thousands, except per share data)</font></b></i></font></div> </td> </tr>
<tr>
<td><font size="2"><b>Numerator:</b></font></td>
<td><font size="2"></font></td>
<td><font size="2"></font></td>
<td><font size="2"></font></td>
<td> <div align="right"><font size="2"></font></div> </td>
<td><font size="2"></font></td>
<td><font size="2"></font></td>
<td><font size="2"></font></td>
<td> <div align="right"><font size="2"></font></div> </td>
<td> <div align="right"><font size="2"></font></div> </td>
<td align="left"><font size="2"></font></td>
<td> <div align="right"><font size="2"></font></div> </td> </tr>
<tr valign="bottom">
<td bgcolor="#cceeff"><font size="2">Net income (loss) </font></td>
<td bgcolor="#cceeff"><font size="2"></font></td>
<td bgcolor="#cceeff"><font size="2"></font></td>
<td bgcolor="#cceeff" align="right"><font size="2">$</font></td>
<td bgcolor="#cceeff" align="right"> <div align="right"><font size="2">14,079</font></div> </td>
<td bgcolor="#cceeff" align="right"><font size="2"></font></td>
<td bgcolor="#cceeff" align="left"><font size="2"></font></td>
<td bgcolor="#cceeff" align="right"><font size="2"></font></td>
<td bgcolor="#cceeff" align="right"> <div align="right"><font size="2">$</font></div> </td>
<td bgcolor="#cceeff" align="right"> <div align="right"><font size="2">(25,800)</font></div> </td>
<td align="left" bgcolor="#cceeff"><font size="2"></font></td>
<td bgcolor="#cceeff"> <div align="right"><font size="2"></font></div> </td> </tr>
<tr valign="bottom">
<td><font size="2"></font></td>
<td><font size="2"></font></td>
<td><font size="2"></font></td>
<td colspan="2" align="right"> <hr color="#000000" size="2" align="right"> </td>
<td align="right"><font size="2"></font></td>
<td align="left"><font size="2"></font></td>
<td align="right"><font size="2"></font></td>
<td colspan="2" align="right"> <hr color="#000000" size="2" align="right"> </td>
<td align="left"><font size="2"></font></td>
<td> <div align="right"><font size="2"></font></div> </td> </tr>
<tr valign="bottom">
<td><font size="2"><b>Denominator:</b></font></td>
<td><font size="2"></font></td>
<td><font size="2"></font></td>
<td align="right"><font size="2"></font></td>
<td align="right"> <div align="right"><font size="2"></font></div> </td>
<td align="right"><font size="2"></font></td>
<td align="left"><font size="2"></font></td>
<td align="right"><font size="2"></font></td>
<td align="right"> <div align="right"><font size="2"></font></div> </td>
<td align="right"> <div align="right"><font size="2"></font></div> </td>
<td align="left"><font size="2"></font></td>
<td> <div align="right"><font size="2"></font></div> </td> </tr>
<tr valign="bottom">
<td><font size="2">Denominator for basic earnings (loss) per share:</font></td>
<td><font size="2"></font></td>
<td><font size="2"></font></td>
<td align="right"><font size="2"></font></td>
<td align="right"> <div align="right"><font size="2"></font></div> </td>
<td align="right"><font size="2"></font></td>
<td align="left"><font size="2"></font></td>
<td align="right"><font size="2"></font></td>
<td align="right"> <div align="right"><font size="2"></font></div> </td>
<td align="right"> <div align="right"><font size="2"></font></div> </td>
<td align="left"><font size="2"></font></td>
<td> <div align="right"><font size="2"></font></div> </td> </tr>
<tr valign="bottom">
<td bgcolor="#cceeff"><font size="2">Average shares outstanding</font></td>
<td bgcolor="#cceeff"><font size="2"></font></td>
<td bgcolor="#cceeff"><font size="2"></font></td>
<td bgcolor="#cceeff" align="right"><font size="2"></font></td>
<td bgcolor="#cceeff" align="right"> <div align="right"><font size="2">16,890</font></div> </td>
<td bgcolor="#cceeff" align="right"><font size="2"></font></td>
<td bgcolor="#cceeff" align="left"><font size="2"></font></td>
<td bgcolor="#cceeff" align="right"><font size="2"></font></td>
<td bgcolor="#cceeff" align="right"> <div align="right"><font size="2"></font></div> </td>
<td bgcolor="#cceeff" align="right"> <div align="right"><font size="2">16,888</font></div> </td>
<td align="left" bgcolor="#cceeff"><font size="2"></font></td>
<td bgcolor="#cceeff"> <div align="right"><font size="2"></font></div> </td> </tr>
<tr valign="bottom">
<td><font size="2">&nbsp;</font></td>
<td><font size="2"></font></td>
<td><font size="2"></font></td>
<td align="right"><font size="2"></font></td>
<td align="right"><font size="2"></font></td>
<td align="right"><font size="2"></font></td>
<td align="left"><font size="2"></font></td>
<td align="right"><font size="2"></font></td>
<td align="right"><font size="2"></font></td>
<td align="right"><font size="2"></font></td>
<td align="left"><font size="2"></font></td>
<td><font size="2"></font></td> </tr>
<tr valign="bottom">
<td><font size="2">Effect of dilutive securities:</font></td>
<td><font size="2"></font></td>
<td><font size="2"></font></td>
<td align="right"><font size="2"></font></td>
<td align="right"> <div align="right"><font size="2"></font></div> </td>
<td align="right"><font size="2"></font></td>
<td align="left"><font size="2"></font></td>
<td align="right"><font size="2"></font></td>
<td align="right"> <div align="right"><font size="2"></font></div> </td>
<td align="right"> <div align="right"><font size="2"></font></div> </td>
<td align="left"><font size="2"></font></td>
<td> <div align="right"><font size="2"></font></div> </td> </tr>
<tr valign="bottom">
<td bgcolor="#cceeff"><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;Employee stock options</font></td>
<td bgcolor="#cceeff"><font size="2"></font></td>
<td bgcolor="#cceeff"><font size="2"></font></td>
<td align="right" bgcolor="#cceeff"><font size="2"></font></td>
<td align="right" bgcolor="#cceeff"> <div align="right"><font size="2">184</font></div> </td>
<td align="right" bgcolor="#cceeff"><font size="2"></font></td>
<td align="left" bgcolor="#cceeff"><font size="2"></font></td>
<td align="right" bgcolor="#cceeff"><font size="2"></font></td>
<td align="right" bgcolor="#cceeff"> <div align="right"><font size="2"></font></div> </td>
<td align="right" bgcolor="#cceeff"> <div align="right"><font size="2">&#151;</font></div> </td>
<td align="left" bgcolor="#cceeff"><font size="2"></font></td>
<td bgcolor="#cceeff"> <div align="right"><font size="2"></font></div> </td> </tr>
<tr valign="bottom">
<td><font size="2"></font></td>
<td><font size="2"></font></td>
<td><font size="2"></font></td>
<td colspan="2" align="right"> <hr color="#000000" size="2" align="right"> </td>
<td align="right"><font size="2"></font></td>
<td align="left"><font size="2"></font></td>
<td align="right"><font size="2"></font></td>
<td colspan="2" align="right"> <hr color="#000000" size="2" align="right"> </td>
<td align="left"><font size="2"></font></td>
<td><font size="2"></font> </td> </tr>
<tr valign="bottom">
<td bgcolor="#cceeff"><font size="2">Denominator for diluted earnings (loss) per share</font></td>
<td bgcolor="#cceeff"><font size="2"></font></td>
<td bgcolor="#cceeff"><font size="2"></font></td>
<td bgcolor="#cceeff" align="right"><font size="2"></font></td>
<td bgcolor="#cceeff" align="right"> <div align="right"><font size="2">17,074</font></div> </td>
<td bgcolor="#cceeff" align="right"><font size="2"></font></td>
<td bgcolor="#cceeff" align="left"><font size="2"></font></td>
<td bgcolor="#cceeff" align="right"><font size="2"></font></td>
<td bgcolor="#cceeff" align="right"> <div align="right"><font size="2"></font></div> </td>
<td bgcolor="#cceeff" align="right"> <div align="right"><font size="2">16,888</font></div> </td>
<td align="left" bgcolor="#cceeff"><font size="2"></font></td>
<td bgcolor="#cceeff"> <div align="right"><font size="2"></font></div> </td> </tr>
<tr valign="bottom">
<td><font size="2"></font></td>
<td><font size="2"></font></td>
<td><font size="2"></font></td>
<td colspan="2" align="right"> <hr color="#000000" size="4" align="right"> </td>
<td align="right"><font size="2"></font></td>
<td align="left"><font size="2"></font></td>
<td align="right"><font size="2"></font></td>
<td colspan="2" align="right"> <hr color="#000000" size="4" align="right"> </td>
<td align="left"><font size="2"></font></td>
<td> <div align="right"><font size="2"></font></div> </td> </tr>
<tr valign="bottom">
<td><font size="2">Basic earnings (loss) per share</font></td>
<td><font size="2"></font></td>
<td><font size="2"></font></td>
<td align="right"><font size="2">$</font></td>
<td align="right"> <div align="right"><font size="2">0.83</font></div> </td>
<td align="right"><font size="2"></font></td>
<td align="left"><font size="2"></font></td>
<td align="right"><font size="2"></font></td>
<td align="right"> <div align="right"><font size="2">$</font></div> </td>
<td align="right"> <div align="right"><font size="2">(1.53)</font></div> </td>
<td align="left"><font size="2"></font></td>
<td> <div align="right"><font size="2"></font></div> </td> </tr>
<tr valign="bottom">
<td><font size="2"></font></td>
<td><font size="2"></font></td>
<td><font size="2"></font></td>
<td colspan="2" align="right"> <hr color="#000000" size="4" align="right"> </td>
<td align="right"><font size="2"></font></td>
<td align="left"><font size="2"></font></td>
<td align="right"><font size="2"></font></td>
<td colspan="2" align="right"> <hr color="#000000" size="4" align="right"> </td>
<td align="left"><font size="2"></font></td>
<td> <div align="right"><font size="2"></font></div> </td> </tr>
<tr valign="bottom">
<td bgcolor="#cceeff"><font size="2">Diluted earnings (loss) per share</font></td>
<td bgcolor="#cceeff"><font size="2"></font></td>
<td bgcolor="#cceeff"><font size="2"></font></td>
<td align="right" bgcolor="#cceeff"><font size="2">$</font></td>
<td align="right" bgcolor="#cceeff"> <div align="right"><font size="2">0.82</font></div> </td>
<td align="right" bgcolor="#cceeff"><font size="2"></font></td>
<td align="left" bgcolor="#cceeff"><font size="2"></font></td>
<td align="right" bgcolor="#cceeff"><font size="2"></font></td>
<td align="right" bgcolor="#cceeff"> <div align="right"><font size="2">$</font></div> </td>
<td align="right" bgcolor="#cceeff"> <div align="right"><font size="2">(1.53)</font></div> </td>
<td align="left" bgcolor="#cceeff"><font size="2"></font></td>
<td bgcolor="#cceeff"> <div align="right"><font size="2"></font></div> </td> </tr>
<tr valign="bottom">
<td><font size="2"></font></td>
<td><font size="2"></font></td>
<td><font size="2"></font></td>
<td colspan="2" align="right"> <hr color="#000000" size="4" align="right"> </td>
<td align="right"><font size="2"></font></td>
<td align="left"><font size="2"></font></td>
<td align="right"><font size="2"></font></td>
<td colspan="2" align="right"> <hr color="#000000" size="4" align="right"> </td>
<td align="left"><font size="2"></font></td>
<td> <div align="right"><font size="2"></font></div> </td> </tr>
<tr>
<td colspan="5">&nbsp;</td> </tr>
<tr>
<td colspan="5">&nbsp;</td> </tr>
<tr>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td colspan="8"> <center> <b><font size="1">Three months ended June 30, </font></b> </center> </td>
<td>&nbsp;</td> </tr>
<tr>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td colspan="4"> <div align="center"><b><font size="1">2002</font></b></div> </td>
<td> <div align="center"></div> </td>
<td colspan="3" align="center"> <div align="center"><b><font size="1">2001</font></b></div> </td>
<td> <div align="right"></div> </td> </tr>
<tr>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td colspan="2"> <hr color="#000000" size="2" align="right"> </td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td colspan="2"> <hr color="#000000" size="2" align="right"> </td>
<td align="left">&nbsp;</td>
<td>&nbsp; </td> </tr>
<tr>
<td>&nbsp;</td>
<td colspan="11"> <div align="center"><font size="2"><i><font size="1"><b>(in thousands, except per share data)</b></font></i></font></div> </td> </tr>
<tr>
<td><font size="2"></font></td>
<td><font size="2"></font></td>
<td><font size="2"></font></td>
<td align="right"><font size="2"></font></td>
<td><font size="2"></font></td>
<td><font size="2"></font></td>
<td><font size="2"></font></td>
<td><font size="2"></font></td>
<td align="right"> <div align="right"><font size="2"></font></div> </td>
<td align="right"><font size="2"></font></td>
<td align="left"><font size="2"></font></td>
<td><font size="2"></font></td> </tr>
<tr>
<td valign="bottom"><font size="2"><b>Numerator:</b></font></td>
<td><font size="2"></font></td>
<td><font size="2"></font></td>
<td align="right"><font size="2"></font></td>
<td> <div align="right"><font size="2"></font></div> </td>
<td><font size="2"></font></td>
<td><font size="2"></font></td>
<td><font size="2"></font></td>
<td align="right"> <div align="right"><font size="2"></font></div> </td>
<td align="right"> <div align="right"><font size="2"></font></div> </td>
<td align="left"><font size="2"></font></td>
<td> <div align="right"><font size="2"></font></div> </td> </tr>
<tr>
<td bgcolor="#cceeff" valign="bottom"><font size="2">Net income (loss) </font></td>
<td bgcolor="#cceeff"><font size="2"></font></td>
<td bgcolor="#cceeff"><font size="2"></font></td>
<td bgcolor="#cceeff" valign="bottom" align="right"><font size="2">$</font></td>
<td bgcolor="#cceeff" valign="bottom"> <div align="right"><font size="2">7,671</font></div> </td>
<td bgcolor="#cceeff" valign="bottom"><font size="2"></font></td>
<td bgcolor="#cceeff" valign="bottom"><font size="2"></font></td>
<td bgcolor="#cceeff" valign="bottom"><font size="2"></font></td>
<td align="right" bgcolor="#cceeff" valign="bottom"> <div align="right"><font size="2">$</font></div> </td>
<td align="right" bgcolor="#cceeff" valign="bottom"> <div align="right"><font size="2">(20,055)</font></div> </td>
<td align="left" bgcolor="#cceeff" valign="bottom"><font size="2"></font></td>
<td bgcolor="#cceeff" valign="bottom"> <div align="right"><font size="2"></font></div> </td> </tr>
<tr>
<td valign="bottom"><font size="2"></font></td>
<td><font size="2"></font></td>
<td><font size="2"></font></td>
<td colspan="2" valign="bottom" align="right"> <hr color="#000000" size="2" align="right"> </td>
<td valign="bottom"><font size="2"></font></td>
<td valign="bottom"><font size="2"></font></td>
<td valign="bottom"><font size="2"></font></td>
<td colspan="2" align="right" valign="bottom"> <hr color="#000000" size="2" align="right"> </td>
<td align="left" valign="bottom"><font size="2"></font></td>
<td valign="bottom"><font size="2"></font> </td> </tr>
<tr>
<td valign="bottom"><font size="2"><b>Denominator:</b></font></td>
<td><font size="2"></font></td>
<td><font size="2"></font></td>
<td valign="bottom" align="right"><font size="2"></font></td>
<td valign="bottom"> <div align="right"><font size="2"></font></div> </td>
<td valign="bottom"><font size="2"></font></td>
<td valign="bottom"><font size="2"></font></td>
<td valign="bottom"><font size="2"></font></td>
<td align="right" valign="bottom"> <div align="right"><font size="2"></font></div> </td>
<td align="right" valign="bottom"> <div align="right"><font size="2"></font></div> </td>
<td align="left" valign="bottom"><font size="2"></font></td>
<td valign="bottom"> <div align="right"><font size="2"></font></div> </td> </tr>
<tr>
<td valign="bottom" nowrap><font size="2">Denominator for basic earnings (loss) per share:</font></td>
<td><font size="2"></font></td>
<td><font size="2"></font></td>
<td valign="bottom" align="right"><font size="2"></font></td>
<td valign="bottom"> <div align="right"><font size="2"></font></div> </td>
<td valign="bottom"><font size="2"></font></td>
<td valign="bottom"><font size="2"></font></td>
<td valign="bottom"><font size="2"></font></td>
<td align="right" valign="bottom"> <div align="right"><font size="2"></font></div> </td>
<td align="right" valign="bottom"> <div align="right"><font size="2"></font></div> </td>
<td align="left" valign="bottom"><font size="2"></font></td>
<td valign="bottom"> <div align="right"><font size="2"></font></div> </td> </tr>
<tr>
<td bgcolor="#cceeff" valign="bottom"><font size="2">Average shares outstanding</font></td>
<td bgcolor="#cceeff"><font size="2"></font></td>
<td bgcolor="#cceeff"><font size="2"></font></td>
<td bgcolor="#cceeff" valign="bottom" align="right"><font size="2"></font></td>
<td bgcolor="#cceeff" valign="bottom"> <div align="right"><font size="2">16,892</font></div> </td>
<td bgcolor="#cceeff" valign="bottom"><font size="2"></font></td>
<td bgcolor="#cceeff" valign="bottom"><font size="2"></font></td>
<td bgcolor="#cceeff" valign="bottom"><font size="2"></font></td>
<td align="right" bgcolor="#cceeff" valign="bottom"> <div align="right"><font size="2"></font></div> </td>
<td align="right" bgcolor="#cceeff" valign="bottom"> <div align="right"><font size="2">16,888</font></div> </td>
<td align="left" bgcolor="#cceeff" valign="bottom"><font size="2"></font></td>
<td bgcolor="#cceeff" valign="bottom"> <div align="right"><font size="2"></font></div> </td> </tr>
<tr>
<td valign="bottom"><font size="2"><br> Effect of dilutive securities:</font></td>
<td><font size="2"></font></td>
<td><font size="2"></font></td>
<td valign="bottom" align="right"><font size="2"></font></td>
<td valign="bottom"> <div align="right"><font size="2"></font></div> </td>
<td valign="bottom"><font size="2"></font></td>
<td valign="bottom"><font size="2"></font></td>
<td valign="bottom"><font size="2"></font></td>
<td align="right" valign="bottom"> <div align="right"><font size="2"></font></div> </td>
<td align="right" valign="bottom"> <div align="right"><font size="2"></font></div> </td>
<td align="left" valign="bottom"><font size="2"></font></td>
<td valign="bottom"> <div align="right"><font size="2"></font></div> </td> </tr>
<tr>
<td valign="bottom"><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;Employee stock options</font></td>
<td><font size="2"></font></td>
<td><font size="2"></font></td>
<td valign="bottom" align="right"><font size="2"></font></td>
<td valign="bottom"> <div align="right"><font size="2">241</font></div> </td>
<td valign="bottom"><font size="2"></font></td>
<td valign="bottom"><font size="2"></font></td>
<td valign="bottom"><font size="2"></font></td>
<td align="right" valign="bottom"> <div align="right"><font size="2"></font></div> </td>
<td align="right" valign="bottom"> <div align="right"><font size="2">&#151;</font></div> </td>
<td align="left" valign="bottom"><font size="2"></font></td>
<td valign="bottom"> <div align="right"><font size="2"></font></div> </td> </tr>
<tr>
<td valign="bottom"><font size="2"></font></td>
<td><font size="2"></font></td>
<td><font size="2"></font></td>
<td colspan="2" valign="bottom" align="right"> <hr color="#000000" size="2" align="right"> </td>
<td valign="bottom"><font size="2"></font></td>
<td valign="bottom"><font size="2"></font></td>
<td valign="bottom"><font size="2"></font></td>
<td colspan="2" align="right" valign="bottom"> <hr color="#000000" size="2" align="right"> </td>
<td align="left" valign="bottom"><font size="2"></font></td>
<td valign="bottom"><font size="2"></font> </td> </tr>
<tr>
<td bgcolor="#cceeff" valign="bottom"><font size="2">Denominator for diluted earnings (loss) per share</font></td>
<td bgcolor="#cceeff"><font size="2"></font></td>
<td bgcolor="#cceeff"><font size="2"></font></td>
<td bgcolor="#cceeff" valign="bottom" align="right"><font size="2"></font></td>
<td bgcolor="#cceeff" valign="bottom"> <div align="right"><font size="2">17,133</font></div> </td>
<td bgcolor="#cceeff" valign="bottom"><font size="2"></font></td>
<td bgcolor="#cceeff" valign="bottom"><font size="2"></font></td>
<td bgcolor="#cceeff" valign="bottom"><font size="2"></font></td>
<td align="right" bgcolor="#cceeff" valign="bottom"> <div align="right"><font size="2"></font></div> </td>
<td align="right" bgcolor="#cceeff" valign="bottom"> <div align="right"><font size="2">16,888</font></div> </td>
<td align="left" bgcolor="#cceeff" valign="bottom"><font size="2"></font></td>
<td bgcolor="#cceeff" valign="bottom"> <div align="right"><font size="2"></font></div> </td> </tr>
<tr>
<td valign="bottom"><font size="2"></font></td>
<td><font size="2"></font></td>
<td><font size="2"></font></td>
<td colspan="2" valign="bottom" align="right"> <hr color="#000000" size="4" align="right"> </td>
<td valign="bottom"><font size="2"></font></td>
<td valign="bottom"><font size="2"></font></td>
<td valign="bottom"><font size="2"></font></td>
<td colspan="2" align="right" valign="bottom"> <hr color="#000000" size="4" align="right"> </td>
<td align="left" valign="bottom"><font size="2"></font></td>
<td valign="bottom"><font size="2"></font> </td> </tr>
<tr>
<td bgcolor="#cceeff" valign="bottom"><font size="2">Basic earnings (loss) per share</font></td>
<td bgcolor="#cceeff"><font size="2"></font></td>
<td bgcolor="#cceeff"><font size="2"></font></td>
<td bgcolor="#cceeff" valign="bottom" align="right"><font size="2"><b>$</b></font></td>
<td bgcolor="#cceeff" valign="bottom"> <div align="right"><font size="2">0.45</font></div> </td>
<td bgcolor="#cceeff" valign="bottom"><font size="2"></font></td>
<td bgcolor="#cceeff" valign="bottom"><font size="2"></font></td>
<td bgcolor="#cceeff" valign="bottom"><font size="2"></font></td>
<td align="right" bgcolor="#cceeff" valign="bottom"> <div align="right"><font size="2">$</font></div> </td>
<td align="right" bgcolor="#cceeff" valign="bottom"> <div align="right"><font size="2">(1.19)</font></div> </td>
<td align="left" bgcolor="#cceeff" valign="bottom"><font size="2"></font></td>
<td bgcolor="#cceeff" valign="bottom"> <div align="right"><font size="2"></font></div> </td> </tr>
<tr>
<td valign="bottom"><font size="2"></font></td>
<td><font size="2"></font></td>
<td><font size="2"></font></td>
<td colspan="2" valign="bottom" align="right"> <hr color="#000000" size="4" align="right"> </td>
<td valign="bottom"><font size="2"></font></td>
<td valign="bottom"><font size="2"></font></td>
<td valign="bottom"><font size="2"></font></td>
<td colspan="2" align="right" valign="bottom"> <hr color="#000000" size="4" align="right"> </td>
<td align="left" valign="bottom"><font size="2"></font></td>
<td valign="bottom"><font size="2"></font> </td> </tr>
<tr>
<td bgcolor="#cceeff" valign="bottom"><font size="2">Diluted earnings (loss) per share</font></td>
<td bgcolor="#cceeff"><font size="2"></font></td>
<td bgcolor="#cceeff"><font size="2"></font></td>
<td bgcolor="#cceeff" valign="bottom" align="right"><font size="2"><b>$</b></font></td>
<td bgcolor="#cceeff" valign="bottom"> <div align="right"><font size="2">0.45</font></div> </td>
<td bgcolor="#cceeff" valign="bottom"><font size="2"></font></td>
<td bgcolor="#cceeff" valign="bottom"><font size="2"></font></td>
<td bgcolor="#cceeff" valign="bottom"><font size="2"></font></td>
<td align="right" bgcolor="#cceeff" valign="bottom"> <div align="right"><font size="2">$</font></div> </td>
<td align="right" bgcolor="#cceeff" valign="bottom"> <div align="right"><font size="2">(1.19)</font></div> </td>
<td align="left" bgcolor="#cceeff" valign="bottom"> <div align="left"><font size="2">&nbsp;</font></div> </td>
<td bgcolor="#cceeff" valign="bottom"> <div align="right"><font size="2"></font></div> </td> </tr>
<tr>
<td valign="bottom"><font size="2"></font></td>
<td><font size="2"></font></td>
<td><font size="2"></font></td>
<td colspan="2" valign="bottom"> <hr color="#000000" size="4" align="right"> </td>
<td valign="bottom"><font size="2"></font></td>
<td valign="bottom"><font size="2"></font></td>
<td valign="bottom"><font size="2"></font></td>
<td colspan="2" align="right" valign="bottom"> <hr color="#000000" size="4" align="right"> </td>
<td align="left" valign="bottom"><font size="2"></font></td>
<td valign="bottom"><font size="2"></font> </td> </tr> </table> <p><font size="2">Options to purchase 78,517 shares of common stock at exercise prices between $25.66 and $42.75 per share were outstanding during the first six months of 2002 but were
not included in the computation of diluted earnings per share because the options' exercise price was greater than the average market price of the common shares and therefore, the effect would be antidilutive. Options to purchase 627,905 shares of
common stock at exercise prices between $5.75 and $42.75 per share were outstanding during the first six months of 2001 but were not included in the computation of diluted earnings per share due to their antidilutive effect as a result of the
Company's net loss reported for the first six months of 2001.</font></p> <p align="center"><font size="2">17</font></p>

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 <p align="left"><font size="2" face="Times New Roman, Times, serif"><b>
<a name="l48818tx7"></a>ITEM 2 - MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL <br> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;CONDITION AND RESULTS OF OPERATIONS</b></font></p> <p><font face="Times New Roman, Times, serif"><b><font
size="2">FINANCIAL SUMMARY<br> <i>Six Months Ended June 30, 2002 vs. 2001</i></font></b><font size="2"><br> <br> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Company reported consolidated net income of $14.08 million, or $0.82 per
diluted common share, for the six months ended June 30, 2002, compared to a consolidated net loss of $25.80 million, or $1.53 per common share for the first six months of 2001. Return on average assets (&quot;ROA&quot;) was 1.35% and return on
average equity (&quot;ROE&quot;) was 18.40% for the six months ended June 30, 2002, compared to (2.03)% and (32.77)%, respectively, for the first six months of 2001.<br> <br> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
significant improvement in the Company's earnings from 2001 to 2002 can primarily be attributed to the Company's accounting for its retained interests assets and the Company's allowance for loan losses, as discussed below. First, during the first
six months of 2001, the Company reported a $17.99 million after-tax charge against income resulting from its adoption of new accounting rules associated with accounting for the Company's retained interests in securitized mortgage loans. Also during
2001, the Company recorded a $2.18 million pre-tax ($1.42 million after-tax) impairment charge associated with the estimated fair value of its retained interests. The combined effect of these events resulted in a $19.41 million after-tax charge
against income related to the Company's retained interests. No such expenses were necessary through June 30, 2002, and, in fact, the Company accrued interest income on the retained interests. Second, the provision for loan losses declined $14.21
million, or 88.76%, from $16.01 million for the first six months of 2001 to $1.80 million for the same period in 2002. As further discussed under the caption <i>Allowance and Provision for Loan Losses, </i>management's efforts to resolve credit
quality issues have resulted in significant improvement in the Company's asset quality, and the Company believes that the majority of its credit quality problems were identified and provided for during 2001 with insignificant deterioration in credit
quality thus far in 2002. As a result of the Company's analysis of the adequacy of the allowance for loan losses as of June 30, 2002, the allowance determined necessary to provide for losses inherent in the loan portfolio has declined significantly
as of June 30, 2002, resulting in a related decline in provision expense during the first six months of 2002.<br> <br> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Additionally, 2002 earnings have been positively affected by
significant increases in service charge revenues and sizeable decreases in compensation costs and other non-interest expenses<i> (see Non-Interest Income and Expense). </i>Declines experienced in non-interest expense are due to (a) management's
efforts to bring the Company in-line with peer group averages for operational efficiencies and (b) a number of non-recurring charges against income recorded during 2001 as the Company implemented its reorganization plan.<br> <br> <b><i>Three Months
Ended June 30, 2002 vs. 2001</i></b><br> <br> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Company reported consolidated net income of $7.67 million, or $0.45 per diluted common share, for the three months ended June 30, 2002,
compared to a consolidated net loss of $20.06 million, or $1.19 per common share, for the second quarter of 2001. ROA was 1.48% and ROE was 19.70% for the three months ended June 30, 2002, compared to (3.25)% and (53.24)%, respectively, for the
first three months of 2001. The significant improvement in the Company's earnings from quarter-to-quarter is primarily attributable to the $17.99 million charge against earnings recorded in the second quarter of 2001 as a result of the Company's
adoption of new accounting rules related to its retained interests in securitized loans. Additionally, and as discussed under the caption Allowance and Provision for Loan Losses, the provision for loan losses declined $9.38 million, or 91.25%, from
$10.28 million in the second quarter of 2001 to $0.90 million in </font></font></p> <p align="center"><font size="2" face="Times New Roman, Times, serif">18</font></p>

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 <p><font size="2" face="Times New Roman, Times, serif">2002. As discussed under the caption Non-Interest Income and Non-Interest Expense, the Company also achieved significant cost savings, quarter-to-quarter, as
total non-interest expense declined $10.54 million, or 37.09%, from $28.41 million in the second quarter of 2001 to $17.87 million in 2002. The decrease in expense levels was largely attributable to initiatives undertaken during 2001 to improve the
Company's operational efficiency.<br> <br> <b>NET INTEREST INCOME</b><br> <br> <i><b>Six Months Ended June 30, 2002 vs. 2001</b></i><br> <br> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On a tax equivalent basis, net interest
income remained relatively unchanged from 2001 to 2002, increasing $0.14 million, or 0.31%, from $44.13 million for the six months ended June 30, 2001 to $44.27 million in 2002. However, the individual components of net interest income changed
significantly from period-to-period. The average balance of the Company's loan balances, including loans classified as &quot;held-for-sale&quot;, declined $604.40 million, or 31.77%, from $1.90 billion in 2001 to $1.30 billion in 2002. Of this
decline, approximately $147 million is attributable to the Company's sale of its California banking operations in November 2001. The remaining $457 million decline in the average balance of loans is primarily the result of management's efforts to
improve the Company's loan quality, reduce the Company's reliance on higher-costing funding sources, exit certain loan products, such as indirect lending, and exit out-of-market loan originations. <br> <br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Partially offsetting the declines experienced within loan balances, the average balance of the Company's investment securities portfolio increased $147.91 million, or 41.00%, from
$360.74 million for the first six months of 2001 to $508.65 million in 2002, and the average balance of federal funds sold increased $38.99 million, or 548.15%, over the same period. Both the investment securities portfolio and the investment in
federal funds are utilized by the Company to provide flexibility in managing liquidity and interest rate risk.<br> <br> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Also offsetting the declines experienced within loan balances,
the average balance of interest-bearing deposits declined $353.13 million, or 20.24%, from $1.74 billion for the six months ended June 30, 2001 to $1.39 billion in 2002. Of this decline, approximately $175 million is attributable to the Company's
sale of its California banking operations. The remaining $178 million decline in interest-bearing deposits is primarily due to declines in high-rate, special-term certificates of deposit (&quot;CDs&quot;). During the second half of 2000 and the
first few months of 2001, the Company utilized these higher-rate CD products as a source of liquidity to fund loan growth. However, with the Company's focus on funding the asset side of its balance sheet with core deposits and capital, and improving
its net interest margin, as these special CDs mature, the Company is choosing not to renew the CDs at higher than average interest rates.<br> <br> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Although yields earned on the
Company's loan balances declined significantly from 2001 to 2002, rates paid on the Company's deposit products also declined significantly. These declines are due, in part, to the interest rate environment over the past several months, but also due
to the Company's reduced reliance on higher-costing funding sources, including certain deposit products, as discussed above. After considering both the impact of declining average balances and declining interest rates earned and paid, interest
income earned on the Company's loan balances declined $31.79 million from 2001 to 2002, while interest expense on the Company's deposits and borrowings declined $27.37 million over the same period. The $4.42 million decline in net interest income
resulting from these two areas was offset by an increase of $3.50 million, from 2001 to 2002, in interest income recognized on the Company's retained interests and a $1.14 million increase in interest income earned on the Company's investment
securities portfolio.<br> </font></p> <p align="center"><font size="2" face="Times New Roman, Times, serif">19</font></p>

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 <p align="left"><font size="2"><b><i><font face="Times New Roman, Times, serif">Three Months Ended June 30, 2002 vs. 2001</font></i></b><font face="Times New Roman, Times, serif"><br> <br> On a tax equivalent basis,
net interest income declined $0.78 million, or 3.40%, from $23.03 million in the second quarter of 2001 to $22.25 million in the second quarter of 2002. Changes in the composition of the balance sheet from quarter-to-quarter were for the same
reasons as discussed previously in the comparison of average balances for the six- month periods ended June 30, 2002 and 2001. Interest income derived from loan balances declined $15.31 million, or 39.14%, from $39.12 million in the second quarter
of 2001 to $23.81 million in 2002, while interest expense incurred on the Company's deposits and borrowings declined $12.67 million, or 59.26%, from $21.38 million for the second quarter of 2001 to $8.70 million in 2002. The $2.64 million decline in
net interest income resulting from changes within the loans and funding sources was partially offset by a $1.23 million increase in interest income earned on the Company's investment securities portfolio and a $0.74 million increase in interest
income recognized on the Company's retained interests.</font></font></p> <p align="center"><font size="2" face="Times New Roman, Times, serif">20</font></p>

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 <p align="left"><b><font size="2" face="Times New Roman, Times, serif">AVERAGE BALANCE SHEETS AND NET INTEREST INCOME</font></b> <font size="2" face="Times New Roman, Times, serif"><i><br> (in
thousands)</i></font></p>
<table border=0 cellpadding=0 cellspacing="0" width="100%">
<tr valign="bottom">
<td width="37%"><font face="Times New Roman, Times, serif"></font></td>
<td width="1%">&nbsp;</td>
<td width="1%"><font face="Times New Roman, Times, serif"></font></td>
<td colspan="16"> <div align="center"><font size="2" face="Times New Roman, Times, serif"><b><font size="1">Six months ended June 30,</font></b></font></div> </td>
<td width="3%"><font face="Times New Roman, Times, serif"></font></td> </tr>
<tr valign="bottom">
<td width="37%"><font face="Times New Roman, Times, serif"></font></td>
<td width="1%">&nbsp;</td>
<td width="1%"><font face="Times New Roman, Times, serif"></font></td>
<td width="8%"> <div align="center"><font face="Times New Roman, Times, serif"></font></div> </td>
<td width="2%"> <div align="center"><font face="Times New Roman, Times, serif"></font></div> </td>
<td colspan="2"> <div align="center"><font face="Times New Roman, Times, serif"></font></div> <div align="center"><font face="Times New Roman, Times, serif"><b><font size="1">2002</font></b></font></div> </td>
<td width="2%"> <div align="center"><font face="Times New Roman, Times, serif"></font></div> </td>
<td width="7%"> <div align="center"><font face="Times New Roman, Times, serif"></font></div> </td>
<td align="left" width="1%"> <div align="center"><font face="Times New Roman, Times, serif"></font></div> </td>
<td width="2%"> <div align="center"><font face="Times New Roman, Times, serif"></font></div> </td>
<td width="1%"> <div align="center"><font face="Times New Roman, Times, serif"></font></div> </td>
<td width="9%"> <div align="center"><font face="Times New Roman, Times, serif"></font></div> </td>
<td width="1%"><font face="Times New Roman, Times, serif"></font></td>
<td width="1%"><font face="Times New Roman, Times, serif"></font></td>
<td colspan="2"><font face="Times New Roman, Times, serif"></font> <div align="center"><font face="Times New Roman, Times, serif"><b><font size="1">2001</font></b></font></div> </td>
<td width="1%"> <div align="center"><font face="Times New Roman, Times, serif"></font></div> </td>
<td width="7%"> <div align="center"><font face="Times New Roman, Times, serif"></font></div> </td>
<td width="3%"><font face="Times New Roman, Times, serif"></font></td> </tr>
<tr valign="bottom">
<td width="37%"><font face="Times New Roman, Times, serif"></font></td>
<td width="1%">&nbsp;</td>
<td colspan="2"><font face="Times New Roman, Times, serif"></font> <div align="center"><font face="Times New Roman, Times, serif"><b><font size="1">Average<br> Balance</font></b></font></div> <hr color="#000000" size="2" width="100%"> </td>
<td width="2%"> <div align="center"><font face="Times New Roman, Times, serif"></font></div> </td>
<td colspan="2"> <div align="center"><font face="Times New Roman, Times, serif"></font></div> <div align="center"><font face="Times New Roman, Times, serif"><b><font size="1">Interest</font></b></font> </div> <hr color="#000000" size="2"
width="100%"> </td>
<td width="2%"> <div align="center"><font face="Times New Roman, Times, serif"></font></div> </td>
<td width="7%"> <div align="center"><font face="Times New Roman, Times, serif"><b><font size="1">Yield/<br> Rate</font></b></font></div> <hr color="#000000" size="2" width="100%"> </td>
<td align="left" width="1%"> <div align="center"><font face="Times New Roman, Times, serif"></font></div> </td>
<td width="2%"> <div align="center"><font face="Times New Roman, Times, serif"></font></div> </td>
<td colspan="2"> <div align="center"><font face="Times New Roman, Times, serif"></font></div> <div align="center"><font face="Times New Roman, Times, serif"><b><font size="1">Average<br> Balance</font></b></font></div> <hr color="#000000" size="2"
width="100%"> </td>
<td width="1%"><font face="Times New Roman, Times, serif"></font></td>
<td width="1%"><font face="Times New Roman, Times, serif"></font></td>
<td colspan="2"><font face="Times New Roman, Times, serif"></font> <div align="center"><font face="Times New Roman, Times, serif"><b><font size="1">Interest</font></b></font> </div> <hr color="#000000" size="2" width="100%"> </td>
<td width="1%"> <div align="center"><font face="Times New Roman, Times, serif">&nbsp;</font></div> </td>
<td width="7%"> <div align="center"><font face="Times New Roman, Times, serif"><b><font size="1">Yield/<br> Rate</font></b></font></div> <hr color="#000000" size="2" width="100%"> </td>
<td width="3%"><font face="Times New Roman, Times, serif"></font></td> </tr>
<tr>
<td width="37%"><font size="2" face="Times New Roman, Times, serif"><b>Assets</b></font></td>
<td width="1%">&nbsp;</td>
<td width="1%"><font face="Times New Roman, Times, serif"></font></td>
<td width="8%"> <div align="right"><font face="Times New Roman, Times, serif"></font></div> </td>
<td width="2%"><font face="Times New Roman, Times, serif"></font></td>
<td width="1%"><font face="Times New Roman, Times, serif"></font></td>
<td valign="bottom" width="7%"> <div align="right"></div> </td>
<td valign="bottom" width="2%"> <div align="right"><font face="Times New Roman, Times, serif">&nbsp;&nbsp;</font></div> </td>
<td valign="bottom" width="7%"> <div align="right"><font face="Times New Roman, Times, serif"></font></div> </td>
<td valign="bottom" align="left" width="1%"> <div align="right"><font face="Times New Roman, Times, serif">&nbsp;&nbsp;</font></div> </td>
<td valign="bottom" width="2%"> <div align="right"><font face="Times New Roman, Times, serif">&nbsp;&nbsp;</font></div> </td>
<td valign="bottom" width="1%"> <div align="right"><font face="Times New Roman, Times, serif"></font></div> </td>
<td valign="bottom" width="9%"> <div align="right"><font face="Times New Roman, Times, serif"></font></div> </td>
<td valign="bottom" width="1%"><font face="Times New Roman, Times, serif"></font></td>
<td valign="bottom" width="1%"><font face="Times New Roman, Times, serif"></font></td>
<td valign="bottom" width="1%"><font face="Times New Roman, Times, serif"></font></td>
<td valign="bottom" width="7%"> <div align="right"><font face="Times New Roman, Times, serif"></font></div> </td>
<td valign="bottom" width="1%"> <div align="right"><font face="Times New Roman, Times, serif"></font></div> </td>
<td valign="bottom" width="7%"> <div align="right"><font face="Times New Roman, Times, serif"></font></div> </td>
<td width="3%"><font face="Times New Roman, Times, serif"></font></td> </tr>
<tr>
<td bgcolor="#cceeff" width="37%"><font size="2" face="Times New Roman, Times, serif">Loan portfolio (1)</font></td>
<td bgcolor="#cceeff" width="1%">&nbsp;</td>
<td bgcolor="#cceeff" width="1%"><font size="2" face="Times New Roman, Times, serif">$</font></td>
<td bgcolor="#cceeff" width="8%"> <div align="right"><font size="2" face="Times New Roman, Times, serif">1,298,044</font></div> </td>
<td bgcolor="#cceeff" width="2%"><font face="Times New Roman, Times, serif"></font></td>
<td bgcolor="#cceeff" width="1%"><font face="Times New Roman, Times, serif"><font size="2">$</font></font></td>
<td valign="bottom" bgcolor="#cceeff" width="7%"> <div align="right"><font size="2" face="Times New Roman, Times, serif">49,382</font></div> </td>
<td valign="bottom" bgcolor="#cceeff" width="2%"> <div align="right"><font face="Times New Roman, Times, serif"></font></div> </td>
<td valign="bottom" bgcolor="#cceeff" width="7%"> <div align="right"><font size="2" face="Times New Roman, Times, serif">7.61</font></div> </td>
<td valign="bottom" align="left" bgcolor="#cceeff" width="1%"> <div align="right"><font size="2" face="Times New Roman, Times, serif">%</font></div> </td>
<td valign="bottom" bgcolor="#cceeff" width="2%"> <div align="right"><font face="Times New Roman, Times, serif"></font></div> </td>
<td valign="bottom" bgcolor="#cceeff" width="1%"> <div align="left"><font face="Times New Roman, Times, serif"><font size="2">$</font></font></div> </td>
<td valign="bottom" bgcolor="#cceeff" width="9%"> <div align="right"><font size="2" face="Times New Roman, Times, serif">1,885,105</font></div> </td>
<td valign="bottom" bgcolor="#cceeff" width="1%"><font face="Times New Roman, Times, serif"></font></td>
<td valign="bottom" bgcolor="#cceeff" width="1%"><font face="Times New Roman, Times, serif">&nbsp;&nbsp;</font></td>
<td valign="bottom" bgcolor="#cceeff" width="1%"><font size="2" face="Times New Roman, Times, serif">$</font></td>
<td valign="bottom" bgcolor="#cceeff" width="7%"> <div align="right"><font size="2" face="Times New Roman, Times, serif">80,343</font></div> </td>
<td valign="bottom" bgcolor="#cceeff" width="1%"> <div align="right"><font face="Times New Roman, Times, serif"></font></div> </td>
<td valign="bottom" bgcolor="#cceeff" width="7%"> <div align="right"><font size="2" face="Times New Roman, Times, serif">8.52</font></div> </td>
<td bgcolor="#cceeff" width="3%"><font size="2" face="Times New Roman, Times, serif">%</font></td> </tr>
<tr>
<td width="37%"><font size="2" face="Times New Roman, Times, serif">Loans held for sale</font></td>
<td width="1%">&nbsp;</td>
<td width="1%"><font face="Times New Roman, Times, serif"></font></td>
<td width="8%"> <div align="right"><font face="Times New Roman, Times, serif"><b><font size="2">&#151;</font></b></font></div> </td>
<td width="2%"><font face="Times New Roman, Times, serif"></font></td>
<td width="1%"><font face="Times New Roman, Times, serif"></font></td>
<td valign="bottom" width="7%"> <div align="right"><font face="Times New Roman, Times, serif"><b><font size="2">&#151;</font></b></font></div> </td>
<td valign="bottom" width="2%"> <div align="right"><font face="Times New Roman, Times, serif"></font></div> </td>
<td valign="bottom" width="7%"> <div align="right"><font face="Times New Roman, Times, serif"><b><font size="2">&#151;</font></b></font></div> </td>
<td valign="bottom" align="left" width="1%"> <div align="right"><font face="Times New Roman, Times, serif"></font></div> </td>
<td valign="bottom" width="2%"> <div align="right"><font face="Times New Roman, Times, serif"></font></div> </td>
<td valign="bottom" width="1%"> <div align="left"><font face="Times New Roman, Times, serif"></font></div> </td>
<td valign="bottom" width="9%"> <div align="right"><font size="2" face="Times New Roman, Times, serif">17,340</font></div> </td>
<td valign="bottom" width="1%"><font face="Times New Roman, Times, serif"></font></td>
<td valign="bottom" width="1%"><font face="Times New Roman, Times, serif"></font></td>
<td valign="bottom" width="1%"><font face="Times New Roman, Times, serif"></font></td>
<td valign="bottom" width="7%"> <div align="right"><font size="2" face="Times New Roman, Times, serif">832</font></div> </td>
<td valign="bottom" width="1%"> <div align="right"><font face="Times New Roman, Times, serif"></font></div> </td>
<td valign="bottom" width="7%"> <div align="right"><font size="2" face="Times New Roman, Times, serif">9.60</font></div> </td>
<td width="3%"><font face="Times New Roman, Times, serif"></font></td> </tr>
<tr>
<td width="37%"><font size="2" face="Times New Roman, Times, serif">Securities:</font></td>
<td width="1%">&nbsp;</td>
<td width="1%"><font face="Times New Roman, Times, serif"></font></td>
<td width="8%"> <div align="right"><font face="Times New Roman, Times, serif"></font></div> </td>
<td width="2%"><font face="Times New Roman, Times, serif"></font></td>
<td width="1%"><font face="Times New Roman, Times, serif"></font></td>
<td valign="bottom" width="7%"> <div align="right"><font face="Times New Roman, Times, serif"></font></div> </td>
<td valign="bottom" width="2%"> <div align="right"><font face="Times New Roman, Times, serif"></font></div> </td>
<td valign="bottom" width="7%"> <div align="right"><font face="Times New Roman, Times, serif"></font></div> </td>
<td valign="bottom" align="left" width="1%"> <div align="right"><font face="Times New Roman, Times, serif"></font></div> </td>
<td valign="bottom" width="2%"> <div align="right"><font face="Times New Roman, Times, serif"></font></div> </td>
<td valign="bottom" width="1%"> <div align="left"><font face="Times New Roman, Times, serif"></font></div> </td>
<td valign="bottom" width="9%"> <div align="right"><font face="Times New Roman, Times, serif"></font></div> </td>
<td valign="bottom" width="1%"><font face="Times New Roman, Times, serif"></font></td>
<td valign="bottom" width="1%"><font face="Times New Roman, Times, serif"></font></td>
<td valign="bottom" width="1%"><font face="Times New Roman, Times, serif"></font></td>
<td valign="bottom" width="7%"> <div align="right"><font face="Times New Roman, Times, serif"></font></div> </td>
<td valign="bottom" width="1%"> <div align="right"><font face="Times New Roman, Times, serif"></font></div> </td>
<td valign="bottom" width="7%"> <div align="right"><font face="Times New Roman, Times, serif"></font></div> </td>
<td width="3%"><font face="Times New Roman, Times, serif"></font></td> </tr>
<tr>
<td bgcolor="#cceeff" width="37%"><font size="2" face="Times New Roman, Times, serif">&nbsp;&nbsp;&nbsp;&nbsp;Taxable</font></td>
<td bgcolor="#cceeff" width="1%">&nbsp;</td>
<td bgcolor="#cceeff" width="1%"><font face="Times New Roman, Times, serif"></font></td>
<td bgcolor="#cceeff" width="8%"> <div align="right"><font size="2" face="Times New Roman, Times, serif">452,087</font></div> </td>
<td bgcolor="#cceeff" width="2%"><font face="Times New Roman, Times, serif"></font></td>
<td bgcolor="#cceeff" width="1%"><font face="Times New Roman, Times, serif"></font></td>
<td valign="bottom" bgcolor="#cceeff" width="7%"> <div align="right"><font size="2" face="Times New Roman, Times, serif">9,687</font></div> </td>
<td valign="bottom" bgcolor="#cceeff" width="2%"> <div align="right"><font face="Times New Roman, Times, serif"></font></div> </td>
<td valign="bottom" bgcolor="#cceeff" width="7%"> <div align="right"><font size="2" face="Times New Roman, Times, serif">4.29</font></div> </td>
<td valign="bottom" align="left" bgcolor="#CCEEFF" width="1%"> <div align="right"><font face="Times New Roman, Times, serif"></font></div> </td>
<td valign="bottom" bgcolor="#cceeff" width="2%"> <div align="right"><font face="Times New Roman, Times, serif"></font></div> </td>
<td valign="bottom" bgcolor="#cceeff" width="1%"> <div align="left"><font face="Times New Roman, Times, serif"></font></div> </td>
<td valign="bottom" bgcolor="#cceeff" width="9%"> <div align="right"><font size="2" face="Times New Roman, Times, serif">290,098</font></div> </td>
<td valign="bottom" bgcolor="#cceeff" width="1%"><font face="Times New Roman, Times, serif"></font></td>
<td valign="bottom" bgcolor="#cceeff" width="1%"><font face="Times New Roman, Times, serif"></font></td>
<td valign="bottom" bgcolor="#cceeff" width="1%"><font face="Times New Roman, Times, serif"></font></td>
<td valign="bottom" bgcolor="#cceeff" width="7%"> <div align="right"><font size="2" face="Times New Roman, Times, serif">8,004</font></div> </td>
<td valign="bottom" bgcolor="#cceeff" width="1%"> <div align="right"><font face="Times New Roman, Times, serif"></font></div> </td>
<td valign="bottom" bgcolor="#cceeff" width="7%"> <div align="right"><font size="2" face="Times New Roman, Times, serif">5.52</font></div> </td>
<td bgcolor="#cceeff" width="3%"><font face="Times New Roman, Times, serif"></font></td> </tr>
<tr>
<td width="37%"><font size="2" face="Times New Roman, Times, serif">&nbsp;&nbsp;&nbsp;&nbsp;Tax-exempt (2)</font></td>
<td width="1%">&nbsp;</td>
<td width="1%"><font face="Times New Roman, Times, serif"></font></td>
<td width="8%"> <div align="right"><font size="2" face="Times New Roman, Times, serif">56,561</font></div> </td>
<td width="2%"><font face="Times New Roman, Times, serif"></font></td>
<td width="1%"><font face="Times New Roman, Times, serif"></font></td>
<td valign="bottom" width="7%"> <div align="right"><font size="2" face="Times New Roman, Times, serif">2,177</font></div> </td>
<td valign="bottom" width="2%"> <div align="right"><font face="Times New Roman, Times, serif"></font></div> </td>
<td valign="bottom" width="7%"> <div align="right"><font size="2" face="Times New Roman, Times, serif">7.70</font></div> </td>
<td valign="bottom" align="left" width="1%"> <div align="right"><font face="Times New Roman, Times, serif"></font></div> </td>
<td valign="bottom" width="2%"> <div align="right"><font face="Times New Roman, Times, serif"></font></div> </td>
<td valign="bottom" width="1%"> <div align="left"><font face="Times New Roman, Times, serif"></font></div> </td>
<td valign="bottom" width="9%"> <div align="right"><font size="2" face="Times New Roman, Times, serif">70,641</font></div> </td>
<td valign="bottom" width="1%"><font face="Times New Roman, Times, serif"></font></td>
<td valign="bottom" width="1%"><font face="Times New Roman, Times, serif"></font></td>
<td valign="bottom" width="1%"><font face="Times New Roman, Times, serif"></font></td>
<td valign="bottom" width="7%"> <div align="right"><font size="2" face="Times New Roman, Times, serif">2,718</font></div> </td>
<td valign="bottom" width="1%"> <div align="right"><font face="Times New Roman, Times, serif"></font></div> </td>
<td valign="bottom" width="7%"> <div align="right"><font size="2" face="Times New Roman, Times, serif">7.70</font></div> </td>
<td width="3%"><font face="Times New Roman, Times, serif"></font></td> </tr>
<tr>
<td width="37%"><font face="Times New Roman, Times, serif"></font></td>
<td width="1%">&nbsp;</td>
<td colspan="2"> <hr color="#000000" size="2" width="100%"> </td>
<td width="2%"><font face="Times New Roman, Times, serif"></font></td>
<td colspan="2"> <hr color="#000000" size="2" width="100%"> </td>
<td valign="bottom" width="2%"><font face="Times New Roman, Times, serif"></font></td>
<td valign="bottom" width="7%"> <hr color="#000000" size="2" width="100%"> </td>
<td valign="bottom" align="left" width="1%"><font face="Times New Roman, Times, serif"></font></td>
<td valign="bottom" width="2%"><font face="Times New Roman, Times, serif"></font></td>
<td colspan="2" valign="bottom"> <hr color="#000000" size="2" width="100%"> </td>
<td valign="bottom" width="1%"><font face="Times New Roman, Times, serif"></font></td>
<td valign="bottom" width="1%"><font face="Times New Roman, Times, serif"></font></td>
<td colspan="2" valign="bottom"> <hr color="#000000" size="2" width="100%"> </td>
<td valign="bottom" width="1%"><font face="Times New Roman, Times, serif"></font></td>
<td valign="bottom" width="7%"> <hr color="#000000" size="2" width="100%"> </td>
<td width="3%"><font face="Times New Roman, Times, serif"></font></td> </tr>
<tr>
<td bgcolor="#cceeff" width="37%"><font size="2" face="Times New Roman, Times, serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total securities</font></td>
<td bgcolor="#cceeff" width="1%">&nbsp;</td>
<td bgcolor="#cceeff" width="1%"><font face="Times New Roman, Times, serif"></font></td>
<td bgcolor="#cceeff" width="8%"> <div align="right"><font size="2" face="Times New Roman, Times, serif">508,648</font></div> </td>
<td bgcolor="#cceeff" width="2%"><font face="Times New Roman, Times, serif"></font></td>
<td bgcolor="#cceeff" width="1%"><font face="Times New Roman, Times, serif"></font></td>
<td valign="bottom" bgcolor="#cceeff" width="7%"> <div align="right"><font size="2" face="Times New Roman, Times, serif">11,864</font></div> </td>
<td valign="bottom" bgcolor="#cceeff" width="2%"> <div align="right"><font face="Times New Roman, Times, serif"></font></div> </td>
<td valign="bottom" bgcolor="#cceeff" width="7%"> <div align="right"><font size="2" face="Times New Roman, Times, serif">4.66</font></div> </td>
<td valign="bottom" align="left" bgcolor="#CCEEFF" width="1%"> <div align="right"><font face="Times New Roman, Times, serif"></font></div> </td>
<td valign="bottom" bgcolor="#cceeff" width="2%"> <div align="right"><font face="Times New Roman, Times, serif"></font></div> </td>
<td valign="bottom" bgcolor="#cceeff" width="1%"> <div align="right"><font face="Times New Roman, Times, serif"></font></div> </td>
<td valign="bottom" bgcolor="#cceeff" width="9%"> <div align="right"><font size="2" face="Times New Roman, Times, serif">360,739</font></div> </td>
<td valign="bottom" bgcolor="#cceeff" width="1%"><font face="Times New Roman, Times, serif"></font></td>
<td valign="bottom" bgcolor="#cceeff" width="1%"><font face="Times New Roman, Times, serif"></font></td>
<td valign="bottom" bgcolor="#cceeff" width="1%"><font face="Times New Roman, Times, serif"></font></td>
<td valign="bottom" bgcolor="#cceeff" width="7%"> <div align="right"><font size="2" face="Times New Roman, Times, serif">10,722</font></div> </td>
<td valign="bottom" bgcolor="#cceeff" width="1%"> <div align="right"><font face="Times New Roman, Times, serif"></font></div> </td>
<td valign="bottom" bgcolor="#cceeff" width="7%"> <div align="right"><font size="2" face="Times New Roman, Times, serif">5.94</font></div> </td>
<td bgcolor="#cceeff" width="3%"><font face="Times New Roman, Times, serif"></font></td> </tr>
<tr>
<td width="37%"><font size="2" face="Times New Roman, Times, serif">Retained interest in securitized loans</font></td>
<td width="1%">&nbsp;</td>
<td width="1%"><font face="Times New Roman, Times, serif"></font></td>
<td width="8%"> <div align="right"><font size="2" face="Times New Roman, Times, serif">73,690</font></div> </td>
<td width="2%"><font face="Times New Roman, Times, serif"></font></td>
<td width="1%"><font face="Times New Roman, Times, serif"></font></td>
<td valign="bottom" width="7%"> <div align="right"><font size="2" face="Times New Roman, Times, serif">5,797</font></div> </td>
<td valign="bottom" width="2%"> <div align="right"><font face="Times New Roman, Times, serif"></font></div> </td>
<td valign="bottom" width="7%"> <div align="right"><font size="2" face="Times New Roman, Times, serif">15.73</font></div> </td>
<td valign="bottom" align="left" width="1%"> <div align="right"><font face="Times New Roman, Times, serif"></font></div> </td>
<td valign="bottom" width="2%"> <div align="right"><font face="Times New Roman, Times, serif"></font></div> </td>
<td valign="bottom" width="1%"> <div align="right"><font face="Times New Roman, Times, serif"></font></div> </td>
<td valign="bottom" width="9%"> <div align="right"><font size="2" face="Times New Roman, Times, serif">74,684</font></div> </td>
<td valign="bottom" width="1%"><font face="Times New Roman, Times, serif"></font></td>
<td valign="bottom" width="1%"><font face="Times New Roman, Times, serif"></font></td>
<td valign="bottom" width="1%"><font face="Times New Roman, Times, serif"></font></td>
<td valign="bottom" width="7%"> <div align="right"><font size="2" face="Times New Roman, Times, serif">2,296</font></div> </td>
<td valign="bottom" width="1%"> <div align="right"><font face="Times New Roman, Times, serif"></font></div> </td>
<td valign="bottom" width="7%"> <div align="right"><font size="2" face="Times New Roman, Times, serif">6.15</font></div> </td>
<td width="3%"><font face="Times New Roman, Times, serif"></font></td> </tr>
<tr>
<td bgcolor="#cceeff" width="37%"><font size="2" face="Times New Roman, Times, serif">Federal funds sold</font></td>
<td bgcolor="#cceeff" width="1%">&nbsp;</td>
<td bgcolor="#cceeff" width="1%"><font face="Times New Roman, Times, serif"></font></td>
<td bgcolor="#cceeff" width="8%"> <div align="right"><font size="2" face="Times New Roman, Times, serif">46,103</font></div> </td>
<td bgcolor="#cceeff" width="2%"><font face="Times New Roman, Times, serif"></font></td>
<td bgcolor="#cceeff" width="1%"><font face="Times New Roman, Times, serif"></font></td>
<td valign="bottom" bgcolor="#cceeff" width="7%"> <div align="right"><font size="2" face="Times New Roman, Times, serif">367</font></div> </td>
<td valign="bottom" bgcolor="#cceeff" width="2%"> <div align="right"><font face="Times New Roman, Times, serif"></font></div> </td>
<td valign="bottom" bgcolor="#cceeff" width="7%"> <div align="right"><font size="2" face="Times New Roman, Times, serif">1.59</font></div> </td>
<td valign="bottom" align="left" bgcolor="#CCEEFF" width="1%"> <div align="right"><font face="Times New Roman, Times, serif"></font></div> </td>
<td valign="bottom" bgcolor="#cceeff" width="2%"> <div align="right"><font face="Times New Roman, Times, serif"></font></div> </td>
<td valign="bottom" bgcolor="#cceeff" width="1%"> <div align="right"><font face="Times New Roman, Times, serif"></font></div> </td>
<td valign="bottom" bgcolor="#cceeff" width="9%"> <div align="right"><font size="2" face="Times New Roman, Times, serif">7,113</font></div> </td>
<td valign="bottom" bgcolor="#cceeff" width="1%"><font face="Times New Roman, Times, serif"></font></td>
<td valign="bottom" bgcolor="#cceeff" width="1%"><font face="Times New Roman, Times, serif"></font></td>
<td valign="bottom" bgcolor="#cceeff" width="1%"><font face="Times New Roman, Times, serif"></font></td>
<td valign="bottom" bgcolor="#cceeff" width="7%"> <div align="right"><font size="2" face="Times New Roman, Times, serif">155</font></div> </td>
<td valign="bottom" bgcolor="#cceeff" width="1%"> <div align="right"><font face="Times New Roman, Times, serif"></font></div> </td>
<td valign="bottom" bgcolor="#cceeff" width="7%"> <div align="right"><font size="2" face="Times New Roman, Times, serif">4.36</font></div> </td>
<td bgcolor="#cceeff" width="3%"><font face="Times New Roman, Times, serif"></font></td> </tr>
<tr>
<td width="37%"><font face="Times New Roman, Times, serif"></font></td>
<td width="1%">&nbsp;</td>
<td colspan="2"> <hr color="#000000" size="2" width="100%"> </td>
<td width="2%"><font face="Times New Roman, Times, serif"></font></td>
<td colspan="2"> <hr color="#000000" size="2" width="100%"> </td>
<td valign="bottom" width="2%"><font face="Times New Roman, Times, serif"></font></td>
<td valign="bottom" width="7%"> <hr color="#000000" size="2" width="100%"> </td>
<td valign="bottom" align="left" width="1%"><font face="Times New Roman, Times, serif"></font></td>
<td valign="bottom" width="2%"><font face="Times New Roman, Times, serif"></font></td>
<td colspan="2" valign="bottom"> <hr color="#000000" size="2" width="100%"> </td>
<td valign="bottom" width="1%"><font face="Times New Roman, Times, serif"></font></td>
<td valign="bottom" width="1%"><font face="Times New Roman, Times, serif"></font></td>
<td colspan="2" valign="bottom"> <hr color="#000000" size="2" width="100%"> </td>
<td valign="bottom" width="1%"><font face="Times New Roman, Times, serif"></font></td>
<td valign="bottom" width="7%"> <hr color="#000000" size="2" width="100%"> </td>
<td width="3%"><font face="Times New Roman, Times, serif"></font></td> </tr>
<tr>
<td bgcolor="#cceeff" width="37%"><font size="2" face="Times New Roman, Times, serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total earning assets</font></td>
<td bgcolor="#cceeff" width="1%">&nbsp;</td>
<td bgcolor="#cceeff" width="1%"><font face="Times New Roman, Times, serif"></font></td>
<td bgcolor="#cceeff" width="8%"> <div align="right"><font size="2" face="Times New Roman, Times, serif">1,926,485</font></div> </td>
<td bgcolor="#cceeff" width="2%"><font face="Times New Roman, Times, serif"></font></td>
<td bgcolor="#cceeff" width="1%"><font size="2" face="Times New Roman, Times, serif">$</font></td>
<td valign="bottom" bgcolor="#cceeff" width="7%"> <div align="right"><font size="2" face="Times New Roman, Times, serif">67,410</font></div> </td>
<td valign="bottom" bgcolor="#cceeff" width="2%"> <div align="right"><font face="Times New Roman, Times, serif"></font></div> </td>
<td valign="bottom" bgcolor="#cceeff" width="7%"> <div align="right"><font size="2" face="Times New Roman, Times, serif">7.00</font></div> </td>
<td valign="bottom" align="left" bgcolor="#CCEEFF" width="1%"> <div align="right"><font size="2" face="Times New Roman, Times, serif">%</font></div> </td>
<td valign="bottom" bgcolor="#cceeff" width="2%"> <div align="right"><font face="Times New Roman, Times, serif"></font></div> </td>
<td valign="bottom" bgcolor="#cceeff" width="1%"> <div align="right"><font face="Times New Roman, Times, serif"></font></div> </td>
<td valign="bottom" bgcolor="#cceeff" width="9%"> <div align="right"><font size="2" face="Times New Roman, Times, serif">2,344,981</font></div> </td>
<td valign="bottom" bgcolor="#cceeff" width="1%"><font face="Times New Roman, Times, serif"></font></td>
<td valign="bottom" bgcolor="#cceeff" width="1%"><font face="Times New Roman, Times, serif"></font></td>
<td valign="bottom" bgcolor="#cceeff" width="1%"><font size="2" face="Times New Roman, Times, serif">$</font></td>
<td valign="bottom" bgcolor="#cceeff" width="7%"> <div align="right"><font size="2" face="Times New Roman, Times, serif">94,348</font></div> </td>
<td valign="bottom" bgcolor="#cceeff" width="1%"> <div align="right"><font face="Times New Roman, Times, serif"></font></div> </td>
<td valign="bottom" bgcolor="#cceeff" width="7%"> <div align="right"><font size="2" face="Times New Roman, Times, serif">8.05</font></div> </td>
<td bgcolor="#cceeff" width="3%"><font size="2" face="Times New Roman, Times, serif">%</font></td> </tr>
<tr>
<td width="37%"><font size="2" face="Times New Roman, Times, serif">Cash and due from banks</font></td>
<td width="1%">&nbsp;</td>
<td width="1%"><font face="Times New Roman, Times, serif"></font></td>
<td width="8%"> <div align="right"><font size="2" face="Times New Roman, Times, serif">63,373</font></div> </td>
<td width="2%"><font face="Times New Roman, Times, serif"></font></td>
<td width="1%"><font face="Times New Roman, Times, serif"></font></td>
<td valign="bottom" width="7%"> <div align="right"><font face="Times New Roman, Times, serif"></font></div> </td>
<td valign="bottom" width="2%"> <div align="right"><font face="Times New Roman, Times, serif"></font></div> </td>
<td valign="bottom" width="7%"> <div align="right"><font face="Times New Roman, Times, serif"></font></div> </td>
<td valign="bottom" align="left" width="1%"> <div align="right"><font face="Times New Roman, Times, serif"></font></div> </td>
<td valign="bottom" width="2%"> <div align="right"><font face="Times New Roman, Times, serif"></font></div> </td>
<td valign="bottom" width="1%"> <div align="right"><font face="Times New Roman, Times, serif"></font></div> </td>
<td valign="bottom" width="9%"> <div align="right"><font size="2" face="Times New Roman, Times, serif">62,648</font></div> </td>
<td valign="bottom" width="1%"><font face="Times New Roman, Times, serif"></font></td>
<td valign="bottom" width="1%"><font face="Times New Roman, Times, serif"></font></td>
<td valign="bottom" width="1%"><font face="Times New Roman, Times, serif"></font></td>
<td valign="bottom" width="7%"> <div align="right"><font face="Times New Roman, Times, serif"></font></div> </td>
<td valign="bottom" width="1%"> <div align="right"><font face="Times New Roman, Times, serif"></font></div> </td>
<td valign="bottom" width="7%"> <div align="right"><font face="Times New Roman, Times, serif"></font></div> </td>
<td width="3%"><font face="Times New Roman, Times, serif"></font></td> </tr>
<tr>
<td bgcolor="#cceeff" width="37%"><font size="2" face="Times New Roman, Times, serif">Bank premises and equipment</font></td>
<td bgcolor="#cceeff" width="1%">&nbsp;</td>
<td bgcolor="#cceeff" width="1%"><font face="Times New Roman, Times, serif"></font></td>
<td bgcolor="#cceeff" width="8%"> <div align="right"><font size="2" face="Times New Roman, Times, serif">41,791</font></div> </td>
<td bgcolor="#cceeff" width="2%"><font face="Times New Roman, Times, serif"></font></td>
<td bgcolor="#cceeff" width="1%"><font face="Times New Roman, Times, serif"></font></td>
<td valign="bottom" bgcolor="#cceeff" width="7%"> <div align="right"><font face="Times New Roman, Times, serif"></font></div> </td>
<td valign="bottom" bgcolor="#cceeff" width="2%"> <div align="right"><font face="Times New Roman, Times, serif"></font></div> </td>
<td valign="bottom" bgcolor="#cceeff" width="7%"> <div align="right"><font face="Times New Roman, Times, serif"></font></div> </td>
<td valign="bottom" align="left" bgcolor="#CCEEFF" width="1%"> <div align="right"><font face="Times New Roman, Times, serif"></font></div> </td>
<td valign="bottom" bgcolor="#cceeff" width="2%"> <div align="right"><font face="Times New Roman, Times, serif"></font></div> </td>
<td valign="bottom" bgcolor="#cceeff" width="1%"> <div align="right"><font face="Times New Roman, Times, serif"></font></div> </td>
<td valign="bottom" bgcolor="#cceeff" width="9%"> <div align="right"><font size="2" face="Times New Roman, Times, serif">56,816</font></div> </td>
<td valign="bottom" bgcolor="#cceeff" width="1%"><font face="Times New Roman, Times, serif"></font></td>
<td valign="bottom" bgcolor="#cceeff" width="1%"><font face="Times New Roman, Times, serif"></font></td>
<td valign="bottom" bgcolor="#cceeff" width="1%"><font face="Times New Roman, Times, serif"></font></td>
<td valign="bottom" bgcolor="#cceeff" width="7%"> <div align="right"><font face="Times New Roman, Times, serif"></font></div> </td>
<td valign="bottom" bgcolor="#cceeff" width="1%"> <div align="right"><font face="Times New Roman, Times, serif"></font></div> </td>
<td valign="bottom" bgcolor="#cceeff" width="7%"> <div align="right"><font face="Times New Roman, Times, serif"></font></div> </td>
<td bgcolor="#cceeff" width="3%"><font face="Times New Roman, Times, serif"></font></td> </tr>
<tr>
<td width="37%"><font size="2" face="Times New Roman, Times, serif">Other assets</font></td>
<td width="1%">&nbsp;</td>
<td width="1%"><font face="Times New Roman, Times, serif"></font></td>
<td width="8%"> <div align="right"><font size="2" face="Times New Roman, Times, serif">102,392</font></div> </td>
<td width="2%"><font face="Times New Roman, Times, serif"></font></td>
<td width="1%"><font face="Times New Roman, Times, serif"></font></td>
<td valign="bottom" width="7%"> <div align="right"><font face="Times New Roman, Times, serif"></font></div> </td>
<td valign="bottom" width="2%"> <div align="right"><font face="Times New Roman, Times, serif"></font></div> </td>
<td valign="bottom" width="7%"> <div align="right"><font face="Times New Roman, Times, serif"></font></div> </td>
<td valign="bottom" align="left" width="1%"> <div align="right"><font face="Times New Roman, Times, serif"></font></div> </td>
<td valign="bottom" width="2%"> <div align="right"><font face="Times New Roman, Times, serif"></font></div> </td>
<td valign="bottom" width="1%"> <div align="right"><font face="Times New Roman, Times, serif"></font></div> </td>
<td valign="bottom" width="9%"> <div align="right"><font size="2" face="Times New Roman, Times, serif">114,796</font></div> </td>
<td valign="bottom" width="1%"><font face="Times New Roman, Times, serif"></font></td>
<td valign="bottom" width="1%"><font face="Times New Roman, Times, serif"></font></td>
<td valign="bottom" width="1%"><font face="Times New Roman, Times, serif"></font></td>
<td valign="bottom" width="7%"> <div align="right"><font face="Times New Roman, Times, serif"></font></div> </td>
<td valign="bottom" width="1%"> <div align="right"><font face="Times New Roman, Times, serif"></font></div> </td>
<td valign="bottom" width="7%"> <div align="right"><font face="Times New Roman, Times, serif"></font></div> </td>
<td width="3%"><font face="Times New Roman, Times, serif"></font></td> </tr>
<tr>
<td bgcolor="#cceeff" width="37%" nowrap><font size="2" face="Times New Roman, Times, serif">Less: allowance for possible loan&nbsp;losses</font></td>
<td bgcolor="#cceeff" width="1%">&nbsp;</td>
<td bgcolor="#cceeff" width="1%"><font face="Times New Roman, Times, serif"></font></td>
<td bgcolor="#cceeff" width="8%"> <div align="right"><font size="2" face="Times New Roman, Times, serif">(42,435</font></div> </td>
<td bgcolor="#cceeff" width="2%"><font size="2" face="Times New Roman, Times, serif">)</font></td>
<td bgcolor="#cceeff" width="1%"><font face="Times New Roman, Times, serif"></font></td>
<td valign="bottom" bgcolor="#cceeff" width="7%"> <div align="right"><font face="Times New Roman, Times, serif"></font></div> </td>
<td valign="bottom" bgcolor="#cceeff" width="2%"> <div align="right"><font face="Times New Roman, Times, serif"></font></div> </td>
<td valign="bottom" bgcolor="#cceeff" width="7%"> <div align="right"><font face="Times New Roman, Times, serif"></font></div> </td>
<td valign="bottom" align="left" bgcolor="#CCEEFF" width="1%"> <div align="right"><font face="Times New Roman, Times, serif"></font></div> </td>
<td valign="bottom" bgcolor="#cceeff" width="2%"> <div align="right"><font face="Times New Roman, Times, serif"></font></div> </td>
<td valign="bottom" bgcolor="#cceeff" width="1%"> <div align="right"><font face="Times New Roman, Times, serif"></font></div> </td>
<td valign="bottom" bgcolor="#cceeff" width="9%"> <div align="right"><font size="2" face="Times New Roman, Times, serif">(39,567</font></div> </td>
<td valign="bottom" bgcolor="#cceeff" width="1%"><font size="2" face="Times New Roman, Times, serif">)</font></td>
<td valign="bottom" bgcolor="#cceeff" width="1%"><font face="Times New Roman, Times, serif"></font></td>
<td valign="bottom" bgcolor="#cceeff" width="1%"><font face="Times New Roman, Times, serif"></font></td>
<td valign="bottom" bgcolor="#cceeff" width="7%"> <div align="right"><font face="Times New Roman, Times, serif"></font></div> </td>
<td valign="bottom" bgcolor="#cceeff" width="1%"> <div align="right"><font face="Times New Roman, Times, serif"></font></div> </td>
<td valign="bottom" bgcolor="#cceeff" width="7%"> <div align="right"><font face="Times New Roman, Times, serif"></font></div> </td>
<td bgcolor="#cceeff" width="3%"><font face="Times New Roman, Times, serif"></font></td> </tr>
<tr>
<td width="37%">&nbsp;</td>
<td width="1%">&nbsp;</td>
<td colspan="2"> <hr color="#000000" size="2" width="100%"> </td>
<td width="2%">&nbsp;</td>
<td colspan="2"> <hr color="#000000" size="2" width="100%"> </td>
<td valign="bottom" width="2%">&nbsp;</td>
<td valign="bottom" width="7%"> <hr color="#000000" size="2" width="100%"> </td>
<td valign="bottom" align="left" width="1%">&nbsp;</td>
<td valign="bottom" width="2%">&nbsp;</td>
<td colspan="2" valign="bottom"> <hr color="#000000" size="2" width="100%"> </td>
<td valign="bottom" width="1%">&nbsp;</td>
<td valign="bottom" width="1%">&nbsp;</td>
<td colspan="2" valign="bottom"> <hr color="#000000" size="2" width="100%"> </td>
<td valign="bottom" width="1%">&nbsp;</td>
<td valign="bottom" width="7%"> <hr color="#000000" size="2" width="100%"> </td>
<td width="3%">&nbsp;</td> </tr>
<tr>
<td bgcolor="#cceeff" width="37%"><font size="2" face="Times New Roman, Times, serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total assets</font></td>
<td bgcolor="#cceeff" width="1%">&nbsp;</td>
<td bgcolor="#cceeff" width="1%"><font size="2" face="Times New Roman, Times, serif">$</font></td>
<td bgcolor="#cceeff" width="8%"> <div align="right"><font size="2" face="Times New Roman, Times, serif">2,091,606</font></div> </td>
<td bgcolor="#cceeff" width="2%"><font face="Times New Roman, Times, serif"></font></td>
<td bgcolor="#cceeff" width="1%"><font face="Times New Roman, Times, serif"></font></td>
<td valign="bottom" bgcolor="#cceeff" width="7%"> <div align="right"><font face="Times New Roman, Times, serif"></font></div> </td>
<td valign="bottom" bgcolor="#cceeff" width="2%"> <div align="right"><font face="Times New Roman, Times, serif"></font></div> </td>
<td valign="bottom" bgcolor="#cceeff" width="7%"> <div align="right"><font face="Times New Roman, Times, serif"></font></div> </td>
<td valign="bottom" align="left" bgcolor="#CCEEFF" width="1%"> <div align="right"><font face="Times New Roman, Times, serif"></font></div> </td>
<td valign="bottom" bgcolor="#cceeff" width="2%"> <div align="right"><font face="Times New Roman, Times, serif"></font></div> </td>
<td valign="bottom" bgcolor="#cceeff" width="1%"> <div align="left"><font size="2" face="Times New Roman, Times, serif">$</font></div> </td>
<td valign="bottom" bgcolor="#cceeff" width="9%"> <div align="right"><font size="2" face="Times New Roman, Times, serif">2,539,674</font></div> </td>
<td valign="bottom" bgcolor="#cceeff" width="1%"><font face="Times New Roman, Times, serif"></font></td>
<td valign="bottom" bgcolor="#cceeff" width="1%"><font face="Times New Roman, Times, serif"></font></td>
<td valign="bottom" bgcolor="#cceeff" width="1%"><font face="Times New Roman, Times, serif"></font></td>
<td valign="bottom" bgcolor="#cceeff" width="7%"> <div align="right"><font face="Times New Roman, Times, serif"></font></div> </td>
<td valign="bottom" bgcolor="#cceeff" width="1%"> <div align="right"><font face="Times New Roman, Times, serif"></font></div> </td>
<td valign="bottom" bgcolor="#cceeff" width="7%"> <div align="right"><font face="Times New Roman, Times, serif"></font></div> </td>
<td bgcolor="#cceeff" width="3%"><font face="Times New Roman, Times, serif"></font></td> </tr>
<tr>
<td width="37%"><font face="Times New Roman, Times, serif"></font></td>
<td width="1%">&nbsp;</td>
<td colspan="2"> <hr color="#000000" size="4" width="100%"> </td>
<td width="2%"><font face="Times New Roman, Times, serif"></font></td>
<td colspan="2"> <hr color="#000000" size="4" width="100%"> </td>
<td valign="bottom" width="2%"><font face="Times New Roman, Times, serif"></font></td>
<td valign="bottom" width="7%"> <hr color="#000000" size="4" width="100%"> </td>
<td valign="bottom" align="left" width="1%"><font face="Times New Roman, Times, serif"></font></td>
<td valign="bottom" width="2%"><font face="Times New Roman, Times, serif"></font></td>
<td colspan="2" valign="bottom"> <hr color="#000000" size="4" width="100%"> </td>
<td valign="bottom" width="1%"><font face="Times New Roman, Times, serif"></font></td>
<td valign="bottom" width="1%"><font face="Times New Roman, Times, serif"></font></td>
<td colspan="2" valign="bottom"> <hr color="#000000" size="4" width="100%"> </td>
<td valign="bottom" width="1%"><font face="Times New Roman, Times, serif"></font></td>
<td valign="bottom" width="7%"> <hr color="#000000" size="4" width="100%"> </td>
<td width="3%"><font face="Times New Roman, Times, serif"></font></td> </tr>
<tr>
<td width="37%"><font size="2" face="Times New Roman, Times, serif"><b>Liabilities</b></font></td>
<td width="1%">&nbsp;</td>
<td width="1%"><font face="Times New Roman, Times, serif"></font></td>
<td width="8%"> <div align="right"><font face="Times New Roman, Times, serif"></font></div> </td>
<td width="2%"><font face="Times New Roman, Times, serif"></font></td>
<td width="1%"><font face="Times New Roman, Times, serif"></font></td>
<td valign="bottom" width="7%"> <div align="right"><font face="Times New Roman, Times, serif"></font></div> </td>
<td valign="bottom" width="2%"> <div align="right"><font face="Times New Roman, Times, serif"></font></div> </td>
<td valign="bottom" width="7%"> <div align="right"><font face="Times New Roman, Times, serif"></font></div> </td>
<td valign="bottom" align="left" width="1%"> <div align="right"><font face="Times New Roman, Times, serif"></font></div> </td>
<td valign="bottom" width="2%"> <div align="right"><font face="Times New Roman, Times, serif"></font></div> </td>
<td valign="bottom" width="1%"> <div align="right"><font face="Times New Roman, Times, serif"></font></div> </td>
<td valign="bottom" width="9%"> <div align="right"><font face="Times New Roman, Times, serif"></font></div> </td>
<td valign="bottom" width="1%"><font face="Times New Roman, Times, serif"></font></td>
<td valign="bottom" width="1%"><font face="Times New Roman, Times, serif"></font></td>
<td valign="bottom" width="1%"><font face="Times New Roman, Times, serif"></font></td>
<td valign="bottom" width="7%"> <div align="right"><font face="Times New Roman, Times, serif"></font></div> </td>
<td valign="bottom" width="1%"> <div align="right"><font face="Times New Roman, Times, serif"></font></div> </td>
<td valign="bottom" width="7%"> <div align="right"><font face="Times New Roman, Times, serif"></font></div> </td>
<td width="3%"><font face="Times New Roman, Times, serif"></font></td> </tr>
<tr>
<td bgcolor="#cceeff" width="37%"><font size="2" face="Times New Roman, Times, serif">Demand deposits</font></td>
<td bgcolor="#cceeff" width="1%">&nbsp;</td>
<td bgcolor="#cceeff" width="1%"><font size="2" face="Times New Roman, Times, serif">$</font></td>
<td bgcolor="#cceeff" width="8%"> <div align="right"><font size="2" face="Times New Roman, Times, serif">378,529</font></div> </td>
<td bgcolor="#cceeff" width="2%"><font face="Times New Roman, Times, serif"></font></td>
<td bgcolor="#cceeff" width="1%"><font face="Times New Roman, Times, serif"><font size="2">$</font></font></td>
<td valign="bottom" bgcolor="#cceeff" width="7%"> <div align="right"><font size="2" face="Times New Roman, Times, serif"> 1,098</font></div> </td>
<td valign="bottom" bgcolor="#cceeff" width="2%"> <div align="right"><font face="Times New Roman, Times, serif"></font></div> </td>
<td valign="bottom" bgcolor="#cceeff" width="7%"> <div align="right"><font size="2" face="Times New Roman, Times, serif">0.58</font></div> </td>
<td valign="bottom" align="left" bgcolor="#CCEEFF" width="1%"> <div align="right"><font size="2" face="Times New Roman, Times, serif">%</font></div> </td>
<td valign="bottom" bgcolor="#cceeff" width="2%"> <div align="right"><font face="Times New Roman, Times, serif"></font></div> </td>
<td valign="bottom" bgcolor="#cceeff" width="1%"> <div align="left"><font size="2" face="Times New Roman, Times, serif">$</font></div> </td>
<td valign="bottom" bgcolor="#cceeff" width="9%"> <div align="right"><font size="2" face="Times New Roman, Times, serif">422,489</font></div> </td>
<td valign="bottom" bgcolor="#cceeff" width="1%"><font face="Times New Roman, Times, serif"></font></td>
<td valign="bottom" bgcolor="#cceeff" width="1%"><font face="Times New Roman, Times, serif"></font></td>
<td valign="bottom" bgcolor="#cceeff" width="1%"><font size="2" face="Times New Roman, Times, serif">$</font></td>
<td valign="bottom" bgcolor="#cceeff" width="7%"> <div align="right"><font size="2" face="Times New Roman, Times, serif"> 6,134</font></div> </td>
<td valign="bottom" bgcolor="#cceeff" width="1%"> <div align="right"><font face="Times New Roman, Times, serif"></font></div> </td>
<td valign="bottom" bgcolor="#cceeff" width="7%"> <div align="right"><font size="2" face="Times New Roman, Times, serif">2.90</font></div> </td>
<td bgcolor="#cceeff" width="3%"><font size="2" face="Times New Roman, Times, serif">%</font></td> </tr>
<tr>
<td width="37%"><font size="2" face="Times New Roman, Times, serif">Savings deposits</font></td>
<td width="1%">&nbsp;</td>
<td width="1%"><font face="Times New Roman, Times, serif"></font></td>
<td width="8%"> <div align="right"><font size="2" face="Times New Roman, Times, serif">305,538</font></div> </td>
<td width="2%"><font face="Times New Roman, Times, serif"></font></td>
<td width="1%"><font face="Times New Roman, Times, serif"></font></td>
<td valign="bottom" width="7%"> <div align="right"><font size="2" face="Times New Roman, Times, serif">1,777</font></div> </td>
<td valign="bottom" width="2%"> <div align="right"><font face="Times New Roman, Times, serif"></font></div> </td>
<td valign="bottom" width="7%"> <div align="right"><font size="2" face="Times New Roman, Times, serif">1.16</font></div> </td>
<td valign="bottom" align="left" width="1%"> <div align="right"><font face="Times New Roman, Times, serif"></font></div> </td>
<td valign="bottom" width="2%"> <div align="right"><font face="Times New Roman, Times, serif"></font></div> </td>
<td valign="bottom" width="1%"> <div align="right"><font face="Times New Roman, Times, serif"></font></div> </td>
<td valign="bottom" width="9%"> <div align="right"><font size="2" face="Times New Roman, Times, serif">293,049</font></div> </td>
<td valign="bottom" width="1%"><font face="Times New Roman, Times, serif"></font></td>
<td valign="bottom" width="1%"><font face="Times New Roman, Times, serif"></font></td>
<td valign="bottom" width="1%"><font face="Times New Roman, Times, serif"></font></td>
<td valign="bottom" width="7%"> <div align="right"><font size="2" face="Times New Roman, Times, serif">4,371</font></div> </td>
<td valign="bottom" width="1%"> <div align="right"><font face="Times New Roman, Times, serif"></font></div> </td>
<td valign="bottom" width="7%"> <div align="right"><font size="2" face="Times New Roman, Times, serif">2.98</font></div> </td>
<td width="3%"><font face="Times New Roman, Times, serif"></font></td> </tr>
<tr>
<td bgcolor="#cceeff" width="37%"><font size="2" face="Times New Roman, Times, serif">Time deposits</font></td>
<td bgcolor="#cceeff" width="1%">&nbsp;</td>
<td bgcolor="#cceeff" width="1%"><font face="Times New Roman, Times, serif"></font></td>
<td bgcolor="#cceeff" width="8%"> <div align="right"><font size="2" face="Times New Roman, Times, serif">707,276</font></div> </td>
<td bgcolor="#cceeff" width="2%"><font face="Times New Roman, Times, serif"></font></td>
<td bgcolor="#cceeff" width="1%"><font face="Times New Roman, Times, serif"></font></td>
<td valign="bottom" bgcolor="#cceeff" width="7%"> <div align="right"><font size="2" face="Times New Roman, Times, serif">13,743</font></div> </td>
<td valign="bottom" bgcolor="#cceeff" width="2%"> <div align="right"><font face="Times New Roman, Times, serif"></font></div> </td>
<td valign="bottom" bgcolor="#cceeff" width="7%"> <div align="right"><font size="2" face="Times New Roman, Times, serif">3.89</font></div> </td>
<td valign="bottom" align="left" bgcolor="#CCEEFF" width="1%"> <div align="right"><font face="Times New Roman, Times, serif"></font></div> </td>
<td valign="bottom" bgcolor="#cceeff" width="2%"> <div align="right"><font face="Times New Roman, Times, serif"></font></div> </td>
<td valign="bottom" bgcolor="#cceeff" width="1%"> <div align="right"><font face="Times New Roman, Times, serif"></font></div> </td>
<td valign="bottom" bgcolor="#cceeff" width="9%"> <div align="right"><font size="2" face="Times New Roman, Times, serif">1,028,935</font></div> </td>
<td valign="bottom" bgcolor="#cceeff" width="1%"><font face="Times New Roman, Times, serif"></font></td>
<td valign="bottom" bgcolor="#cceeff" width="1%"><font face="Times New Roman, Times, serif"></font></td>
<td valign="bottom" bgcolor="#cceeff" width="1%"><font face="Times New Roman, Times, serif"></font></td>
<td valign="bottom" bgcolor="#cceeff" width="7%"> <div align="right"><font size="2" face="Times New Roman, Times, serif">28,771</font></div> </td>
<td valign="bottom" bgcolor="#cceeff" width="1%"> <div align="right"><font face="Times New Roman, Times, serif"></font></div> </td>
<td valign="bottom" bgcolor="#cceeff" width="7%"> <div align="right"><font size="2" face="Times New Roman, Times, serif">5.59</font></div> </td>
<td bgcolor="#cceeff" width="3%"><font face="Times New Roman, Times, serif"></font></td> </tr>
<tr>
<td width="37%"><font size="2" face="Times New Roman, Times, serif">Short-term borrowings</font></td>
<td width="1%">&nbsp;</td>
<td width="1%"><font face="Times New Roman, Times, serif"></font></td>
<td width="8%"> <div align="right"><font size="2" face="Times New Roman, Times, serif">113,767</font></div> </td>
<td width="2%"><font face="Times New Roman, Times, serif"></font></td>
<td width="1%"><font face="Times New Roman, Times, serif"></font></td>
<td valign="bottom" width="7%"> <div align="right"><font size="2" face="Times New Roman, Times, serif">1,141</font></div> </td>
<td valign="bottom" width="2%"> <div align="right"><font face="Times New Roman, Times, serif"></font></div> </td>
<td valign="bottom" width="7%"> <div align="right"><font size="2" face="Times New Roman, Times, serif">2.01</font></div> </td>
<td valign="bottom" align="left" width="1%"> <div align="right"><font face="Times New Roman, Times, serif"></font></div> </td>
<td valign="bottom" width="2%"> <div align="right"><font face="Times New Roman, Times, serif"></font></div> </td>
<td valign="bottom" width="1%"> <div align="right"><font face="Times New Roman, Times, serif"></font></div> </td>
<td valign="bottom" width="9%"> <div align="right"><font size="2" face="Times New Roman, Times, serif">204,791</font></div> </td>
<td valign="bottom" width="1%"><font face="Times New Roman, Times, serif"></font></td>
<td valign="bottom" width="1%"><font face="Times New Roman, Times, serif"></font></td>
<td valign="bottom" width="1%"><font face="Times New Roman, Times, serif"></font></td>
<td valign="bottom" width="7%"> <div align="right"><font size="2" face="Times New Roman, Times, serif">5,817</font></div> </td>
<td valign="bottom" width="1%"> <div align="right"><font face="Times New Roman, Times, serif"></font></div> </td>
<td valign="bottom" width="7%"> <div align="right"><font size="2" face="Times New Roman, Times, serif">5.68</font></div> </td>
<td width="3%"><font face="Times New Roman, Times, serif"></font></td> </tr>
<tr>
<td bgcolor="#cceeff" width="37%"><font size="2" face="Times New Roman, Times, serif">Long-term debt</font></td>
<td bgcolor="#cceeff" width="1%">&nbsp;</td>
<td bgcolor="#cceeff" width="1%"><font face="Times New Roman, Times, serif"></font></td>
<td bgcolor="#cceeff" width="8%"> <div align="right"><font size="2" face="Times New Roman, Times, serif">37,312</font></div> </td>
<td bgcolor="#cceeff" width="2%"><font face="Times New Roman, Times, serif"></font></td>
<td bgcolor="#cceeff" width="1%"><font face="Times New Roman, Times, serif"></font></td>
<td valign="bottom" bgcolor="#cceeff" width="7%"> <div align="right"><font size="2" face="Times New Roman, Times, serif">1,085</font></div> </td>
<td valign="bottom" bgcolor="#cceeff" width="2%"> <div align="right"><font face="Times New Roman, Times, serif"></font></div> </td>
<td valign="bottom" bgcolor="#cceeff" width="7%"> <div align="right"><font size="2" face="Times New Roman, Times, serif">5.82</font></div> </td>
<td valign="bottom" align="left" bgcolor="#CCEEFF" width="1%"> <div align="right"><font face="Times New Roman, Times, serif"></font></div> </td>
<td valign="bottom" bgcolor="#cceeff" width="2%"> <div align="right"><font face="Times New Roman, Times, serif"></font></div> </td>
<td valign="bottom" bgcolor="#cceeff" width="1%"> <div align="right"><font face="Times New Roman, Times, serif"></font></div> </td>
<td valign="bottom" bgcolor="#cceeff" width="9%"> <div align="right"><font size="2" face="Times New Roman, Times, serif">33,990</font></div> </td>
<td valign="bottom" bgcolor="#cceeff" width="1%"><font face="Times New Roman, Times, serif"></font></td>
<td valign="bottom" bgcolor="#cceeff" width="1%"><font face="Times New Roman, Times, serif"></font></td>
<td valign="bottom" bgcolor="#cceeff" width="1%"><font face="Times New Roman, Times, serif"></font></td>
<td valign="bottom" bgcolor="#cceeff" width="7%"> <div align="right"><font size="2" face="Times New Roman, Times, serif">1,116</font></div> </td>
<td valign="bottom" bgcolor="#cceeff" width="1%"> <div align="right"><font face="Times New Roman, Times, serif"></font></div> </td>
<td valign="bottom" bgcolor="#cceeff" width="7%"> <div align="right"><font size="2" face="Times New Roman, Times, serif">6.57</font></div> </td>
<td bgcolor="#cceeff" width="3%"><font face="Times New Roman, Times, serif"></font></td> </tr>
<tr>
<td width="37%"><font size="2" face="Times New Roman, Times, serif">Trust preferred securities</font></td>
<td width="1%">&nbsp;</td>
<td width="1%"><font face="Times New Roman, Times, serif"></font></td>
<td width="8%"> <div align="right"><font size="2" face="Times New Roman, Times, serif">87,500</font></div> </td>
<td width="2%"><font face="Times New Roman, Times, serif"></font></td>
<td width="1%"><font face="Times New Roman, Times, serif"></font></td>
<td valign="bottom" width="7%"> <div align="right"><font size="2" face="Times New Roman, Times, serif">4,301</font></div> </td>
<td valign="bottom" width="2%"> <div align="right"><font face="Times New Roman, Times, serif"></font></div> </td>
<td valign="bottom" width="7%"> <div align="right"><font size="2" face="Times New Roman, Times, serif">9.83</font></div> </td>
<td valign="bottom" align="left" width="1%"> <div align="right"><font face="Times New Roman, Times, serif"></font></div> </td>
<td valign="bottom" width="2%"> <div align="right"><font face="Times New Roman, Times, serif"></font></div> </td>
<td valign="bottom" width="1%"> <div align="right"><font face="Times New Roman, Times, serif"></font></div> </td>
<td valign="bottom" width="9%"> <div align="right"><font size="2" face="Times New Roman, Times, serif">87,500</font></div> </td>
<td valign="bottom" width="1%"><font face="Times New Roman, Times, serif"></font></td>
<td valign="bottom" width="1%"><font face="Times New Roman, Times, serif"></font></td>
<td valign="bottom" width="1%"><font face="Times New Roman, Times, serif"></font></td>
<td valign="bottom" width="7%"> <div align="right"><font size="2" face="Times New Roman, Times, serif">4,010</font></div> </td>
<td valign="bottom" width="1%"> <div align="right"><font face="Times New Roman, Times, serif"></font></div> </td>
<td valign="bottom" width="7%"> <div align="right"><font size="2" face="Times New Roman, Times, serif">9.17</font></div> </td>
<td width="3%"><font face="Times New Roman, Times, serif"></font></td> </tr>
<tr>
<td width="37%">&nbsp;</td>
<td width="1%">&nbsp;</td>
<td colspan="2"> <hr color="#000000" size="2" width="100%"> </td>
<td width="2%">&nbsp;</td>
<td colspan="2"> <hr color="#000000" size="2" width="100%"> </td>
<td valign="bottom" width="2%">&nbsp;</td>
<td valign="bottom" width="7%"> <hr color="#000000" size="2" width="100%"> </td>
<td valign="bottom" align="left" width="1%">&nbsp;</td>
<td valign="bottom" width="2%">&nbsp;</td>
<td colspan="2" valign="bottom"> <hr color="#000000" size="2" width="100%"> </td>
<td valign="bottom" width="1%">&nbsp;</td>
<td valign="bottom" width="1%">&nbsp;</td>
<td colspan="2" valign="bottom"> <hr color="#000000" size="2" width="100%"> </td>
<td valign="bottom" width="1%">&nbsp;</td>
<td valign="bottom" width="7%"> <hr color="#000000" size="2" width="100%"> </td>
<td width="3%">&nbsp;</td> </tr>
<tr>
<td bgcolor="#cceeff" width="37%"><font size="2" face="Times New Roman, Times, serif">Total interest-bearing liabilities</font></td>
<td bgcolor="#cceeff" width="1%">&nbsp;</td>
<td bgcolor="#cceeff" width="1%"><font face="Times New Roman, Times, serif"></font></td>
<td bgcolor="#cceeff" width="8%"> <div align="right"><font size="2" face="Times New Roman, Times, serif">1,629,922</font></div> </td>
<td bgcolor="#cceeff" width="2%"><font face="Times New Roman, Times, serif"></font></td>
<td bgcolor="#cceeff" width="1%"><font face="Times New Roman, Times, serif"></font></td>
<td valign="bottom" bgcolor="#cceeff" width="7%"> <div align="right"><font size="2" face="Times New Roman, Times, serif">23,145</font></div> </td>
<td valign="bottom" bgcolor="#cceeff" width="2%"> <div align="right"><font face="Times New Roman, Times, serif"></font></div> </td>
<td valign="bottom" bgcolor="#cceeff" width="7%"> <div align="right"><font size="2" face="Times New Roman, Times, serif">2.84</font></div> </td>
<td valign="bottom" align="left" bgcolor="#CCEEFF" width="1%"> <div align="right"><font face="Times New Roman, Times, serif"></font></div> </td>
<td valign="bottom" bgcolor="#cceeff" width="2%"> <div align="right"><font face="Times New Roman, Times, serif"></font></div> </td>
<td valign="bottom" bgcolor="#cceeff" width="1%"> <div align="right"><font face="Times New Roman, Times, serif"></font></div> </td>
<td valign="bottom" bgcolor="#cceeff" width="9%"> <div align="right"><font size="2" face="Times New Roman, Times, serif">2,070,754</font></div> </td>
<td valign="bottom" bgcolor="#cceeff" width="1%"><font face="Times New Roman, Times, serif"></font></td>
<td valign="bottom" bgcolor="#cceeff" width="1%"><font face="Times New Roman, Times, serif"></font></td>
<td valign="bottom" bgcolor="#cceeff" width="1%"><font face="Times New Roman, Times, serif"></font></td>
<td valign="bottom" bgcolor="#cceeff" width="7%"> <div align="right"><font size="2" face="Times New Roman, Times, serif">50,219</font></div> </td>
<td valign="bottom" bgcolor="#cceeff" width="1%"> <div align="right"><font face="Times New Roman, Times, serif"></font></div> </td>
<td valign="bottom" bgcolor="#cceeff" width="7%"> <div align="right"><font size="2" face="Times New Roman, Times, serif">4.85</font></div> </td>
<td bgcolor="#cceeff" width="3%"><font face="Times New Roman, Times, serif"></font></td> </tr>
<tr>
<td width="37%"><font size="2" face="Times New Roman, Times, serif">Demand deposits</font></td>
<td width="1%">&nbsp;</td>
<td width="1%"><font face="Times New Roman, Times, serif"></font></td>
<td width="8%"> <div align="right"><font size="2" face="Times New Roman, Times, serif">274,219</font></div> </td>
<td width="2%"><font face="Times New Roman, Times, serif"></font></td>
<td width="1%"><font face="Times New Roman, Times, serif"></font></td>
<td valign="bottom" width="7%"> <div align="right"><font face="Times New Roman, Times, serif"></font></div> </td>
<td valign="bottom" width="2%"> <div align="right"><font face="Times New Roman, Times, serif"></font></div> </td>
<td valign="bottom" width="7%"> <div align="right"><font face="Times New Roman, Times, serif"></font></div> </td>
<td valign="bottom" align="left" width="1%"> <div align="right"><font face="Times New Roman, Times, serif"></font></div> </td>
<td valign="bottom" width="2%"> <div align="right"><font face="Times New Roman, Times, serif"></font></div> </td>
<td valign="bottom" width="1%"> <div align="right"><font face="Times New Roman, Times, serif"></font></div> </td>
<td valign="bottom" width="9%"> <div align="right"><font size="2" face="Times New Roman, Times, serif">260,420</font></div> </td>
<td valign="bottom" width="1%"><font face="Times New Roman, Times, serif"></font></td>
<td valign="bottom" width="1%"><font face="Times New Roman, Times, serif"></font></td>
<td valign="bottom" width="1%"><font face="Times New Roman, Times, serif"></font></td>
<td valign="bottom" width="7%"> <div align="right"><font face="Times New Roman, Times, serif"></font></div> </td>
<td valign="bottom" width="1%"> <div align="right"><font face="Times New Roman, Times, serif"></font></div> </td>
<td valign="bottom" width="7%"> <div align="right"><font face="Times New Roman, Times, serif"></font></div> </td>
<td width="3%"><font face="Times New Roman, Times, serif"></font></td> </tr>
<tr>
<td bgcolor="#cceeff" width="37%"><font size="2" face="Times New Roman, Times, serif">Other liabilities</font></td>
<td bgcolor="#cceeff" width="1%">&nbsp;</td>
<td bgcolor="#cceeff" width="1%"><font face="Times New Roman, Times, serif"></font></td>
<td bgcolor="#cceeff" width="8%"> <div align="right"><font size="2" face="Times New Roman, Times, serif">34,392</font></div> </td>
<td bgcolor="#cceeff" width="2%"><font face="Times New Roman, Times, serif"></font></td>
<td bgcolor="#cceeff" width="1%"><font face="Times New Roman, Times, serif"></font></td>
<td valign="bottom" bgcolor="#cceeff" width="7%"> <div align="right"><font face="Times New Roman, Times, serif"></font></div> </td>
<td valign="bottom" bgcolor="#cceeff" width="2%"> <div align="right"><font face="Times New Roman, Times, serif"></font></div> </td>
<td valign="bottom" bgcolor="#cceeff" width="7%"> <div align="right"><font face="Times New Roman, Times, serif"></font></div> </td>
<td valign="bottom" align="left" bgcolor="#CCEEFF" width="1%"> <div align="right"><font face="Times New Roman, Times, serif"></font></div> </td>
<td valign="bottom" bgcolor="#cceeff" width="2%"> <div align="right"><font face="Times New Roman, Times, serif"></font></div> </td>
<td valign="bottom" bgcolor="#cceeff" width="1%"> <div align="right"><font face="Times New Roman, Times, serif"></font></div> </td>
<td valign="bottom" bgcolor="#cceeff" width="9%"> <div align="right"><font size="2" face="Times New Roman, Times, serif">51,020</font></div> </td>
<td valign="bottom" bgcolor="#cceeff" width="1%"><font face="Times New Roman, Times, serif"></font></td>
<td valign="bottom" bgcolor="#cceeff" width="1%"><font face="Times New Roman, Times, serif"></font></td>
<td valign="bottom" bgcolor="#cceeff" width="1%"><font face="Times New Roman, Times, serif"></font></td>
<td valign="bottom" bgcolor="#cceeff" width="7%"> <div align="right"><font face="Times New Roman, Times, serif"></font></div> </td>
<td valign="bottom" bgcolor="#cceeff" width="1%"> <div align="right"><font face="Times New Roman, Times, serif"></font></div> </td>
<td valign="bottom" bgcolor="#cceeff" width="7%"> <div align="right"><font face="Times New Roman, Times, serif"></font></div> </td>
<td bgcolor="#cceeff" width="3%"><font face="Times New Roman, Times, serif"></font></td> </tr>
<tr>
<td width="37%"><font size="2" face="Times New Roman, Times, serif">Stockholders' equity</font></td>
<td width="1%">&nbsp;</td>
<td width="1%"><font face="Times New Roman, Times, serif"></font></td>
<td width="8%"> <div align="right"><font size="2" face="Times New Roman, Times, serif">153,073</font></div> </td>
<td width="2%"><font face="Times New Roman, Times, serif"></font></td>
<td width="1%"><font face="Times New Roman, Times, serif"></font></td>
<td valign="bottom" width="7%"> <div align="right"><font face="Times New Roman, Times, serif"></font></div> </td>
<td valign="bottom" width="2%"> <div align="right"><font face="Times New Roman, Times, serif"></font></div> </td>
<td valign="bottom" width="7%"> <div align="right"><font face="Times New Roman, Times, serif"></font></div> </td>
<td valign="bottom" align="left" width="1%"> <div align="right"><font face="Times New Roman, Times, serif"></font></div> </td>
<td valign="bottom" width="2%"> <div align="right"><font face="Times New Roman, Times, serif"></font></div> </td>
<td valign="bottom" width="1%"> <div align="right"><font face="Times New Roman, Times, serif"></font></div> </td>
<td valign="bottom" width="9%"> <div align="right"><font size="2" face="Times New Roman, Times, serif">157,480</font></div> </td>
<td valign="bottom" width="1%"><font face="Times New Roman, Times, serif"></font></td>
<td valign="bottom" width="1%"><font face="Times New Roman, Times, serif"></font></td>
<td valign="bottom" width="1%"><font face="Times New Roman, Times, serif"></font></td>
<td valign="bottom" width="7%"> <div align="right"><font face="Times New Roman, Times, serif"></font></div> </td>
<td valign="bottom" width="1%"> <div align="right"><font face="Times New Roman, Times, serif"></font></div> </td>
<td valign="bottom" width="7%"> <div align="right"><font face="Times New Roman, Times, serif"></font></div> </td>
<td width="3%"><font face="Times New Roman, Times, serif"></font></td> </tr>
<tr>
<td width="37%"><font face="Times New Roman, Times, serif"></font></td>
<td width="1%">&nbsp;</td>
<td colspan="2"> <hr color="#000000" size="2" width="100%"> </td>
<td width="2%"><font face="Times New Roman, Times, serif"></font></td>
<td colspan="2"> <hr color="#000000" size="2" width="100%"> </td>
<td valign="bottom" width="2%"><font face="Times New Roman, Times, serif"></font></td>
<td valign="bottom" width="7%"> <hr color="#000000" size="2" width="100%"> </td>
<td valign="bottom" align="left" width="1%"><font face="Times New Roman, Times, serif"></font></td>
<td valign="bottom" width="2%"><font face="Times New Roman, Times, serif"></font></td>
<td colspan="2" valign="bottom"> <hr color="#000000" size="2" width="100%"> </td>
<td valign="bottom" width="1%"><font face="Times New Roman, Times, serif"></font></td>
<td valign="bottom" width="1%"><font face="Times New Roman, Times, serif"></font></td>
<td colspan="2" valign="bottom"> <hr color="#000000" size="2" width="100%"> </td>
<td valign="bottom" width="1%"><font face="Times New Roman, Times, serif"></font></td>
<td valign="bottom" width="7%"> <hr color="#000000" size="2" width="100%"> </td>
<td width="3%"><font face="Times New Roman, Times, serif"></font></td> </tr>
<tr>
<td bgcolor="#cceeff" nowrap width="37%"><font size="2" face="Times New Roman, Times, serif">Total liabilities and stockholders' equity</font></td>
<td bgcolor="#cceeff" nowrap width="1%">&nbsp;</td>
<td bgcolor="#cceeff" width="1%"><font face="Times New Roman, Times, serif"><font size="2">$</font></font></td>
<td bgcolor="#cceeff" width="8%"> <div align="right"><font size="2" face="Times New Roman, Times, serif">2,091,606</font></div> </td>
<td bgcolor="#cceeff" width="2%"><font face="Times New Roman, Times, serif"></font></td>
<td bgcolor="#cceeff" width="1%"><font face="Times New Roman, Times, serif"></font></td>
<td valign="bottom" bgcolor="#cceeff" width="7%"> <div align="right"><font face="Times New Roman, Times, serif"></font></div> </td>
<td valign="bottom" bgcolor="#cceeff" width="2%"> <div align="right"><font face="Times New Roman, Times, serif"></font></div> </td>
<td valign="bottom" bgcolor="#cceeff" width="7%"> <div align="right"><font face="Times New Roman, Times, serif"></font></div> </td>
<td valign="bottom" align="left" bgcolor="#CCEEFF" width="1%"> <div align="right"><font face="Times New Roman, Times, serif"></font></div> </td>
<td valign="bottom" bgcolor="#cceeff" width="2%"> <div align="right"><font face="Times New Roman, Times, serif"></font></div> </td>
<td valign="bottom" bgcolor="#cceeff" width="1%"> <div align="left"><font size="2" face="Times New Roman, Times, serif">$</font></div> </td>
<td valign="bottom" bgcolor="#cceeff" width="9%"> <div align="right"><font size="2" face="Times New Roman, Times, serif">2,539,674</font></div> </td>
<td valign="bottom" bgcolor="#cceeff" width="1%"><font face="Times New Roman, Times, serif"></font></td>
<td valign="bottom" bgcolor="#cceeff" width="1%"><font face="Times New Roman, Times, serif"></font></td>
<td valign="bottom" bgcolor="#cceeff" width="1%"><font face="Times New Roman, Times, serif"></font></td>
<td valign="bottom" bgcolor="#cceeff" width="7%"> <div align="right"><font face="Times New Roman, Times, serif"></font></div> </td>
<td valign="bottom" bgcolor="#cceeff" width="1%"> <div align="right"><font face="Times New Roman, Times, serif"></font></div> </td>
<td valign="bottom" bgcolor="#cceeff" width="7%"> <div align="right"><font face="Times New Roman, Times, serif"></font></div> </td>
<td bgcolor="#cceeff" width="3%"><font face="Times New Roman, Times, serif"></font></td> </tr>
<tr>
<td width="37%"><font face="Times New Roman, Times, serif"></font></td>
<td width="1%">&nbsp;</td>
<td colspan="2"> <hr color="#000000" size="4" width="100%"> </td>
<td width="2%"><font face="Times New Roman, Times, serif"></font></td>
<td colspan="2"> <hr color="#000000" size="4" width="100%"> </td>
<td valign="bottom" width="2%"><font face="Times New Roman, Times, serif"></font></td>
<td valign="bottom" width="7%"> <hr color="#000000" size="4" width="100%"> </td>
<td valign="bottom" align="left" width="1%"><font face="Times New Roman, Times, serif"></font></td>
<td valign="bottom" width="2%"><font face="Times New Roman, Times, serif"></font></td>
<td colspan="2" valign="bottom"> <hr color="#000000" size="4" width="100%"> </td>
<td valign="bottom" width="1%"><font face="Times New Roman, Times, serif"></font></td>
<td valign="bottom" width="1%"><font face="Times New Roman, Times, serif"></font></td>
<td colspan="2" valign="bottom"> <hr color="#000000" size="4" width="100%"> </td>
<td valign="bottom" width="1%"><font face="Times New Roman, Times, serif"></font></td>
<td valign="bottom" width="7%"> <hr color="#000000" size="4" width="100%"> </td>
<td width="3%"><font face="Times New Roman, Times, serif"></font></td> </tr>
<tr>
<td bgcolor="#cceeff" width="37%"><font size="2" face="Times New Roman, Times, serif">&nbsp;&nbsp;&nbsp;&nbsp;Net interest income</font></td>
<td bgcolor="#cceeff" width="1%">&nbsp;</td>
<td bgcolor="#cceeff" width="1%"><font face="Times New Roman, Times, serif"></font></td>
<td bgcolor="#cceeff" width="8%"> <div align="right"><font face="Times New Roman, Times, serif"></font></div> </td>
<td bgcolor="#cceeff" width="2%"><font face="Times New Roman, Times, serif"></font></td>
<td bgcolor="#cceeff" width="1%"><font face="Times New Roman, Times, serif"><font size="2">$</font></font></td>
<td valign="bottom" bgcolor="#cceeff" width="7%"> <div align="right"><font size="2" face="Times New Roman, Times, serif">$44,265</font></div> </td>
<td valign="bottom" bgcolor="#cceeff" width="2%"> <div align="right"><font face="Times New Roman, Times, serif"></font></div> </td>
<td valign="bottom" bgcolor="#cceeff" width="7%"> <div align="right"><font face="Times New Roman, Times, serif"></font></div> </td>
<td valign="bottom" align="left" bgcolor="#CCEEFF" width="1%"> <div align="right"><font face="Times New Roman, Times, serif"></font></div> </td>
<td valign="bottom" bgcolor="#cceeff" width="2%"> <div align="right"><font face="Times New Roman, Times, serif"></font></div> </td>
<td valign="bottom" bgcolor="#cceeff" width="1%"> <div align="right"><font face="Times New Roman, Times, serif"></font></div> </td>
<td valign="bottom" bgcolor="#cceeff" width="9%"> <div align="right"><font face="Times New Roman, Times, serif"></font></div> </td>
<td valign="bottom" bgcolor="#cceeff" width="1%"><font face="Times New Roman, Times, serif"></font></td>
<td valign="bottom" bgcolor="#cceeff" width="1%"><font face="Times New Roman, Times, serif"></font></td>
<td valign="bottom" bgcolor="#cceeff" width="1%"><font face="Times New Roman, Times, serif"></font></td>
<td valign="bottom" bgcolor="#cceeff" width="7%"> <div align="right"><font size="2" face="Times New Roman, Times, serif">$44,129</font></div> </td>
<td valign="bottom" bgcolor="#cceeff" width="1%"> <div align="right"><font face="Times New Roman, Times, serif"></font></div> </td>
<td valign="bottom" bgcolor="#cceeff" width="7%"> <div align="right"><font face="Times New Roman, Times, serif"></font></div> </td>
<td bgcolor="#cceeff" width="3%"><font face="Times New Roman, Times, serif"></font></td> </tr>
<tr>
<td width="37%"><font face="Times New Roman, Times, serif"></font></td>
<td width="1%">&nbsp;</td>
<td colspan="2"> <hr color="#000000" size="4" width="100%"> </td>
<td width="2%"><font face="Times New Roman, Times, serif"></font></td>
<td colspan="2"> <hr color="#000000" size="4" width="100%"> </td>
<td valign="bottom" width="2%"><font face="Times New Roman, Times, serif"></font></td>
<td valign="bottom" width="7%"> <hr color="#000000" size="4" width="100%"> </td>
<td valign="bottom" align="left" width="1%"><font face="Times New Roman, Times, serif"></font></td>
<td valign="bottom" width="2%"><font face="Times New Roman, Times, serif"></font></td>
<td colspan="2" valign="bottom"> <hr color="#000000" size="4" width="100%"> </td>
<td valign="bottom" width="1%"><font face="Times New Roman, Times, serif"></font></td>
<td valign="bottom" width="1%"><font face="Times New Roman, Times, serif"></font></td>
<td colspan="2" valign="bottom"> <hr color="#000000" size="4" width="100%"> </td>
<td valign="bottom" width="1%"><font face="Times New Roman, Times, serif"></font></td>
<td valign="bottom" width="7%"> <hr color="#000000" size="4" width="100%"> </td>
<td width="3%"><font face="Times New Roman, Times, serif"></font></td> </tr>
<tr>
<td bgcolor="#cceeff" width="37%"><font size="2" face="Times New Roman, Times, serif">&nbsp;&nbsp;&nbsp;&nbsp;Net yield on earning assets</font></td>
<td bgcolor="#cceeff" width="1%">&nbsp;</td>
<td bgcolor="#cceeff" width="1%"><font face="Times New Roman, Times, serif"></font></td>
<td bgcolor="#cceeff" width="8%"> <div align="right"><font face="Times New Roman, Times, serif"></font></div> </td>
<td bgcolor="#cceeff" width="2%"><font face="Times New Roman, Times, serif"></font></td>
<td bgcolor="#cceeff" width="1%"><font face="Times New Roman, Times, serif"></font></td>
<td valign="bottom" bgcolor="#cceeff" width="7%"> <div align="right"><font face="Times New Roman, Times, serif"></font></div> </td>
<td valign="bottom" bgcolor="#cceeff" width="2%"> <div align="right"><font face="Times New Roman, Times, serif"></font></div> </td>
<td valign="bottom" bgcolor="#cceeff" width="7%"> <div align="right"><font size="2" face="Times New Roman, Times, serif">4.60</font></div> </td>
<td valign="bottom" align="left" bgcolor="#CCEEFF" width="1%"> <div align="right"><font size="2" face="Times New Roman, Times, serif">%</font></div> </td>
<td valign="bottom" bgcolor="#cceeff" width="2%"> <div align="right"><font face="Times New Roman, Times, serif"></font></div> </td>
<td valign="bottom" bgcolor="#cceeff" width="1%"> <div align="right"><font face="Times New Roman, Times, serif"></font></div> </td>
<td valign="bottom" bgcolor="#cceeff" width="9%"> <div align="right"><font face="Times New Roman, Times, serif"></font></div> </td>
<td valign="bottom" bgcolor="#cceeff" width="1%"><font face="Times New Roman, Times, serif"></font></td>
<td valign="bottom" bgcolor="#cceeff" width="1%"><font face="Times New Roman, Times, serif"></font></td>
<td valign="bottom" bgcolor="#cceeff" width="1%"><font face="Times New Roman, Times, serif"></font></td>
<td valign="bottom" bgcolor="#cceeff" width="7%"> <div align="right"><font face="Times New Roman, Times, serif"></font></div> </td>
<td valign="bottom" bgcolor="#cceeff" width="1%"> <div align="right"><font face="Times New Roman, Times, serif"></font></div> </td>
<td valign="bottom" bgcolor="#cceeff" width="7%"> <div align="right"><font size="2" face="Times New Roman, Times, serif">3.76</font></div> </td>
<td bgcolor="#cceeff" width="3%"><font size="2" face="Times New Roman, Times, serif">%</font></td> </tr>
<tr>
<td width="37%"><font face="Times New Roman, Times, serif"></font></td>
<td width="1%">&nbsp;</td>
<td colspan="2"> <hr color="#000000" size="4" width="100%"> </td>
<td width="2%"><font face="Times New Roman, Times, serif"></font></td>
<td colspan="2"> <hr color="#000000" size="4" width="100%"> </td>
<td valign="bottom" width="2%"><font face="Times New Roman, Times, serif"></font></td>
<td valign="bottom" width="7%"> <hr color="#000000" size="4" width="100%"> </td>
<td valign="bottom" align="left" width="1%"><font face="Times New Roman, Times, serif"></font></td>
<td valign="bottom" width="2%"><font face="Times New Roman, Times, serif"></font></td>
<td colspan="2" valign="bottom"> <hr color="#000000" size="4" width="100%"> </td>
<td valign="bottom" width="1%"><font face="Times New Roman, Times, serif"></font></td>
<td valign="bottom" width="1%"><font face="Times New Roman, Times, serif"></font></td>
<td colspan="2" valign="bottom"> <hr color="#000000" size="4" width="100%"> </td>
<td valign="bottom" width="1%"><font face="Times New Roman, Times, serif"></font></td>
<td valign="bottom" width="7%"> <hr color="#000000" size="4" width="100%"> </td>
<td width="3%"><font face="Times New Roman, Times, serif"></font></td> </tr> </table> <br>
<table width="75%" border="0" cellpadding="0" cellspacing="0">
<tr valign="top">
<td><font size="2" face="Times New Roman, Times, serif">(1)</font></td>
<td>&nbsp;</td>
<td><font size="2" face="Times New Roman, Times, serif">For purposes of this table, non-accruing loans have been included in average balances and loan fees, which are immaterial, have been included in interest income. </font></td> </tr>
<tr valign="top">
<td>&nbsp;&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td> </tr>
<tr valign="top">
<td><font size="2" face="Times New Roman, Times, serif">(2)</font></td>
<td>&nbsp;</td>
<td><font size="2" face="Times New Roman, Times, serif">Computed on a fully federal tax-equivalent basis assuming a tax rate of approximately 35%. </font></td> </tr> </table> <p align="center"><font size="2" face="Times New Roman, Times, serif">
</font><font size="2" face="Times New Roman, Times, serif">21</font></p>

<p Style='page-break-before:always'>
<HR  SIZE="3" COLOR="#CCEEFF" WIDTH="100%" ALIGN="CENTER">
<h5 align="left"><a href="#toc">Table of Contents</a></h5>
 <p><b><font size="2" face="Times New Roman, Times, serif">RATE VOLUME ANALYSIS OF CHANGES IN INTEREST INCOME AND INTEREST EXPENSE</font></b><font size="2" face="Times New Roman, Times, serif"><br> <i>(in
thousands)</i><br> </font><font size="2"> </font> </p>
<table border=0 width="100%" cellpadding=0 cellspacing=0>
<tr valign="bottom" align="center">
<td><font size="1" color="#000000" face="Times New Roman, Times, serif"></font></td>
<td colspan="11"><font face="Times New Roman, Times, serif"><b><font size="1" color="#000000">Six months ended June 30,</font></b></font></td>
<td width="15"><font size="1" color="#000000" face="Times New Roman, Times, serif"></font></td> </tr>
<tr valign="bottom" align="center">
<td><font size="1" color="#000000" face="Times New Roman, Times, serif"></font></td>
<td colspan="11"><font face="Times New Roman, Times, serif"><b><font size="1" color="#000000">2002 vs. 2001</font></b></font></td>
<td width="15"><font size="1" color="#000000" face="Times New Roman, Times, serif"></font></td> </tr>
<tr valign="bottom" align="center">
<td><font size="1" color="#000000" face="Times New Roman, Times, serif"></font></td>
<td colspan="11"><font face="Times New Roman, Times, serif"><b><font size="1" color="#000000">Increase (Decrease)</font></b></font></td>
<td width="15"><font size="1" color="#000000" face="Times New Roman, Times, serif"></font></td> </tr>
<tr valign="bottom" align="center">
<td><font size="1" color="#000000" face="Times New Roman, Times, serif"></font></td>
<td colspan="11"><font face="Times New Roman, Times, serif"><b><font size="1" color="#000000">Due to Change In:</font></b></font></td>
<td width="15"><font size="1" color="#000000" face="Times New Roman, Times, serif"></font></td> </tr>
<tr valign="bottom" align="center">
<td><font size="1" color="#000000" face="Times New Roman, Times, serif"></font></td>
<td width="3"><font face="Times New Roman, Times, serif"><b><font size="1" color="#000000"></font></b></font></td>
<td width="90"><font face="Times New Roman, Times, serif"><b><font size="1" color="#000000">Volume</font></b></font></td>
<td width="2"><font face="Times New Roman, Times, serif"><b><font size="1" color="#000000"></font></b></font></td>
<td width="20"><font face="Times New Roman, Times, serif"><b><font size="1" color="#000000"></font></b></font></td>
<td width="3"><font face="Times New Roman, Times, serif"><b><font size="1" color="#000000"></font></b></font></td>
<td width="90"><font face="Times New Roman, Times, serif"><b><font size="1" color="#000000">Rate</font></b></font></td>
<td width="2"><font face="Times New Roman, Times, serif"><b><font size="1" color="#000000"></font></b></font></td>
<td width="20"><font face="Times New Roman, Times, serif"><b><font size="1" color="#000000"></font></b></font></td>
<td width="3"><font face="Times New Roman, Times, serif"><b><font size="1" color="#000000"></font></b></font></td>
<td width="90"><font face="Times New Roman, Times, serif"><b><font size="1" color="#000000">Net</font></b></font></td>
<td width="2"><font face="Times New Roman, Times, serif"><b><font size="1" color="#000000"></font></b></font></td>
<td width="15"><font size="1" color="#000000" face="Times New Roman, Times, serif"></font></td> </tr>
<tr valign="bottom" align="center">
<td><font size="1" face="Times New Roman, Times, serif"></font></td>
<td colspan="2"> <hr size="2" color="#000000"> </td>
<td width="2"><font size="1" color="#000000" face="Times New Roman, Times, serif"></font></td>
<td width="20"><font size="1" color="#000000" face="Times New Roman, Times, serif"></font></td>
<td colspan="2"> <hr size="2" color="#000000"> </td>
<td width="2"><font size="1" color="#000000" face="Times New Roman, Times, serif"></font></td>
<td width="20"><font size="1" color="#000000" face="Times New Roman, Times, serif"></font></td>
<td colspan="2"> <hr size="2" color="#000000"> </td>
<td width="2"><font size="1" color="#000000" face="Times New Roman, Times, serif"></font></td>
<td width="15"><font size="1" color="#000000" face="Times New Roman, Times, serif"></font></td> </tr>
<tr valign="bottom">
<td><font size="2" color="#000000" face="Times New Roman, Times, serif"><b>Interest-earning assets:</b></font></td>
<td align=right width="3"><font size="2" color="#000000" face="Times New Roman, Times, serif"></font></td>
<td align=right width="90"><font size="2" color="#000000" face="Times New Roman, Times, serif"></font></td>
<td align=left width="2"><font size="2" color="#000000" face="Times New Roman, Times, serif"></font></td>
<td align=right width="20"><font size="2" color="#000000" face="Times New Roman, Times, serif"></font></td>
<td align=right width="3"><font size="2" color="#000000" face="Times New Roman, Times, serif"></font></td>
<td align=right width="90"><font size="2" color="#000000" face="Times New Roman, Times, serif"></font></td>
<td align=left width="2"><font size="2" color="#000000" face="Times New Roman, Times, serif"></font></td>
<td align=right width="20"><font size="2" color="#000000" face="Times New Roman, Times, serif"></font></td>
<td align=right width="3"><font size="2" color="#000000" face="Times New Roman, Times, serif"></font></td>
<td align=right width="90"><font size="2" color="#000000" face="Times New Roman, Times, serif"></font></td>
<td align=left width="2"><font size="2" color="#000000" face="Times New Roman, Times, serif"></font></td>
<td align=right width="15"><font size="2" color="#000000" face="Times New Roman, Times, serif"></font></td> </tr>
<tr valign="bottom">
<td bgcolor="#CCEEFF"><font size="2" color="#000000" face="Times New Roman, Times, serif">Loan portfolio</font></td>
<td align=right width="3" bgcolor="#CCEEFF"><font size="2" color="#000000" face="Times New Roman, Times, serif">$</font></td>
<td align=right width="90" bgcolor="#CCEEFF"><font size="2" color="#000000" face="Times New Roman, Times, serif"> (23,023</font></td>
<td align=left width="2" bgcolor="#CCEEFF"><font size="2" color="#000000" face="Times New Roman, Times, serif">)</font></td>
<td align=right width="20" bgcolor="#CCEEFF"><font size="2" color="#000000" face="Times New Roman, Times, serif"></font></td>
<td align=right width="3" bgcolor="#CCEEFF"><font size="2" color="#000000" face="Times New Roman, Times, serif">$</font></td>
<td align=right width="90" bgcolor="#CCEEFF"><font size="2" color="#000000" face="Times New Roman, Times, serif">(7,938</font></td>
<td align=left width="2" bgcolor="#CCEEFF"><font size="2" color="#000000" face="Times New Roman, Times, serif">)</font></td>
<td align=right width="20" bgcolor="#CCEEFF"><font size="2" color="#000000" face="Times New Roman, Times, serif"></font></td>
<td align=right width="3" bgcolor="#CCEEFF"><font size="2" color="#000000" face="Times New Roman, Times, serif">$</font></td>
<td align=right width="90" bgcolor="#CCEEFF"><font size="2" color="#000000" face="Times New Roman, Times, serif"> (30,961</font></td>
<td align=left width="2" bgcolor="#CCEEFF"><font size="2" color="#000000" face="Times New Roman, Times, serif">)</font></td>
<td align=right width="15" bgcolor="#CCEEFF"><font size="2" color="#000000" face="Times New Roman, Times, serif"></font></td> </tr>
<tr valign="bottom">
<td><font size="2" color="#000000" face="Times New Roman, Times, serif">Loans held for sale</font></td>
<td align=right width="3"><font size="2" color="#000000" face="Times New Roman, Times, serif"></font></td>
<td align=right width="90"><font size="2" color="#000000" face="Times New Roman, Times, serif">(832</font></td>
<td align=left width="2"><font size="2" color="#000000" face="Times New Roman, Times, serif">)</font></td>
<td align=right width="20"><font size="2" color="#000000" face="Times New Roman, Times, serif"></font></td>
<td align=right width="3"><font size="2" color="#000000" face="Times New Roman, Times, serif"></font></td>
<td align=right width="90"><font size="2" color="#000000" face="Times New Roman, Times, serif">&#151;</font></td>
<td align=left width="2"><font size="2" color="#000000" face="Times New Roman, Times, serif"></font></td>
<td align=right width="20"><font size="2" color="#000000" face="Times New Roman, Times, serif"></font></td>
<td align=right width="3"><font size="2" color="#000000" face="Times New Roman, Times, serif"></font></td>
<td align=right width="90"><font size="2" color="#000000" face="Times New Roman, Times, serif">(832</font></td>
<td align=left width="2"><font size="2" color="#000000" face="Times New Roman, Times, serif">)</font></td>
<td align=right width="15"><font size="2" color="#000000" face="Times New Roman, Times, serif"></font></td> </tr>
<tr valign="bottom">
<td><font size="2" color="#000000" face="Times New Roman, Times, serif">Securities:</font></td>
<td align=right width="3"><font size="2" color="#000000" face="Times New Roman, Times, serif"></font></td>
<td align=right width="90"><font size="2" color="#000000" face="Times New Roman, Times, serif"></font></td>
<td align=left width="2"><font size="2" color="#000000" face="Times New Roman, Times, serif"></font></td>
<td align=right width="20"><font size="2" color="#000000" face="Times New Roman, Times, serif"></font></td>
<td align=right width="3"><font size="2" color="#000000" face="Times New Roman, Times, serif"></font></td>
<td align=right width="90"><font size="2" color="#000000" face="Times New Roman, Times, serif"></font></td>
<td align=left width="2"><font size="2" color="#000000" face="Times New Roman, Times, serif"></font></td>
<td align=right width="20"><font size="2" color="#000000" face="Times New Roman, Times, serif"></font></td>
<td align=right width="3"><font size="2" color="#000000" face="Times New Roman, Times, serif"></font></td>
<td align=right width="90"><font size="2" color="#000000" face="Times New Roman, Times, serif"></font></td>
<td align=left width="2"><font size="2" color="#000000" face="Times New Roman, Times, serif"></font></td>
<td align=right width="15"><font size="2" color="#000000" face="Times New Roman, Times, serif"></font></td> </tr>
<tr valign="bottom">
<td bgcolor="#CCEEFF"><font size="2" color="#000000" face="Times New Roman, Times, serif">&nbsp;&nbsp;&nbsp;&nbsp;Taxable</font></td>
<td align=right width="3" bgcolor="#CCEEFF"><font size="2" color="#000000" face="Times New Roman, Times, serif"></font></td>
<td align=right width="90" bgcolor="#CCEEFF"><font size="2" color="#000000" face="Times New Roman, Times, serif">6,310</font></td>
<td align=left width="2" bgcolor="#CCEEFF"><font size="2" color="#000000" face="Times New Roman, Times, serif"></font></td>
<td align=right width="20" bgcolor="#CCEEFF"><font size="2" color="#000000" face="Times New Roman, Times, serif"></font></td>
<td align=right width="3" bgcolor="#CCEEFF"><font size="2" color="#000000" face="Times New Roman, Times, serif"></font></td>
<td align=right width="90" bgcolor="#CCEEFF"><font size="2" color="#000000" face="Times New Roman, Times, serif">(4,627</font></td>
<td align=left width="2" bgcolor="#CCEEFF"><font size="2" color="#000000" face="Times New Roman, Times, serif">)</font></td>
<td align=right width="20" bgcolor="#CCEEFF"><font size="2" color="#000000" face="Times New Roman, Times, serif"></font></td>
<td align=right width="3" bgcolor="#CCEEFF"><font size="2" color="#000000" face="Times New Roman, Times, serif"></font></td>
<td align=right width="90" bgcolor="#CCEEFF"><font size="2" color="#000000" face="Times New Roman, Times, serif">1,683</font></td>
<td align=left width="2" bgcolor="#CCEEFF"><font size="2" color="#000000" face="Times New Roman, Times, serif"></font></td>
<td align=right width="15" bgcolor="#CCEEFF"><font size="2" color="#000000" face="Times New Roman, Times, serif"></font></td> </tr>
<tr valign="bottom">
<td><font size="2" color="#000000" face="Times New Roman, Times, serif">&nbsp;&nbsp;&nbsp;&nbsp;Tax-exempt (1)</font></td>
<td align=right width="3"><font size="2" color="#000000" face="Times New Roman, Times, serif"></font></td>
<td align=right width="90"><font size="2" color="#000000" face="Times New Roman, Times, serif">(544</font></td>
<td align=left width="2"><font size="2" color="#000000" face="Times New Roman, Times, serif">)</font></td>
<td align=right width="20"><font size="2" color="#000000" face="Times New Roman, Times, serif"></font></td>
<td align=right width="3"><font size="2" color="#000000" face="Times New Roman, Times, serif"></font></td>
<td align=right width="90"><font size="2" color="#000000" face="Times New Roman, Times, serif">3</font></td>
<td align=left width="2"><font size="2" color="#000000" face="Times New Roman, Times, serif"></font></td>
<td align=right width="20"><font size="2" color="#000000" face="Times New Roman, Times, serif"></font></td>
<td align=right width="3"><font size="2" color="#000000" face="Times New Roman, Times, serif"></font></td>
<td align=right width="90"><font size="2" color="#000000" face="Times New Roman, Times, serif">(541</font></td>
<td align=left width="2"><font size="2" color="#000000" face="Times New Roman, Times, serif">)</font></td>
<td align=right width="15"><font size="2" color="#000000" face="Times New Roman, Times, serif"></font></td> </tr>
<tr valign="bottom" align="center">
<td><font size="1" face="Times New Roman, Times, serif"></font></td>
<td colspan="2"> <hr size="2" color="#000000"> </td>
<td width="2"><font size="1" color="#000000" face="Times New Roman, Times, serif"></font></td>
<td width="20"><font size="1" color="#000000" face="Times New Roman, Times, serif"></font></td>
<td colspan="2"> <hr size="2" color="#000000"> </td>
<td width="2"><font size="1" color="#000000" face="Times New Roman, Times, serif"></font></td>
<td width="20"><font size="1" color="#000000" face="Times New Roman, Times, serif"></font></td>
<td colspan="2"> <hr size="2" color="#000000"> </td>
<td width="2"><font size="1" color="#000000" face="Times New Roman, Times, serif"></font></td>
<td width="15"><font size="1" color="#000000" face="Times New Roman, Times, serif"></font></td> </tr>
<tr valign="bottom">
<td bgcolor="#CCEEFF"><font size="2" color="#000000" face="Times New Roman, Times, serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total securities</font></td>
<td align=right width="3" bgcolor="#CCEEFF"><font size="2" color="#000000" face="Times New Roman, Times, serif"></font></td>
<td align=right width="90" bgcolor="#CCEEFF"><font size="2" color="#000000" face="Times New Roman, Times, serif">5,766</font></td>
<td align=left width="2" bgcolor="#CCEEFF"><font size="2" color="#000000" face="Times New Roman, Times, serif"></font></td>
<td align=right width="20" bgcolor="#CCEEFF"><font size="2" color="#000000" face="Times New Roman, Times, serif"></font></td>
<td align=right width="3" bgcolor="#CCEEFF"><font size="2" color="#000000" face="Times New Roman, Times, serif"></font></td>
<td align=right width="90" bgcolor="#CCEEFF"><font size="2" color="#000000" face="Times New Roman, Times, serif">(4,624</font></td>
<td align=left width="2" bgcolor="#CCEEFF"><font size="2" color="#000000" face="Times New Roman, Times, serif">)</font></td>
<td align=right width="20" bgcolor="#CCEEFF"><font size="2" color="#000000" face="Times New Roman, Times, serif"></font></td>
<td align=right width="3" bgcolor="#CCEEFF"><font size="2" color="#000000" face="Times New Roman, Times, serif"></font></td>
<td align=right width="90" bgcolor="#CCEEFF"><font size="2" color="#000000" face="Times New Roman, Times, serif">1,142</font></td>
<td align=left width="2" bgcolor="#CCEEFF"><font size="2" color="#000000" face="Times New Roman, Times, serif"></font></td>
<td align=right width="15" bgcolor="#CCEEFF"><font size="2" color="#000000" face="Times New Roman, Times, serif"></font></td> </tr>
<tr valign="bottom">
<td><font size="2" color="#000000" face="Times New Roman, Times, serif">Retained interest in securitized loans</font></td>
<td align=right width="3"><font size="2" color="#000000" face="Times New Roman, Times, serif"></font></td>
<td align=right width="90"><font size="2" color="#000000" face="Times New Roman, Times, serif">(92</font></td>
<td align=left width="2"><font size="2" color="#000000" face="Times New Roman, Times, serif">)</font></td>
<td align=right width="20"><font size="2" color="#000000" face="Times New Roman, Times, serif"></font></td>
<td align=right width="3"><font size="2" color="#000000" face="Times New Roman, Times, serif"></font></td>
<td align=right width="90"><font size="2" color="#000000" face="Times New Roman, Times, serif">3,593</font></td>
<td align=left width="2"><font size="2" color="#000000" face="Times New Roman, Times, serif"></font></td>
<td align=right width="20"><font size="2" color="#000000" face="Times New Roman, Times, serif"></font></td>
<td align=right width="3"><font size="2" color="#000000" face="Times New Roman, Times, serif"></font></td>
<td align=right width="90"><font size="2" color="#000000" face="Times New Roman, Times, serif">3,501</font></td>
<td align=left width="2"><font size="2" color="#000000" face="Times New Roman, Times, serif"></font></td>
<td align=right width="15"><font size="2" color="#000000" face="Times New Roman, Times, serif"></font></td> </tr>
<tr valign="bottom">
<td bgcolor="#CCEEFF"><font size="2" color="#000000" face="Times New Roman, Times, serif">Federal funds sold</font></td>
<td align=right width="3" bgcolor="#CCEEFF"><font size="2" color="#000000" face="Times New Roman, Times, serif"></font></td>
<td align=right width="90" bgcolor="#CCEEFF"><font size="2" color="#000000" face="Times New Roman, Times, serif">543</font></td>
<td align=left width="2" bgcolor="#CCEEFF"><font size="2" color="#000000" face="Times New Roman, Times, serif"></font></td>
<td align=right width="20" bgcolor="#CCEEFF"><font size="2" color="#000000" face="Times New Roman, Times, serif"></font></td>
<td align=right width="3" bgcolor="#CCEEFF"><font size="2" color="#000000" face="Times New Roman, Times, serif"></font></td>
<td align=right width="90" bgcolor="#CCEEFF"><font size="2" color="#000000" face="Times New Roman, Times, serif">(331</font></td>
<td align=left width="2" bgcolor="#CCEEFF"><font size="2" color="#000000" face="Times New Roman, Times, serif">)</font></td>
<td align=right width="20" bgcolor="#CCEEFF"><font size="2" color="#000000" face="Times New Roman, Times, serif"></font></td>
<td align=right width="3" bgcolor="#CCEEFF"><font size="2" color="#000000" face="Times New Roman, Times, serif"></font></td>
<td align=right width="90" bgcolor="#CCEEFF"><font size="2" color="#000000" face="Times New Roman, Times, serif">212</font></td>
<td align=left width="2" bgcolor="#CCEEFF"><font size="2" color="#000000" face="Times New Roman, Times, serif"></font></td>
<td align=right width="15" bgcolor="#CCEEFF"><font size="2" color="#000000" face="Times New Roman, Times, serif"></font></td> </tr>
<tr valign="bottom" align="center">
<td><font size="1" face="Times New Roman, Times, serif"></font></td>
<td colspan="2"> <hr size="2" color="#000000"> </td>
<td width="2"><font size="1" color="#000000" face="Times New Roman, Times, serif"></font></td>
<td width="20"><font size="1" color="#000000" face="Times New Roman, Times, serif"></font></td>
<td colspan="2"> <hr size="2" color="#000000"> </td>
<td width="2"><font size="1" color="#000000" face="Times New Roman, Times, serif"></font></td>
<td width="20"><font size="1" color="#000000" face="Times New Roman, Times, serif"></font></td>
<td colspan="2"> <hr size="2" color="#000000"> </td>
<td width="2"><font size="1" color="#000000" face="Times New Roman, Times, serif"></font></td>
<td width="15"><font size="1" color="#000000" face="Times New Roman, Times, serif"></font></td> </tr>
<tr valign="bottom">
<td bgcolor="#CCEEFF"><font size="2" color="#000000" face="Times New Roman, Times, serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total interest-earning assets</font></td>
<td align=right width="3" bgcolor="#CCEEFF"><font size="2" color="#000000" face="Times New Roman, Times, serif">$</font></td>
<td align=right width="90" bgcolor="#CCEEFF"><font size="2" color="#000000" face="Times New Roman, Times, serif"> (17,638</font></td>
<td align=left width="2" bgcolor="#CCEEFF"><font size="2" color="#000000" face="Times New Roman, Times, serif">)</font></td>
<td align=right width="20" bgcolor="#CCEEFF"><font size="2" color="#000000" face="Times New Roman, Times, serif"></font></td>
<td align=right width="3" bgcolor="#CCEEFF"><font size="2" color="#000000" face="Times New Roman, Times, serif">$</font></td>
<td align=right width="90" bgcolor="#CCEEFF"><font size="2" color="#000000" face="Times New Roman, Times, serif">(9,300</font></td>
<td align=left width="2" bgcolor="#CCEEFF"><font size="2" color="#000000" face="Times New Roman, Times, serif">)</font></td>
<td align=right width="20" bgcolor="#CCEEFF"><font size="2" color="#000000" face="Times New Roman, Times, serif"></font></td>
<td align=right width="3" bgcolor="#CCEEFF"><font size="2" color="#000000" face="Times New Roman, Times, serif">$</font></td>
<td align=right width="90" bgcolor="#CCEEFF"><font size="2" color="#000000" face="Times New Roman, Times, serif"> (26,938</font></td>
<td align=left width="2" bgcolor="#CCEEFF"><font size="2" color="#000000" face="Times New Roman, Times, serif">)</font></td>
<td align=right width="15" bgcolor="#CCEEFF"><font size="2" color="#000000" face="Times New Roman, Times, serif"></font></td> </tr>
<tr valign="bottom" align="center">
<td><font size="1" face="Times New Roman, Times, serif"></font></td>
<td colspan="2"> <hr size="4" color="#000000"> </td>
<td width="2"><font size="1" color="#000000" face="Times New Roman, Times, serif"></font></td>
<td width="20"><font size="1" color="#000000" face="Times New Roman, Times, serif"></font></td>
<td colspan="2"> <hr size="4" color="#000000"> </td>
<td width="2"><font size="1" color="#000000" face="Times New Roman, Times, serif"></font></td>
<td width="20"><font size="1" color="#000000" face="Times New Roman, Times, serif"></font></td>
<td colspan="2"> <hr size="4" color="#000000"> </td>
<td width="2"><font size="1" color="#000000" face="Times New Roman, Times, serif"></font></td>
<td width="15"><font size="1" color="#000000" face="Times New Roman, Times, serif"></font></td> </tr>
<tr valign="bottom">
<td><font size="2" color="#000000" face="Times New Roman, Times, serif"><b>Interest-bearing liabilities:</b></font></td>
<td align=right width="3"><font size="2" color="#000000" face="Times New Roman, Times, serif"></font></td>
<td align=right width="90"><font size="2" color="#000000" face="Times New Roman, Times, serif"></font></td>
<td align=left width="2"><font size="2" color="#000000" face="Times New Roman, Times, serif"></font></td>
<td align=right width="20"><font size="2" color="#000000" face="Times New Roman, Times, serif"></font></td>
<td align=right width="3"><font size="2" color="#000000" face="Times New Roman, Times, serif"></font></td>
<td align=right width="90"><font size="2" color="#000000" face="Times New Roman, Times, serif"></font></td>
<td align=left width="2"><font size="2" color="#000000" face="Times New Roman, Times, serif"></font></td>
<td align=right width="20"><font size="2" color="#000000" face="Times New Roman, Times, serif"></font></td>
<td align=right width="3"><font size="2" color="#000000" face="Times New Roman, Times, serif"></font></td>
<td align=right width="90"><font size="2" color="#000000" face="Times New Roman, Times, serif"></font></td>
<td align=left width="2"><font size="2" color="#000000" face="Times New Roman, Times, serif"></font></td>
<td align=right width="15"><font size="2" color="#000000" face="Times New Roman, Times, serif"></font></td> </tr>
<tr valign="bottom">
<td bgcolor="#CCEEFF"><font size="2" color="#000000" face="Times New Roman, Times, serif">Demand deposits</font></td>
<td align=right width="3" bgcolor="#CCEEFF"><font size="2" color="#000000" face="Times New Roman, Times, serif">$</font></td>
<td align=right width="90" bgcolor="#CCEEFF"><font size="2" color="#000000" face="Times New Roman, Times, serif"> (579</font></td>
<td align=left width="2" bgcolor="#CCEEFF"><font size="2" color="#000000" face="Times New Roman, Times, serif">)</font></td>
<td align=right width="20" bgcolor="#CCEEFF"><font size="2" color="#000000" face="Times New Roman, Times, serif"></font></td>
<td align=right width="3" bgcolor="#CCEEFF"><font size="2" color="#000000" face="Times New Roman, Times, serif">$</font></td>
<td align=right width="90" bgcolor="#CCEEFF"><font size="2" color="#000000" face="Times New Roman, Times, serif"> (4,457</font></td>
<td align=left width="2" bgcolor="#CCEEFF"><font size="2" color="#000000" face="Times New Roman, Times, serif">)</font></td>
<td align=right width="20" bgcolor="#CCEEFF"><font size="2" color="#000000" face="Times New Roman, Times, serif"></font></td>
<td align=right width="3" bgcolor="#CCEEFF"><font size="2" color="#000000" face="Times New Roman, Times, serif">$</font></td>
<td align=right width="90" bgcolor="#CCEEFF"><font size="2" color="#000000" face="Times New Roman, Times, serif"> (5,036</font></td>
<td align=left width="2" bgcolor="#CCEEFF"><font size="2" color="#000000" face="Times New Roman, Times, serif">)</font></td>
<td align=right width="15" bgcolor="#CCEEFF"><font size="2" color="#000000" face="Times New Roman, Times, serif"></font></td> </tr>
<tr valign="bottom">
<td><font size="2" color="#000000" face="Times New Roman, Times, serif">Savings deposits</font></td>
<td align=right width="3"><font size="2" color="#000000" face="Times New Roman, Times, serif"></font></td>
<td align=right width="90"><font size="2" color="#000000" face="Times New Roman, Times, serif">527</font></td>
<td align=left width="2"><font size="2" color="#000000" face="Times New Roman, Times, serif"></font></td>
<td align=right width="20"><font size="2" color="#000000" face="Times New Roman, Times, serif"></font></td>
<td align=right width="3"><font size="2" color="#000000" face="Times New Roman, Times, serif"></font></td>
<td align=right width="90"><font size="2" color="#000000" face="Times New Roman, Times, serif">(3,121</font></td>
<td align=left width="2"><font size="2" color="#000000" face="Times New Roman, Times, serif">)</font></td>
<td align=right width="20"><font size="2" color="#000000" face="Times New Roman, Times, serif"></font></td>
<td align=right width="3"><font size="2" color="#000000" face="Times New Roman, Times, serif"></font></td>
<td align=right width="90"><font size="2" color="#000000" face="Times New Roman, Times, serif">(2,594</font></td>
<td align=left width="2"><font size="2" color="#000000" face="Times New Roman, Times, serif">)</font></td>
<td align=right width="15"><font size="2" color="#000000" face="Times New Roman, Times, serif"></font></td> </tr>
<tr valign="bottom">
<td bgcolor="#CCEEFF"><font size="2" color="#000000" face="Times New Roman, Times, serif">Time deposits</font></td>
<td align=right width="3" bgcolor="#CCEEFF"><font size="2" color="#000000" face="Times New Roman, Times, serif"></font></td>
<td align=right width="90" bgcolor="#CCEEFF"><font size="2" color="#000000" face="Times New Roman, Times, serif">(7,605</font></td>
<td align=left width="2" bgcolor="#CCEEFF"><font size="2" color="#000000" face="Times New Roman, Times, serif">)</font></td>
<td align=right width="20" bgcolor="#CCEEFF"><font size="2" color="#000000" face="Times New Roman, Times, serif"></font></td>
<td align=right width="3" bgcolor="#CCEEFF"><font size="2" color="#000000" face="Times New Roman, Times, serif"></font></td>
<td align=right width="90" bgcolor="#CCEEFF"><font size="2" color="#000000" face="Times New Roman, Times, serif">(7,423</font></td>
<td align=left width="2" bgcolor="#CCEEFF"><font size="2" color="#000000" face="Times New Roman, Times, serif">)</font></td>
<td align=right width="20" bgcolor="#CCEEFF"><font size="2" color="#000000" face="Times New Roman, Times, serif"></font></td>
<td align=right width="3" bgcolor="#CCEEFF"><font size="2" color="#000000" face="Times New Roman, Times, serif"></font></td>
<td align=right width="90" bgcolor="#CCEEFF"><font size="2" color="#000000" face="Times New Roman, Times, serif">(15,028</font></td>
<td align=left width="2" bgcolor="#CCEEFF"><font size="2" color="#000000" face="Times New Roman, Times, serif">)</font></td>
<td align=right width="15" bgcolor="#CCEEFF"><font size="2" color="#000000" face="Times New Roman, Times, serif"></font></td> </tr>
<tr valign="bottom">
<td><font size="2" color="#000000" face="Times New Roman, Times, serif">Short-term borrowings</font></td>
<td align=right width="3"><font size="2" color="#000000" face="Times New Roman, Times, serif"></font></td>
<td align=right width="90"><font size="2" color="#000000" face="Times New Roman, Times, serif">(1,904</font></td>
<td align=left width="2"><font size="2" color="#000000" face="Times New Roman, Times, serif">)</font></td>
<td align=right width="20"><font size="2" color="#000000" face="Times New Roman, Times, serif"></font></td>
<td align=right width="3"><font size="2" color="#000000" face="Times New Roman, Times, serif"></font></td>
<td align=right width="90"><font size="2" color="#000000" face="Times New Roman, Times, serif">(2,772</font></td>
<td align=left width="2"><font size="2" color="#000000" face="Times New Roman, Times, serif">)</font></td>
<td align=right width="20"><font size="2" color="#000000" face="Times New Roman, Times, serif"></font></td>
<td align=right width="3"><font size="2" color="#000000" face="Times New Roman, Times, serif"></font></td>
<td align=right width="90"><font size="2" color="#000000" face="Times New Roman, Times, serif">(4,676</font></td>
<td align=left width="2"><font size="2" color="#000000" face="Times New Roman, Times, serif">)</font></td>
<td align=right width="15"><font size="2" color="#000000" face="Times New Roman, Times, serif"></font></td> </tr>
<tr valign="bottom">
<td bgcolor="#CCEEFF"><font size="2" color="#000000" face="Times New Roman, Times, serif">Long-term debt</font></td>
<td align=right width="3" bgcolor="#CCEEFF"><font size="2" color="#000000" face="Times New Roman, Times, serif"></font></td>
<td align=right width="90" bgcolor="#CCEEFF"><font size="2" color="#000000" face="Times New Roman, Times, serif">221</font></td>
<td align=left width="2" bgcolor="#CCEEFF"><font size="2" color="#000000" face="Times New Roman, Times, serif"></font></td>
<td align=right width="20" bgcolor="#CCEEFF"><font size="2" color="#000000" face="Times New Roman, Times, serif"></font></td>
<td align=right width="3" bgcolor="#CCEEFF"><font size="2" color="#000000" face="Times New Roman, Times, serif"></font></td>
<td align=right width="90" bgcolor="#CCEEFF"><font size="2" color="#000000" face="Times New Roman, Times, serif">(252</font></td>
<td align=left width="2" bgcolor="#CCEEFF"><font size="2" color="#000000" face="Times New Roman, Times, serif">)</font></td>
<td align=right width="20" bgcolor="#CCEEFF"><font size="2" color="#000000" face="Times New Roman, Times, serif"></font></td>
<td align=right width="3" bgcolor="#CCEEFF"><font size="2" color="#000000" face="Times New Roman, Times, serif"></font></td>
<td align=right width="90" bgcolor="#CCEEFF"><font size="2" color="#000000" face="Times New Roman, Times, serif">(31</font></td>
<td align=left width="2" bgcolor="#CCEEFF"><font size="2" color="#000000" face="Times New Roman, Times, serif">)</font></td>
<td align=right width="15" bgcolor="#CCEEFF"><font size="2" color="#000000" face="Times New Roman, Times, serif"></font></td> </tr>
<tr valign="bottom">
<td><font size="2" color="#000000" face="Times New Roman, Times, serif">Trust preferred securities</font></td>
<td align=right width="3"><font size="2" color="#000000" face="Times New Roman, Times, serif"></font></td>
<td align=right width="90"><font size="2" color="#000000" face="Times New Roman, Times, serif">&#151;</font></td>
<td align=left width="2"><font size="2" color="#000000" face="Times New Roman, Times, serif"></font></td>
<td align=right width="20"><font size="2" color="#000000" face="Times New Roman, Times, serif"></font></td>
<td align=right width="3"><font size="2" color="#000000" face="Times New Roman, Times, serif"></font></td>
<td align=right width="90"><font size="2" color="#000000" face="Times New Roman, Times, serif">291</font></td>
<td align=left width="2"><font size="2" color="#000000" face="Times New Roman, Times, serif"></font></td>
<td align=right width="20"><font size="2" color="#000000" face="Times New Roman, Times, serif"></font></td>
<td align=right width="3"><font size="2" color="#000000" face="Times New Roman, Times, serif"></font></td>
<td align=right width="90"><font size="2" color="#000000" face="Times New Roman, Times, serif">291</font></td>
<td align=left width="2"><font size="2" color="#000000" face="Times New Roman, Times, serif"></font></td>
<td align=right width="15"><font size="2" color="#000000" face="Times New Roman, Times, serif"></font></td> </tr>
<tr valign="bottom" align="center">
<td><font size="1" face="Times New Roman, Times, serif"></font></td>
<td colspan="2"> <hr size="2" color="#000000"> </td>
<td width="2"><font size="1" color="#000000" face="Times New Roman, Times, serif"></font></td>
<td width="20"><font size="1" color="#000000" face="Times New Roman, Times, serif"></font></td>
<td colspan="2"> <hr size="2" color="#000000"> </td>
<td width="2"><font size="1" color="#000000" face="Times New Roman, Times, serif"></font></td>
<td width="20"><font size="1" color="#000000" face="Times New Roman, Times, serif"></font></td>
<td colspan="2"> <hr size="2" color="#000000"> </td>
<td width="2"><font size="1" color="#000000" face="Times New Roman, Times, serif"></font></td>
<td width="15"><font size="1" color="#000000" face="Times New Roman, Times, serif"></font></td> </tr>
<tr valign="bottom">
<td bgcolor="#CCEEFF"><font size="2" color="#000000" face="Times New Roman, Times, serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total interest-bearing liabilities</font></td>
<td align=right width="3" bgcolor="#CCEEFF"><font size="2" color="#000000" face="Times New Roman, Times, serif">$</font></td>
<td align=right width="90" bgcolor="#CCEEFF"><font size="2" color="#000000" face="Times New Roman, Times, serif"> (9,340</font></td>
<td align=left width="2" bgcolor="#CCEEFF"><font size="2" color="#000000" face="Times New Roman, Times, serif">)</font></td>
<td align=right width="20" bgcolor="#CCEEFF"><font size="2" color="#000000" face="Times New Roman, Times, serif"></font></td>
<td align=right width="3" bgcolor="#CCEEFF"><font size="2" color="#000000" face="Times New Roman, Times, serif">$</font></td>
<td align=right width="90" bgcolor="#CCEEFF"><font size="2" color="#000000" face="Times New Roman, Times, serif"> (17,734</font></td>
<td align=left width="2" bgcolor="#CCEEFF"><font size="2" color="#000000" face="Times New Roman, Times, serif">)</font></td>
<td align=right width="20" bgcolor="#CCEEFF"><font size="2" color="#000000" face="Times New Roman, Times, serif"></font></td>
<td align=right width="3" bgcolor="#CCEEFF"><font size="2" color="#000000" face="Times New Roman, Times, serif">$</font></td>
<td align=right width="90" bgcolor="#CCEEFF"><font size="2" color="#000000" face="Times New Roman, Times, serif"> (27,074</font></td>
<td align=left width="2" bgcolor="#CCEEFF"><font size="2" color="#000000" face="Times New Roman, Times, serif">)</font></td>
<td align=right width="15" bgcolor="#CCEEFF"><font size="2" color="#000000" face="Times New Roman, Times, serif"></font></td> </tr>
<tr valign="bottom" align="center">
<td><font size="1" face="Times New Roman, Times, serif"></font></td>
<td colspan="2"> <hr size="4" color="#000000"> </td>
<td width="2"><font size="1" color="#000000" face="Times New Roman, Times, serif"></font></td>
<td width="20"><font size="1" color="#000000" face="Times New Roman, Times, serif"></font></td>
<td colspan="2"> <hr size="4" color="#000000"> </td>
<td width="2"><font size="1" color="#000000" face="Times New Roman, Times, serif"></font></td>
<td width="20"><font size="1" color="#000000" face="Times New Roman, Times, serif"></font></td>
<td colspan="2"> <hr size="4" color="#000000"> </td>
<td width="2"><font size="1" color="#000000" face="Times New Roman, Times, serif"></font></td>
<td width="15"><font size="1" color="#000000" face="Times New Roman, Times, serif"></font></td> </tr>
<tr valign="bottom">
<td bgcolor="#CCEEFF"><font size="2" color="#000000" face="Times New Roman, Times, serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>Net Interest Income</b></font></td>
<td align=right width="3" bgcolor="#CCEEFF"><font size="2" color="#000000" face="Times New Roman, Times, serif">$</font></td>
<td align=right width="90" bgcolor="#CCEEFF"><font size="2" color="#000000" face="Times New Roman, Times, serif"> (8,298</font></td>
<td align=left width="2" bgcolor="#CCEEFF"><font size="2" color="#000000" face="Times New Roman, Times, serif">)</font></td>
<td align=right width="20" bgcolor="#CCEEFF"><font size="2" color="#000000" face="Times New Roman, Times, serif"></font></td>
<td align=right width="3" bgcolor="#CCEEFF"><font size="2" color="#000000" face="Times New Roman, Times, serif">$</font></td>
<td align=right width="90" bgcolor="#CCEEFF"><font size="2" color="#000000" face="Times New Roman, Times, serif"> 8,434</font></td>
<td align=left width="2" bgcolor="#CCEEFF"><font size="2" color="#000000" face="Times New Roman, Times, serif"></font></td>
<td align=right width="20" bgcolor="#CCEEFF"><font size="2" color="#000000" face="Times New Roman, Times, serif"></font></td>
<td align=right width="3" bgcolor="#CCEEFF"><font size="2" color="#000000" face="Times New Roman, Times, serif">$</font></td>
<td align=right width="90" bgcolor="#CCEEFF"><font size="2" color="#000000" face="Times New Roman, Times, serif"> 136</font></td>
<td align=left width="2" bgcolor="#CCEEFF"><font size="2" color="#000000" face="Times New Roman, Times, serif"></font></td>
<td align=right width="15" bgcolor="#CCEEFF"><font size="2" color="#000000" face="Times New Roman, Times, serif"></font></td> </tr>
<tr valign="bottom" align="center">
<td><font size="1" face="Times New Roman, Times, serif"></font></td>
<td colspan="2"> <hr size="4" color="#000000"> </td>
<td width="2"><font size="1" color="#000000" face="Times New Roman, Times, serif"></font></td>
<td width="20"><font size="1" color="#000000" face="Times New Roman, Times, serif"></font></td>
<td colspan="2"> <hr size="4" color="#000000"> </td>
<td width="2"><font size="1" color="#000000" face="Times New Roman, Times, serif"></font></td>
<td width="20"><font size="1" color="#000000" face="Times New Roman, Times, serif"></font></td>
<td colspan="2"> <hr size="4" color="#000000"> </td>
<td width="2"><font size="1" color="#000000" face="Times New Roman, Times, serif"></font></td>
<td width="15"><font size="1" color="#000000" face="Times New Roman, Times, serif"></font></td> </tr> </table> <p><font size="2" color="#000000" face="Times New Roman, Times, serif">(1) Fully federal taxable equivalent using a tax rate of 35%.<br>
<br> The change in interest due to both rate and volume has been allocated to volume and rate changes in proportion to the relationship of the absolute dollar amounts of the change in each.</font></p> <p align="center"><font size="2">22</font></p>

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<h5 align="left"><a href="#toc">Table of Contents</a></h5>
 <p><font size="2"><b><font face="Times New Roman, Times, serif">AVERAGE BALANCE SHEETS AND NET INTEREST INCOME</font></b></font><font face="Times New Roman, Times, serif"><br> <i>(in thousands)</i></font></p>
<table border=0 width="100%" cellpadding=0 cellspacing=0>
<tr align=right valign="bottom">
<td align=right width="338">&nbsp;</td>
<td align=right width="1">&nbsp;</td>
<td align=right width="1">&nbsp;</td>
<td align=right width="6">&nbsp;</td>
<td align=center colspan="21"><font size="1"><b>Three months ended June 30,</b></font></td>
<td align=left width="11">&nbsp;</td> </tr>
<tr align=right valign="bottom">
<td align=right width="338"> <div align="left"></div> </td>
<td align=right width="1">&nbsp;</td>
<td align=right width="1">&nbsp;</td>
<td align=right width="6">&nbsp;</td>
<td align=center colspan="10"><b><font size="1">2002</font></b></td>
<td align=center width="13">&nbsp;</td>
<td align=center colspan="10"><b><font size="1">2001</font></b></td>
<td align=left width="11">&nbsp;</td> </tr>
<tr align=right valign="bottom">
<td align=right width="338">&nbsp; </td>
<td align=right width="1">&nbsp;</td>
<td align=right width="1">&nbsp;</td>
<td align=right width="6">&nbsp;</td>
<td align=center width="84"><b><font size="1">Average</font></b></td>
<td align=center width="9">&nbsp;</td>
<td align=center width="13">&nbsp;</td>
<td align=center width="6">&nbsp;</td>
<td align=center width="82">&nbsp;</td>
<td align=center width="1">&nbsp;</td>
<td align=center width="13">&nbsp;</td>
<td align=center width="1">&nbsp;</td>
<td align=center width="81"><b><font size="1">Yield/</font></b></td>
<td align=center width="11">&nbsp;</td>
<td align=center width="13">&nbsp;</td>
<td align=center width="6">&nbsp;</td>
<td align=center width="84"><b><font size="1">Average</font></b></td>
<td align=center width="4">&nbsp;</td>
<td align=center width="13">&nbsp;</td>
<td align=center width="6">&nbsp;</td>
<td align=center width="82">&nbsp;</td>
<td align=center width="1">&nbsp;</td>
<td align=center width="13">&nbsp;</td>
<td align=center width="5">&nbsp;</td>
<td align=center width="78"><b><font size="1">Yield/</font></b></td>
<td align=left width="11">&nbsp;</td> </tr>
<tr align=right valign="bottom">
<td align=right width="338"> <div align="left"></div> </td>
<td align=right width="1">&nbsp;</td>
<td align=right width="1">&nbsp;</td>
<td align=right width="6">&nbsp;</td>
<td align=center width="84"><b><font size="1">Balance</font></b> <hr color="#000000" size="2" width="100%"> </td>
<td align=center width="9">&nbsp;</td>
<td align=center width="13">&nbsp;</td>
<td align=center width="6">&nbsp;</td>
<td align=center width="82"><b><font size="1">Interest</font></b> <hr color="#000000" size="2" width="100%"> </td>
<td align=center width="1">&nbsp;</td>
<td align=center width="13">&nbsp;</td>
<td align=center width="1">&nbsp;</td>
<td align=center width="81"><b><font size="1">Rate</font></b> <hr color="#000000" size="2" width="100%"> </td>
<td align=center width="11">&nbsp;</td>
<td align=center width="13">&nbsp;</td>
<td align=center width="6">&nbsp;</td>
<td align=center width="84"><b><font size="1">Balance</font></b> <hr color="#000000" size="2" width="100%"> </td>
<td align=center width="4">&nbsp;</td>
<td align=center width="13">&nbsp;</td>
<td align=center width="6">&nbsp;</td>
<td align=center width="82"><b><font size="1">Interest</font></b> <hr color="#000000" size="2" width="100%"> </td>
<td align=center width="1">&nbsp;</td>
<td align=center width="13">&nbsp;</td>
<td align=center width="5">&nbsp;</td>
<td align=center width="78"><b><font size="1">Rate</font></b> <hr color="#000000" size="2" width="100%"> </td>
<td align=left width="11">&nbsp;</td> </tr>
<tr align=right valign="bottom">
<td align=right width="338"> <div align="left"><font size="2"><b>Assets</b></font></div> </td>
<td align=right width="1">&nbsp;</td>
<td align=right width="1">&nbsp;</td>
<td align=right width="6">&nbsp;</td>
<td align=right width="84">&nbsp;</td>
<td align=right width="9">&nbsp;</td>
<td align=right width="13">&nbsp;</td>
<td align=right width="6">&nbsp;</td>
<td align=right width="82">&nbsp;</td>
<td align=right width="1">&nbsp;</td>
<td align=right width="13">&nbsp;</td>
<td align=right width="1">&nbsp;</td>
<td align=right width="81">&nbsp;</td>
<td align=right width="11">&nbsp;</td>
<td align=right width="13">&nbsp;</td>
<td align=right width="6">&nbsp;</td>
<td align=right width="84">&nbsp;</td>
<td align=right width="4">&nbsp;</td>
<td align=right width="13">&nbsp;</td>
<td align=right width="6">&nbsp;</td>
<td align=right width="82">&nbsp;</td>
<td align=right width="1">&nbsp;</td>
<td align=right width="13">&nbsp;</td>
<td align=right width="5">&nbsp;</td>
<td align=right width="78">&nbsp;</td>
<td align=left width="11">&nbsp;</td> </tr>
<tr align=right valign="bottom">
<td align=right width="338" bgcolor="#CCEEFF"> <div align="left"><font size="2">Loan portfolio (1)</font></div> </td>
<td align=right width="1" bgcolor="#CCEEFF">&nbsp;</td>
<td align=right width="1" bgcolor="#CCEEFF">&nbsp;</td>
<td align=right width="6" bgcolor="#CCEEFF"><font size="2">$</font></td>
<td align=right width="84" bgcolor="#CCEEFF"><font size="2">1,253,098</font></td>
<td align=right width="9" bgcolor="#CCEEFF">&nbsp;</td>
<td align=right width="13" bgcolor="#CCEEFF">&nbsp;</td>
<td align=right width="6" bgcolor="#CCEEFF"><font size="2">$</font></td>
<td align=right width="82" bgcolor="#CCEEFF"><font size="2">23,809</font></td>
<td align=right width="1" bgcolor="#CCEEFF">&nbsp;</td>
<td align=right width="13" bgcolor="#CCEEFF">&nbsp;</td>
<td align=right width="1" bgcolor="#CCEEFF">&nbsp;</td>
<td align=right width="81" bgcolor="#CCEEFF"><font size="2">7.60</font></td>
<td align=right width="11" bgcolor="#CCEEFF"><font size="2">%</font></td>
<td align=right width="13" bgcolor="#CCEEFF">&nbsp;</td>
<td align=right width="6" bgcolor="#CCEEFF"><font size="2">$</font></td>
<td align=right width="84" bgcolor="#CCEEFF"><font size="2">1,841,321</font></td>
<td align=right width="4" bgcolor="#CCEEFF">&nbsp;</td>
<td align=right width="13" bgcolor="#CCEEFF">&nbsp;</td>
<td align=right width="6" bgcolor="#CCEEFF"><font size="2">$</font></td>
<td align=right width="82" bgcolor="#CCEEFF"><font size="2">38,614</font></td>
<td align=right width="1" bgcolor="#CCEEFF">&nbsp;</td>
<td align=right width="13" bgcolor="#CCEEFF">&nbsp;</td>
<td align=right width="5" bgcolor="#CCEEFF">&nbsp;</td>
<td align=right width="78" bgcolor="#CCEEFF"><font size="2">8.39</font></td>
<td align=left width="11" bgcolor="#CCEEFF"><font size="2">%</font></td> </tr>
<tr align=right valign="bottom">
<td align=right width="338"> <div align="left"><font size="2">Loans held for sale</font></div> </td>
<td align=right width="1">&nbsp;</td>
<td align=right width="1">&nbsp;</td>
<td align=right width="6">&nbsp;</td>
<td align=right width="84">&nbsp;&#151;</td>
<td align=right width="9">&nbsp;</td>
<td align=right width="13">&nbsp;</td>
<td align=right width="6">&nbsp;</td>
<td align=right width="82">&#151;</td>
<td align=right width="1">&nbsp;</td>
<td align=right width="13">&nbsp;</td>
<td align=right width="1">&nbsp;</td>
<td align=right width="81">&#151;</td>
<td align=right width="11">&nbsp;</td>
<td align=right width="13">&nbsp;</td>
<td align=right width="6">&nbsp;</td>
<td align=right width="84"><font size="2">23,689</font></td>
<td align=right width="4">&nbsp;</td>
<td align=right width="13">&nbsp;</td>
<td align=right width="6">&nbsp;</td>
<td align=right width="82"><font size="2">505</font></td>
<td align=right width="1">&nbsp;</td>
<td align=right width="13">&nbsp;</td>
<td align=right width="5">&nbsp;</td>
<td align=right width="78"><font size="2">8.53</font></td>
<td align=left width="11">&nbsp;</td> </tr>
<tr align=right valign="bottom">
<td align=right width="338"> <div align="left"><font size="2">Securities:</font></div> </td>
<td align=right width="1">&nbsp;</td>
<td align=right width="1">&nbsp;</td>
<td align=right width="6">&nbsp;</td>
<td align=right width="84">&nbsp;</td>
<td align=right width="9">&nbsp;</td>
<td align=right width="13">&nbsp;</td>
<td align=right width="6">&nbsp;</td>
<td align=right width="82">&nbsp;</td>
<td align=right width="1">&nbsp;</td>
<td align=right width="13">&nbsp;</td>
<td align=right width="1">&nbsp;</td>
<td align=right width="81">&nbsp;</td>
<td align=right width="11">&nbsp;</td>
<td align=right width="13">&nbsp;</td>
<td align=right width="6">&nbsp;</td>
<td align=right width="84">&nbsp;</td>
<td align=right width="4">&nbsp;</td>
<td align=right width="13">&nbsp;</td>
<td align=right width="6">&nbsp;</td>
<td align=right width="82">&nbsp;</td>
<td align=right width="1">&nbsp;</td>
<td align=right width="13">&nbsp;</td>
<td align=right width="5">&nbsp;</td>
<td align=right width="78">&nbsp;</td>
<td align=left width="11">&nbsp;</td> </tr>
<tr align=right valign="bottom">
<td align=right width="338" bgcolor="#CCEEFF"> <div align="left"><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;Taxable</font></div> </td>
<td align=right width="1" bgcolor="#CCEEFF">&nbsp;</td>
<td align=right width="1" bgcolor="#CCEEFF">&nbsp;</td>
<td align=right width="6" bgcolor="#CCEEFF">&nbsp;</td>
<td align=right width="84" bgcolor="#CCEEFF"><font size="2">477,358</font></td>
<td align=right width="9" bgcolor="#CCEEFF">&nbsp;</td>
<td align=right width="13" bgcolor="#CCEEFF">&nbsp;</td>
<td align=right width="6" bgcolor="#CCEEFF">&nbsp;</td>
<td align=right width="82" bgcolor="#CCEEFF"><font size="2">5,102</font></td>
<td align=right width="1" bgcolor="#CCEEFF">&nbsp;</td>
<td align=right width="13" bgcolor="#CCEEFF">&nbsp;</td>
<td align=right width="1" bgcolor="#CCEEFF">&nbsp;</td>
<td align=right width="81" bgcolor="#CCEEFF"><font size="2">4.28</font></td>
<td align=right width="11" bgcolor="#CCEEFF">&nbsp;</td>
<td align=right width="13" bgcolor="#CCEEFF">&nbsp;</td>
<td align=right width="6" bgcolor="#CCEEFF">&nbsp;</td>
<td align=right width="84" bgcolor="#CCEEFF"><font size="2">267,419</font></td>
<td align=right width="4" bgcolor="#CCEEFF">&nbsp;</td>
<td align=right width="13" bgcolor="#CCEEFF">&nbsp;</td>
<td align=right width="6" bgcolor="#CCEEFF">&nbsp;</td>
<td align=right width="82" bgcolor="#CCEEFF"><font size="2">3,605</font></td>
<td align=right width="1" bgcolor="#CCEEFF">&nbsp;</td>
<td align=right width="13" bgcolor="#CCEEFF">&nbsp;</td>
<td align=right width="5" bgcolor="#CCEEFF">&nbsp;</td>
<td align=right width="78" bgcolor="#CCEEFF"><font size="2">5.39</font></td>
<td align=left width="11" bgcolor="#CCEEFF">&nbsp;</td> </tr>
<tr align=right valign="bottom">
<td align=right width="338"> <div align="left"><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;Tax-exempt (2)</font></div> </td>
<td align=right width="1">&nbsp;</td>
<td align=right width="1">&nbsp;</td>
<td align=right width="6">&nbsp;</td>
<td align=right width="84"><font size="2">54,617</font></td>
<td align=right width="9">&nbsp;</td>
<td align=right width="13">&nbsp;</td>
<td align=right width="6">&nbsp;</td>
<td align=right width="82"><font size="2">1,052</font></td>
<td align=right width="1">&nbsp;</td>
<td align=right width="13">&nbsp;</td>
<td align=right width="1">&nbsp;</td>
<td align=right width="81"><font size="2">7.70</font></td>
<td align=right width="11">&nbsp;</td>
<td align=right width="13">&nbsp;</td>
<td align=right width="6">&nbsp;</td>
<td align=right width="84"><font size="2">67,883</font></td>
<td align=right width="4">&nbsp;</td>
<td align=right width="13">&nbsp;</td>
<td align=right width="6">&nbsp;</td>
<td align=right width="82"><font size="2">1,315</font></td>
<td align=right width="1">&nbsp;</td>
<td align=right width="13">&nbsp;</td>
<td align=right width="5">&nbsp;</td>
<td align=right width="78"><font size="2">7.75</font></td>
<td align=left width="11">&nbsp;</td> </tr>
<tr align=right valign="bottom">
<td align=right width="338">&nbsp;</td>
<td align=right width="1">&nbsp;</td>
<td align=right width="1">&nbsp;</td>
<td align=right colspan="3"> <hr size=2 color="#000000"> </td>
<td align=right width="13">&nbsp;</td>
<td align=right colspan="2"> <hr size=2 color="#000000"> </td>
<td align=right width="1">&nbsp;</td>
<td align=right width="13">&nbsp;</td>
<td align=right colspan="3"> <hr size=2 color="#000000"> </td>
<td align=right width="13">&nbsp;</td>
<td align=right colspan="3"> <hr size=2 color="#000000"> </td>
<td align=right width="13">&nbsp;</td>
<td align=right colspan="2"> <hr size=2 color="#000000"> </td>
<td align=right width="1">&nbsp;</td>
<td align=right width="13">&nbsp;</td>
<td align=right colspan="3"> <hr size=2 color="#000000"> </td> </tr>
<tr align=right valign="bottom">
<td align=right width="338" bgcolor="#CCEEFF"> <div align="left"><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total securities</font></div> </td>
<td align=right width="1" bgcolor="#CCEEFF">&nbsp;</td>
<td align=right width="1" bgcolor="#CCEEFF">&nbsp;</td>
<td align=right width="6" bgcolor="#CCEEFF">&nbsp;</td>
<td align=right width="84" bgcolor="#CCEEFF"><font size="2">531,975</font></td>
<td align=right width="9" bgcolor="#CCEEFF">&nbsp;</td>
<td align=right width="13" bgcolor="#CCEEFF">&nbsp;</td>
<td align=right width="6" bgcolor="#CCEEFF">&nbsp;</td>
<td align=right width="82" bgcolor="#CCEEFF"><font size="2">6,154</font></td>
<td align=right width="1" bgcolor="#CCEEFF">&nbsp;</td>
<td align=right width="13" bgcolor="#CCEEFF">&nbsp;</td>
<td align=right width="1" bgcolor="#CCEEFF">&nbsp;</td>
<td align=right width="81" bgcolor="#CCEEFF"><font size="2">4.63</font></td>
<td align=right width="11" bgcolor="#CCEEFF">&nbsp;</td>
<td align=right width="13" bgcolor="#CCEEFF">&nbsp;</td>
<td align=right width="6" bgcolor="#CCEEFF">&nbsp;</td>
<td align=right width="84" bgcolor="#CCEEFF"><font size="2">335,302</font></td>
<td align=right width="4" bgcolor="#CCEEFF">&nbsp;</td>
<td align=right width="13" bgcolor="#CCEEFF">&nbsp;</td>
<td align=right width="6" bgcolor="#CCEEFF">&nbsp;</td>
<td align=right width="82" bgcolor="#CCEEFF"><font size="2">4,920</font></td>
<td align=right width="1" bgcolor="#CCEEFF">&nbsp;</td>
<td align=right width="13" bgcolor="#CCEEFF">&nbsp;</td>
<td align=right width="5" bgcolor="#CCEEFF">&nbsp;</td>
<td align=right width="78" bgcolor="#CCEEFF"><font size="2">5.87</font></td>
<td align=left width="11" bgcolor="#CCEEFF">&nbsp;</td> </tr>
<tr align=right valign="bottom">
<td align=right width="338"> <div align="left"><font size="2">Retained interest in securitized loans</font></div> </td>
<td align=right width="1">&nbsp;</td>
<td align=right width="1">&nbsp;</td>
<td align=right width="6">&nbsp;</td>
<td align=right width="84"><font size="2">75,140</font></td>
<td align=right width="9">&nbsp;</td>
<td align=right width="13">&nbsp;</td>
<td align=right width="6">&nbsp;</td>
<td align=right width="82"><font size="2">2,991</font></td>
<td align=right width="1">&nbsp;</td>
<td align=right width="13">&nbsp;</td>
<td align=right width="1">&nbsp;</td>
<td align=right width="81"><font size="2">15.92</font></td>
<td align=right width="11">&nbsp;</td>
<td align=right width="13">&nbsp;</td>
<td align=right width="6">&nbsp;</td>
<td align=right width="84"><font size="2">64,745</font></td>
<td align=right width="4">&nbsp;</td>
<td align=right width="13">&nbsp;</td>
<td align=right width="6">&nbsp;</td>
<td align=right width="82"><font size="2">2,251</font></td>
<td align=right width="1">&nbsp;</td>
<td align=right width="13">&nbsp;</td>
<td align=right width="5">&nbsp;</td>
<td align=right width="78"><font size="2">13.91</font></td>
<td align=left width="11">&nbsp;</td> </tr>
<tr align=right valign="bottom">
<td align=right width="338" bgcolor="#CCEEFF"> <div align="left"><font size="2">Federal funds sold</font></div> </td>
<td align=right width="1" bgcolor="#CCEEFF">&nbsp;</td>
<td align=right width="1" bgcolor="#CCEEFF">&nbsp;</td>
<td align=right width="6" bgcolor="#CCEEFF">&nbsp;</td>
<td align=right width="84" bgcolor="#CCEEFF"><font size="2">44,493</font></td>
<td align=right width="9" bgcolor="#CCEEFF">&nbsp;</td>
<td align=right width="13" bgcolor="#CCEEFF">&nbsp;</td>
<td align=right width="6" bgcolor="#CCEEFF">&nbsp;</td>
<td align=right width="82" bgcolor="#CCEEFF"><font size="2">181</font></td>
<td align=right width="1" bgcolor="#CCEEFF">&nbsp;</td>
<td align=right width="13" bgcolor="#CCEEFF">&nbsp;</td>
<td align=right width="1" bgcolor="#CCEEFF">&nbsp;</td>
<td align=right width="81" bgcolor="#CCEEFF"><font size="2">1.63</font></td>
<td align=right width="11" bgcolor="#CCEEFF">&nbsp;</td>
<td align=right width="13" bgcolor="#CCEEFF">&nbsp;</td>
<td align=right width="6" bgcolor="#CCEEFF">&nbsp;</td>
<td align=right width="84" bgcolor="#CCEEFF"><font size="2">10,593</font></td>
<td align=right width="4" bgcolor="#CCEEFF">&nbsp;</td>
<td align=right width="13" bgcolor="#CCEEFF">&nbsp;</td>
<td align=right width="6" bgcolor="#CCEEFF">&nbsp;</td>
<td align=right width="82" bgcolor="#CCEEFF"><font size="2">123</font></td>
<td align=right width="1" bgcolor="#CCEEFF">&nbsp;</td>
<td align=right width="13" bgcolor="#CCEEFF">&nbsp;</td>
<td align=right width="5" bgcolor="#CCEEFF">&nbsp;</td>
<td align=right width="78" bgcolor="#CCEEFF"><font size="2">4.64</font></td>
<td align=left width="11" bgcolor="#CCEEFF">&nbsp;</td> </tr>
<tr align=right valign="bottom">
<td align=right width="338">&nbsp;</td>
<td align=right width="1">&nbsp;</td>
<td align=right width="1">&nbsp;</td>
<td align=right colspan="2"> <hr size=2 color="#000000"> </td>
<td align=right width="9">&nbsp;</td>
<td align=right width="13">&nbsp;</td>
<td align=right colspan="2"> <hr size=2 color="#000000"> </td>
<td align=right width="1">&nbsp;</td>
<td align=right width="13">&nbsp;</td>
<td align=right colspan="3"> <hr size=2 color="#000000"> </td>
<td align=right width="13">&nbsp;</td>
<td align=right colspan="3"> <hr size=2 color="#000000"> </td>
<td align=right width="13">&nbsp;</td>
<td align=right colspan="2"> <hr size=2 color="#000000"> </td>
<td align=right width="1">&nbsp;</td>
<td align=right width="13">&nbsp;</td>
<td align=right colspan="3"> <hr size=2 color="#000000"> </td> </tr>
<tr align=right valign="bottom">
<td align=right width="338"> <div align="left"><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total earning assets</font></div> </td>
<td align=right width="1">&nbsp;</td>
<td align=right width="1">&nbsp;</td>
<td align=right width="6">&nbsp;</td>
<td align=right width="84"><font size="2">1,904,706</font></td>
<td align=right width="9">&nbsp;</td>
<td align=right width="13">&nbsp;</td>
<td align=right width="6"><font size="2">$</font></td>
<td align=right width="82"><font size="2">33,135</font></td>
<td align=right width="1">&nbsp;</td>
<td align=right width="13">&nbsp;</td>
<td align=right width="1">&nbsp;</td>
<td align=right width="81"><font size="2">8.16</font></td>
<td align=right width="11"><font size="2">%</font></td>
<td align=right width="13">&nbsp;</td>
<td align=right width="6"><font size="2">$</font></td>
<td align=right width="84"><font size="2">2,275,650</font></td>
<td align=right width="4">&nbsp;</td>
<td align=right width="13">&nbsp;</td>
<td align=right width="6"><font size="2">$</font></td>
<td align=right width="82"><font size="2">46,413</font></td>
<td align=right width="1">&nbsp;</td>
<td align=right width="13">&nbsp;</td>
<td align=right width="5">&nbsp;</td>
<td align=right width="78"><font size="2">8.16</font></td>
<td align=left width="11"><font size="2">%</font></td> </tr>
<tr align=right valign="bottom">
<td align=right width="338" bgcolor="#CCEEFF"> <div align="left"><font size="2">Cash and due from banks</font></div> </td>
<td align=right width="1" bgcolor="#CCEEFF">&nbsp;</td>
<td align=right width="1" bgcolor="#CCEEFF">&nbsp;</td>
<td align=right width="6" bgcolor="#CCEEFF">&nbsp;</td>
<td align=right width="84" bgcolor="#CCEEFF"><font size="2">66,605</font></td>
<td align=right width="9" bgcolor="#CCEEFF">&nbsp;</td>
<td align=right width="13" bgcolor="#CCEEFF">&nbsp;</td>
<td align=right width="6" bgcolor="#CCEEFF">&nbsp;</td>
<td align=right width="82" bgcolor="#CCEEFF">&nbsp;</td>
<td align=right width="1" bgcolor="#CCEEFF">&nbsp;</td>
<td align=right width="13" bgcolor="#CCEEFF">&nbsp;</td>
<td align=right width="1" bgcolor="#CCEEFF">&nbsp;</td>
<td align=right width="81" bgcolor="#CCEEFF">&nbsp;</td>
<td align=right width="11" bgcolor="#CCEEFF">&nbsp;</td>
<td align=right width="13" bgcolor="#CCEEFF">&nbsp;</td>
<td align=right width="6" bgcolor="#CCEEFF">&nbsp;</td>
<td align=right width="84" bgcolor="#CCEEFF"><font size="2">61,357</font></td>
<td align=right width="4" bgcolor="#CCEEFF">&nbsp;</td>
<td align=right width="13" bgcolor="#CCEEFF">&nbsp;</td>
<td align=right width="6" bgcolor="#CCEEFF">&nbsp;</td>
<td align=right width="82" bgcolor="#CCEEFF">&nbsp;</td>
<td align=right width="1" bgcolor="#CCEEFF">&nbsp;</td>
<td align=right width="13" bgcolor="#CCEEFF">&nbsp;</td>
<td align=right width="5" bgcolor="#CCEEFF">&nbsp;</td>
<td align=right width="78" bgcolor="#CCEEFF">&nbsp;</td>
<td align=left width="11" bgcolor="#CCEEFF">&nbsp;</td> </tr>
<tr align=right valign="bottom">
<td align=right width="338"> <div align="left"><font size="2">Bank premises and equipment</font></div> </td>
<td align=right width="1">&nbsp;</td>
<td align=right width="1">&nbsp;</td>
<td align=right width="6">&nbsp;</td>
<td align=right width="84"><font size="2">41,067</font></td>
<td align=right width="9">&nbsp;</td>
<td align=right width="13">&nbsp;</td>
<td align=right width="6">&nbsp;</td>
<td align=right width="82">&nbsp;</td>
<td align=right width="1">&nbsp;</td>
<td align=right width="13">&nbsp;</td>
<td align=right width="1">&nbsp;</td>
<td align=right width="81">&nbsp;</td>
<td align=right width="11">&nbsp;</td>
<td align=right width="13">&nbsp;</td>
<td align=right width="6">&nbsp;</td>
<td align=right width="84"><font size="2">55,550</font></td>
<td align=right width="4">&nbsp;</td>
<td align=right width="13">&nbsp;</td>
<td align=right width="6">&nbsp;</td>
<td align=right width="82">&nbsp;</td>
<td align=right width="1">&nbsp;</td>
<td align=right width="13">&nbsp;</td>
<td align=right width="5">&nbsp;</td>
<td align=right width="78">&nbsp;</td>
<td align=left width="11">&nbsp;</td> </tr>
<tr align=right valign="bottom">
<td align=right width="338" bgcolor="#CCEEFF"> <div align="left"><font size="2">Other assets</font></div> </td>
<td align=right width="1" bgcolor="#CCEEFF">&nbsp;</td>
<td align=right width="1" bgcolor="#CCEEFF">&nbsp;</td>
<td align=right width="6" bgcolor="#CCEEFF">&nbsp;</td>
<td align=right width="84" bgcolor="#CCEEFF"><font size="2">100,155</font></td>
<td align=right width="9" bgcolor="#CCEEFF">&nbsp;</td>
<td align=right width="13" bgcolor="#CCEEFF">&nbsp;</td>
<td align=right width="6" bgcolor="#CCEEFF">&nbsp;</td>
<td align=right width="82" bgcolor="#CCEEFF">&nbsp;</td>
<td align=right width="1" bgcolor="#CCEEFF">&nbsp;</td>
<td align=right width="13" bgcolor="#CCEEFF">&nbsp;</td>
<td align=right width="1" bgcolor="#CCEEFF">&nbsp;</td>
<td align=right width="81" bgcolor="#CCEEFF">&nbsp;</td>
<td align=right width="11" bgcolor="#CCEEFF">&nbsp;</td>
<td align=right width="13" bgcolor="#CCEEFF">&nbsp;</td>
<td align=right width="6" bgcolor="#CCEEFF">&nbsp;</td>
<td align=right width="84" bgcolor="#CCEEFF"><font size="2">117,340</font></td>
<td align=right width="4" bgcolor="#CCEEFF">&nbsp;</td>
<td align=right width="13" bgcolor="#CCEEFF">&nbsp;</td>
<td align=right width="6" bgcolor="#CCEEFF">&nbsp;</td>
<td align=right width="82" bgcolor="#CCEEFF">&nbsp;</td>
<td align=right width="1" bgcolor="#CCEEFF">&nbsp;</td>
<td align=right width="13" bgcolor="#CCEEFF">&nbsp;</td>
<td align=right width="5" bgcolor="#CCEEFF">&nbsp;</td>
<td align=right width="78" bgcolor="#CCEEFF">&nbsp;</td>
<td align=left width="11" bgcolor="#CCEEFF">&nbsp;</td> </tr>
<tr align=right valign="bottom">
<td align=right width="338"> <div align="left"><font size="2">Less: allowance for possible loan<br> &nbsp;&nbsp; losses</font></div> </td>
<td align=right width="1">&nbsp;</td>
<td align=right width="1">&nbsp;</td>
<td align=right width="6">&nbsp;</td>
<td align=right width="84"><font size="2">(37,473</font></td>
<td align=left width="9"><font size="2">)</font></td>
<td align=right width="13">&nbsp;</td>
<td align=right width="6">&nbsp;</td>
<td align=right width="82">&nbsp;</td>
<td align=right width="1">&nbsp;</td>
<td align=right width="13">&nbsp;</td>
<td align=right width="1">&nbsp;</td>
<td align=right width="81">&nbsp;</td>
<td align=right width="11">&nbsp;</td>
<td align=right width="13">&nbsp;</td>
<td align=right width="6">&nbsp;</td>
<td align=right width="84"><font size="2">(39,641</font></td>
<td align=right width="4"><font size="2">)</font></td>
<td align=right width="13">&nbsp;</td>
<td align=right width="6">&nbsp;</td>
<td align=right width="82">&nbsp;</td>
<td align=right width="1">&nbsp;</td>
<td align=right width="13">&nbsp;</td>
<td align=right width="5">&nbsp;</td>
<td align=right width="78">&nbsp;</td>
<td align=left width="11">&nbsp;</td> </tr>
<tr align=right valign="bottom">
<td align=right width="338">&nbsp;</td>
<td align=right width="1">&nbsp;</td>
<td align=right width="1">&nbsp;</td>
<td align=right colspan="2"> <hr size="2" color="#000000"> </td>
<td align=right width="9">&nbsp;</td>
<td align=right width="13">&nbsp;</td>
<td align=right colspan="2"> <hr size="2" color="#000000"> </td>
<td align=right width="1">&nbsp;</td>
<td align=right width="13">&nbsp;</td>
<td align=right colspan="2"> <hr size="2" color="#000000"> </td>
<td align=right width="11">&nbsp;</td>
<td align=right width="13">&nbsp;</td>
<td align=right colspan="2"> <hr size="2" color="#000000"> </td>
<td align=right width="4">&nbsp;</td>
<td align=right width="13">&nbsp;</td>
<td align=right colspan="2"> <hr size="2" color="#000000"> </td>
<td align=right width="1">&nbsp;</td>
<td align=right width="13">&nbsp;</td>
<td align=right colspan="2"> <hr size="2" color="#000000"> </td>
<td align=left width="11">&nbsp;</td> </tr>
<tr align=right valign="bottom">
<td align=right width="338" bgcolor="#cceeff"> <div align="left"><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total assets</font></div> </td>
<td align=right width="1" bgcolor="#cceeff">&nbsp;</td>
<td align=right width="1" bgcolor="#cceeff">&nbsp;</td>
<td align=right width="6" bgcolor="#cceeff"><font size="2">$</font></td>
<td align=right width="84" bgcolor="#cceeff"><font size="2">2,075,060</font></td>
<td align=right width="9" bgcolor="#cceeff">&nbsp;</td>
<td align=right width="13" bgcolor="#cceeff">&nbsp;</td>
<td align=right width="6" bgcolor="#cceeff">&nbsp;</td>
<td align=right width="82" bgcolor="#cceeff">&nbsp;</td>
<td align=right width="1" bgcolor="#cceeff">&nbsp;</td>
<td align=right width="13" bgcolor="#cceeff">&nbsp;</td>
<td align=right width="1" bgcolor="#cceeff">&nbsp;</td>
<td align=right width="81" bgcolor="#cceeff">&nbsp;</td>
<td align=right width="11" bgcolor="#cceeff">&nbsp;</td>
<td align=right width="13" bgcolor="#cceeff">&nbsp;</td>
<td align=right width="6" bgcolor="#cceeff"><font size="2">$</font></td>
<td align=right width="84" bgcolor="#cceeff"><font size="2">2,470,256</font></td>
<td align=right width="4" bgcolor="#cceeff">&nbsp;</td>
<td align=right width="13" bgcolor="#cceeff">&nbsp;</td>
<td align=right width="6" bgcolor="#cceeff">&nbsp;</td>
<td align=right width="82" bgcolor="#cceeff">&nbsp;</td>
<td align=right width="1" bgcolor="#cceeff">&nbsp;</td>
<td align=right width="13" bgcolor="#cceeff">&nbsp;</td>
<td align=right width="5" bgcolor="#cceeff">&nbsp;</td>
<td align=right width="78" bgcolor="#cceeff">&nbsp;</td>
<td align=left width="11" bgcolor="#CCEEFF">&nbsp;</td> </tr>
<tr align=right valign="bottom">
<td align=right width="338"> <div align="left"></div> </td>
<td align=right width="1">&nbsp;</td>
<td align=right width="1">&nbsp;</td>
<td align=right colspan="2"> <hr size="4" color="#000000"> </td>
<td align=right width="9">&nbsp;</td>
<td align=right width="13">&nbsp;</td>
<td align=right colspan="2"> <hr size="4" color="#000000"> </td>
<td align=right width="1">&nbsp;</td>
<td align=right width="13">&nbsp;</td>
<td align=right colspan="2"> <hr size="4" color="#000000"> </td>
<td align=right width="11">&nbsp;</td>
<td align=right width="13">&nbsp;</td>
<td align=right colspan="2"> <hr size="4" color="#000000"> </td>
<td align=right width="4">&nbsp;</td>
<td align=right width="13">&nbsp;</td>
<td align=right colspan="2"> <hr size="4" color="#000000"> </td>
<td align=right width="1">&nbsp;</td>
<td align=right width="13">&nbsp;</td>
<td align=right colspan="2"> <hr size="4" color="#000000"> </td>
<td align=left width="11">&nbsp;</td> </tr>
<tr align=right valign="bottom">
<td align=right width="338"> <div align="left"><font size="2"><b>Liabilities</b></font></div> </td>
<td align=right width="1">&nbsp;</td>
<td align=right width="1">&nbsp;</td>
<td align=right width="6">&nbsp;</td>
<td align=right width="84">&nbsp;</td>
<td align=right width="9">&nbsp;</td>
<td align=right width="13">&nbsp;</td>
<td align=right width="6">&nbsp;</td>
<td align=right width="82">&nbsp;</td>
<td align=right width="1">&nbsp;</td>
<td align=right width="13">&nbsp;</td>
<td align=right width="1">&nbsp;</td>
<td align=right width="81">&nbsp;</td>
<td align=right width="11">&nbsp;</td>
<td align=right width="13">&nbsp;</td>
<td align=right width="6">&nbsp;</td>
<td align=right width="84">&nbsp;</td>
<td align=right width="4">&nbsp;</td>
<td align=right width="13">&nbsp;</td>
<td align=right width="6">&nbsp;</td>
<td align=right width="82">&nbsp;</td>
<td align=right width="1">&nbsp;</td>
<td align=right width="13">&nbsp;</td>
<td align=right width="5">&nbsp;</td>
<td align=right width="78">&nbsp;</td>
<td align=left width="11">&nbsp;</td> </tr>
<tr align=right valign="bottom">
<td align=right width="338" bgcolor="#cceeff"> <div align="left"><font size="2">Demand deposits</font></div> </td>
<td align=right width="1" bgcolor="#cceeff">&nbsp;</td>
<td align=right width="1" bgcolor="#cceeff">&nbsp;</td>
<td align=right width="6" bgcolor="#cceeff"><font size="2">$</font></td>
<td align=right width="84" bgcolor="#cceeff"><font size="2"> 373,691</font></td>
<td align=right width="9" bgcolor="#cceeff">&nbsp;</td>
<td align=right width="13" bgcolor="#cceeff">&nbsp;</td>
<td align=right width="6" bgcolor="#cceeff"><font size="2">$</font></td>
<td align=right width="82" bgcolor="#cceeff"><font size="2"> 544</font></td>
<td align=right width="1" bgcolor="#cceeff">&nbsp;</td>
<td align=right width="13" bgcolor="#cceeff">&nbsp;</td>
<td align=right width="1" bgcolor="#cceeff">&nbsp;</td>
<td align=right width="81" bgcolor="#cceeff"><font size="2">0.58</font></td>
<td align=right width="11" bgcolor="#cceeff"><font size="2">%</font></td>
<td align=right width="13" bgcolor="#cceeff">&nbsp;</td>
<td align=right width="6" bgcolor="#cceeff"><font size="2">$</font></td>
<td align=right width="84" bgcolor="#cceeff"><font size="2"> 432,690</font></td>
<td align=right width="4" bgcolor="#cceeff">&nbsp;</td>
<td align=right width="13" bgcolor="#cceeff">&nbsp;</td>
<td align=right width="6" bgcolor="#cceeff"><font size="2">$</font></td>
<td align=right width="82" bgcolor="#cceeff"><font size="2">2,960</font></td>
<td align=right width="1" bgcolor="#cceeff">&nbsp;</td>
<td align=right width="13" bgcolor="#cceeff">&nbsp;</td>
<td align=right width="5" bgcolor="#cceeff">&nbsp;</td>
<td align=right width="78" bgcolor="#cceeff"><font size="2">2.74</font></td>
<td align=left width="11" bgcolor="#CCEEFF"><font size="2">%</font></td> </tr>
<tr align=right valign="bottom">
<td align=right width="338"> <div align="left"><font size="2">Savings deposits</font></div> </td>
<td align=right width="1">&nbsp;</td>
<td align=right width="1">&nbsp;</td>
<td align=right width="6">&nbsp;</td>
<td align=right width="84"><font size="2">314,639</font></td>
<td align=right width="9">&nbsp;</td>
<td align=right width="13">&nbsp;</td>
<td align=right width="6">&nbsp;</td>
<td align=right width="82"><font size="2">882</font></td>
<td align=right width="1">&nbsp;</td>
<td align=right width="13">&nbsp;</td>
<td align=right width="1">&nbsp;</td>
<td align=right width="81"><font size="2">1.12</font></td>
<td align=right width="11">&nbsp;</td>
<td align=right width="13">&nbsp;</td>
<td align=right width="6">&nbsp;</td>
<td align=right width="84"><font size="2">294,916</font></td>
<td align=right width="4">&nbsp;</td>
<td align=right width="13">&nbsp;</td>
<td align=right width="6">&nbsp;</td>
<td align=right width="82"><font size="2">2,024</font></td>
<td align=right width="1">&nbsp;</td>
<td align=right width="13">&nbsp;</td>
<td align=right width="5">&nbsp;</td>
<td align=right width="78"><font size="2">2.75</font></td>
<td align=left width="11">&nbsp;</td> </tr>
<tr align=right valign="bottom">
<td align=right width="338" bgcolor="#cceeff"> <div align="left"><font size="2">Time deposits</font></div> </td>
<td align=right width="1" bgcolor="#cceeff">&nbsp;</td>
<td align=right width="1" bgcolor="#cceeff">&nbsp;</td>
<td align=right width="6" bgcolor="#cceeff">&nbsp;</td>
<td align=right width="84" bgcolor="#cceeff"><font size="2">682,688</font></td>
<td align=right width="9" bgcolor="#cceeff">&nbsp;</td>
<td align=right width="13" bgcolor="#cceeff">&nbsp;</td>
<td align=right width="6" bgcolor="#cceeff">&nbsp;</td>
<td align=right width="82" bgcolor="#cceeff"><font size="2">6,214</font></td>
<td align=right width="1" bgcolor="#cceeff">&nbsp;</td>
<td align=right width="13" bgcolor="#cceeff">&nbsp;</td>
<td align=right width="1" bgcolor="#cceeff">&nbsp;</td>
<td align=right width="81" bgcolor="#cceeff"><font size="2">3.64</font></td>
<td align=right width="11" bgcolor="#cceeff">&nbsp;</td>
<td align=right width="13" bgcolor="#cceeff">&nbsp;</td>
<td align=right width="6" bgcolor="#cceeff">&nbsp;</td>
<td align=right width="84" bgcolor="#cceeff"><font size="2">986,865</font></td>
<td align=right width="4" bgcolor="#cceeff">&nbsp;</td>
<td align=right width="13" bgcolor="#cceeff">&nbsp;</td>
<td align=right width="6" bgcolor="#cceeff">&nbsp;</td>
<td align=right width="82" bgcolor="#cceeff"><font size="2">13,584</font></td>
<td align=right width="1" bgcolor="#cceeff">&nbsp;</td>
<td align=right width="13" bgcolor="#cceeff">&nbsp;</td>
<td align=right width="5" bgcolor="#cceeff">&nbsp;</td>
<td align=right width="78" bgcolor="#cceeff"><font size="2">5.51</font></td>
<td align=left width="11" bgcolor="#CCEEFF">&nbsp;</td> </tr>
<tr align=right valign="bottom">
<td align=right width="338"> <div align="left"><font size="2">Short-term borrowings</font></div> </td>
<td align=right width="1">&nbsp;</td>
<td align=right width="1">&nbsp;</td>
<td align=right width="6">&nbsp;</td>
<td align=right width="84"><font size="2">114,343</font></td>
<td align=right width="9">&nbsp;</td>
<td align=right width="13">&nbsp;</td>
<td align=right width="6">&nbsp;</td>
<td align=right width="82"><font size="2">525</font></td>
<td align=right width="1">&nbsp;</td>
<td align=right width="13">&nbsp;</td>
<td align=right width="1">&nbsp;</td>
<td align=right width="81"><font size="2">1.84</font></td>
<td align=right width="11">&nbsp;</td>
<td align=right width="13">&nbsp;</td>
<td align=right width="6">&nbsp;</td>
<td align=right width="84"><font size="2">179,381</font></td>
<td align=right width="4">&nbsp;</td>
<td align=right width="13">&nbsp;</td>
<td align=right width="6">&nbsp;</td>
<td align=right width="82"><font size="2">2,408</font></td>
<td align=right width="1">&nbsp;</td>
<td align=right width="13">&nbsp;</td>
<td align=right width="5">&nbsp;</td>
<td align=right width="78"><font size="2">5.37</font></td>
<td align=left width="11">&nbsp;</td> </tr>
<tr align=right valign="bottom">
<td align=right width="338" bgcolor="#cceeff"> <div align="left"><font size="2">Long-term debt</font></div> </td>
<td align=right width="1" bgcolor="#cceeff">&nbsp;</td>
<td align=right width="1" bgcolor="#cceeff">&nbsp;</td>
<td align=right width="6" bgcolor="#cceeff">&nbsp;</td>
<td align=right width="84" bgcolor="#cceeff"><font size="2">37,475</font></td>
<td align=right width="9" bgcolor="#cceeff">&nbsp;</td>
<td align=right width="13" bgcolor="#cceeff">&nbsp;</td>
<td align=right width="6" bgcolor="#cceeff">&nbsp;</td>
<td align=right width="82" bgcolor="#cceeff"><font size="2">539</font></td>
<td align=right width="1" bgcolor="#cceeff">&nbsp;</td>
<td align=right width="13" bgcolor="#cceeff">&nbsp;</td>
<td align=right width="1" bgcolor="#cceeff">&nbsp;</td>
<td align=right width="81" bgcolor="#cceeff"><font size="2">5.75</font></td>
<td align=right width="11" bgcolor="#cceeff">&nbsp;</td>
<td align=right width="13" bgcolor="#cceeff">&nbsp;</td>
<td align=right width="6" bgcolor="#cceeff">&nbsp;</td>
<td align=right width="84" bgcolor="#cceeff"><font size="2">33,457</font></td>
<td align=right width="4" bgcolor="#cceeff">&nbsp;</td>
<td align=right width="13" bgcolor="#cceeff">&nbsp;</td>
<td align=right width="6" bgcolor="#cceeff">&nbsp;</td>
<td align=right width="82" bgcolor="#cceeff"><font size="2">402</font></td>
<td align=right width="1" bgcolor="#cceeff">&nbsp;</td>
<td align=right width="13" bgcolor="#cceeff">&nbsp;</td>
<td align=right width="5" bgcolor="#cceeff">&nbsp;</td>
<td align=right width="78" bgcolor="#cceeff"><font size="2">4.81</font></td>
<td align=left width="11" bgcolor="#CCEEFF">&nbsp;</td> </tr>
<tr align=right valign="bottom">
<td align=right width="338"> <div align="left"><font size="2">Trust preferred securities</font></div> </td>
<td align=right width="1">&nbsp;</td>
<td align=right width="1">&nbsp;</td>
<td align=right width="6">&nbsp;</td>
<td align=right width="84"><font size="2">87,500</font></td>
<td align=right width="9">&nbsp;</td>
<td align=right width="13">&nbsp;</td>
<td align=right width="6">&nbsp;</td>
<td align=right width="82"><font size="2">2,183</font></td>
<td align=right width="1">&nbsp;</td>
<td align=right width="13">&nbsp;</td>
<td align=right width="1">&nbsp;</td>
<td align=right width="81"><font size="2">9.98</font></td>
<td align=right width="11">&nbsp;</td>
<td align=right width="13">&nbsp;</td>
<td align=right width="6">&nbsp;</td>
<td align=right width="84"><font size="2">87,500</font></td>
<td align=right width="4">&nbsp;</td>
<td align=right width="13">&nbsp;</td>
<td align=right width="6">&nbsp;</td>
<td align=right width="82"><font size="2">2,005</font></td>
<td align=right width="1">&nbsp;</td>
<td align=right width="13">&nbsp;</td>
<td align=right width="5">&nbsp;</td>
<td align=right width="78"><font size="2">9.17</font></td>
<td align=left width="11">&nbsp;</td> </tr>
<tr align=right valign="bottom">
<td align=right width="338">&nbsp;</td>
<td align=right width="1">&nbsp;</td>
<td align=right colspan="3"> <hr size="2" color="#000000"> </td>
<td align=right width="9">&nbsp;</td>
<td align=right width="13">&nbsp;</td>
<td align=right colspan="2"> <hr size="2" color="#000000"> </td>
<td align=right width="1">&nbsp;</td>
<td align=right width="13">&nbsp;</td>
<td align=right colspan="2"> <hr size="2" color="#000000"> </td>
<td align=right width="11">&nbsp;</td>
<td align=right width="13">&nbsp;</td>
<td align=right colspan="2"> <hr size="2" color="#000000"> </td>
<td align=right width="4">&nbsp;</td>
<td align=right width="13">&nbsp;</td>
<td align=right colspan="2"> <hr size="2" color="#000000"> </td>
<td align=right width="1">&nbsp;</td>
<td align=right width="13">&nbsp;</td>
<td align=right colspan="2"> <hr size="2" color="#000000"> </td>
<td align=left width="11">&nbsp;</td> </tr>
<tr align=right valign="bottom">
<td align=right width="338" bgcolor="#cceeff"> <div align="left"><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total interest-bearing liabilities</font></div> </td>
<td align=right width="1" bgcolor="#cceeff">&nbsp;</td>
<td align=right width="1" bgcolor="#cceeff">&nbsp;</td>
<td align=right width="6" bgcolor="#cceeff">&nbsp;</td>
<td align=right width="84" bgcolor="#cceeff"><font size="2">1,610,336</font></td>
<td align=right width="9" bgcolor="#cceeff">&nbsp;</td>
<td align=right width="13" bgcolor="#cceeff">&nbsp;</td>
<td align=right width="6" bgcolor="#cceeff">&nbsp;</td>
<td align=right width="82" bgcolor="#cceeff"><font size="2">10,887</font></td>
<td align=right width="1" bgcolor="#cceeff">&nbsp;</td>
<td align=right width="13" bgcolor="#cceeff">&nbsp;</td>
<td align=right width="1" bgcolor="#cceeff">&nbsp;</td>
<td align=right width="81" bgcolor="#cceeff"><font size="2">2.70</font></td>
<td align=right width="11" bgcolor="#cceeff">&nbsp;</td>
<td align=right width="13" bgcolor="#cceeff">&nbsp;</td>
<td align=right width="6" bgcolor="#cceeff">&nbsp;</td>
<td align=right width="84" bgcolor="#cceeff"><font size="2">2,014,809</font></td>
<td align=right width="4" bgcolor="#cceeff">&nbsp;</td>
<td align=right width="13" bgcolor="#cceeff">&nbsp;</td>
<td align=right width="6" bgcolor="#cceeff">&nbsp;</td>
<td align=right width="82" bgcolor="#cceeff"><font size="2">23,383</font></td>
<td align=right width="1" bgcolor="#cceeff">&nbsp;</td>
<td align=right width="13" bgcolor="#cceeff">&nbsp;</td>
<td align=right width="5" bgcolor="#cceeff">&nbsp;</td>
<td align=right width="78" bgcolor="#cceeff"><font size="2">4.64</font></td>
<td align=left width="11" bgcolor="#CCEEFF">&nbsp;</td> </tr>
<tr align=right valign="bottom">
<td align=right width="338"> <div align="left"><font size="2">Demand deposits</font></div> </td>
<td align=right width="1">&nbsp;</td>
<td align=right width="1">&nbsp;</td>
<td align=right width="6">&nbsp;</td>
<td align=right width="84"><font size="2">275,919</font></td>
<td align=right width="9">&nbsp;</td>
<td align=right width="13">&nbsp;</td>
<td align=right width="6">&nbsp;</td>
<td align=right width="82">&nbsp;</td>
<td align=right width="1">&nbsp;</td>
<td align=right width="13">&nbsp;</td>
<td align=right width="1">&nbsp;</td>
<td align=right width="81">&nbsp;</td>
<td align=right width="11">&nbsp;</td>
<td align=right width="13">&nbsp;</td>
<td align=right width="6">&nbsp;</td>
<td align=right width="84"><font size="2">264,263</font></td>
<td align=right width="4">&nbsp;</td>
<td align=right width="13">&nbsp;</td>
<td align=right width="6">&nbsp;</td>
<td align=right width="82">&nbsp;</td>
<td align=right width="1">&nbsp;</td>
<td align=right width="13">&nbsp;</td>
<td align=right width="5">&nbsp;</td>
<td align=right width="78">&nbsp;</td>
<td align=left width="11">&nbsp;</td> </tr>
<tr align=right valign="bottom">
<td align=right width="338" bgcolor="#cceeff"> <div align="left"><font size="2">Other liabilities</font></div> </td>
<td align=right width="1" bgcolor="#cceeff">&nbsp;</td>
<td align=right width="1" bgcolor="#cceeff">&nbsp;</td>
<td align=right width="6" bgcolor="#cceeff">&nbsp;</td>
<td align=right width="84" bgcolor="#cceeff"><font size="2">33,048</font></td>
<td align=right width="9" bgcolor="#cceeff">&nbsp;</td>
<td align=right width="13" bgcolor="#cceeff">&nbsp;</td>
<td align=right width="6" bgcolor="#cceeff">&nbsp;</td>
<td align=right width="82" bgcolor="#cceeff">&nbsp;</td>
<td align=right width="1" bgcolor="#cceeff">&nbsp;</td>
<td align=right width="13" bgcolor="#cceeff">&nbsp;</td>
<td align=right width="1" bgcolor="#cceeff">&nbsp;</td>
<td align=right width="81" bgcolor="#cceeff">&nbsp;</td>
<td align=right width="11" bgcolor="#cceeff">&nbsp;</td>
<td align=right width="13" bgcolor="#cceeff">&nbsp;</td>
<td align=right width="6" bgcolor="#cceeff">&nbsp;</td>
<td align=right width="84" bgcolor="#cceeff"><font size="2">40,512</font></td>
<td align=right width="4" bgcolor="#cceeff">&nbsp;</td>
<td align=right width="13" bgcolor="#cceeff">&nbsp;</td>
<td align=right width="6" bgcolor="#cceeff">&nbsp;</td>
<td align=right width="82" bgcolor="#cceeff">&nbsp;</td>
<td align=right width="1" bgcolor="#cceeff">&nbsp;</td>
<td align=right width="13" bgcolor="#cceeff">&nbsp;</td>
<td align=right width="5" bgcolor="#cceeff">&nbsp;</td>
<td align=right width="78" bgcolor="#cceeff">&nbsp;</td>
<td align=left width="11" bgcolor="#CCEEFF">&nbsp;</td> </tr>
<tr align=right valign="bottom">
<td align=right width="338"> <div align="left"><font size="2">Stockholders' equity</font></div> </td>
<td align=right width="1">&nbsp;</td>
<td align=right width="1">&nbsp;</td>
<td align=right width="6">&nbsp;</td>
<td align=right width="84"><font size="2">155,757</font></td>
<td align=right width="9">&nbsp;</td>
<td align=right width="13">&nbsp;</td>
<td align=right width="6">&nbsp;</td>
<td align=right width="82">&nbsp;</td>
<td align=right width="1">&nbsp;</td>
<td align=right width="13">&nbsp;</td>
<td align=right width="1">&nbsp;</td>
<td align=right width="81">&nbsp;</td>
<td align=right width="11">&nbsp;</td>
<td align=right width="13">&nbsp;</td>
<td align=right width="6">&nbsp;</td>
<td align=right width="84"><font size="2">150,672</font></td>
<td align=right width="4">&nbsp;</td>
<td align=right width="13">&nbsp;</td>
<td align=right width="6">&nbsp;</td>
<td align=right width="82">&nbsp;</td>
<td align=right width="1">&nbsp;</td>
<td align=right width="13">&nbsp;</td>
<td align=right width="5">&nbsp;</td>
<td align=right width="78">&nbsp;</td>
<td align=left width="11">&nbsp;</td> </tr>
<tr align=right valign="bottom">
<td align=right width="338">&nbsp;</td>
<td align=right width="1">&nbsp;</td>
<td align=right width="1">&nbsp;</td>
<td align=right colspan="2"> <hr size="2" color="#000000"> </td>
<td align=right width="9">&nbsp;</td>
<td align=right width="13">&nbsp;</td>
<td align=right colspan="2"> <hr size="2" color="#000000"> </td>
<td align=right width="1">&nbsp;</td>
<td align=right width="13">&nbsp;</td>
<td align=right colspan="2"> <hr size="2" color="#000000"> </td>
<td align=right width="11">&nbsp;</td>
<td align=right width="13">&nbsp;</td>
<td align=right colspan="2"> <hr size="2" color="#000000"> </td>
<td align=right width="4">&nbsp;</td>
<td align=right width="13">&nbsp;</td>
<td align=right colspan="2"> <hr size="2" color="#000000"> </td>
<td align=right width="1">&nbsp;</td>
<td align=right width="13">&nbsp;</td>
<td align=right colspan="2"> <hr size="2" color="#000000"> </td>
<td align=left width="11">&nbsp;</td> </tr>
<tr align=right valign="bottom">
<td align=right width="338" bgcolor="#cceeff"> <div align="left"><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total liabilities and stockholders' equity</font></div> </td>
<td align=right width="1" bgcolor="#cceeff">&nbsp;</td>
<td align=right width="1" bgcolor="#cceeff">&nbsp;</td>
<td align=right width="6" bgcolor="#cceeff"><font size="2">$</font></td>
<td align=right width="84" bgcolor="#cceeff"><font size="2">2,075,060</font></td>
<td align=right width="9" bgcolor="#cceeff">&nbsp;</td>
<td align=right width="13" bgcolor="#cceeff">&nbsp;</td>
<td align=right width="6" bgcolor="#cceeff">&nbsp;</td>
<td align=right width="82" bgcolor="#cceeff">&nbsp;</td>
<td align=right width="1" bgcolor="#cceeff">&nbsp;</td>
<td align=right width="13" bgcolor="#cceeff">&nbsp;</td>
<td align=right width="1" bgcolor="#cceeff">&nbsp;</td>
<td align=right width="81" bgcolor="#cceeff">&nbsp;</td>
<td align=right width="11" bgcolor="#cceeff">&nbsp;</td>
<td align=right width="13" bgcolor="#cceeff">&nbsp;</td>
<td align=right width="6" bgcolor="#cceeff"><font size="2">$</font></td>
<td align=right width="84" bgcolor="#cceeff"><font size="2">2,470,256</font></td>
<td align=right width="4" bgcolor="#cceeff">&nbsp;</td>
<td align=right width="13" bgcolor="#cceeff">&nbsp;</td>
<td align=right width="6" bgcolor="#cceeff">&nbsp;</td>
<td align=right width="82" bgcolor="#cceeff">&nbsp;</td>
<td align=right width="1" bgcolor="#cceeff">&nbsp;</td>
<td align=right width="13" bgcolor="#cceeff">&nbsp;</td>
<td align=right width="5" bgcolor="#cceeff">&nbsp;</td>
<td align=right width="78" bgcolor="#cceeff">&nbsp;</td>
<td align=left width="11" bgcolor="#CCEEFF">&nbsp;</td> </tr>
<tr align=right valign="bottom">
<td align=right width="338">&nbsp;</td>
<td align=right width="1">&nbsp;</td>
<td align=right colspan="3"> <hr size="4" color="#000000"> </td>
<td align=right width="9">&nbsp;</td>
<td align=right width="13">&nbsp;</td>
<td align=right colspan="2"> <hr size="4" color="#000000"> </td>
<td align=right width="1">&nbsp;</td>
<td align=right width="13">&nbsp;</td>
<td align=right colspan="2"> <hr size="4" color="#000000"> </td>
<td align=right width="11">&nbsp;</td>
<td align=right width="13">&nbsp;</td>
<td align=right colspan="2"> <hr size="4" color="#000000"> </td>
<td align=right width="4">&nbsp;</td>
<td align=right width="13">&nbsp;</td>
<td align=right colspan="2"> <hr size="4" color="#000000"> </td>
<td align=right width="1">&nbsp;</td>
<td align=right width="13">&nbsp;</td>
<td align=right colspan="2"> <hr size="4" color="#000000"> </td>
<td align=left width="11">&nbsp;</td> </tr>
<tr align=right valign="bottom">
<td align=right width="338" bgcolor="#cceeff"> <div align="left"><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;Net interest income</font></div> </td>
<td align=right width="1" bgcolor="#cceeff">&nbsp;</td>
<td align=right width="1" bgcolor="#cceeff">&nbsp;</td>
<td align=right width="6" bgcolor="#cceeff">&nbsp;</td>
<td align=right width="84" bgcolor="#cceeff">&nbsp;</td>
<td align=right width="9" bgcolor="#cceeff">&nbsp;</td>
<td align=right width="13" bgcolor="#cceeff">&nbsp;</td>
<td align=right width="6" bgcolor="#cceeff"><font size="2">$</font></td>
<td align=right width="82" bgcolor="#cceeff"><font size="2">22,248</font></td>
<td align=right width="1" bgcolor="#cceeff">&nbsp;</td>
<td align=right width="13" bgcolor="#cceeff">&nbsp;</td>
<td align=right width="1" bgcolor="#cceeff">&nbsp;</td>
<td align=right width="81" bgcolor="#cceeff">&nbsp;</td>
<td align=right width="11" bgcolor="#cceeff">&nbsp;</td>
<td align=right width="13" bgcolor="#cceeff">&nbsp;</td>
<td align=right width="6" bgcolor="#cceeff">&nbsp;</td>
<td align=right width="84" bgcolor="#cceeff">&nbsp;</td>
<td align=right width="4" bgcolor="#cceeff">&nbsp;</td>
<td align=right width="13" bgcolor="#cceeff">&nbsp;</td>
<td align=right width="6" bgcolor="#cceeff"><font size="2">$</font></td>
<td align=right width="82" bgcolor="#cceeff"><font size="2">23,030</font></td>
<td align=right width="1" bgcolor="#cceeff">&nbsp;</td>
<td align=right width="13" bgcolor="#cceeff">&nbsp;</td>
<td align=right width="5" bgcolor="#cceeff">&nbsp;</td>
<td align=right width="78" bgcolor="#cceeff">&nbsp;</td>
<td align=left width="11" bgcolor="#CCEEFF">&nbsp;</td> </tr>
<tr align=right valign="bottom">
<td align=right width="338">&nbsp;</td>
<td align=right width="1">&nbsp;</td>
<td align=right colspan="3"> <hr size="4" color="#000000"> </td>
<td align=right width="9">&nbsp;</td>
<td align=right width="13">&nbsp;</td>
<td align=right colspan="2"> <hr size="4" color="#000000"> </td>
<td align=right width="1">&nbsp;</td>
<td align=right width="13">&nbsp;</td>
<td align=right colspan="2"> <hr size="4" color="#000000"> </td>
<td align=right width="11">&nbsp;</td>
<td align=right width="13">&nbsp;</td>
<td align=right colspan="2"> <hr size="4" color="#000000"> </td>
<td align=right width="4">&nbsp;</td>
<td align=right width="13">&nbsp;</td>
<td align=right colspan="2"> <hr size="4" color="#000000"> </td>
<td align=right width="1">&nbsp;</td>
<td align=right width="13">&nbsp;</td>
<td align=right colspan="2"> <hr size="4" color="#000000"> </td>
<td align=left width="11">&nbsp;</td> </tr>
<tr align=right valign="bottom">
<td align=right width="338" bgcolor="#cceeff"> <div align="left"><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;Net yield on earning assets</font></div> </td>
<td align=right width="1" bgcolor="#cceeff">&nbsp;</td>
<td align=right width="1" bgcolor="#cceeff">&nbsp;</td>
<td align=right width="6" bgcolor="#cceeff">&nbsp;</td>
<td align=right width="84" bgcolor="#cceeff">&nbsp;</td>
<td align=right width="9" bgcolor="#cceeff">&nbsp;</td>
<td align=right width="13" bgcolor="#cceeff">&nbsp;</td>
<td align=right width="6" bgcolor="#cceeff">&nbsp;</td>
<td align=right width="82" bgcolor="#cceeff">&nbsp;</td>
<td align=right width="1" bgcolor="#cceeff">&nbsp;</td>
<td align=right width="13" bgcolor="#cceeff">&nbsp;</td>
<td align=right width="1" bgcolor="#cceeff">&nbsp;</td>
<td align=right width="81" bgcolor="#cceeff"><font size="2">4.67</font></td>
<td align=right width="11" bgcolor="#cceeff"><font size="2">%</font></td>
<td align=right width="13" bgcolor="#cceeff">&nbsp;</td>
<td align=right width="6" bgcolor="#cceeff">&nbsp;</td>
<td align=right width="84" bgcolor="#cceeff">&nbsp;</td>
<td align=right width="4" bgcolor="#cceeff">&nbsp;</td>
<td align=right width="13" bgcolor="#cceeff">&nbsp;</td>
<td align=right width="6" bgcolor="#cceeff">&nbsp;</td>
<td align=right width="82" bgcolor="#cceeff">&nbsp;</td>
<td align=right width="1" bgcolor="#cceeff">&nbsp;</td>
<td align=right width="13" bgcolor="#cceeff">&nbsp;</td>
<td align=right width="5" bgcolor="#cceeff">&nbsp;</td>
<td align=right width="78" bgcolor="#cceeff"><font size="2">4.05</font></td>
<td align=left width="11" bgcolor="#CCEEFF"><font size="2">%</font></td> </tr>
<tr align=right valign="bottom">
<td align=right width="338">&nbsp;</td>
<td align=right width="1">&nbsp;</td>
<td align=right width="1">&nbsp;</td>
<td align=right colspan="2"> <hr size="4" color="#000000"> </td>
<td align=right width="9">&nbsp;</td>
<td align=right width="13">&nbsp;</td>
<td align=right colspan="2"> <hr size="4" color="#000000"> </td>
<td align=right width="1">&nbsp;</td>
<td align=right width="13">&nbsp;</td>
<td align=right colspan="2"> <hr size="4" color="#000000"> </td>
<td align=right width="11">&nbsp;</td>
<td align=right width="13">&nbsp;</td>
<td align=right colspan="2"> <hr size="4" color="#000000"> </td>
<td align=right width="4">&nbsp;</td>
<td align=right width="13">&nbsp;</td>
<td align=right colspan="2"> <hr size="4" color="#000000"> </td>
<td align=right width="1">&nbsp;</td>
<td align=right width="13">&nbsp;</td>
<td align=right colspan="2"> <hr size="4" color="#000000"> </td>
<td align=left width="11">&nbsp;</td> </tr> </table> <font face="Times New Roman, Times, serif"><br> </font>
<table width="100%" border="0">
<tr valign="top">
<td colspan="2"><font size="2">(1)</font><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;For purposes of this table, non-accruing loans have been included in average balances and loan fees, which are immaterial, have been included in interest
income.</font></td> </tr>
<tr valign="top">
<td colspan="2"><font size="2">(2)</font><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Computed on a fully federal tax-equivalent basis assuming a tax rate of approximately 35%.</font></td> </tr> </table> <p align="center"><font size="2"
face="Times New Roman, Times, serif">23</font></p>

<p Style='page-break-before:always'>
<HR  SIZE="3" COLOR="#CCEEFF" WIDTH="100%" ALIGN="CENTER">
<h5 align="left"><a href="#toc">Table of Contents</a></h5>
 <p><font size="2"><b>RATE VOLUME ANALYSIS OF CHANGES IN INTEREST INCOME AND INTEREST EXPENSE<br> </b></font><font size="2" color="#000000"><i>(in thousands)</i></font></p>
<table border=0 width="100%" cellpadding=0 cellspacing=0>
<tr valign="bottom" align="center">
<td><font size="1" color="#000000"></font></td>
<td colspan="11"><b><font size="1" color="#000000">Three months ended June 30,</font></b></td>
<td width="15"><b></b></td> </tr>
<tr valign="bottom" align="center">
<td><font size="1" color="#000000"></font></td>
<td colspan="11"><b><font size="1" color="#000000">2002 vs. 2001</font></b></td>
<td width="15"><b><font size="1" color="#000000"></font></b></td> </tr>
<tr valign="bottom" align="center">
<td><font size="1" color="#000000"></font></td>
<td colspan="11"><b><font size="1" color="#000000">Increase (Decrease)</font></b></td>
<td width="15"><b><font size="1" color="#000000"></font></b></td> </tr>
<tr valign="bottom" align="center">
<td><font size="1" color="#000000"></font></td>
<td colspan="11"><b><font size="1" color="#000000">Due to Change In:</font></b></td>
<td width="15"><b><font size="1" color="#000000"></font></b></td> </tr>
<tr valign="bottom" align="center">
<td><font size="1" color="#000000"></font></td>
<td width="3"><b><font size="1" color="#000000"></font></b></td>
<td width="90"><b><font size="1" color="#000000">Volume</font></b></td>
<td width="2"><b><font size="1" color="#000000"></font></b></td>
<td width="20"><b><font size="1" color="#000000"></font></b></td>
<td width="3"><b><font size="1" color="#000000"></font></b></td>
<td width="90"><b><font size="1" color="#000000">Rate</font></b></td>
<td width="2"><b><font size="1" color="#000000"></font></b></td>
<td width="20"><b><font size="1" color="#000000"></font></b></td>
<td width="3"><b><font size="1" color="#000000"></font></b></td>
<td width="90"><b><font size="1" color="#000000">Net</font></b></td>
<td width="2"><b><font size="1" color="#000000"></font></b></td>
<td width="15"><b><font size="1" color="#000000"></font></b></td> </tr>
<tr valign="bottom" align="center">
<td><font size="1" color="#000000"></font></td>
<td colspan="2"> <hr size="2" color="#000000"> </td>
<td width="2"><font size="1" color="#000000"></font></td>
<td width="20"><font size="1" color="#000000"></font></td>
<td colspan="2"> <hr size="2" color="#000000"> </td>
<td width="2"><font size="1" color="#000000"></font></td>
<td width="20"><font size="1" color="#000000"></font></td>
<td colspan="2"> <hr size="2" color="#000000"> </td>
<td width="2"><font size="1" color="#000000"></font></td>
<td width="15"><font size="1" color="#000000"></font></td> </tr>
<tr valign="bottom">
<td><font size="2" color="#000000"><b>Interest-earning assets:</b></font></td>
<td align=right width="3"><font size="2" color="#000000"></font></td>
<td align=right width="90"><font size="2" color="#000000"></font></td>
<td align=left width="2"><font size="2" color="#000000"></font></td>
<td align=right width="20"><font size="2" color="#000000"></font></td>
<td align=right width="3"><font size="2" color="#000000"></font></td>
<td align=right width="90"><font size="2" color="#000000"></font></td>
<td align=left width="2"><font size="2" color="#000000"></font></td>
<td align=right width="20"><font size="2" color="#000000"></font></td>
<td align=right width="3"><font size="2" color="#000000"></font></td>
<td align=right width="90"><font size="2" color="#000000"></font></td>
<td align=left width="2"><font size="2" color="#000000"></font></td>
<td align=right width="15"><font size="2" color="#000000"></font></td> </tr>
<tr valign="bottom">
<td bgcolor="#CCEEFF"><font size="2" color="#000000">Loan portfolio</font></td>
<td align=right width="3" bgcolor="#CCEEFF"><font size="2" color="#000000">$</font></td>
<td align=right width="90" bgcolor="#CCEEFF"><font size="2" color="#000000"> (11,440</font></td>
<td align=left width="2" bgcolor="#CCEEFF"><font size="2" color="#000000">)</font></td>
<td align=right width="20" bgcolor="#CCEEFF"></td>
<td align=right width="3" bgcolor="#CCEEFF"><font size="2" color="#000000">$</font></td>
<td align=right width="90" bgcolor="#CCEEFF"><font size="2" color="#000000"> (3,365</font></td>
<td align=left width="2" bgcolor="#CCEEFF"><font size="2" color="#000000">)</font></td>
<td align=right width="20" bgcolor="#CCEEFF"></td>
<td align=right width="3" bgcolor="#CCEEFF"><font size="2" color="#000000">$</font></td>
<td align=right width="90" bgcolor="#CCEEFF"><font size="2" color="#000000"> (14,805</font></td>
<td align=left width="2" bgcolor="#CCEEFF"><font size="2" color="#000000">)</font></td>
<td align=right width="15" bgcolor="#CCEEFF"><font size="2" color="#000000"></font></td> </tr>
<tr valign="bottom">
<td><font size="2" color="#000000">Loans held for sale</font></td>
<td align=right width="3"><font size="2" color="#000000"></font></td>
<td align=right width="90"><font size="2" color="#000000">(505</font></td>
<td align=left width="2"><font size="2" color="#000000">)</font></td>
<td align=right width="20"><font size="2" color="#000000"></font></td>
<td align=right width="3"><font size="2" color="#000000"></font></td>
<td align=right width="90"><font size="2" color="#000000">&#151;</font></td>
<td align=left width="2"><font size="2" color="#000000"></font></td>
<td align=right width="20"><font size="2" color="#000000"></font></td>
<td align=right width="3"><font size="2" color="#000000"></font></td>
<td align=right width="90"><font size="2" color="#000000">(505</font></td>
<td align=left width="2"><font size="2" color="#000000">)</font></td>
<td align=right width="15"><font size="2" color="#000000"></font></td> </tr>
<tr valign="bottom">
<td><font size="2" color="#000000">Securities:</font></td>
<td align=right width="3"><font size="2" color="#000000"></font></td>
<td align=right width="90"><font size="2" color="#000000"></font></td>
<td align=left width="2"><font size="2" color="#000000"></font></td>
<td align=right width="20"><font size="2" color="#000000"></font></td>
<td align=right width="3"><font size="2" color="#000000"></font></td>
<td align=right width="90"><font size="2" color="#000000"></font></td>
<td align=left width="2"><font size="2" color="#000000"></font></td>
<td align=right width="20"><font size="2" color="#000000"></font></td>
<td align=right width="3"><font size="2" color="#000000"></font></td>
<td align=right width="90"><font size="2" color="#000000"></font></td>
<td align=left width="2"><font size="2" color="#000000"></font></td>
<td align=right width="15"><font size="2" color="#000000"></font></td> </tr>
<tr valign="bottom">
<td bgcolor="#CCEEFF"><font size="2" color="#000000">&nbsp;&nbsp;&nbsp;&nbsp;Taxable</font></td>
<td align=right width="3" bgcolor="#CCEEFF"><font size="2" color="#000000"></font></td>
<td align=right width="90" bgcolor="#CCEEFF"><font size="2" color="#000000">5,912</font></td>
<td align=left width="2" bgcolor="#CCEEFF"><font size="2" color="#000000"></font></td>
<td align=right width="20" bgcolor="#CCEEFF"><font size="2" color="#000000"></font></td>
<td align=right width="3" bgcolor="#CCEEFF"><font size="2" color="#000000"></font></td>
<td align=right width="90" bgcolor="#CCEEFF"><font size="2" color="#000000">(4,415</font></td>
<td align=left width="2" bgcolor="#CCEEFF"><font size="2" color="#000000">)</font></td>
<td align=right width="20" bgcolor="#CCEEFF"><font size="2" color="#000000"></font></td>
<td align=right width="3" bgcolor="#CCEEFF"><font size="2" color="#000000"></font></td>
<td align=right width="90" bgcolor="#CCEEFF"><font size="2" color="#000000">1,497</font></td>
<td align=left width="2" bgcolor="#CCEEFF"><font size="2" color="#000000"></font></td>
<td align=right width="15" bgcolor="#CCEEFF"><font size="2" color="#000000"></font></td> </tr>
<tr valign="bottom">
<td><font size="2" color="#000000">&nbsp;&nbsp;&nbsp;&nbsp;Tax-exempt (1)</font></td>
<td align=right width="3"><font size="2" color="#000000"></font></td>
<td align=right width="90"><font size="2" color="#000000">(256</font></td>
<td align=left width="2"><font size="2" color="#000000">)</font></td>
<td align=right width="20"><font size="2" color="#000000"></font></td>
<td align=right width="3"><font size="2" color="#000000"></font></td>
<td align=right width="90"><font size="2" color="#000000">(7</font></td>
<td align=left width="2"><font size="2" color="#000000">)</font></td>
<td align=right width="20"><font size="2" color="#000000"></font></td>
<td align=right width="3"><font size="2" color="#000000"></font></td>
<td align=right width="90"><font size="2" color="#000000">(263</font></td>
<td align=left width="2"><font size="2" color="#000000">)</font></td>
<td align=right width="15"><font size="2" color="#000000"></font></td> </tr>
<tr valign="bottom" align="center">
<td><font size="1" color="#000000"></font></td>
<td colspan="2"> <hr size="2" color="#000000"> </td>
<td width="2"><font size="1" color="#000000"></font></td>
<td width="20"><font size="1" color="#000000"></font></td>
<td colspan="2"> <hr size="2" color="#000000"> </td>
<td width="2"><font size="1" color="#000000"></font></td>
<td width="20"><font size="1" color="#000000"></font></td>
<td colspan="2"> <hr size="2" color="#000000"> </td>
<td width="2"><font size="1" color="#000000"></font></td>
<td width="15"><font size="1" color="#000000"></font></td> </tr>
<tr valign="bottom">
<td bgcolor="#CCEEFF"><font size="2" color="#000000">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total securities</font></td>
<td align=right width="3" bgcolor="#CCEEFF"><font size="2" color="#000000"></font></td>
<td align=right width="90" bgcolor="#CCEEFF"><font size="2" color="#000000">5,656</font></td>
<td align=left width="2" bgcolor="#CCEEFF"><font size="2" color="#000000"></font></td>
<td align=right width="20" bgcolor="#CCEEFF"><font size="2" color="#000000"></font></td>
<td align=right width="3" bgcolor="#CCEEFF"><font size="2" color="#000000"></font></td>
<td align=right width="90" bgcolor="#CCEEFF"><font size="2" color="#000000">(4,422</font></td>
<td align=left width="2" bgcolor="#CCEEFF"><font size="2" color="#000000">)</font></td>
<td align=right width="20" bgcolor="#CCEEFF"><font size="2" color="#000000"></font></td>
<td align=right width="3" bgcolor="#CCEEFF"><font size="2" color="#000000"></font></td>
<td align=right width="90" bgcolor="#CCEEFF"><font size="2" color="#000000">1,234</font></td>
<td align=left width="2" bgcolor="#CCEEFF"><font size="2" color="#000000"></font></td>
<td align=right width="15" bgcolor="#CCEEFF"><font size="2" color="#000000"></font></td> </tr>
<tr valign="bottom">
<td><font size="2" color="#000000">Retained interest in securitized loans</font></td>
<td align=right width="3"><font size="2" color="#000000"></font></td>
<td align=right width="90"><font size="2" color="#000000">389</font></td>
<td align=left width="2"><font size="2" color="#000000"></font></td>
<td align=right width="20"><font size="2" color="#000000"></font></td>
<td align=right width="3"><font size="2" color="#000000"></font></td>
<td align=right width="90"><font size="2" color="#000000">351</font></td>
<td align=left width="2"><font size="2" color="#000000"></font></td>
<td align=right width="20"><font size="2" color="#000000"></font></td>
<td align=right width="3"><font size="2" color="#000000"></font></td>
<td align=right width="90"><font size="2" color="#000000">740</font></td>
<td align=left width="2"><font size="2" color="#000000"></font></td>
<td align=right width="15"><font size="2" color="#000000"></font></td> </tr>
<tr valign="bottom">
<td bgcolor="#CCEEFF"><font size="2" color="#000000">Federal funds sold</font></td>
<td align=right width="3" bgcolor="#CCEEFF"><font size="2" color="#000000"></font></td>
<td align=right width="90" bgcolor="#CCEEFF"><font size="2" color="#000000">580</font></td>
<td align=left width="2" bgcolor="#CCEEFF"><font size="2" color="#000000"></font></td>
<td align=right width="20" bgcolor="#CCEEFF"><font size="2" color="#000000"></font></td>
<td align=right width="3" bgcolor="#CCEEFF"><font size="2" color="#000000"></font></td>
<td align=right width="90" bgcolor="#CCEEFF"><font size="2" color="#000000">(522</font></td>
<td align=left width="2" bgcolor="#CCEEFF"><font size="2" color="#000000">)</font></td>
<td align=right width="20" bgcolor="#CCEEFF"><font size="2" color="#000000"></font></td>
<td align=right width="3" bgcolor="#CCEEFF"><font size="2" color="#000000"></font></td>
<td align=right width="90" bgcolor="#CCEEFF"><font size="2" color="#000000">58</font></td>
<td align=left width="2" bgcolor="#CCEEFF"><font size="2" color="#000000"></font></td>
<td align=right width="15" bgcolor="#CCEEFF"><font size="2" color="#000000"></font></td> </tr>
<tr valign="bottom" align="center">
<td><font size="1" color="#000000"></font></td>
<td colspan="2"> <hr size="2" color="#000000"> </td>
<td width="2"><font size="1" color="#000000"></font></td>
<td width="20"><font size="1" color="#000000"></font></td>
<td colspan="2"> <hr size="2" color="#000000"> </td>
<td width="2"><font size="1" color="#000000"></font></td>
<td width="20"><font size="1" color="#000000"></font></td>
<td colspan="2"> <hr size="2" color="#000000"> </td>
<td width="2"><font size="1" color="#000000"></font></td>
<td width="15"><font size="1" color="#000000"></font></td> </tr>
<tr valign="bottom">
<td bgcolor="#CCEEFF"><font size="2" color="#000000">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total interest-earning assets</font></td>
<td align=right width="3" bgcolor="#CCEEFF"><font size="2" color="#000000">$</font></td>
<td align=right width="90" bgcolor="#CCEEFF"><font size="2" color="#000000">(5,321</font></td>
<td align=left width="2" bgcolor="#CCEEFF"><font size="2" color="#000000">)</font></td>
<td align=right width="20" bgcolor="#CCEEFF"><font size="2" color="#000000"></font></td>
<td align=right width="3" bgcolor="#CCEEFF"><font size="2" color="#000000">$</font></td>
<td align=right width="90" bgcolor="#CCEEFF"><font size="2" color="#000000"> (7,958</font></td>
<td align=left width="2" bgcolor="#CCEEFF"><font size="2" color="#000000">)</font></td>
<td align=right width="20" bgcolor="#CCEEFF"><font size="2" color="#000000"></font></td>
<td align=right width="3" bgcolor="#CCEEFF"><font size="2" color="#000000">$</font></td>
<td align=right width="90" bgcolor="#CCEEFF"><font size="2" color="#000000"> (13,278</font></td>
<td align=left width="2" bgcolor="#CCEEFF"><font size="2" color="#000000">)</font></td>
<td align=right width="15" bgcolor="#CCEEFF"><font size="2" color="#000000"></font></td> </tr>
<tr valign="bottom" align="center">
<td><font size="1" color="#000000"></font></td>
<td colspan="2"> <hr size="4" color="#000000"> </td>
<td width="2"><font size="1" color="#000000"></font></td>
<td width="20"><font size="1" color="#000000"></font></td>
<td colspan="2"> <hr size="4" color="#000000"> </td>
<td width="2"><font size="1" color="#000000"></font></td>
<td width="20"><font size="1" color="#000000"></font></td>
<td colspan="2"> <hr size="4" color="#000000"> </td>
<td width="2"><font size="1" color="#000000"></font></td>
<td width="15"><font size="1" color="#000000"></font></td> </tr>
<tr valign="bottom">
<td><font size="2" color="#000000"><b>Interest-bearing liabilities:</b></font></td>
<td align=right width="3"><font size="2" color="#000000"></font></td>
<td align=right width="90"><font size="2" color="#000000"></font></td>
<td align=left width="2"><font size="2" color="#000000"></font></td>
<td align=right width="20"><font size="2" color="#000000"></font></td>
<td align=right width="3"><font size="2" color="#000000"></font></td>
<td align=right width="90"><font size="2" color="#000000"></font></td>
<td align=left width="2"><font size="2" color="#000000"></font></td>
<td align=right width="20"><font size="2" color="#000000"></font></td>
<td align=right width="3"><font size="2" color="#000000"></font></td>
<td align=right width="90"><font size="2" color="#000000"></font></td>
<td align=left width="2"><font size="2" color="#000000"></font></td>
<td align=right width="15"><font size="2" color="#000000"></font></td> </tr>
<tr valign="bottom">
<td bgcolor="#CCEEFF"><font size="2" color="#000000">Demand deposits</font></td>
<td align=right width="3" bgcolor="#CCEEFF"><font size="2" color="#000000">$</font></td>
<td align=right width="90" bgcolor="#CCEEFF"><font size="2" color="#000000"> (357</font></td>
<td align=left width="2" bgcolor="#CCEEFF"><font size="2" color="#000000">)</font></td>
<td align=right width="20" bgcolor="#CCEEFF"><font size="2" color="#000000"></font></td>
<td align=right width="3" bgcolor="#CCEEFF"><font size="2" color="#000000">$</font></td>
<td align=right width="90" bgcolor="#CCEEFF"><font size="2" color="#000000"> (2,059</font></td>
<td align=left width="2" bgcolor="#CCEEFF"><font size="2" color="#000000">)</font></td>
<td align=right width="20" bgcolor="#CCEEFF"><font size="2" color="#000000"></font></td>
<td align=right width="3" bgcolor="#CCEEFF"><font size="2" color="#000000">$</font></td>
<td align=right width="90" bgcolor="#CCEEFF"><font size="2" color="#000000"> (2,416</font></td>
<td align=left width="2" bgcolor="#CCEEFF"><font size="2" color="#000000">)</font></td>
<td align=right width="15" bgcolor="#CCEEFF"><font size="2" color="#000000"></font></td> </tr>
<tr valign="bottom">
<td><font size="2" color="#000000">Savings deposits</font></td>
<td align=right width="3"><font size="2" color="#000000"></font></td>
<td align=right width="90"><font size="2" color="#000000">857</font></td>
<td align=left width="2"><font size="2" color="#000000"></font></td>
<td align=right width="20"><font size="2" color="#000000"></font></td>
<td align=right width="3"><font size="2" color="#000000"></font></td>
<td align=right width="90"><font size="2" color="#000000">(1,999</font></td>
<td align=left width="2"><font size="2" color="#000000">)</font></td>
<td align=right width="20"><font size="2" color="#000000"></font></td>
<td align=right width="3"><font size="2" color="#000000"></font></td>
<td align=right width="90"><font size="2" color="#000000">(1,142</font></td>
<td align=left width="2"><font size="2" color="#000000">)</font></td>
<td align=right width="15"><font size="2" color="#000000"></font></td> </tr>
<tr valign="bottom">
<td bgcolor="#CCEEFF"><font size="2" color="#000000">Time deposits</font></td>
<td align=right width="3" bgcolor="#CCEEFF"><font size="2" color="#000000"></font></td>
<td align=right width="90" bgcolor="#CCEEFF"><font size="2" color="#000000">(3,511</font></td>
<td align=left width="2" bgcolor="#CCEEFF"><font size="2" color="#000000">)</font></td>
<td align=right width="20" bgcolor="#CCEEFF"><font size="2" color="#000000"></font></td>
<td align=right width="3" bgcolor="#CCEEFF"><font size="2" color="#000000"></font></td>
<td align=right width="90" bgcolor="#CCEEFF"><font size="2" color="#000000">(3,859</font></td>
<td align=left width="2" bgcolor="#CCEEFF"><font size="2" color="#000000">)</font></td>
<td align=right width="20" bgcolor="#CCEEFF"><font size="2" color="#000000"></font></td>
<td align=right width="3" bgcolor="#CCEEFF"><font size="2" color="#000000"></font></td>
<td align=right width="90" bgcolor="#CCEEFF"><font size="2" color="#000000">(7,370</font></td>
<td align=left width="2" bgcolor="#CCEEFF"><font size="2" color="#000000">)</font></td>
<td align=right width="15" bgcolor="#CCEEFF"><font size="2" color="#000000"></font></td> </tr>
<tr valign="bottom">
<td><font size="2" color="#000000">Short-term borrowings</font></td>
<td align=right width="3"><font size="2" color="#000000"></font></td>
<td align=right width="90"><font size="2" color="#000000">(669</font></td>
<td align=left width="2"><font size="2" color="#000000">)</font></td>
<td align=right width="20"><font size="2" color="#000000"></font></td>
<td align=right width="3"><font size="2" color="#000000"></font></td>
<td align=right width="90"><font size="2" color="#000000">(1,214</font></td>
<td align=left width="2"><font size="2" color="#000000">)</font></td>
<td align=right width="20"><font size="2" color="#000000"></font></td>
<td align=right width="3"><font size="2" color="#000000"></font></td>
<td align=right width="90"><font size="2" color="#000000">(1,883</font></td>
<td align=left width="2"><font size="2" color="#000000">)</font></td>
<td align=right width="15"><font size="2" color="#000000"></font></td> </tr>
<tr valign="bottom">
<td bgcolor="#CCEEFF"><font size="2" color="#000000">Long-term debt</font></td>
<td align=right width="3" bgcolor="#CCEEFF"><font size="2" color="#000000"></font></td>
<td align=right width="90" bgcolor="#CCEEFF"><font size="2" color="#000000">52</font></td>
<td align=left width="2" bgcolor="#CCEEFF"><font size="2" color="#000000"></font></td>
<td align=right width="20" bgcolor="#CCEEFF"><font size="2" color="#000000"></font></td>
<td align=right width="3" bgcolor="#CCEEFF"><font size="2" color="#000000"></font></td>
<td align=right width="90" bgcolor="#CCEEFF"><font size="2" color="#000000">85</font></td>
<td align=left width="2" bgcolor="#CCEEFF"><font size="2" color="#000000"></font></td>
<td align=right width="20" bgcolor="#CCEEFF"><font size="2" color="#000000"></font></td>
<td align=right width="3" bgcolor="#CCEEFF"><font size="2" color="#000000"></font></td>
<td align=right width="90" bgcolor="#CCEEFF"><font size="2" color="#000000">137</font></td>
<td align=left width="2" bgcolor="#CCEEFF"><font size="2" color="#000000"></font></td>
<td align=right width="15" bgcolor="#CCEEFF"><font size="2" color="#000000"></font></td> </tr>
<tr valign="bottom">
<td><font size="2" color="#000000">Trust preferred securities</font></td>
<td align=right width="3"><font size="2" color="#000000"></font></td>
<td align=right width="90"><font size="2" color="#000000">&#151;</font></td>
<td align=left width="2"><font size="2" color="#000000"></font></td>
<td align=right width="20"><font size="2" color="#000000"></font></td>
<td align=right width="3"><font size="2" color="#000000"></font></td>
<td align=right width="90"><font size="2" color="#000000">178</font></td>
<td align=left width="2"><font size="2" color="#000000"></font></td>
<td align=right width="20"><font size="2" color="#000000"></font></td>
<td align=right width="3"><font size="2" color="#000000"></font></td>
<td align=right width="90"><font size="2" color="#000000">178</font></td>
<td align=left width="2"><font size="2" color="#000000"></font></td>
<td align=right width="15"><font size="2" color="#000000"></font></td> </tr>
<tr valign="bottom" align="center">
<td><font size="1" color="#000000"></font></td>
<td colspan="2"> <hr size="2" color="#000000"> </td>
<td width="2"><font size="1" color="#000000"></font></td>
<td width="20"><font size="1" color="#000000"></font></td>
<td colspan="2"> <hr size="2" color="#000000"> </td>
<td width="2"><font size="1" color="#000000"></font></td>
<td width="20"><font size="1" color="#000000"></font></td>
<td colspan="2"> <hr size="2" color="#000000"> </td>
<td width="2"><font size="1" color="#000000"></font></td>
<td width="15"><font size="1" color="#000000"></font></td> </tr>
<tr valign="bottom">
<td bgcolor="#CCEEFF"><font size="2" color="#000000">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total interest-bearing liabilities</font></td>
<td align=right width="3" bgcolor="#CCEEFF"><font size="2" color="#000000">$</font></td>
<td align=right width="90" bgcolor="#CCEEFF"><font size="2" color="#000000"> (3,628</font></td>
<td align=left width="2" bgcolor="#CCEEFF"><font size="2" color="#000000">)</font></td>
<td align=right width="20" bgcolor="#CCEEFF"><font size="2" color="#000000"></font></td>
<td align=right width="3" bgcolor="#CCEEFF"><font size="2" color="#000000">$</font></td>
<td align=right width="90" bgcolor="#CCEEFF"><font size="2" color="#000000"> (8,868</font></td>
<td align=left width="2" bgcolor="#CCEEFF"><font size="2" color="#000000">)</font></td>
<td align=right width="20" bgcolor="#CCEEFF"><font size="2" color="#000000"></font></td>
<td align=right width="3" bgcolor="#CCEEFF"><font size="2" color="#000000">$</font></td>
<td align=right width="90" bgcolor="#CCEEFF"><font size="2" color="#000000"> (12,496</font></td>
<td align=left width="2" bgcolor="#CCEEFF"><font size="2" color="#000000">)</font></td>
<td align=right width="15" bgcolor="#CCEEFF"><font size="2" color="#000000"></font></td> </tr>
<tr valign="bottom" align="center">
<td><font size="1" color="#000000"></font></td>
<td colspan="2"> <hr size="4" color="#000000"> </td>
<td width="2"><font size="1" color="#000000"></font></td>
<td width="20"><font size="1" color="#000000"></font></td>
<td colspan="2"> <hr size="4" color="#000000"> </td>
<td width="2"><font size="1" color="#000000"></font></td>
<td width="20"><font size="1" color="#000000"></font></td>
<td colspan="2"> <hr size="4" color="#000000"> </td>
<td width="2"><font size="1" color="#000000"></font></td>
<td width="15"><font size="1" color="#000000"></font></td> </tr>
<tr valign="bottom">
<td bgcolor="#CCEEFF"><font size="2" color="#000000">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>Net Interest Income</b></font></td>
<td align=right width="3" bgcolor="#CCEEFF"><font size="2" color="#000000">$</font></td>
<td align=right width="90" bgcolor="#CCEEFF"><font size="2" color="#000000"> (1,693</font></td>
<td align=left width="2" bgcolor="#CCEEFF"><font size="2" color="#000000">)</font></td>
<td align=right width="20" bgcolor="#CCEEFF"><font size="2" color="#000000"></font></td>
<td align=right width="3" bgcolor="#CCEEFF"><font size="2" color="#000000">$</font></td>
<td align=right width="90" bgcolor="#CCEEFF"><font size="2" color="#000000"> 910</font></td>
<td align=left width="2" bgcolor="#CCEEFF"><font size="2" color="#000000"></font></td>
<td align=right width="20" bgcolor="#CCEEFF"><font size="2" color="#000000"></font></td>
<td align=right width="3" bgcolor="#CCEEFF"><font size="2" color="#000000">$</font></td>
<td align=right width="90" bgcolor="#CCEEFF"><font size="2" color="#000000"> (782</font></td>
<td align=left width="2" bgcolor="#CCEEFF"><font size="2" color="#000000">)</font></td>
<td align=right width="15" bgcolor="#CCEEFF"><font size="2" color="#000000"></font></td> </tr>
<tr valign="bottom" align="center">
<td><font size="1" color="#000000"></font></td>
<td colspan="2"> <hr size="4" color="#000000"> </td>
<td width="2"><font size="1" color="#000000"></font></td>
<td width="20"><font size="1" color="#000000"></font></td>
<td colspan="2"> <hr size="4" color="#000000"> </td>
<td width="2"><font size="1" color="#000000"></font></td>
<td width="20"><font size="1" color="#000000"></font></td>
<td colspan="2"> <hr size="4" color="#000000"> </td>
<td width="2"><font size="1" color="#000000"></font></td>
<td width="15"><font size="1" color="#000000"></font></td> </tr> </table> <p align="left">&nbsp;</p> <p><font size="2" color="#000000">(1) Fully federal taxable equivalent using a tax rate of 35%.<br> <br> The change in interest due to both rate and
volume has been allocated to volume and rate changes in proportion to the relationship of the absolute dollar amounts of the change in each.</font></p> <p align="center"><font size="2" color="#000000">24</font></p>

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 <p><font size="2"><b><font face="Times New Roman, Times, serif">ALLOWANCE AND PROVISION FOR LOAN LOSSES</font></b><font face="Times New Roman, Times, serif"><br> <br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Management systematically monitors the loan portfolio and the adequacy of the allowance for loan losses on a quarterly basis to provide for probable losses inherent in the
portfolio. Management assesses the risk in each loan type based on historical trends, the general economic environment of its local markets, individual loan performance, and other relevant factors. Individual credits are selected throughout the year
for detailed loan reviews, which are utilized by management to assess the risk in the portfolio and the adequacy of the allowance. Due to the nature of commercial lending, evaluation of the adequacy of the allowance as it relates to these loan types
is often based more upon specific credit review, with consideration given to the potential impairment of certain credits and historical charge-off percentages, adjusted for general economic conditions and other inherent risk factors. Conversely, due
to the homogeneous nature of the real estate and installment portfolios, the portions of the allowance allocated to those portfolios are primarily based on prior charge-off history of each portfolio, adjusted for general economic conditions and
other inherent risk factors.<br> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<br> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; In evaluating the adequacy of the allowance for loan losses,
management considers both quantitative and qualitative factors. Quantitative factors include actual repayment characteristics and loan performance, cash flow analyses, and estimated fair values of underlying collateral. Qualitative factors generally
include overall trends within the portfolio, composition of the portfolio, changes in pricing or underwriting, seasoning of the portfolio, and general economic conditions. Determination of the allowance for loan losses is subjective in nature and
requires management to periodically reassess the validity of its assumptions.<br> <br> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The allowance not specifically allocated to individual credits is generally determined by
analyzing potential exposure and other qualitative factors that could negatively impact the adequacy of the allowance. In accordance with SEC Staff Accounting Bulletin No. 102, issued on July 6, 2001, the Company has taken steps to reflect this
guidance within its assessment of the Allowance for Loan and Lease Losses. These steps include a systematic weighted method of adjusting historical charge-off percentages that are used to allocate the allowance for loan losses to credits not
individually evaluated for impairment. These loans are grouped by pools with similar risk characteristics and the related historical charge-off percentages are adjusted to reflect current inherent risk factors, such as unemployment, overall economic
conditions, concentrations of credit, loan growth, classified and impaired loan trends, staffing, adherence to lending policies, loss trends, and interest rate risk. <br> <br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The allowance for loan losses decreased $20.61 million, or 42.38%, from $48.64 million at December 31, 2001 to $28.02 million at June 30, 2002. Following the decrease in the
allowance for loan losses, the provision for loan losses decreased $14.21 million, or 88.76%, from $16.01 million for the first six months of 2001 to $1.80 million for the first six months of 2002.<br> <br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The allowance allocated to the commercial portfolio decreased by $17.49 million, or 53.98%, from $32.43 million as of December 31, 2001 to $14.94 million as of June 30, 2002.
During the first six months of 2002, the Company recorded gross charge-offs of $16.78 million within the commercial loan portfolio, reflecting management's intention to resolve problem loans either through collection, loan sales, or otherwise
disposing of problem loans in a timely manner. Overall, the commercial loan portfolio declined $68.93 million, or 16.00%, from $430.75 million as of December 31, 2001 to $361.82 million as of June 30, 2002, including approximately $16.4 million of
large commercial credits that had been previously classified as substandard or doubtful that were paid off during the period as borrowers obtained financing from other</font></font> <font face="Times New Roman, Times, serif"><br> </font></p> <p
align="center"><font size="2" face="Times New Roman, Times, serif">25</font> </p>

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 <p><font size="2">institutions. As a result of these payoffs and management's other efforts to improve the credit quality of the commercial portfolio, commercial loans past due 30 days or greater declined from $11.37
million at December 31, 2001 to $1.34 million as of June 30, 2002.</font></p> <p><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Excluding the Company's home equity loan product, residential real estate loans declined $109.09 million,
or 17.29%, during the first six months of 2002. As a result, the allowance allocated to the real estate portfolio declined $1.75 million, or 18.43%, from $9.49 million at December 31, 2001 to $7.74 million at June 30, 2002. Additionally, during the
first six months of 2002 management sold under-performing residential mortgage loans with unpaid principal balances of approximately $4.97 million.<br> </font></p> <p><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The allowance
allocated to the consumer loan portfolio declined $1.38 million, or 20.51%, from $6.71 million at December 31, 2001 to $5.34 million at June 30, 2002. This decline was due, in part, to the $57.27 million, or 24.87%, decline in the outstanding
balance of installment, indirect and credit card loans during the first six months of 2002. Additionally, consumer loans past due 30 days or greater improved from $7.11 million at December 31, 2001 to $4.27 million at June 30, 2002. This represents
a 39.94% improvement in delinquencies within the consumer loan portfolio during the first six months of 2002. <br> </font></p> <p><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As disclosed in prior quarters and in the Company's
Annual Report, management has implemented a number of policy changes and dedicated significant time and resources to address and resolve the Company's credit quality concerns. During 2001, much of this effort was devoted to improving the process for
identifying problem loans and providing for probable losses associated with those credits. During the second half of 2001 and the first six months of 2002, the Company intensified its efforts to resolve those problem loans previously identified. In
addition to tightening credit standards for new loan volume, the Company focused on resolving problem loans through remedial action, loan sales, and the pursuit of other efforts to ultimately remove problem loans from the Company's balance sheet.
During 2001, the Company retained the services of a team of commercial lenders with strong workout experience to assist in resolving identified problem credits. As a result of the Company's efforts, a number of problem loans have been sold,
refinanced outside of the Company, or charged-off. While charge-offs for the first six months of 2002 were extremely high, these actions are consistent with management's goal to restore a higher level of credit quality within the loan portfolio.
Loans charged-off, however, will continue to be pursued to recover losses where possible. The results of the Company's actions are evidenced by the $25.33 million, or 97.59%, decline in non-accrual loans and the $2.44 million, or 71.03%, decline in
accruing loans past due 90 days or greater. <br> </font></p> <p><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Continual monitoring of the loan portfolio and emphasis on collection of charged-off loans will continue to be one of the
Company's highest priorities in 2002. As of June 30, 2002, the Company believes that its goals of identifying and resolving problem loans is largely complete, with non-performing loans having reached extremely low levels. Based on the Company's
analysis and consideration of the known factors utilized in computing the allowance for loan losses, management believes that the allowance for loan losses as of June 30, 2002 is adequate to provide for probable losses inherent in the Company's loan
portfolio. <br> </font></p> <p><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In subsequent periods, the allowance may prove to be inadequate and the Company may need to take additional provision expense associated with the existing
loan portfolio due to factors not currently known to management. Factors that might require additional provision expense would include deterioration in the financial condition of borrowers or a higher</font><br> </p> <p align="center"> <font
size="2">26</font></p>

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<h5 align="left"><a href="#toc">Table of Contents</a></h5>
 <font size="2">level of charge-offs as a percent of outstanding loan balances as compared to historical trends. Factors that could result in lower, or negative, provision expense include improvement in the financial
condition of the Company's borrowers, improvement in the Company's experience at recovering previously charged-off loans, improvement in the Company's level of charge-offs as a percent of outstanding loan balances, or success in transferring loans
which the Company presently has reserved for to other financial institutions. As an example, since January 1, 2001, the Company has recorded net charge-offs of approximately $44.53 million. Management will continue to vigorously pursue collection of
all charged-off loans and, as a result, the Company may experience net recoveries, as opposed to net charge-offs, in future periods if it is successful in its recovery efforts. Future provision for loan losses will be dependent upon trends in loan
balances, changes in loan quality, and, as previously discussed, potential recoveries on charged-off loans. </font><br> <p align="center"> <font size="2">27</font></p>

<p Style='page-break-before:always'>
<HR  SIZE="3" COLOR="#CCEEFF" WIDTH="100%" ALIGN="CENTER">
<h5 align="left"><a href="#toc">Table of Contents</a></h5>

<TABLE BORDER=0 WIDTH="100%" CELLPADDING=0 CELLSPACING=0>
<TR ALIGN=RIGHT valign="bottom">
<TD ALIGN=RIGHT width="820">&nbsp;</TD>
<TD ALIGN=center colspan="7"><font size="1"><b>Six months ended June 30,</b></font></TD>
<TD ALIGN=RIGHT width="20"></TD>
<TD ALIGN=center colspan="3"><font size="1"><b>Year ended<br> December 31,</b></font></TD> </TR>
<TR ALIGN=RIGHT valign="bottom">
<TD ALIGN=RIGHT width="820"> <div align="left"><font size="2"><b>Allowance for Loan Losses</b></font></div> </TD>
<TD ALIGN=RIGHT width="3"><b><font size="2"></font></b></TD>
<TD ALIGN=center width="90"><b><font size="1">2002</font></b></TD>
<TD ALIGN=center width="2"><b><font size="1"></font></b></TD>
<TD ALIGN=center width="20"><b><font size="1"></font></b></TD>
<TD ALIGN=center width="3"><b><font size="1"></font></b></TD>
<TD ALIGN=center width="90"><b><font size="1">2001</font></b></TD>
<TD ALIGN=center width="2"><b><font size="1"></font></b></TD>
<TD ALIGN=center width="20"><b><font size="1"></font></b></TD>
<TD ALIGN=center width="3"><b><font size="1"></font></b></TD>
<TD ALIGN=center width="90"><b><font size="1">2001</font></b></TD>
<TD ALIGN=left width="15"><font size="2"></font></TD> </TR>
<TR ALIGN=RIGHT valign="bottom">
<TD ALIGN=RIGHT width="820">&nbsp;</TD>
<TD ALIGN=RIGHT colspan="3"> <hr size=2 color="#000000"> </TD>
<TD ALIGN=RIGHT width="20">&nbsp;</TD>
<TD ALIGN=RIGHT colspan="3"> <hr size=2 color="#000000"> </TD>
<TD ALIGN=RIGHT width="20">&nbsp;</TD>
<TD ALIGN=RIGHT colspan="3"> <hr size=2 color="#000000"> </TD> </TR>
<TR ALIGN=RIGHT valign="bottom">
<TD ALIGN=RIGHT width="820"> <div align="left"><font size="2"></font></div> </TD>
<TD ALIGN=RIGHT width="3"><b><font size="2"></font></b></TD>
<TD ALIGN=RIGHT width="90"><b><font size="2"></font></b></TD>
<TD ALIGN=left width="2"><b><font size="2"></font></b></TD>
<TD ALIGN=RIGHT width="20"><font size="2"></font></TD>
<TD ALIGN=RIGHT width="3"><font size="2"></font></TD>
<TD ALIGN=RIGHT width="90"><font size="2"></font></TD>
<TD ALIGN=left width="2"><font size="2"></font></TD>
<TD ALIGN=RIGHT width="20"><font size="2"></font></TD>
<TD ALIGN=RIGHT width="3"><font size="2"></font></TD>
<TD ALIGN=RIGHT width="90"><font size="2"></font></TD>
<TD ALIGN=left width="15"><font size="2"></font></TD> </TR>
<TR ALIGN=RIGHT valign="bottom">
<TD ALIGN=RIGHT width="820" bgcolor="#CCEEFF"> <div align="left"><font size="2">Balance at beginning of period</font></div> </TD>
<TD ALIGN=RIGHT width="3" bgcolor="#CCEEFF"><font size="2">$</font></TD>
<TD ALIGN=RIGHT width="90" bgcolor="#CCEEFF"><font size="2">48,635</font></TD>
<TD ALIGN=left width="2" bgcolor="#CCEEFF"><b><font size="2"></font></b></TD>
<TD ALIGN=RIGHT width="20" bgcolor="#CCEEFF"><font size="2"></font></TD>
<TD ALIGN=RIGHT width="3" bgcolor="#CCEEFF"><font size="2">$</font></TD>
<TD ALIGN=RIGHT width="90" bgcolor="#CCEEFF"><font size="2">40,627</font></TD>
<TD ALIGN=left width="2" bgcolor="#CCEEFF"><font size="2"></font></TD>
<TD ALIGN=RIGHT width="20" bgcolor="#CCEEFF"><font size="2"></font></TD>
<TD ALIGN=RIGHT width="3" bgcolor="#CCEEFF"><font size="2">$</font></TD>
<TD ALIGN=RIGHT width="90" bgcolor="#CCEEFF"><font size="2">40,627</font></TD>
<TD ALIGN=left width="15" bgcolor="#CCEEFF"><font size="2"></font></TD> </TR>
<TR ALIGN=RIGHT valign="bottom">
<TD ALIGN=RIGHT width="820"> <div align="left"><font size="2">Charge-offs:</font></div> </TD>
<TD ALIGN=RIGHT width="3"><b><font size="2"></font></b></TD>
<TD ALIGN=RIGHT width="90"><b><font size="2"></font></b></TD>
<TD ALIGN=left width="2"><b><font size="2"></font></b></TD>
<TD ALIGN=RIGHT width="20"><font size="2"></font></TD>
<TD ALIGN=RIGHT width="3"><font size="2"></font></TD>
<TD ALIGN=RIGHT width="90"><font size="2"></font></TD>
<TD ALIGN=left width="2"><font size="2"></font></TD>
<TD ALIGN=RIGHT width="20"><font size="2"></font></TD>
<TD ALIGN=RIGHT width="3"><font size="2"></font></TD>
<TD ALIGN=RIGHT width="90"><font size="2"></font></TD>
<TD ALIGN=left width="15"><font size="2"></font></TD> </TR>
<TR ALIGN=RIGHT valign="bottom">
<TD ALIGN=RIGHT width="820"> <div align="left"><font size="2">&nbsp;&nbsp;&nbsp;Commercial, financial and agricultural</font></div> </TD>
<TD ALIGN=RIGHT width="3"><b><font size="2"></font></b></TD>
<TD ALIGN=RIGHT width="90"><font size="2">(16,776</font></TD>
<TD ALIGN=left width="2"><font size="2">)</font></TD>
<TD ALIGN=RIGHT width="20"><font size="2"></font></TD>
<TD ALIGN=RIGHT width="3"><font size="2"></font></TD>
<TD ALIGN=RIGHT width="90"><font size="2">(7,454</font></TD>
<TD ALIGN=left width="2"><font size="2">)</font></TD>
<TD ALIGN=RIGHT width="20"><font size="2"></font></TD>
<TD ALIGN=RIGHT width="3"><font size="2"></font></TD>
<TD ALIGN=RIGHT width="90"><font size="2">(15,912</font></TD>
<TD ALIGN=left width="15"><font size="2">)</font></TD> </TR>
<TR ALIGN=RIGHT valign="bottom">
<TD ALIGN=RIGHT width="820" bgcolor="#CCEEFF"> <div align="left"><font size="2">&nbsp;&nbsp;&nbsp;Real estate-mortgage</font></div> </TD>
<TD ALIGN=RIGHT width="3" bgcolor="#CCEEFF"><b><font size="2"></font></b></TD>
<TD ALIGN=RIGHT width="90" bgcolor="#CCEEFF"><font size="2">(6,727</font></TD>
<TD ALIGN=left width="2" bgcolor="#CCEEFF"><font size="2">)</font></TD>
<TD ALIGN=RIGHT width="20" bgcolor="#CCEEFF"><font size="2"></font></TD>
<TD ALIGN=RIGHT width="3" bgcolor="#CCEEFF"><font size="2"></font></TD>
<TD ALIGN=RIGHT width="90" bgcolor="#CCEEFF"><font size="2">(1,683</font></TD>
<TD ALIGN=left width="2" bgcolor="#CCEEFF"><font size="2">)</font></TD>
<TD ALIGN=RIGHT width="20" bgcolor="#CCEEFF"><font size="2"></font></TD>
<TD ALIGN=RIGHT width="3" bgcolor="#CCEEFF"><font size="2"></font></TD>
<TD ALIGN=RIGHT width="90" bgcolor="#CCEEFF"><font size="2">(3,379</font></TD>
<TD ALIGN=left width="15" bgcolor="#CCEEFF"><font size="2">)</font></TD> </TR>
<TR ALIGN=RIGHT valign="bottom">
<TD ALIGN=RIGHT width="820"> <div align="left"><font size="2">&nbsp;&nbsp;&nbsp;Installment loans to individuals</font></div> </TD>
<TD ALIGN=RIGHT width="3"><b><font size="2"></font></b></TD>
<TD ALIGN=RIGHT width="90"><font size="2">(2,423</font></TD>
<TD ALIGN=left width="2"><font size="2">)</font></TD>
<TD ALIGN=RIGHT width="20"><font size="2"></font></TD>
<TD ALIGN=RIGHT width="3"><font size="2"></font></TD>
<TD ALIGN=RIGHT width="90"><font size="2">(3,373</font></TD>
<TD ALIGN=left width="2"><font size="2">)</font></TD>
<TD ALIGN=RIGHT width="20"><font size="2"></font></TD>
<TD ALIGN=RIGHT width="3"><font size="2"></font></TD>
<TD ALIGN=RIGHT width="90"><font size="2">(7,071</font></TD>
<TD ALIGN=left width="15"><font size="2">)</font></TD> </TR>
<TR ALIGN=RIGHT valign="bottom">
<TD ALIGN=RIGHT width="820">&nbsp;</TD>
<TD ALIGN=RIGHT colspan="3"> <hr size=2 color="#000000"> </TD>
<TD ALIGN=RIGHT width="20">&nbsp;</TD>
<TD ALIGN=RIGHT colspan="3"> <hr size=2 color="#000000"> </TD>
<TD ALIGN=RIGHT width="20">&nbsp;</TD>
<TD ALIGN=RIGHT colspan="3"> <hr size=2 color="#000000"> </TD> </TR>
<TR ALIGN=RIGHT valign="bottom">
<TD ALIGN=RIGHT width="820" bgcolor="#CCEEFF"> <div align="left"><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total charge-offs</font></div> </TD>
<TD ALIGN=RIGHT width="3" bgcolor="#CCEEFF"><b><font size="2"></font></b></TD>
<TD ALIGN=RIGHT width="90" bgcolor="#CCEEFF"><font size="2">(25,926</font></TD>
<TD ALIGN=left width="2" bgcolor="#CCEEFF"><font size="2">)</font></TD>
<TD ALIGN=RIGHT width="20" bgcolor="#CCEEFF"><font size="2"></font></TD>
<TD ALIGN=RIGHT width="3" bgcolor="#CCEEFF"><font size="2"></font></TD>
<TD ALIGN=RIGHT width="90" bgcolor="#CCEEFF"><font size="2">(12,510</font></TD>
<TD ALIGN=left width="2" bgcolor="#CCEEFF"><font size="2">)</font></TD>
<TD ALIGN=RIGHT width="20" bgcolor="#CCEEFF"><font size="2"></font></TD>
<TD ALIGN=RIGHT width="3" bgcolor="#CCEEFF"><font size="2"></font></TD>
<TD ALIGN=RIGHT width="90" bgcolor="#CCEEFF"><font size="2">(26,362</font></TD>
<TD ALIGN=left width="15" bgcolor="#CCEEFF"><font size="2">)</font></TD> </TR>
<TR ALIGN=RIGHT valign="bottom">
<TD ALIGN=RIGHT width="820"> <div align="left"><font size="2"></font></div> </TD>
<TD ALIGN=RIGHT width="3"><b><font size="2"></font></b></TD>
<TD ALIGN=RIGHT width="90"><b><font size="2"></font></b></TD>
<TD ALIGN=left width="2"><b><font size="2"></font></b></TD>
<TD ALIGN=RIGHT width="20"><font size="2"></font></TD>
<TD ALIGN=RIGHT width="3"><font size="2"></font></TD>
<TD ALIGN=RIGHT width="90"><font size="2"></font></TD>
<TD ALIGN=left width="2"><font size="2"></font></TD>
<TD ALIGN=RIGHT width="20"><font size="2"></font></TD>
<TD ALIGN=RIGHT width="3"><font size="2"></font></TD>
<TD ALIGN=RIGHT width="90"><font size="2"></font></TD>
<TD ALIGN=left width="15"><font size="2"></font></TD> </TR>
<TR ALIGN=RIGHT valign="bottom">
<TD ALIGN=RIGHT width="820"> <div align="left"><font size="2">Recoveries:</font></div> </TD>
<TD ALIGN=RIGHT width="3"><b><font size="2"></font></b></TD>
<TD ALIGN=RIGHT width="90"><b><font size="2"></font></b></TD>
<TD ALIGN=left width="2"><b><font size="2"></font></b></TD>
<TD ALIGN=RIGHT width="20"><font size="2"></font></TD>
<TD ALIGN=RIGHT width="3"><font size="2"></font></TD>
<TD ALIGN=RIGHT width="90"><font size="2"></font></TD>
<TD ALIGN=left width="2"><font size="2"></font></TD>
<TD ALIGN=RIGHT width="20"><font size="2"></font></TD>
<TD ALIGN=RIGHT width="3"><font size="2"></font></TD>
<TD ALIGN=RIGHT width="90"><font size="2"></font></TD>
<TD ALIGN=left width="15"><font size="2"></font></TD> </TR>
<TR ALIGN=RIGHT valign="bottom">
<TD ALIGN=RIGHT width="820" bgcolor="#CCEEFF"> <div align="left"><font size="2">&nbsp;&nbsp;&nbsp;Commercial, financial and agricultural</font></div> </TD>
<TD ALIGN=RIGHT width="3" bgcolor="#CCEEFF"><b><font size="2"></font></b></TD>
<TD ALIGN=RIGHT width="90" bgcolor="#CCEEFF"><font size="2">2,478</font></TD>
<TD ALIGN=left width="2" bgcolor="#CCEEFF"><b><font size="2"></font></b></TD>
<TD ALIGN=RIGHT width="20" bgcolor="#CCEEFF"><font size="2"></font></TD>
<TD ALIGN=RIGHT width="3" bgcolor="#CCEEFF"><font size="2"></font></TD>
<TD ALIGN=RIGHT width="90" bgcolor="#CCEEFF"><font size="2">639</font></TD>
<TD ALIGN=left width="2" bgcolor="#CCEEFF"><font size="2"></font></TD>
<TD ALIGN=RIGHT width="20" bgcolor="#CCEEFF"><font size="2"></font></TD>
<TD ALIGN=RIGHT width="3" bgcolor="#CCEEFF"><font size="2"></font></TD>
<TD ALIGN=RIGHT width="90" bgcolor="#CCEEFF"><font size="2">2,144</font></TD>
<TD ALIGN=left width="15" bgcolor="#CCEEFF"><font size="2"></font></TD> </TR>
<TR ALIGN=RIGHT valign="bottom">
<TD ALIGN=RIGHT width="820"> <div align="left"><font size="2">&nbsp;&nbsp;&nbsp;Real estate-mortgage</font></div> </TD>
<TD ALIGN=RIGHT width="3"><b><font size="2"></font></b></TD>
<TD ALIGN=RIGHT width="90"><font size="2">184</font></TD>
<TD ALIGN=left width="2"><b><font size="2"></font></b></TD>
<TD ALIGN=RIGHT width="20"><font size="2"></font></TD>
<TD ALIGN=RIGHT width="3"><font size="2"></font></TD>
<TD ALIGN=RIGHT width="90"><font size="2">185</font></TD>
<TD ALIGN=left width="2"><font size="2"></font></TD>
<TD ALIGN=RIGHT width="20"><font size="2"></font></TD>
<TD ALIGN=RIGHT width="3"><font size="2"></font></TD>
<TD ALIGN=RIGHT width="90"><font size="2">513</font></TD>
<TD ALIGN=left width="15"><font size="2"></font></TD> </TR>
<TR ALIGN=RIGHT valign="bottom">
<TD ALIGN=RIGHT width="820" bgcolor="#CCEEFF"> <div align="left"><font size="2">&nbsp;&nbsp;&nbsp;Installment loans to individuals</font></div> </TD>
<TD ALIGN=RIGHT width="3" bgcolor="#CCEEFF"><b><font size="2"></font></b></TD>
<TD ALIGN=RIGHT width="90" bgcolor="#CCEEFF"><font size="2">852</font></TD>
<TD ALIGN=left width="2" bgcolor="#CCEEFF"><b><font size="2"></font></b></TD>
<TD ALIGN=RIGHT width="20" bgcolor="#CCEEFF"><font size="2"></font></TD>
<TD ALIGN=RIGHT width="3" bgcolor="#CCEEFF"><font size="2"></font></TD>
<TD ALIGN=RIGHT width="90" bgcolor="#CCEEFF"><font size="2">797</font></TD>
<TD ALIGN=left width="2" bgcolor="#CCEEFF"><font size="2"></font></TD>
<TD ALIGN=RIGHT width="20" bgcolor="#CCEEFF"><font size="2"></font></TD>
<TD ALIGN=RIGHT width="3" bgcolor="#CCEEFF"><font size="2"></font></TD>
<TD ALIGN=RIGHT width="90" bgcolor="#CCEEFF"><font size="2">1,586</font></TD>
<TD ALIGN=left width="15" bgcolor="#CCEEFF"><font size="2"></font></TD> </TR>
<TR ALIGN=RIGHT valign="bottom">
<TD ALIGN=RIGHT width="820">&nbsp;</TD>
<TD ALIGN=RIGHT colspan="3"> <hr size=2 color="#000000"> </TD>
<TD ALIGN=RIGHT width="20">&nbsp;</TD>
<TD ALIGN=RIGHT colspan="3"> <hr size=2 color="#000000"> </TD>
<TD ALIGN=RIGHT width="20">&nbsp;</TD>
<TD ALIGN=RIGHT colspan="3"> <hr size=2 color="#000000"> </TD> </TR>
<TR ALIGN=RIGHT valign="bottom">
<TD ALIGN=RIGHT width="820" bgcolor="#CCEEFF"> <div align="left"><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total recoveries</font></div> </TD>
<TD ALIGN=RIGHT width="3" bgcolor="#CCEEFF"><b><font size="2"></font></b></TD>
<TD ALIGN=RIGHT width="90" bgcolor="#CCEEFF"><font size="2">3,514</font></TD>
<TD ALIGN=left width="2" bgcolor="#CCEEFF"><b><font size="2"></font></b></TD>
<TD ALIGN=RIGHT width="20" bgcolor="#CCEEFF"><font size="2"></font></TD>
<TD ALIGN=RIGHT width="3" bgcolor="#CCEEFF"><font size="2"></font></TD>
<TD ALIGN=RIGHT width="90" bgcolor="#CCEEFF"><font size="2">1,621</font></TD>
<TD ALIGN=left width="2" bgcolor="#CCEEFF"><font size="2"></font></TD>
<TD ALIGN=RIGHT width="20" bgcolor="#CCEEFF"><font size="2"></font></TD>
<TD ALIGN=RIGHT width="3" bgcolor="#CCEEFF"><font size="2"></font></TD>
<TD ALIGN=RIGHT width="90" bgcolor="#CCEEFF"><font size="2">4,243</font></TD>
<TD ALIGN=left width="15" bgcolor="#CCEEFF"><font size="2"></font></TD> </TR>
<TR ALIGN=RIGHT valign="bottom">
<TD ALIGN=RIGHT width="820">&nbsp;</TD>
<TD ALIGN=RIGHT colspan="3"> <hr size=2 color="#000000"> </TD>
<TD ALIGN=RIGHT width="20">&nbsp;</TD>
<TD ALIGN=RIGHT colspan="3"> <hr size=2 color="#000000"> </TD>
<TD ALIGN=RIGHT width="20">&nbsp;</TD>
<TD ALIGN=RIGHT colspan="3"> <hr size=2 color="#000000"> </TD> </TR>
<TR ALIGN=RIGHT valign="bottom">
<TD ALIGN=RIGHT width="820"> <div align="left"><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net charge-offs</font></div> </TD>
<TD ALIGN=RIGHT width="3"><b><font size="2"></font></b></TD>
<TD ALIGN=RIGHT width="90"><font size="2">(22,412</font></TD>
<TD ALIGN=left width="2"><font size="2">)</font></TD>
<TD ALIGN=RIGHT width="20"><font size="2"></font></TD>
<TD ALIGN=RIGHT width="3"><font size="2"></font></TD>
<TD ALIGN=RIGHT width="90"><font size="2">(10,889</font></TD>
<TD ALIGN=left width="2"><font size="2">)</font></TD>
<TD ALIGN=RIGHT width="20"><font size="2"></font></TD>
<TD ALIGN=RIGHT width="3"><font size="2"></font></TD>
<TD ALIGN=RIGHT width="90"><font size="2">(22,119</font></TD>
<TD ALIGN=left width="15"><font size="2">)</font></TD> </TR>
<TR ALIGN=RIGHT valign="bottom">
<TD ALIGN=RIGHT width="820" bgcolor="#CCEEFF"> <div align="left"><font size="2">Provision for loan losses</font></div> </TD>
<TD ALIGN=RIGHT width="3" bgcolor="#CCEEFF"><b><font size="2"></font></b></TD>
<TD ALIGN=RIGHT width="90" bgcolor="#CCEEFF"><font size="2">1,800</font></TD>
<TD ALIGN=left width="2" bgcolor="#CCEEFF"><b><font size="2"></font></b></TD>
<TD ALIGN=RIGHT width="20" bgcolor="#CCEEFF"><font size="2"></font></TD>
<TD ALIGN=RIGHT width="3" bgcolor="#CCEEFF"><font size="2"></font></TD>
<TD ALIGN=RIGHT width="90" bgcolor="#CCEEFF"><font size="2">16,010</font></TD>
<TD ALIGN=left width="2" bgcolor="#CCEEFF"><font size="2"></font></TD>
<TD ALIGN=RIGHT width="20" bgcolor="#CCEEFF"><font size="2"></font></TD>
<TD ALIGN=RIGHT width="3" bgcolor="#CCEEFF"><font size="2"></font></TD>
<TD ALIGN=RIGHT width="90" bgcolor="#CCEEFF"><font size="2">32,178</font></TD>
<TD ALIGN=left width="15" bgcolor="#CCEEFF"><font size="2"></font></TD> </TR>
<TR ALIGN=RIGHT valign="bottom">
<TD ALIGN=RIGHT width="820"> <div align="left"><font size="2">Balance of sold institutions</font></div> </TD>
<TD ALIGN=RIGHT width="3"><b><font size="2"></font></b></TD>
<TD ALIGN=RIGHT width="90"><font size="2">&#151;</font></TD>
<TD ALIGN=left width="2"><b><font size="2"></font></b></TD>
<TD ALIGN=RIGHT width="20"><font size="2"></font></TD>
<TD ALIGN=RIGHT width="3"><font size="2"></font></TD>
<TD ALIGN=RIGHT width="90"><font size="2">&#151;</font></TD>
<TD ALIGN=left width="2"><font size="2"></font></TD>
<TD ALIGN=RIGHT width="20"><font size="2"></font></TD>
<TD ALIGN=RIGHT width="3"><font size="2"></font></TD>
<TD ALIGN=RIGHT width="90"><font size="2">(2,051</font></TD>
<TD ALIGN=left width="15"><font size="2">)</font></TD> </TR>
<TR ALIGN=RIGHT valign="bottom">
<TD ALIGN=RIGHT width="820">&nbsp;</TD>
<TD ALIGN=RIGHT colspan="3"> <hr size=2 color="#000000"> </TD>
<TD ALIGN=RIGHT width="20">&nbsp;</TD>
<TD ALIGN=RIGHT colspan="3"> <hr size=2 color="#000000"> </TD>
<TD ALIGN=RIGHT width="20">&nbsp;</TD>
<TD ALIGN=RIGHT colspan="3"> <hr size=2 color="#000000"> </TD> </TR>
<TR ALIGN=RIGHT valign="bottom">
<TD ALIGN=RIGHT width="820" bgcolor="#CCEEFF"> <div align="left"><font size="2">Balance at end of period</font></div> </TD>
<TD ALIGN=RIGHT width="3" bgcolor="#CCEEFF"><font size="2">$</font></TD>
<TD ALIGN=RIGHT width="90" bgcolor="#CCEEFF"><font size="2">28,023</font></TD>
<TD ALIGN=left width="2" bgcolor="#CCEEFF"><b><font size="2"></font></b></TD>
<TD ALIGN=RIGHT width="20" bgcolor="#CCEEFF"><font size="2"></font></TD>
<TD ALIGN=RIGHT width="3" bgcolor="#CCEEFF"><font size="2">$</font></TD>
<TD ALIGN=RIGHT width="90" bgcolor="#CCEEFF"><font size="2">45,748</font></TD>
<TD ALIGN=left width="2" bgcolor="#CCEEFF"><font size="2"></font></TD>
<TD ALIGN=RIGHT width="20" bgcolor="#CCEEFF"><font size="2"></font></TD>
<TD ALIGN=RIGHT width="3" bgcolor="#CCEEFF"><font size="2">$</font></TD>
<TD ALIGN=RIGHT width="90" bgcolor="#CCEEFF"><font size="2">48,635</font></TD>
<TD ALIGN=left width="15" bgcolor="#CCEEFF"><font size="2"></font></TD> </TR>
<TR ALIGN=RIGHT valign="bottom">
<TD ALIGN=RIGHT width="820">&nbsp;</TD>
<TD ALIGN=RIGHT colspan="3"> <hr size=4 color="#000000"> </TD>
<TD ALIGN=RIGHT width="20">&nbsp;</TD>
<TD ALIGN=RIGHT colspan="3"> <hr size=4 color="#000000"> </TD>
<TD ALIGN=RIGHT width="20">&nbsp;</TD>
<TD ALIGN=RIGHT colspan="3"> <hr size=4 color="#000000"> </TD> </TR>
<TR ALIGN=RIGHT valign="bottom">
<TD ALIGN=RIGHT width="820"> <div align="left"><font size="2"></font></div> </TD>
<TD ALIGN=RIGHT width="3"><b><font size="2"></font></b></TD>
<TD ALIGN=RIGHT width="90"><b><font size="2"></font></b></TD>
<TD ALIGN=left width="2"><b><font size="2"></font></b></TD>
<TD ALIGN=RIGHT width="20"><font size="2"></font></TD>
<TD ALIGN=RIGHT width="3"><font size="2"></font></TD>
<TD ALIGN=RIGHT width="90"><font size="2"></font></TD>
<TD ALIGN=left width="2"><font size="2"></font></TD>
<TD ALIGN=RIGHT width="20"><font size="2"></font></TD>
<TD ALIGN=RIGHT width="3"><font size="2"></font></TD>
<TD ALIGN=RIGHT width="90"><font size="2"></font></TD>
<TD ALIGN=left width="15"><font size="2"></font></TD> </TR>
<TR ALIGN=RIGHT valign="bottom">
<TD ALIGN=RIGHT width="820"> <div align="left"><font size="2"><b>As a Percent of Average Total Loans:</b></font></div> </TD>
<TD ALIGN=RIGHT width="3"><b><font size="2"></font></b></TD>
<TD ALIGN=RIGHT width="90"><b><font size="2"></font></b></TD>
<TD ALIGN=left width="2"><b><font size="2"></font></b></TD>
<TD ALIGN=RIGHT width="20"><font size="2"></font></TD>
<TD ALIGN=RIGHT width="3"><font size="2"></font></TD>
<TD ALIGN=RIGHT width="90"><font size="2"></font></TD>
<TD ALIGN=left width="2"><font size="2"></font></TD>
<TD ALIGN=RIGHT width="20"><font size="2"></font></TD>
<TD ALIGN=RIGHT width="3"><font size="2"></font></TD>
<TD ALIGN=RIGHT width="90"><font size="2"></font></TD>
<TD ALIGN=left width="15"><font size="2"></font></TD> </TR>
<TR ALIGN=RIGHT bgcolor="#CCEEFF" valign="bottom">
<TD ALIGN=RIGHT width="820"> <div align="left"><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net charge-offs (annualized)</font></div> </TD>
<TD ALIGN=RIGHT width="3"><b><font size="2"></font></b></TD>
<TD ALIGN=RIGHT width="90"><font size="2">3.45</font></TD>
<TD ALIGN=left width="2"><font size="2">%</font></TD>
<TD ALIGN=RIGHT width="20"><font size="2"></font></TD>
<TD ALIGN=RIGHT width="3"><font size="2"></font></TD>
<TD ALIGN=RIGHT width="90"><font size="2">1.16</font></TD>
<TD ALIGN=left width="2"><font size="2">%</font></TD>
<TD ALIGN=RIGHT width="20"><font size="2"></font></TD>
<TD ALIGN=RIGHT width="3"><font size="2"></font></TD>
<TD ALIGN=RIGHT width="90"><font size="2">0.61</font></TD>
<TD ALIGN=left width="15"><font size="2">%</font></TD> </TR>
<TR ALIGN=RIGHT valign="bottom">
<TD ALIGN=RIGHT width="820"> <div align="left"><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Provision for loan losses (annualized)</font></div> </TD>
<TD ALIGN=RIGHT width="3"><b><font size="2"></font></b></TD>
<TD ALIGN=RIGHT width="90"><font size="2">0.28</font></TD>
<TD ALIGN=left width="2"><b><font size="2"></font></b></TD>
<TD ALIGN=RIGHT width="20"><font size="2"></font></TD>
<TD ALIGN=RIGHT width="3"><font size="2"></font></TD>
<TD ALIGN=RIGHT width="90"><font size="2">1.70</font></TD>
<TD ALIGN=left width="2"><font size="2"></font></TD>
<TD ALIGN=RIGHT width="20"><font size="2"></font></TD>
<TD ALIGN=RIGHT width="3"><font size="2"></font></TD>
<TD ALIGN=RIGHT width="90"><font size="2">1.29</font></TD>
<TD ALIGN=left width="15"><font size="2"></font></TD> </TR>
<TR ALIGN=RIGHT valign="bottom">
<TD ALIGN=RIGHT width="820"> <div align="left"><font size="2"><b>As a Percent of Non-Performing Loans:</b></font></div> </TD>
<TD ALIGN=RIGHT width="3"><b><font size="2"></font></b></TD>
<TD ALIGN=RIGHT width="90"><b><font size="2"></font></b></TD>
<TD ALIGN=left width="2"><b><font size="2"></font></b></TD>
<TD ALIGN=RIGHT width="20"><font size="2"></font></TD>
<TD ALIGN=RIGHT width="3"><font size="2"></font></TD>
<TD ALIGN=RIGHT width="90"><font size="2"></font></TD>
<TD ALIGN=left width="2"><font size="2"></font></TD>
<TD ALIGN=RIGHT width="20"><font size="2"></font></TD>
<TD ALIGN=RIGHT width="3"><font size="2"></font></TD>
<TD ALIGN=RIGHT width="90"><font size="2"></font></TD>
<TD ALIGN=left width="15"><font size="2"></font></TD> </TR>
<TR ALIGN=RIGHT bgcolor="#CCEEFF" valign="bottom">
<TD ALIGN=RIGHT width="820"> <div align="left"><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Allowance for loan losses</font></div> </TD>
<TD ALIGN=RIGHT width="3"><b><font size="2"></font></b></TD>
<TD ALIGN=RIGHT width="90"><font size="2">1,728.75</font></TD>
<TD ALIGN=left width="2"><font size="2">%</font></TD>
<TD ALIGN=RIGHT width="20"><font size="2"></font></TD>
<TD ALIGN=RIGHT width="3"><font size="2"></font></TD>
<TD ALIGN=RIGHT width="90"><font size="2">125.04</font></TD>
<TD ALIGN=left width="2"><font size="2">%</font></TD>
<TD ALIGN=RIGHT width="20"><font size="2"></font></TD>
<TD ALIGN=RIGHT width="3"><font size="2"></font></TD>
<TD ALIGN=RIGHT width="90"><font size="2">199.88</font></TD>
<TD ALIGN=left width="15"><font size="2">%</font></TD> </TR> </TABLE> <br>
<TABLE BORDER=0 WIDTH="100%" CELLPADDING=0 CELLSPACING=0>
<TR ALIGN=RIGHT valign="bottom">
<TD ALIGN=left></TD>
<TD ALIGN=center colspan="6"><b><font size="1">As of June 30,</font></b></TD>
<TD ALIGN=center colspan="3"><b><font size="1">As of<br> December 31,</font></b></TD> </TR>
<TR ALIGN=RIGHT valign="bottom">
<TD ALIGN=left><font size="2"></font></TD>
<TD ALIGN=RIGHT width="3"><b><font size="2"></font></b></TD>
<TD ALIGN=center width="90"><b><font size="1">2002</font></b></TD>
<TD ALIGN=center width="20"><b><font size="1"></font></b></TD>
<TD ALIGN=center width="3"><b><font size="1"></font></b></TD>
<TD ALIGN=center width="90"><b><font size="1">2001</font></b></TD>
<TD ALIGN=center width="20"><b><font size="1"></font></b></TD>
<TD ALIGN=center width="3"><b><font size="1"></font></b></TD>
<TD ALIGN=center width="90"><b><font size="1">2001</font></b></TD>
<TD ALIGN=RIGHT width="15"><font size="2"></font></TD> </TR>
<TR ALIGN=RIGHT valign="bottom">
<TD ALIGN=left><b><font size="2">Summary of Non-performing Assets</font></b></TD>
<TD ALIGN=RIGHT colspan="2"> <hr size=2 color="#000000"> </TD>
<TD ALIGN=RIGHT width="20"><font size="2"></font></TD>
<TD ALIGN=RIGHT colspan="2"> <hr size=2 color="#000000"> </TD>
<TD ALIGN=RIGHT width="20"><font size="2"></font></TD>
<TD ALIGN=RIGHT colspan="2"> <hr size=2 color="#000000"> </TD>
<TD ALIGN=RIGHT width="15"><font size="2"></font></TD> </TR>
<TR ALIGN=RIGHT valign="bottom">
<TD ALIGN=left><font size="2"></font></TD>
<TD ALIGN=RIGHT width="3"><b><font size="2"></font></b></TD>
<TD ALIGN=RIGHT width="90"><b><font size="2"></font></b></TD>
<TD ALIGN=RIGHT width="20"><font size="2"></font></TD>
<TD ALIGN=RIGHT width="3"><font size="2"></font></TD>
<TD ALIGN=RIGHT width="90"><font size="2"></font></TD>
<TD ALIGN=RIGHT width="20"><font size="2"></font></TD>
<TD ALIGN=RIGHT width="3"><font size="2"></font></TD>
<TD ALIGN=RIGHT width="90"><font size="2"></font></TD>
<TD ALIGN=RIGHT width="15"><font size="2"></font></TD> </TR>
<TR ALIGN=RIGHT valign="bottom">
<TD ALIGN=left bgcolor="#CCEEFF"><font size="2">Non-accrual loans</font></TD>
<TD ALIGN=RIGHT width="3" bgcolor="#CCEEFF"><font size="2">$</font></TD>
<TD ALIGN=RIGHT width="90" bgcolor="#CCEEFF"><font size="2"> 626</font></TD>
<TD ALIGN=RIGHT width="20" bgcolor="#CCEEFF"><font size="2"></font></TD>
<TD ALIGN=RIGHT width="3" bgcolor="#CCEEFF"><font size="2">$</font></TD>
<TD ALIGN=RIGHT width="90" bgcolor="#CCEEFF"><font size="2">29,787</font></TD>
<TD ALIGN=RIGHT width="20" bgcolor="#CCEEFF"><font size="2"></font></TD>
<TD ALIGN=RIGHT width="3" bgcolor="#CCEEFF"><font size="2">$</font></TD>
<TD ALIGN=RIGHT width="90" bgcolor="#CCEEFF"><font size="2">25,957</font></TD>
<TD ALIGN=RIGHT width="15" bgcolor="#CCEEFF"><font size="2"></font></TD> </TR>
<TR ALIGN=RIGHT valign="bottom">
<TD ALIGN=left><font size="2">Accruing loans past due 90 days or more</font></TD>
<TD ALIGN=RIGHT width="3"><b><font size="2"></font></b></TD>
<TD ALIGN=RIGHT width="90"><font size="2">995</font></TD>
<TD ALIGN=RIGHT width="20"><font size="2"></font></TD>
<TD ALIGN=RIGHT width="3"><font size="2"></font></TD>
<TD ALIGN=RIGHT width="90"><font size="2">6,316</font></TD>
<TD ALIGN=RIGHT width="20"><font size="2"></font></TD>
<TD ALIGN=RIGHT width="3"><font size="2"></font></TD>
<TD ALIGN=RIGHT width="90"><font size="2">3,434</font></TD>
<TD ALIGN=RIGHT width="15"><font size="2"></font></TD> </TR>
<TR ALIGN=RIGHT valign="bottom">
<TD ALIGN=left bgcolor="#CCEEFF"><font size="2">Restructured loans</font></TD>
<TD ALIGN=RIGHT width="3" bgcolor="#CCEEFF"><b><font size="2"></font></b></TD>
<TD ALIGN=RIGHT width="90" bgcolor="#CCEEFF"><b><font size="2">&#151;</font></b></TD>
<TD ALIGN=RIGHT width="20" bgcolor="#CCEEFF"><font size="2"></font></TD>
<TD ALIGN=RIGHT width="3" bgcolor="#CCEEFF"><font size="2"></font></TD>
<TD ALIGN=RIGHT width="90" bgcolor="#CCEEFF"><font size="2">483</font></TD>
<TD ALIGN=RIGHT width="20" bgcolor="#CCEEFF"><font size="2"></font></TD>
<TD ALIGN=RIGHT width="3" bgcolor="#CCEEFF"><font size="2"></font></TD>
<TD ALIGN=RIGHT width="90" bgcolor="#CCEEFF"><font size="2">167</font></TD>
<TD ALIGN=RIGHT width="15" bgcolor="#CCEEFF"><font size="2"></font></TD> </TR>
<TR ALIGN=RIGHT valign="bottom">
<TD ALIGN=left>&nbsp;</TD>
<TD ALIGN=RIGHT colspan="2"> <hr size=2 color="#000000"> </TD>
<TD ALIGN=RIGHT width="20">&nbsp;</TD>
<TD ALIGN=RIGHT colspan="2"> <hr size=2 color="#000000"> </TD>
<TD ALIGN=RIGHT width="20">&nbsp;</TD>
<TD ALIGN=RIGHT colspan="2"> <hr size=2 color="#000000"> </TD>
<TD ALIGN=RIGHT width="15">&nbsp;</TD> </TR>
<TR ALIGN=RIGHT valign="bottom">
<TD ALIGN=left bgcolor="#CCEEFF"><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;Total non-performing loans</font></TD>
<TD ALIGN=RIGHT width="3" bgcolor="#CCEEFF"><b><font size="2"></font></b></TD>
<TD ALIGN=RIGHT width="90" bgcolor="#CCEEFF"><font size="2">1,621</font></TD>
<TD ALIGN=RIGHT width="20" bgcolor="#CCEEFF"><font size="2"></font></TD>
<TD ALIGN=RIGHT width="3" bgcolor="#CCEEFF"><font size="2"></font></TD>
<TD ALIGN=RIGHT width="90" bgcolor="#CCEEFF"><font size="2">36,586</font></TD>
<TD ALIGN=RIGHT width="20" bgcolor="#CCEEFF"><font size="2"></font></TD>
<TD ALIGN=RIGHT width="3" bgcolor="#CCEEFF"><font size="2"></font></TD>
<TD ALIGN=RIGHT width="90" bgcolor="#CCEEFF"><font size="2">29,558</font></TD>
<TD ALIGN=RIGHT width="15" bgcolor="#CCEEFF"><font size="2"></font></TD> </TR>
<TR ALIGN=RIGHT valign="bottom">
<TD ALIGN=left><font size="2">Other real estate owned</font></TD>
<TD ALIGN=RIGHT width="3"><b><font size="2"></font></b></TD>
<TD ALIGN=RIGHT width="90"><font size="2">1,681</font></TD>
<TD ALIGN=RIGHT width="20"><font size="2"></font></TD>
<TD ALIGN=RIGHT width="3"><font size="2"></font></TD>
<TD ALIGN=RIGHT width="90"><font size="2">3,971</font></TD>
<TD ALIGN=RIGHT width="20"><font size="2"></font></TD>
<TD ALIGN=RIGHT width="3"><font size="2"></font></TD>
<TD ALIGN=RIGHT width="90"><font size="2">2,866</font></TD>
<TD ALIGN=RIGHT width="15"><font size="2"></font></TD> </TR>
<TR ALIGN=RIGHT valign="bottom">
<TD ALIGN=left>&nbsp;</TD>
<TD ALIGN=RIGHT colspan="2"> <hr size=2 color="#000000"> </TD>
<TD ALIGN=RIGHT width="20">&nbsp;</TD>
<TD ALIGN=RIGHT colspan="2"> <hr size=2 color="#000000"> </TD>
<TD ALIGN=RIGHT width="20">&nbsp;</TD>
<TD ALIGN=RIGHT colspan="2"> <hr size=2 color="#000000"> </TD>
<TD ALIGN=RIGHT width="15">&nbsp;</TD> </TR>
<TR ALIGN=RIGHT valign="bottom">
<TD ALIGN=left bgcolor="#CCEEFF"><font size="2">&nbsp;&nbsp;&nbsp;Total non-performing assets</font></TD>
<TD ALIGN=RIGHT width="3" bgcolor="#CCEEFF"><font size="2">$</font></TD>
<TD ALIGN=RIGHT width="90" bgcolor="#CCEEFF"><font size="2">3,302</font></TD>
<TD ALIGN=RIGHT width="20" bgcolor="#CCEEFF"><font size="2"></font></TD>
<TD ALIGN=RIGHT width="3" bgcolor="#CCEEFF"><font size="2">$</font></TD>
<TD ALIGN=RIGHT width="90" bgcolor="#CCEEFF"><font size="2">40,557</font></TD>
<TD ALIGN=RIGHT width="20" bgcolor="#CCEEFF"><font size="2"></font></TD>
<TD ALIGN=RIGHT width="3" bgcolor="#CCEEFF"><font size="2">$</font></TD>
<TD ALIGN=RIGHT width="90" bgcolor="#CCEEFF"><font size="2">32,424</font></TD>
<TD ALIGN=RIGHT width="15" bgcolor="#CCEEFF"><font size="2"></font></TD> </TR>
<TR ALIGN=RIGHT valign="bottom">
<TD ALIGN=left>&nbsp;</TD>
<TD ALIGN=RIGHT colspan="2"> <hr size=4 color="#000000"> </TD>
<TD ALIGN=RIGHT width="20">&nbsp;</TD>
<TD ALIGN=RIGHT colspan="2"> <hr size=4 color="#000000"> </TD>
<TD ALIGN=RIGHT width="20">&nbsp;</TD>
<TD ALIGN=RIGHT colspan="2"> <hr size=4 color="#000000"> </TD>
<TD ALIGN=RIGHT width="15">&nbsp;</TD> </TR> </TABLE> <p><br> <font size="2"> <b>RETAINED INTERESTS</b><br> <br> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Between 1997 and 1999, the Company completed six securitization transactions involving
approximately $759.76 million of fixed rate, junior lien mortgage loans. The Company retains a financial interest in the securitizations comprised of (1) the excess interest collected on the underlying collateral loans over the interest paid to
third-party investors and administrative fees and (2) overcollateralization, or the excess principal balance of the underlying collateral loans over the principal balances payable to the third-party investors. As of June 30, 2002, $285.74 million of
securitized loans remain outstanding and principal balances payable to investors approximate $173.30 million. As a result, the Company's retained interests in securitized mortgage loans represents the Company's financial interest in $112.44 million
of overcollateralization and the excess interest to be derived from $285.74 million of loans still outstanding over the interest to</font></p> <p align="center"><font size="2">28</font></p>

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 <p><font size="2">be paid to investors on $173.30 million of principal outstanding as of June 30, 2002, plus administrative fees. As of June 30, 2002, the weighted-average interest rate earned on the collateral loans
approximates 12.55% and the weighted-average interest rate paid to investors approximates 6.95%. Administrative fees, comprised primarily of loan servicing fees, trustee fees, and insurance premiums, represent an additional 1.44%. <br> </font></p>
<p><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Neither the outstanding balance of the collateral loans nor the outstanding principal owed to investors is included in the Company's Consolidated Balance Sheets. The third-party
investors do not have direct recourse to the Company for amounts of principal or interest owed to them. The Company provides limited recourse by accepting the "first loss" position in the securitizations. To the extent the underlying collateral
loans default, the overcollateralization that currently exists is used to provide additional loss protection to the investors. However, to the extent that loan defaults exceed those projected by the Company in estimating the fair value of its
retained interests, the Company could experience impairment in the fair value of its retained interests and recognize an impairment loss in its Consolidated Statements of Income. Insurance premiums paid from the excess cash flows provide insurance
for the benefit of the investors to further protect investors from a loss of principal. The Company would not be obligated to provide additional funds or assets in the event that the overcollateralization is extinguished by excessive defaults
experienced in the underlying collateral pools or if the insurer was unable to fulfill its commitment to the investors.<br> </font></p> <p><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As of June 30, 2002 and December 31, 2001, the
Company reported retained interests in its securitizations of approximately $76.93 million and $71.27 million, respectively. The value of the retained interests is determined using cash flow modeling techniques that incorporate key assumptions
related to default, prepayment, and discount rates. Using these assumptions, the Company forecasts the amount and timing of future cash flows that it expects to receive based on the then current outstanding balance of collateral loans and amounts
owed to investors.<br> </font></p> <p><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The estimated fair value of the retained interests is accrued toward the expectation of when, and how much, cash will be received in the future.
Currently, the retained interest assets generate relatively little cash for the Company, but the expectation is that significant amounts of cash will be remitted to the Company in future periods. During the second quarter of 2002, the Company
received approximately $0.12 million cash from these assets, representing the first cash remittance the Company had received from the retained interests. Additionally, and as further discussed under the caption <i>Capital Resources</i>, regulatory
agencies recently modified the regulatory capital requirements for retained interests. Such changes resulted in an increased capital allocation for purposes of computing risk-based capital ratios. <br> </font></p> <p><font size="2"><b>INCOME TAXES
</b><br> </font></p> <p><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Deferred income taxes reflect the net tax effects of temporary differences between the carrying amount of assets and liabilities for financial reporting purposes
and the amounts used for income tax purposes. The Company's net deferred tax assets decreased from $47.44 million at December 31, 2001 to $34.64 million at December 31, 2002. Realization of the most significant net deferred tax assets is primarily
dependent on future events taking place that will reverse the current deferred tax assets. For example, realization of the deferred tax asset attributable to the allowance for loan losses is expected to occur as additional loan charge-offs, which
have already been provided for within the Company's financial statements, are realized. Of the $12.80 million, or 26.98%, decline in the balance of the Company's net deferred tax assets during the first six months of 2002, $8.70 million is
attributable to loan charge-off activity recorded during the period. Additionally, $2.15 million of the decline is associated with the Company's retained interests. The Company believes that it is more </font> </p> <p align="center"> <font
size="2">29</font></p>

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 <p><font size="2">likely than not that each of the net deferred tax assets will be realized and that no valuation allowance is necessary as of June 30, 2002.</font></p> <p><font size="2"><b> NON-INTEREST INCOME AND
NON-INTEREST EXPENSE </b></font></p> <p><font size="2"><i><b>Six Months Ended June 30, 2002 vs. 2001 </b></i></font></p> <p><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>&nbsp;<u>Non-Interest Income:</u></b> Non-interest income
declined $5.52 million, or 26.01%, from $21.23 million in the first six months of 2001 to $15.71 million in 2002. As a result of the Company's exit from out-of-market mortgage loan origination and loan servicing activities, mortgage-banking income
declined $3.04 million, or 89.01%. Other income declined $4.78 million, or 63.39%, from $7.54 million in 2001 to $2.76 million in 2002, primarily as a result of the Company's exit from non-core banking activities, such as direct mail, internet
service, and brokerage activities. In 2002, Other Income included a $0.45 million gain on sales of loans. The loan sales transacted were the result of non-recurring actions taken by the Company to sell underperforming loans, as management worked to
address credit quality concerns within the loan portfolio. In 2001, Other Income also included a $3.37 million gain recognized on the Company's sale of its Internet service and direct mail divisions. </font></p> <p><font
size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Revenues derived from service charges earned on deposit relationships increased $3.10 million, or 42.52%, from $7.30 million in 2001 to $10.40 million in 2002. During the first quarter of
2001, the Company began to implement policy changes that resulted in substantially higher collection rates of service charges and related fees. Additionally, the Company initiated fee increases to match competitor pricing in its local markets and
has implemented new fee-generating services that have resulted in increases in service charge revenues in 2002. Gains realized from investment securities transactions declined $0.77 million, or 62.16%, from $1.24 million in 2001 to $0.47 million in
2002. Investment security gains in both periods are largely attributable to transactions associated with the Company's investment in a mutual fund that generates capital gains, as opposed to interest income. </font></p> <p><font
size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>&nbsp;<u>Non-Interest Expense:</u> </b>Non-interest expense declined $25.24 million, or 41.18%, from $61.29 million in the first six months of 2001 to $36.05 million in 2002. Of this decline,
compensation costs decreased $5.05 million, or 23.30%, from $21.69 million in 2001 to $16.53 million in 2002. This expense decline is attributable to a $1.28 million severance charge recorded during 2001 associated with departing executive officers
and a $3.77 million reduction in expenses due to the sale of various operations in 2001 and management's efforts to reduce headcount to a level more commensurate with peer group averages. As a result of the Company's exit from out-of-market loan
origination activities, the Company did not incur expense associated with advisory fees paid for out-of-state loan production offices during 2002, as compared to $2.20 million of expense in 2001. </font></p> <p><font
size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;During 2001, the Company consolidated its operations in Charleston and exited several operational facilities and branch locations, resulting in a $1.69 million impairment charge to reflect the
estimated fair value of facilities to be sold. Additionally, the Company recorded a $1.45 million impairment charge to write-off the recorded value of capitalized software that no longer fit the Company's business model. Combined, these events
represent $3.14 million of the $3.16 million expense recorded in 2001 for &quot;Loss on disposal and impairment of fixed assets&quot;. There were no such charges recorded in 2002.</font></p> <p><font
size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Excluding a $1.90 million charge to record a contractual obligation to FNMA and a $1.97 million charge associated with the sale of the Company's direct mail division, Other Expenses for the
first six months of 2001 were $7.84 million. For </font></p> <p align="center"><font size="2">30</font></p>

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 <p><font size="2">the first six months of 2002, Other Expenses were $6.28 million, reflecting a decline of $1.56 million, or 19.90% from 2001. During the first six months of 2001, the Company recorded approximately
$0.39 million amortization expense associated with the recorded balance of goodwill, which, as discussed in Note H, is no longer amortized. In addition to amortization expense, Other Expenses generally include depository losses, indirect expenses
associated with originating loans, recruiting and relocation expenses, director compensation, and data processing expenses.</font></p> <p><font size="2"><b><i>Three Months Ended June 30, 2002 vs. 2001</i></b></font></p> <p><font
size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b><u>Non-Interest Income:</u></b> Non-interest income declined $3.82 million, or 30.54%, from $12.52 million in the second quarter of 2001 to $8.70 million in 2002. This decline was primarily
experienced in the Other Income classification, which declined $3.56 million, or 68.81%, from quarter-to-quarter. During the second quarter of 2002, the Company reported a $0.45 million gain, included in Other Income, on sales of underperforming
loans, as previously discussed. During the second quarter of 2001, the Company recorded a $3.37 million gain, within Other Income, on the sale of its internet service and direct mail divisions, which accounts for the majority of this decline.
Service charge revenues increased $1.41 million, or 32.26%, from $4.36 million in the second quarter of 2001 to $5.77 million in 2002. As noted previously, the Company has benefited from the implementation of new fee-producing services offered to
its deposit customers and from policy changes made to improve the collection rates on fees charged. Mortgage banking income, which is generally derived from the remaining loan servicing portfolio, declined $1.45 million, or 88.43%, from $1.63
million in the second quarter of 2001 to $0.19 million in 2002.</font></p> <p><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b><u>Non-Interest Expense:</u></b> Non-interest expense declined $10.54 million, or 37.09%, from $28.41
million in the second quarter of 2001 to $17.87 million in 2002. As previously discussed, the reduction in non-interest expense was generally the result of the Company's sale of its non-banking operations, sale of its California banking operations,
and managements initiatives to significantly reduce expenses as a percent of operating revenues.</font></p> <p><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;More specifically, compensation costs declined $2.24 million, or 21.89%,
from $10.24 million in the second quarter of 2001 to $8.00 million in 2002. This decline was primarily the result of actions taken during the second half of 2001 to reduce headcount Company-wide. In order to reduce headcount to levels targeted, the
Company consolidated many of its operations, which resulted in the Company's exit from certain operational facilities and branch locations, which resulted in a $0.85 million, or 34.24% reduction in occupancy and equipment expenses from $2.49 million
in the second quarter of 2001 to $1.64 million in 2002 and a $0.92 million, or 38.04% reduction in depreciation expense over the same periods. Primarily as a result of the Company's exit from California, telecommunications expense declined $0.47
million, or 43.20%, from $1.08 million in the second quarter of 2001 to $0.61 million in 2002.</font></p> <p><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In the second quarter of 2002, the Company incurred no expenses associated
with advisory fees for out-of-state loan production offices, compared to $0.89 million of such expense in the second quarter of 2001. These expenses were eliminated as the Company refocused on its core West Virginia banking operations and exited
out-of-market mortgage loan origination programs. During 2001, the Company incurred significant professional fees associated with assessing and implementing necessary steps to improve the Company's operations. As a result, professional fees and
litigation expense in </font></p> <p align="center"><font size="2">31</font></p>

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 <p><font size="2">the second quarter of 2001 was $1.16 million, compared to $0.73 million in the second quarter of 2002, reflecting a decline of $0.43 million, or 36.92% quarter-to-quarter. As discussed above, the
Company incurred $3.14 million of expense in the second quarter of 2001 resulting from the $1.69 million impairment charge associated with the estimated fair value of facilities the Company planned to sell and the $1.45 million impairment charge to
write-off the recorded value of software the Company no longer used as a result of its reorganization.</font></p> <p><font size="2"><b>MARKET RISK MANAGEMENT</b></font></p> <p><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Market
risk is the risk of loss due to adverse changes in current and future cash flows, fair values, earnings or capital due to adverse movements in interest rates and other factors, including foreign exchange rates and commodity prices. Because the
Company has no significant foreign exchange activities and holds no commodities, interest rate risk represents the primary risk factor affecting the Company's balance sheet and net interest margin. Significant changes in interest rates by the
Federal Reserve could result in similar changes in LIBOR interest rates, prime rates, and other benchmark interest rates that could affect the estimated fair value of the Company's investment securities portfolio, interest paid on the Company's
short-term and long-term borrowings, interest earned on the Company's loan portfolio and interest paid on its deposit accounts. The Company's Asset and Liability Committee (&quot;ALCO&quot;) has been delegated the responsibility of managing the
Company's interest-sensitive balance sheet accounts to maximize earnings while managing interest rate risk. ALCO, comprised of various members of executive and senior management, is also responsible for establishing policies to monitor and limit the
Company's exposure to interest rate risk and to manage the Company's liquidity position. ALCO satisfies its responsibilities through periodic meetings during which product pricing issues, liquidity measures and interest sensitivity positions are
monitored. </font></p> <p><font size="2"><b>LIQUIDITY</b></font></p> <p><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Company evaluates the adequacy of liquidity at both the Parent Company level and at City National. Liquidity
at the Parent Company level is largely dependent upon the dividend capacity of City National. Dividends paid by City National are essentially the sole source of cash for the Parent Company. The Office of the Comptroller of the Currency (the
&quot;OCC&quot;) maintains a dividend policy that requires that any dividends in amounts exceeding the earnings retained by City National in the current year plus retained net profits for the preceding two years must be approved by the OCC before
City National can declare the dividend. Therefore, under the OCC's dividend policy, City National must request and receive the OCC's permission for any dividend payments to the Parent Company during 2002. During the second quarter of 2002, the OCC
approved the payment of a $30.00 million cash dividend from City National to the Parent Company. During the first quarter of 2002, the OCC approved the payment of a $2.00 million cash dividend from City National to the Parent Company. Although the
OCC approved these exceptions to its dividend policy, there can be no assurance that the OCC will approve subsequent policy exceptions. The Federal Reserve Bank of Richmond (the &quot;FRBR&quot;) has a similar dividend policy that requires that any
dividends or similar cash distributions from the Parent Company must be paid out of earnings achieved in the prior four quarters. As a result, the Parent Company must request and receive permission from the FRBR for the payment of dividends to the
holders of its common stock and for the payment of interest to holders of the Company's trust preferred securities. During the second quarter of 2002, the FRBR approved the Company's request to distribute both current and deferred interest payments
to City Holding Capital Trust and City Holding Capital Trust II, which will enable the Trusts to remit interest payments to holders of the trust preferred securities. Having obtained this approval, the Company </font></p> <p align="center"><font
size="2">32</font></p>

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 <p><font size="2">distributed approximately $9.76 million, representing current and deferred interest, plus interest on previously deferred interest payments, to holders of the trust preferred securities on July 31,
2002. During the second quarter of 2002, the FRBR also approved the Company's request to pay a $0.15 per share dividend to the holders of the Company's common stock. As a result, the Company will pay approximately $2.54 million in cash dividends to
holders of the Company's common stock on July 31, 2002. In addition to the aforementioned interest and dividend payments, the Parent Company received approval from the FRBR to engage in a stock purchase program relative to either its common stock or
its trust preferred securities, or both. As a result, the Board of Directors authorized the Company to purchase up to 1,000,000 (approximately 6% of outstanding shares) of its common shares (see <i>Capital Resources</i>) in open market transactions,
in block purchases, private transactions, or otherwise, at such times and for such prices as determined by management. The board also approved the purchase of up to $25,000,000 aggregate principal amount of Trust I and Trust II Capital Securities.
The timing, price and quantity of purchases will be at the discretion of the Company and the program may be discontinued or suspended at any time. </font></p> <p><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;City National manages
its liquidity position in an effort to effectively and economically satisfy the funding needs of its customers and to accommodate the scheduled repayment of borrowings. City National attempts to maintain a stable, yet increasing, core deposit base
as its primary funding source and manages relationships with external funding sources, including the Federal Home Loan Bank, to provide it with a second source of liquidity. City National has historically utilized the capital markets, including the
acceptance of brokered deposits, as another source of liquidity. Additionally, City National seeks to manage liquidity by maintaining a sufficient percentage of its total assets as liquid assets, such as its securities portfolio, that could be sold
if necessary to provide additional funding sources. As of June 30, 2002, the Company believes that City National maintained a sufficient liquidity position to satisfy its funding and cash needs.</font></p> <p><font size="2"><b>REGULATORY
MATTERS</b></font></p> <p><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On May 16, 2002, the Company announced that it had received official notification that the OCC had terminated the formal agreement between the OCC and City
National. The formal agreement was originally entered into between the OCC and City National in June 2000 and subsequently amended in September 2001. The formal agreement required City National to implement a number of remedial actions in the areas
of strategic planning, loan portfolio management, liquidity management and other operations of City National. As a result of active participation and cooperation of management and the Board of Directors of City National and City Holding Company, the
issues that led to the formal agreement were successful resolved, resulting in the OCC's termination of the agreement. Similarly, a Memorandum of Understanding between City Holding Company's Board of Directors and the FRBR was also terminated in
conjunction with the termination of the formal agreement with the OCC. Although these regulatory agreements have been terminated, both City National and City Holding Company remain restricted in their ability to pay cash dividends without the prior
approval of both the OCC and the FRBR. As previously discussed, these restrictions are the result of the aforementioned dividend policies maintained by the OCC and the FRBR.</font></p> <p><font size="2"><b>CAPITAL RESOURCES</b></font></p> <p><font
size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;During the first six months of 2002, stockholders' equity increased $12.48 million, or 8.53%, primarily as a result of the Company's reported net income of $14.08 million. This increase was
partially offset by the Company's declaration of a $0.15 per share cash dividend during the second quarter of 2002. As previously disclosed, the Company received </font></p> <p align="center"><font size="2">33</font></p>

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 <p><font size="2">permission from the FRBR during the second quarter of 2002 to pay a cash dividend to holders of its common stock. The cash dividend declaration resulted in a $2.54 million reduction in stockholders'
equity. Future cash dividends will be dependent on the Company's financial performance and regulatory approval from both the OCC and the FRBR. There can be no assurance that either the OCC or the FRBR will grant exceptions to their dividend
policies, as outlined above, or that the Company's financial results will permit future dividend payments. </font></p> <p><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As previously discussed, the Company's Board of Directors
approved a plan to repurchase up to 1,000,000 shares of the Company's outstanding common stock. In July 2002, the Company initiated its stock repurchase program and has acquired 113,200 shares of its common stock in open market purchases at
prevailing market rates. As a result, the Company has reduced its consolidated equity by $2.62 million through July 31, 2002. There can be no assurance that the Company will continue to reacquire its common shares or to what extent the repurchase
program will continue.</font></p> <p><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Regulatory guidelines require the Company to maintain a minimum total capital to risk-adjusted assets ratio of 8%, with at least one-half of capital
consisting of tangible common stockholders' equity and a minimum Tier I leverage ratio of 4%. At June 30, 2002, the Company's total capital to risk-adjusted assets ratio was 15.52% and its Tier I capital ratio was 11.92%, compared to 13.10% and
9.38%, respectively, at December 31, 2001. The Company's leverage ratio at June 30, 2002 and December 31, 2001 was 8.96% and 6.92%, respectively.</font></p> <p><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Similarly, City National
is also required to maintain minimum capital levels as set forth by various regulatory agencies. Under capital adequacy guidelines, City National is required to maintain minimum total capital, Tier I capital, and leverage ratios of 8.00%, 4.00%, and
4.00%, respectively. As of June 30, 2002, City National reported total capital, Tier I capital, and leverage ratios of 14.23%, 12.98%, and 9.74%, respectively. As of December 31, 2001, City National reported total capital, Tier I capital, and
leverage ratios of 13.71%, 12.44%, and 9.76%, respectively. </font></p> <p><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In November 2001, regulatory agencies issued new guidelines changing regulatory capital standards to address
the treatment of, among other things, retained interests for purposes of computing regulatory capital and the aforementioned regulatory capital ratios. In general, the new guidelines require an increased allocation of regulatory capital to assets
such as retained interests in securitized mortgage loans and the new rules limit the amount of retained interests financial institutions may include in regulatory capital. Although the new rule became effective January 1, 2002, institutions that
completed transactions before December 31, 2001 impacted by the new rule may delay application of the new standard until December 31, 2002. Had the Company been required to comply with the new rule as of June 30, 2002, the Company estimates that its
Total Capital, Tier I Capital, and Leverage Capital ratios would have approximated 13.34%, 9.67%, and 7.73%, respectively. Similarly, City National estimates that its Total Capital, Tier I Capital, and Leverage Capital ratios would have been 11.79%,
10.38%, and 8.67%, respectively, as of June 30, 2002, which are in excess of the aforementioned &quot;well capitalized&quot; ratios. </font></p> <p><font size="2"><b>
<a name="l48818tx8"></a>ITEM 3 - QUANTITATIVE AND QUALITATIVE DISCLOSURE OF MARKET RISK</b></font></p> <p><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The information called for by this item is provided under the caption
&quot;Market Risk Management&quot; under Item 2-Management Discussion and Analysis of Financial Condition and Results of Operations.</font></p> <p align="center"><font size="2">34</font></p>

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<table width="100%" border="0" cellspacing="0" cellpadding="0">
<tr>
<td colspan="4"><b><font size="2"></font></b><b><font size="2"></font></b><b><font size="2">PART II - OTHER INFORMATION<br> <br> </font></b></td> </tr>
<tr>
<td width="6%"><font size="2">
<a name="l48818tx9"></a>Item 1.</font></td>
<td width="1%"><font size="2"></font></td>
<td colspan="2"><font size="2">Legal Proceedings</font></td> </tr>
<tr>
<td width="6%"><font size="2"></font></td>
<td width="1%"><font size="2"></font></td>
<td colspan="2"> <p><font size="2"><br> On December 28, 2001, the Company, its previous management team, and members of the Board of Directors of both the Company and City National were named in a derivative action filed by a shareholder seeking to
recover damages on behalf of the Company. The Company, members of its previous management team and the Directors of both the Company and City National have retained counsel, but the case is in the early stages and it would be premature to forecast
the outcome. However, the defendants are defending the action vigorously.<br> <br> </font><font size="2">The Company is also engaged in various legal actions that it deems to be in the ordinary course of business. The Company believes that it has
adequately provided for the potential costs of current litigation. As these legal actions are resolved, however, the Company could realize positive and/or negative impact to its financial performance in the period in which these legal actions are
ultimately decided. There can be no assurance that current actions will have immaterial results, either positive or negative, or that no material actions may be presented in the future. <br> <br> </font></p> </td> </tr>
<tr>
<td width="6%"><font size="2">
<a name="l48818tx10"></a>Item 2.</font></td>
<td width="1%"><font size="2"></font></td>
<td width="58%"><font size="2">Changes in Securities</font></td>
<td width="35%" align="center"><font size="2">None</font></td> </tr>
<tr>
<td width="6%">&nbsp;</td>
<td width="1%">&nbsp;</td>
<td width="58%">&nbsp;</td>
<td width="35%" align="center">&nbsp;</td> </tr>
<tr>
<td width="6%"><font size="2">
<a name="l48818tx11"></a>Item 3.</font></td>
<td width="1%"><font size="2"></font></td>
<td width="58%"><font size="2">Defaults Upon Senior Securities</font></td>
<td width="35%" align="center"><font size="2">None</font></td> </tr>
<tr>
<td width="6%" valign="top">&nbsp;</td>
<td width="1%" valign="top">&nbsp;</td>
<td width="58%" valign="top">&nbsp;</td>
<td width="35%">&nbsp;</td> </tr>
<tr>
<td width="6%" valign="top"><font size="2">
<a name="l48818tx12"></a>Item 4.</font></td>
<td width="1%" valign="top"><font size="2"></font></td>
<td width="58%" valign="top"><font size="2">Submission of Matters to a Vote of Security Holders: </font></td>
<td width="35%"><font size="2"></font></td> </tr> </table> &nbsp;
<table width="100%" border="0" cellspacing="0" cellpadding="0">
<tr>
<td width="7%">&nbsp;</td>
<td colspan="3"><font size="2">The Company held its Annual Meeting of Shareholders on April 24, 2002 at which time shareholders were to consider two proposals, as follows:</font></td> </tr>
<tr>
<td width="7%">&nbsp;</td>
<td width="2%"><font size="2"></font></td>
<td colspan="2"><font size="2"></font></td> </tr>
<tr>
<td width="7%">&nbsp;</td>
<td width="2%" valign="top"><font size="2">1. </font></td>
<td colspan="2" valign="top"><font size="2">Election of seven Class III directors to serve for a term of three years.</font></td> </tr>
<tr>
<td width="7%">&nbsp;</td>
<td width="2%"><font size="2"></font></td>
<td width="47%"><font size="2"></font></td>
<td width="44%"><font size="2"></font></td> </tr>
<tr>
<td width="7%">&nbsp;</td>
<td width="2%" valign="top"><font size="2">2.</font></td>
<td colspan="2" valign="top"><font size="2">Ratification of the Board of Directors' appointment of Ernst &amp; Young LLP as independent auditors of the Company for 2002.</font></td> </tr>
<tr>
<td width="7%">&nbsp;</td>
<td width="2%"><font size="2"></font></td>
<td colspan="2"><font size="2"></font></td> </tr>
<tr>
<td width="7%">&nbsp;</td>
<td colspan="3"><font size="2">The vote tabulation was as follows:</font></td> </tr>
<tr>
<td width="7%">&nbsp;</td>
<td width="2%"><font size="2"></font></td>
<td colspan="2"><font size="2"></font></td> </tr>
<tr>
<td width="7%">&nbsp;</td>
<td width="2%" valign="top"><font size="2">1. </font></td>
<td colspan="2" valign="top"><font size="2">Election of Class III directors to the Board of Directors:</font></td> </tr> </table>
<TABLE BORDER=0 WIDTH="100%" CELLPADDING=0 CELLSPACING=0>
<TR>
<TD ALIGN=CENTER width="14%">&nbsp;</TD>
<TD ALIGN=CENTER width="54%">&nbsp;</TD>
<TD ALIGN=CENTER colspan="2">&nbsp;</TD> </TR>
<TR>
<TD ALIGN=CENTER width="14%"><b><font size="1">Director</font></b></TD>
<TD ALIGN=CENTER width="54%"><b><font size="1">Votes For</font></b></TD>
<TD ALIGN=CENTER colspan="2"><b><font size="1">Votes Withheld</font></b></TD> </TR>
<TR>
<TD ALIGN=CENTER width="14%"><font size="2"></font></TD>
<TD ALIGN=CENTER width="54%"><font size="2"></font></TD>
<TD ALIGN=CENTER colspan="2"><font size="2"></font></TD> </TR>
<TR>
<TD ALIGN=left valign="bottom" width="14%"> <hr color="#000000" size=2> </TD>
<TD ALIGN=CENTER width="54%"> <hr color="#000000" size=2> </TD>
<TD ALIGN=CENTER colspan="2"> <hr color="#000000" size=2> </TD> </TR>
<TR>
<TD ALIGN=left valign="bottom" width="14%"><font size="2"></font></TD>
<TD ALIGN=CENTER width="54%"><font size="2"></font></TD>
<TD ALIGN=CENTER colspan="2"><font size="2"></font></TD> </TR>
<TR>
<TD ALIGN=left valign="bottom" width="14%" nowrap><font size="2">Samuel M. Bowling</font></TD>
<TD ALIGN=CENTER width="54%"><font size="2">10,773,326</font></TD>
<TD ALIGN=right width="18%"><font size="2">654,184</font></TD>
<TD ALIGN=CENTER width="14%">&nbsp;</TD> </TR>
<TR>
<TD ALIGN=left valign="bottom" width="14%"><font size="2">Hugh R. Clonch</font></TD>
<TD ALIGN=CENTER width="54%"><font size="2">10,268,272</font></TD>
<TD ALIGN=right width="18%"><font size="2">1,159,238</font></TD>
<TD ALIGN=CENTER width="14%">&nbsp;</TD> </TR>
<TR>
<TD ALIGN=left valign="bottom" width="14%"><font size="2">Robert D. Fisher</font></TD>
<TD ALIGN=CENTER width="54%"><font size="2">10,979,549</font></TD>
<TD ALIGN=right width="18%"><font size="2">447,961</font></TD>
<TD ALIGN=CENTER width="14%">&nbsp;</TD> </TR>
<TR>
<TD ALIGN=left valign="bottom" width="14%" height="14"><font size="2">Jay C. Goldman</font></TD>
<TD ALIGN=CENTER width="54%" height="14"><font size="2">10,958,554</font></TD>
<TD ALIGN=right width="18%" height="14"><font size="2">468,956</font></TD>
<TD ALIGN=CENTER width="14%" height="14">&nbsp;</TD> </TR>
<TR>
<TD ALIGN=left valign="bottom" width="14%"><font size="2">David E. Haden</font></TD>
<TD ALIGN=CENTER width="54%"><font size="2">10,932,025</font></TD>
<TD ALIGN=right width="18%"><font size="2">495,485</font></TD>
<TD ALIGN=CENTER width="14%">&nbsp;</TD> </TR>
<TR>
<TD ALIGN=left valign="bottom" width="14%" nowrap><font size="2">Philip L. McLaughlin</font></TD>
<TD ALIGN=CENTER width="54%"><font size="2">10,192,973</font></TD>
<TD ALIGN=right width="18%"><font size="2">1,234,537</font></TD>
<TD ALIGN=CENTER width="14%">&nbsp;</TD> </TR>
<TR>
<TD ALIGN=left valign="bottom" width="14%"><font size="2">Robert T. Rogers</font></TD>
<TD ALIGN=CENTER width="54%"><font size="2">10,966,693</font></TD>
<TD ALIGN=right width="18%"><font size="2">460,817</font></TD>
<TD ALIGN=CENTER width="14%">&nbsp;</TD> </TR>
<TR>
<TD ALIGN=CENTER width="14%"></TD> </TR> </TABLE>
<table border=0 width="100%" cellpadding=0 cellspacing=0>
<tr>
<td align=CENTER colspan="2">&nbsp;</td>
<td align=CENTER width="40%">&nbsp;</td>
<td align=CENTER width="51%">&nbsp;</td> </tr>
<tr valign="top">
<td align=right width="8%"><font size="2">2.</font></td>
<td align=right width="1%">&nbsp;</td>
<td align=left colspan="2"> <font size="2">Ratification of the Board of Directors' appointment of Ernst &amp; Young LLP as independent auditors of the Company for 2002:</font> </td> </tr>
<tr>
<td align=CENTER colspan="2"><font size="2"></font></td>
<td align=CENTER width="40%"><font size="2"></font></td>
<td align=CENTER width="51%"><font size="2"></font></td> </tr> </table> <p align="left">&nbsp;</p>
<table border=0 width="100%" cellpadding=0 cellspacing=0>
<tr valign="bottom">
<td align=CENTER><b><font size="1">Votes For</font></b></td>
<td align=CENTER><b><font size="1">Votes Against</font></b></td>
<td align=CENTER><b><font size="1">Abstentions</font></b></td> </tr>
<tr valign="bottom">
<td align=CENTER> <hr color="#000000" size=2> </td>
<td align=CENTER> <hr color="#000000" size=2> </td>
<td align=CENTER> <hr color="#000000" size=2> </td> </tr>
<tr valign="bottom">
<td align=CENTER><font size="2">10,877,183</font></td>
<td align=CENTER><font size="2">398,546</font></td>
<td align=CENTER><font size="2">151,781</font></td> </tr> </table> <p align="center"><font size="2">35</font></p>

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<TABLE BORDER=0 WIDTH="100%" CELLPADDING=0 CELLSPACING=0>
<TR ALIGN=right>
<TD ALIGN=left width="73"><font size="2">
<a name="l48818tx13"></a></font><font size="2" color="#000000">Item 5</font><font size="2" color="#000000">.</font></TD>
<TD ALIGN=left width="744"><font size="2" color="#000000">Other Information</font></TD>
<TD ALIGN=left width="390">&nbsp;</TD>
<TD ALIGN=right width="52"><font size="2" color="#000000"></font></TD> </TR>
<TR ALIGN=right>
<TD ALIGN=left width="73">&nbsp;</TD>
<TD ALIGN=left colspan="2">&nbsp;</TD>
<TD ALIGN=right width="52">&nbsp;</TD> </TR>
<TR ALIGN=right>
<TD ALIGN=left width="73">&nbsp;</TD>
<TD ALIGN=left colspan="2"><font size="2" color="#000000">None</font></TD>
<TD ALIGN=right width="52">&nbsp;</TD> </TR>
<TR ALIGN=right>
<TD ALIGN=left width="73">&nbsp;</TD>
<TD ALIGN=left colspan="2">&nbsp;</TD>
<TD ALIGN=right width="52">&nbsp;</TD> </TR>
<TR ALIGN=right>
<TD ALIGN=left width="73"><font size="2">
<a name="l48818tx14"></a></font><font size="2" color="#000000">Item 6.</font></TD>
<TD ALIGN=left colspan="2"><font size="2" color="#000000">Exhibits and Reports on Form 8-K:</font></TD>
<TD ALIGN=right width="52"><font size="2" color="#000000"></font></TD> </TR>
<TR ALIGN=right>
<TD ALIGN=left width="73"><font size="2" color="#000000"></font></TD>
<TD ALIGN=left colspan="2"> <font size="2" color="#000000"><b><br> &nbsp;&nbsp;&nbsp;&nbsp;Exhibits</b></font></TD>
<TD ALIGN=right width="52"><font size="2" color="#000000"></font></TD> </TR>
<TR ALIGN=right>
<TD ALIGN=left width="73"><font size="2" color="#000000"></font></TD>
<TD ALIGN=left colspan="2"><font size="2" color="#000000"><br> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.1 &#151; Amended and Restated Bylaws of City Holding Company.</font></TD>
<TD ALIGN=right width="52"><font size="2" color="#000000"></font></TD> </TR>
<TR ALIGN=right>
<TD ALIGN=left width="73"><font size="2" color="#000000"></font></TD>
<TD ALIGN=left colspan="2"><font size="2" color="#000000"><br> &nbsp;&nbsp;&nbsp;10.1 &#151; Amendment No. 2 to City Holding Company's 1993 Stock Incentive Plan.</font></TD>
<TD ALIGN=right width="52"><font size="2" color="#000000"></font></TD> </TR>
<TR ALIGN=right>
<TD ALIGN=left width="73"><font size="2" color="#000000"></font></TD>
<TD ALIGN=left colspan="2"><b><font size="2" color="#000000"><br> Reports on Form 8-K</font></b></TD>
<TD ALIGN=right width="52"><font size="2" color="#000000"></font></TD> </TR>
<TR ALIGN=right>
<TD ALIGN=left width="73"><font size="2" color="#000000"></font></TD>
<TD ALIGN=left colspan="2"><font size="2" color="#000000"><br> On April 15, 2002, the Company filed a Current Report on Form 8-K, attaching a news release issued on April 12, 2002, announcing the Company's earnings for the first quarter
of&nbsp;2002.</font></TD>
<TD ALIGN=right width="52"><font size="2" color="#000000"></font></TD> </TR>
<TR ALIGN=right>
<TD ALIGN=left width="73"><font size="2" color="#000000"></font></TD>
<TD ALIGN=left colspan="2"><font size="2" color="#000000"><br> On May 7, 2002, the Company filed a Current Report on Form 8-K, attaching a news release issued on April 25, 2002, announcing the retirement of Philip L. McLauglin as Chairman and the
election of Gerald R. Francis, President and Chief Executive Officer, to succeed Mr. Laughlin as Chairman of the Board of Directors. Information about the Company's recent financial performance and the status of its compliance with the formal
agreement between its subsidiary, City National Bank of West Virginia, and the Office of the Comptroller of the Currency was also contained in this news release.<br> <br> On May 29, 2002, the Company filed a Current Report on Form 8-K, attaching a
news release issued on May 16, 2002, announcing that the Company had received official confirmation from the Office of the Comptroller of the Currency ("OCC") that the OCC has terminated its Formal Agreement with the Company's principal banking
subsidiary, City National Bank of West Virginia. The Company also announced that a Memorandum of Understanding between the Company's board and its primary regulator, the Federal Reserve Bank of Richmond, has also been terminated effective
immediately.<br> <br> On June 27, 2002, the Company filed a Current Report on Form 8-K, attaching a news release issued on June 26, 2002, announcing that the Company's Board of Directors had approved payment of current and deferred dividends on the
Company's City Holding Capital Trust and City Holding Capital Trust II preferred securities. The Company's Board of&nbsp;Directors also approved a cash dividend of $0.15 per share on the Company's common stock. The dividends on the trust preferred
securities and on the common stock was paid on July 31, 2002 to shareholders of record as of July 16, 2002. The Company also announced that the Board of Directors had authorized the Company to purchase up to 1,000,000&nbsp;shares of the Company's
common stock in open market transactions, block purchases, private transactions, or otherwise, at such times and at such prices as determined by management. The Board also approved the Company's purchase of up to $25.00 million aggregate principal
amount of City Holding Capital Trust I and City&nbsp;Holding Capital Trust II&nbsp;preferred securities. The timing, price and quantity of purchases will be at the discretion of the Company and the program may be discontinued or suspended at any
time.</font></TD>
<TD ALIGN=right width="52"><font size="2" color="#000000"></font></TD> </TR> </TABLE> <p align="center"><font size="2">36</font></p>

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 <p><b><font size="2">
<a name="l48818tx15"></a>SIGNATURE</font></b></p> <p><font size="2">Pursuant to the requirements of the Securities and Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly
authorized.</font></p>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
<tr>
<td width="50%">&nbsp;</td>
<td width="29%" nowrap><b><font size="2">City Holding Company</font></b></td>
<td width="21%"><font size="2"></font></td> </tr>
<tr>
<td width="50%">&nbsp;</td>
<td width="29%"> <hr size=2 color="#000000"> </td>
<td width="21%"><font size="2"></font></td> </tr>
<tr>
<td width="50%">&nbsp;</td>
<td colspan="2"><font size="2">(Registrant)</font></td> </tr>
<tr>
<td width="50%">&nbsp;</td>
<td colspan="2"><font size="2"></font></td> </tr>
<tr>
<td width="50%">&nbsp;</td>
<td colspan="2"><font size="2"></font></td> </tr>
<tr>
<td width="50%">&nbsp;</td>
<td colspan="2"><font size="2"></font></td> </tr>
<tr>
<td width="50%">&nbsp;</td>
<td colspan="2"><font size="2"></font></td> </tr>
<tr>
<td width="50%">&nbsp;</td>
<td width="29%"><i><font size="2">/s/&nbsp;&nbsp;&nbsp;</font></i><font size="2">Gerald R. Francis</font></td>
<td width="21%"><font size="2"></font></td> </tr>
<tr>
<td width="50%">&nbsp;</td>
<td width="29%"> <hr size=2 color="#000000"> </td>
<td width="21%"><font size="2"></font></td> </tr>
<tr>
<td width="50%">&nbsp;</td>
<td colspan="2"><font size="2">Gerald R. Francis</font></td> </tr>
<tr>
<td width="50%">&nbsp;</td>
<td colspan="2"><font size="2">President, Chief Executive Officer and Director</font></td> </tr>
<tr>
<td width="50%">&nbsp;</td>
<td colspan="2"><font size="2">(Principal Executive Officer)</font></td> </tr>
<tr>
<td width="50%">&nbsp;</td>
<td colspan="2"><font size="2"></font></td> </tr>
<tr>
<td width="50%">&nbsp;</td>
<td colspan="2"><font size="2"></font></td> </tr>
<tr>
<td width="50%">&nbsp;</td>
<td colspan="2"><font size="2"></font></td> </tr>
<tr>
<td width="50%">&nbsp;</td>
<td width="29%"><i><font size="2">/s/&nbsp;&nbsp;&nbsp;</font></i><font size="2">Charles R. Hageboeck</font></td>
<td width="21%"><font size="2"></font></td> </tr>
<tr>
<td width="50%">&nbsp;</td>
<td width="29%"> <hr size=2 color="#000000"> </td>
<td width="21%"><font size="2"></font></td> </tr>
<tr>
<td width="50%">&nbsp;</td>
<td colspan="2"><font size="2">Charles R. Hageboeck</font></td> </tr>
<tr>
<td width="50%">&nbsp;</td>
<td colspan="2"><font size="2">Executive Vice President and Chief Financial Officer</font></td> </tr>
<tr>
<td width="50%">&nbsp;</td>
<td colspan="2"><font size="2">(Principal Financial Officer)</font></td> </tr>
<tr>
<td width="50%">&nbsp;</td>
<td colspan="2"><font size="2"></font></td> </tr>
<tr>
<td width="50%">&nbsp;</td>
<td colspan="2"><font size="2"></font></td> </tr>
<tr>
<td width="50%">&nbsp;</td>
<td colspan="2"><font size="2"></font></td> </tr>
<tr>
<td width="50%">&nbsp;</td>
<td colspan="2"><font size="2"></font></td> </tr>
<tr>
<td width="50%">&nbsp;</td>
<td width="29%"><i><font size="2">/s/</font></i><font size="2">&nbsp;&nbsp;&nbsp;Michael D. Dean</font></td>
<td width="21%"><font size="2"></font></td> </tr>
<tr>
<td width="50%">&nbsp;</td>
<td width="29%"> <hr size=2 color="#000000"> </td>
<td width="21%"><font size="2"></font></td> </tr>
<tr>
<td width="50%">&nbsp;</td>
<td colspan="2"><font size="2">Michael D. Dean</font></td> </tr>
<tr>
<td width="50%">&nbsp;</td>
<td colspan="2"><font size="2">Senior Vice President - Finance <br> &nbsp;and Chief Accounting Officer</font></td> </tr>
<tr>
<td width="50%">&nbsp;</td>
<td colspan="2"><font size="2">(Principal Accounting Officer)</font></td> </tr> </table> <p> <font size="2">Date: August&nbsp;14, 2002</font></p> <p align="center"><font size="2">37</font></p>
</BODY></HTML>

</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-3.1
<SEQUENCE>3
<FILENAME>dex31.htm
<DESCRIPTION>AMENDED AND RESTATED BYLAWS
<TEXT>
<HTML><HEAD>
<TITLE>Prepared by R.R. Donnelley Financial -- Amended and Restated Bylaws</TITLE>
</HEAD>
<BODY bgcolor="#FFFFFF">
  <p align="right"><b><font size="2">Exhibit 3.1</font></b></p> <p align="center"><font size="2"><br> <u>CITY HOLDING COMPANY<br> <br> </u></font><font size="2"> AMENDED AND RESTATED BYLAWS<br> <br> </font><font
size="2"> ARTICLE I<br> <br> </font><font size="2"> SHAREHOLDERS</font></p> <p align="left"><font size="2"> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section 1.<u> Annual Meetings.</u> The annual meeting of the shareholders shall be held at
the principal office of the corporation at Charleston, Kanawha County, West Virginia, on the 30th of March of each year, or at such other place and on such other date as the Board of Directors may designate by resolution from time to
time.</font></p> <p align="left"><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;For the purpose of determining shareholders entitled to vote at the annual meeting of the shareholders or any adjournment thereof, the Board of Directors
may fix in advance a date as the record date for any such determination of shareholders, such date to be not more than fifty days and not less than ten days prior to the date of the annual meeting.</font></p> <p align="left"><font
size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section 2.<u> Special Meetings.</u> Special meetings of the shareholders may be called at any time by the Board of Directors or by the President and Secretary, or by any three or more
shareholders holding together not less than ten percentum (10%) of the capital stock of the corporation.</font></p> <p align="left"><font size="2">For the purpose of determining shareholders entitled to vote at the special meeting of the
shareholders or any adjournment thereof, the Board of Directors may fix in advance a date as the record date for any such determination of shareholders, such date to be not more than fifty days and not less than ten days prior to the date of the
special meeting.</font></p> <p align="left"><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section 3.<u> Notice of Meetings.</u> Notice of either annual or special meetings of the shareholders shall be given by mailing to each
shareholder of record at his last know post office address, postage prepaid, at least ten (10) days prior to the date of the meeting, a written notice thereof. Such notice shall state the time and place of the meeting. The call for the meeting, if
made by shareholders, shall be signed by the shareholders making the call. If the call should be made by the Board of Directors, it shall be signed by the President, a Vice President or the Secretary of the corporation. If the call be made by the
President and the Secretary, it shall be signed by both of them. The notice of special meetings of the shareholders shall state the business to be transacted, and no business other than that included in the notice or incidental thereto shall be
transacted at any such meeting. If such notice is mailed, it shall be deemed to have been given to a shareholder when deposited in the United States mail, postage prepaid, directed to the shareholder at such shareholder's address as it appears on
the record of shareholders of the corporation. Such further notice shall be given as may be required by law. A written waiver of any notice of any annual or special meeting signed by the person entitled thereto, shall be deemed equivalent to notice.
Neither the business to be transacted at, nor the purpose of, any regular or special meeting of the shareholders needs to be specified in a written waiver of notice. Attendance of a shareholder at a meeting of shareholders shall constitute a waiver
of notice of such meeting, except when the shareholder attends a meeting for the express purpose of objecting, at the beginning of the meeting, to the transaction of any business on the ground that the meeting is not lawfully called or convened.<br>
</font></p> <p align="left"><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section 4. <u>Notice of Shareholder Business and Nominations </u></font></p>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
<tr>
<td width="3%">&nbsp;</td>
<td width="3%" valign="bottom"><font size="2">(a) </font></td>
<td colspan="2" valign="bottom"><font size="2"><u>Annual Meetings of Shareholders.</u></font></td> </tr>
<tr>
<td width="3%">&nbsp;</td>
<td width="3%"><font size="2"></font></td>
<td width="3%" valign="top"><font size="2"></font></td>
<td width="91%"><font size="2"></font></td> </tr>
<tr>
<td width="3%">&nbsp;</td>
<td width="3%"><font size="2"></font></td>
<td width="3%" valign="top"><font size="2">(i) </font></td>
<td width="91%"><font size="2">Nominations of persons for election to the Board of Directors and the proposal of business to be considered by shareholders at an annual meeting may be made only (A) by the Board of Directors or the Chief Executive
Officer, or (B) by any shareholder entitled to vote at the meeting who complies with the requirements of the Securities Exchange Act of 1934 (the &quot;Exchange Act&quot;) and rules and regulations promulgated thereunder and the notice procedures
set forth in clause (ii) of this Section 4(a) and who was a shareholder of record at the time such notice is delivered to the Secretary of the corporation.</font></td> </tr>
<tr>
<td width="3%">&nbsp;</td>
<td width="3%">&nbsp;</td>
<td width="3%" valign="top">&nbsp;</td>
<td width="91%">&nbsp;</td> </tr> </table>

<p Style='page-break-before:always'>
<HR  SIZE="3" COLOR="#CCEEFF" WIDTH="100%" ALIGN="CENTER">

<table width="100%" border="0" cellspacing="0" cellpadding="0">
<tr valign="bottom" align="left">
<td width="26"><font size="2"></font></td>
<td width="22"><font size="2"></font></td>
<td width="30" valign="top"><font size="2">(ii) </font></td>
<td width="901"><font size="2">For nominations or other business to be properly brought before an annual meeting by a shareholder pursuant to clause (B) of paragraph (a)(i) of this Section 4, the shareholder must have given timely notice thereof in
writing to the Secretary and any such business must be a proper matter for shareholder action. To be timely, a shareholder's notice shall be delivered to the Secretary at the principal executive offices of the corporation not less than 120 calendar
days prior to the first anniversary of the previous year's annual meeting. If no annual meeting was held in the previous year or the date of the annual meeting was changed by more than 30 days from the anniversary date of the previous year's annual
meeting, notice by the shareholder must be so received not later than 120 calendar days prior to such annual meeting or 10 calendar days following the date on which public announcement of the date of the meeting is first made.</font></td> </tr>
<tr valign="bottom" align="left">
<td width="26" height="20"><font size="2"></font></td>
<td width="22" height="20"><font size="2"></font></td>
<td width="30" valign="top" height="20"><font size="2"></font></td>
<td width="901" height="20"> <p>&nbsp;</p> </td> </tr>
<tr valign="bottom" align="left">
<td width="26"><font size="2"></font></td>
<td width="22"><font size="2"></font></td>
<td width="30" valign="top"><font size="2">(iii)</font></td>
<td width="901"><font size="2">In no event shall an adjournment or postponement of an annual meeting (or the public announcement thereof) commence a new time period (or extend any time period) for the giving of shareholders' notice as described
below. Such shareholder's notice shall set forth (A) as to each person whom the shareholder proposes to nominate for election or reelection as a Director all information relating to such person that is required to be disclosed in solicitations of
proxies for election of Directors, or is otherwise required, in each case pursuant to Regulation 14A under the Exchange Act, and Rule 14a-11 thereunder, including such person's written consent to being named in the proxy statement as a nominee and
to serving as a Director if elected; (B) as to any other business that the shareholder proposes to bring before the meeting, a brief description of the business desired to be brought before the meeting, the reasons for conducting such business at
the meeting and, in the event that such business includes a proposal to amend either the Articles of Incorporation or the bylaws, the language of the proposed amendment; (C) any material interest in such business of such shareholder and of any
beneficial owner on whose behalf the proposal is made and, in case of nominations, a description of all arrangements or understandings between the shareholder and each nominee and any other persons (naming them) pursuant to which the nominations are
to be made by the shareholder; (D) a representation that the shareholder is a holder of record of stock of the corporation entitled to vote at such meeting and intends to appear in person or by a qualified representative at the meeting to propose
such business; (E) if the shareholder intends to solicit proxies in support of such shareholder's proposals, a representation to that effect; and (F) as to the shareholder giving the notice and any beneficial owner on whose behalf the nomination or
proposal is made, (1) the name and address of such shareholder, as it appears on the corporation's books, and of such beneficial owner and (2) the class and number of shares of the corporation which are owned beneficially and of record by such
shareholder and such beneficial owner. If such shareholder does not appear or send a qualified representative to present such proposal at such annual meeting, the corporation need not present such proposal for a vote at such meeting, notwithstanding
that proxies in respect of such vote may have been received by the corporation. The presiding officer of any annual meeting of shareholders shall refuse to permit any business proposed by a shareholder to be brought before such annual meeting
without compliance with the foregoing procedures or if the shareholder solicits proxies in support of such shareholder's proposal without such shareholder having made the representation required by clause (E) above.</font></td> </tr>
<tr valign="bottom" align="left">
<td width="26" height="20"><font size="2"></font></td>
<td width="22" height="20"><font size="2"></font></td>
<td width="30" valign="top" height="20"><font size="2"></font></td>
<td width="901" height="20"> <p>&nbsp;</p> </td> </tr>
<tr valign="bottom" align="left">
<td width="26"><font size="2"></font></td>
<td width="22"><font size="2">(b) </font></td>
<td colspan="2" valign="top"><font size="2"></font> <font size="2"><u>Special Meetings of Shareholders</u></font></td> </tr>
<tr valign="bottom" align="left">
<td width="26"><font size="2"></font></td>
<td width="22"><font size="2"></font></td>
<td width="30" valign="top"><font size="2"></font></td>
<td width="901"><font size="2">&nbsp;</font></td> </tr>
<tr valign="bottom" align="left">
<td width="26"><font size="2"></font></td>
<td width="22"><font size="2"></font></td>
<td width="30" valign="top"><font size="2">(i) </font></td>
<td width="901"><font size="2">Only such business as shall have been brought before the special meeting of the shareholders pursuant to the corporation's notice of meeting pursuant to Article I, Section 3 of these bylaws shall be conducted at such
meeting.</font></td> </tr>
<tr valign="bottom" align="left">
<td width="26" height="16"><font size="2"></font></td>
<td width="22" height="16"><font size="2"></font></td>
<td width="30" height="16" valign="top"><font size="2"></font></td>
<td width="901" height="16"><font size="2"></font></td> </tr>
<tr valign="bottom" align="left">
<td width="26"><font size="2"></font></td>
<td width="22"><font size="2"></font></td>
<td width="30" valign="top"><font size="2">(ii) </font></td>
<td width="901"><font size="2">In the event that Directors are to be elected at a special meeting of shareholders pursuant to the corporation's notice of meeting, nominations of persons for election to the Board of Directors may be made at such
special meeting of shareholders (1) by the Board of Directors or (2) by any shareholder entitled to vote at the meeting who complies with the notice procedures set forth in this Section 4 and who is a shareholder of record at the time such notice is
delivered to the Secretary. Nominations by shareholders of persons for election to the Board of Directors may be made at such special meeting if the shareholder's notice required by paragraph (a)(ii) of this Section 4 shall be delivered to the
Secretary at the principal executive offices of the corporation not later than 150 calendar days prior to </font></td> </tr> </table>

<p Style='page-break-before:always'>
<HR  SIZE="3" COLOR="#CCEEFF" WIDTH="100%" ALIGN="CENTER">
  <br>
<table border="0" cellspacing="0" cellpadding="0">
<tr valign="bottom" align="left">
<td><font size="2"></font></td>
<td><font size="2"></font></td>
<td>&nbsp;</td>
<td><font size="2"></font></td>
<td>&nbsp;</td>
<td><font size="2">such special meeting or 10 calendar days following the date on which public announcement of the date of the special meeting and of the nominees to be elected at such meeting is first made. In no event shall the adjournment or
postponement of a special meeting (or the public announcement thereof) commence a new time period (or extend any time period) for the giving of a shareholder's notice as described above.</font></td> </tr>
<tr valign="bottom" align="left">
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td>
<td>&nbsp;</td> </tr>
<tr valign="top" align="left">
<td>&nbsp;</td>
<td><font size="2">(c) </font></td>
<td>&nbsp;</td>
<td><font size="2"></font><u><font size="2">General. </font></u>&nbsp;&nbsp;&nbsp;&nbsp;</td>
<td>&nbsp;&nbsp;</td>
<td><font size="2">Only persons who are nominated in accordance with the procedures set forth in this Section 4 and in Article II, Section 15 herein shall be eligible to serve as Directors and only such business shall be conducted at a meeting of
shareholders as shall have been brought before the meeting in accordance with the procedures set forth in this Section 4. Except as otherwise provided by law, the Articles of Incorporation or these bylaws, the presiding officer of the meeting shall
have the power and duty to determine whether a nomination or any business proposed to be brought before the meeting was made or proposed in accordance with the procedures set forth in this Section 4 and, if any proposed nomination or business is not
in compliance with this Section 4, to declare that such defective proposal or nomination shall be disregarded.</font></td> </tr> </table> <p align="left"><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section 5. <u>Quorum</u>. The
holders of a majority of all the shares of the capital stock of the corporation entitled to vote shall constitute a quorum at any meeting for all purposes, including the election of Directors. Any number less than a quorum present may adjourn any
shareholders' meeting until a quorum is present.</font></p> <p align="left"><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section 6. <u>Conduct of Meetings.</u> The Board of Directors may adopt rules for the conduct of meetings of
shareholders. Unless inconsistent with any such rules, the presiding officer shall convene and adjourn the meeting and prescribe such appropriate procedures for the conduct of the meeting. Such procedures may include: (i) establishment of an agenda
for the meeting; (ii) procedures for maintaining order at the meeting and the safety of those present; (iii) limitations on attendance at or participation in the meeting to shareholders of record of the corporation, their proxies or such other
persons as the presiding officer shall determine; (iv) restrictions on entry to the meeting after the time fixed for the commencement thereof; and (v) limitations on the time allotted to questions or comments by participants. Meetings of
shareholders shall not be required to be held in accordance with the rules of parliamentary procedure.</font></p> <p align="left"><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section 7. <u>Voting.</u> In all elections of Directors,
each shareholder shall have the right to cast one (1) vote for each share of stock owned by him and entitled to a vote, and he may cast the same in person or by proxy, for as many persons as there are Directors to be elected, or he may cumulate such
votes and give one candidate as many votes as the number of Directors to be elected multiplied by the number of his shares of stock shall equal; or he may distribute them on the same principle among as many candidates and in such manner as he shall
desire, and the Directors shall not be elected in any other manner; and on any other question to be determined by a vote of shares at any meeting of shareholders, each shareholder shall be entitled to one (1) vote for each share of stock in person
or by proxy. If a shareholder intends to cumulate his votes in an election of directors, he must provide the corporation with written notice of his intention to do so. Such notice must be received by the corporation at least 48 hours before the
beginning of the meeting being held to consider the election of directors. Shares of another corporation, domestic or foreign, standing in the name of the corporation may be voted by the President, Senior Vice President or Corporate Secretary of the
corporation.</font></p> <p align="left"><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section 8. <u>Inspectors.</u> An appropriate number of inspectors for any meeting of shareholders may be appointed by the chairman of such
meeting. Inspectors so appointed will open and close the polls, will receive and take charge of proxies and ballots, and will decide all questions as to the qualifications of voters, validly of proxies and ballots, and the number of votes properly
cast.</font></p> <p align="left"><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section 9. <u>Annual Report.</u> The President shall annually prepare a full and true statement of the affairs of the corporation, which shall be
submitted at the annual meeting of the shareholders and filed within twenty (20) days thereafter in the principal office of the corporation at Charleston, West Virginia, where it shall, during the usual business hours of each secular day be open for
inspection by any shareholder of the corporation.</font> </p>

<p Style='page-break-before:always'>
<HR  SIZE="3" COLOR="#CCEEFF" WIDTH="100%" ALIGN="CENTER">
  <p align="center"><font size="2">ARTICLE II<br> DIRECTORS</font><br> </p> <p align="left"><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section 1. <u>Number.</u> The Board shall consist of not less
than five nor more than twenty-five shareholders, the exact number within such minimum and maximum limits to be fixed and determined from time to time by resolution of a majority of the full Board or by resolution of the shareholders at any meeting
thereof; <u>provided,</u> <u>however,</u> that a majority of the full Board of Directors may not increase the number of directors to a number which: (i) exceeds by more than three the number of directors last elected by shareholders where such
number was fifteen or less; and (ii) to a number which exceeds by more than four the number of directors last elected by shareholders where such number was sixteen or more except when directors are added as a result of a business combination
accounted for as a pooling-of-interests, but in no event shall the number of directors exceed twenty-five, and <u>provided,</u> <u>further,</u> <u>however,</u> that no decrease shall have the effect of shortening the term of any incumbent
director.</font></p> <p align="left"><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section 2. <u>Director Emeritus</u>. From time to time, the Board of Directors may elect one or more persons to serve as a Director Emeritus. A
Director Emeritus shall have the privilege of attending those meetings of the Board of Directors at which the Board has invited in writing all Directors Emeritus. He shall not have the right to vote on any matters or to receive attendance fees for
the meetings he attends.</font></p> <p align="left"><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section 3. <u>Qualifications</u>. The members of the Board of Directors need not be residents of the State of West Virginia. Each
member of the Board of Directors may serve until he reaches 70 years of age, at which time he shall be deemed to have retired from the Board.</font></p> <p align="left"><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section 4.
T<u>ime of Holding Office</u>. Commencing with the 1986 annual meeting of shareholder, the Board of Directors shall be divided into three classes, Class I, Class II, and Class III, as nearly equal in number as possible. At the 1986 annual meeting of
shareholders, directors of the first class (Class I) shall be elected to hold office for a term expiring at the 1987 annual meeting of shareholders; directors of the second class (Class II) shall be elected to hold office for a term expiring at the
1988 annual meeting of shareholders; and directors of the third class (Class III) shall be elected to hold office for a term expiring at the 1989 annual meeting of shareholders. At each annual meeting of shareholders after 1986, the successors to
the class of directors whose term shall then expire shall be identified as being of the same class of directors they succeed and elected to hold office for a term expiring at the third succeeding annual meeting of shareholders. When the number of
directors is changed, any newly-created directorships or any decrease in directorship shall be so apportioned among the classes by the Board of Directors as to make all classes as nearly equal as possible.</font></p> <p align="left"><font
size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section 5.<u> Election of Officers</u>. The Board of Directors shall elect from within their number a President. The Board shall also elect from within or without their number one or more Vice
Presidents, a Secretary, a Treasurer, and all such other officers and agents as they may deem proper. The Board shall have the authority to fix the salaries of all officers and agents, whether such officers and agents be Directors or not. All
officers and agents elected by the Board shall hold office during the pleasure of the Board.</font></p> <p align="left"><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section 6. <u>Quorum.</u> A majority of the Board of Directors
shall constitute a quorum for the transaction of business. Any number less than a quorum present may adjourn any Directors' meeting until a quorum is present.</font></p> <p align="left"><font
size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section 7. <u>Regular Meetings</u>. Regular meetings of the Board of Directors shall be held as needed.</font></p> <p align="left"><font
size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section 8. <u>Special Meetings</u>. Special meetings of the Board of Directors may be called by the President, or any three Directors to be held at such time and place and for such purposes as
shall be specified in the notice.</font></p> <p align="left"><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section 9. <u>Notice of Special Meetings.</u> Telephonic or written notice of every special meeting of the Board of Directors
shall be duly give to each Director not less than one (1) day before such meeting. Such notice shall state the time and place of the meeting and, if the meeting is being called for the purpose of amending the bylaws or for the purpose of authorizing
the sale of all or substantially all of the assets of the corporation, such notice shall set forth the nature of the business intended to be transacted. Notice of any meeting of the Board may be dispensed with if every Director shall attend in
person, except where a director attends a meeting for the express purpose of objecting to the transaction of any business because the meeting is not lawfully called or convened, or if every absent Director shall in writing filed with the records of
the meeting, either before or after the holding thereof, waive such notice. Any provision of these bylaws to the contrary notwithstanding a meeting of the Board of Directors may be held immediately following the adjournment of any meeting of the
shareholders, and no notice need be given for any such meeting of the Board of Directors.</font></p>

<p Style='page-break-before:always'>
<HR  SIZE="3" COLOR="#CCEEFF" WIDTH="100%" ALIGN="CENTER">
  <p align="left"><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section 10. <u>Action by Telephonic Communications.</u> Members of the Board of Directors may participate in any meeting of the Board of
Directors by means of conference telephone or similar communications equipment by means of which all persons participating in the meeting can hear each other, and participation in any meeting pursuant to this provision shall constitute presence in
person at such meeting. </font></p> <p align="left"><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section 11. <u>Action Without a Meeting.</u> Any action required or permitted to be taken at any meeting of the Board of Directors may
be taken without a meeting if all members of the Board of Directors consent thereto in writing, and such writing or writings are filed with the minutes of proceedings of the Board of Directors. Action taken under this section is effective when the
last Director signs the consent unless the consent specifies a different effective date, in which event the action taken is effective as of the date specified therein provided the consent states the date of execution by each Director.</font></p> <p
align="left"><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section 12. <u>Chairman of the Board. </u>The Board of Directors shall elect from among its members a Chairman of the Board of Directors who shall preside at all meetings of
the Board of Directors and perform such other duties as may be designated by the Board.</font></p> <p align="left"><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section 13. <u>Committees.</u> The Board of Directors may, by
resolution of resolutions passed by a majority of the whole Board, designate one or more committees, each to consist of two or more of the Directors, which, to the extent provided in such resolution or resolutions, shall have and may exercise the
powers of the Board in the management of the business and affairs of the corporation, and may have power to authorize the seal of the corporation to be affixed to all papers which may require it. Such committee or committees shall have such name or
names as may be determined from time to time by resolution adopted by the Board.</font></p> <p align="left"><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section 14. <u>Powers of Directors.</u> The Board of Directors may exercise
all of the powers of the corporation except such as are by law or by the charter or by the bylaws conferred upon or reserved to the shareholders. It shall also have the power to fix the compensation of the officers elected or appointed by it, and of
all other officers and employees of the corporation; to purchase or otherwise acquire for the corporation any property rights or privileges which the corporation is authorized to acquire, at such price and on such terms and conditions as the Board
may think proper; to sell or otherwise dispose of any property owned by the corporation and not necessary for carrying on the business of the corporation and upon such terms and conditions and for such consideration as the Board may deem proper. The
Board may also confer on any officers of the corporation the right to choose, remove or suspend any subordinate officer, agent, or employee. The Directors shall further have the power to fix Directors' fees form time to time in such amounts as the
Directors shall deem proper.</font></p> <p align="left"><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section 15. <u>Newly-Created Directorships and Vacancies.</u> Any vacancy occurring in the Board of Directors may be filled by the
affirmative vote of a majority of the remaining directors though less than a quorum of the Board of Directors. A director elected or appointed, as the case may be, to fill a vacancy shall be elected or appointed for the unexpired term of his
predecessor in office. Any directorship to be filled by reason of an increase in the number of directors may be filled by the board of directors for a term of office continuing only until the next election of directors. No decrease in the number of
directors constituting the Board of Directors shall shorten the term of any incumbent director.</font></p> <p align="left"><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section 14. <u>Voting.</u> No member of the Board of Directors
shall vote on a question in which he is interested otherwise than as a shareholder, except the election of a President or other officer or employee or be present at the Board while the same is being considered; but if his retirement from the Board
in such case reduces the number present below a quorum, the question may nevertheless be decided by those who remain. On any question the names of those voting each way shall be entered on the record of their proceedings if any member at the time
requires it.</font></p> <p align="left"><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section 15.<u> Depositories.</u> The Board of Directors shall have the power to designate the bank in which corporate funds and securities shall
be deposited.<br> Section 16. Bonds for Officers. The Board of Directors may require any officer of the corporation whose duties involve the handling of its funds, or a part thereof, to furnish proper bond, such bond to be in a penalty to be
prescribed by the Board.</font></p> <p align="left"><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section 16. <u>Bonds for Officers.</u> The Board of Directors may require any officer of the corporation whose duties involve the
handling of its funds, or a part thereof, to furnish proper bond, such bond to be in a penalty to be prescribed by the Board.</font></p> <p align="left"><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section 17. <u>Removal of
Directors.</u> Any director may be removed, with or without cause, only by the affirmative vote of the holders of a majority of the outstanding common stock.</font></p>

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  <p align="center"><font size="2">ARTICLE III<br> <br> </font><font size="2">OFFICERS</font></p> <p align="left"><font size="2"><br> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section 1. <u>Officers.</u> The
officers of the corporation shall be a President, one or more Vice Presidents as the Board of Directors may fix from time to time by proper resolutions, a Secretary and a Treasurer, all of whom shall be chosen by the Board of Directors as provided
for in Section 4 of Article II of these bylaws. Any two of the above-named offices, except those of President and Secretary, may be held by the same person, but no officer shall execute an acknowledgement or verify any instrument in more than one
capacity, if such instrument is required by law or by these bylaws to be executed, acknowledged, verified or countersigned by two or more officers. The Board may, by resolution, provide for an Assistant Secretary and an Assistant Treasurer, and may
also elect or appoint such other officers, agents and employees as the Board may deem proper.</font></p> <p align="left"><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section 2. <u>Powers and Duties.</u> The officers of the
corporation shall have such powers and duties as are usually incident to their respective offices, as well as such powers and duties as from time to time shall be assigned to them by the Board of Directors.</font></p> <p align="left"><font
size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section 3. <u>Checks, Notes, Etc.</u> All checks and drafts of the corporation, bank accounts, and all bills of exchange, promissory notes, and all acceptances, obligations and other
instruments for the payment of money shall be signed and/or countersigned by such officers as the Board of Directors may designate.</font></p> <p align="left"><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section 4.<u> Corporate
Acknowledgments.</u> The corporation may acknowledge any instrument required by law to be acknowledged by its attorney appointed to serve, and such appointment may be embodied in the deed or instrument to be acknowledged, or be made by a separate
instrument, or such deed or other instrument may be acknowledged by the President or a Vice President of the corporation without such appointment, or in any manner provided by law.</font></p> <p align="center"><font size="2"><br> ARTICLE IV<br><br>
CAPITAL STOCK</font></p> <p align="left"><font size="2"><br> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section 1. <u>Stock Certificates.</u> The certificates of stock of this corporation shall be in such form as shall be approved by the Board
of Directors, and shall be signed by the President or a Vice President and countersigned by the Secretary or Assistant Secretary and evidenced by the seal of the corporation. Each certificate shall recite on its face that the stock represented
thereby is transferable only upon the books of the corporation properly endorsed.</font></p> <p align="left"><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section 2.<u> Issuing Stock and Fixing Value.</u> The Board of Directors of
this corporation may issue the shares of its capital stock from time to time for such considerations as the Board may deem advisable.</font></p> <p align="left"><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section 3.<u> Title.</u>
Title to a certificate and to the shares represented thereby may be transferred only (a) by delivery of the certificate endorsed, either in blank or to a specific person, by the person appearing by the certificate to be the owner of the shares
represented thereby; or (b) by the delivery of the certificate and a separate document containing a written assignment of the certificate or a power of attorney to sell, assign, or transfer the same or the shares represented thereby, to be signed by
the person appearing by the certificate to be the owner of the shares represented thereby. Such assignment or power of attorney may be either in blank or to a specified person.</font></p> <p align="left"><font
size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section 4. <u>Lost Certificate.</u> A new certificate may be issued in lieu of one lost or destroyed without requiring publication of notice of loss and the cost of said publication applied on
a bond of proportionately increased penalty in any case where such procedure is agreed to by said holder of record and deemed adequate by the Board of Directors. A new certificate may also be issued in the discretion of the Board without requiring
either the publication of notice of loss or the giving of a bond; and upon such other conditions as may be agreed to by said holder of record and deemed adequate by the Board for the protection of the corporation and its shareholders.</font><font
size="2"> </font></p>

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  <p align="center"><font size="2">ARTICLE V<br> <br> </font><font size="2">FISCAL YEAR AND CORPORATE SEAL</font></p> <p align="left"><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section 1. <u>Fiscal
Year.</u> The fiscal year of the corporation shall begin on the first day of January and shall end on the 31st day of December of each year.</font></p> <p align="left"><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section 2.
<u>Corporate Seal.</u> The Board of Directors shall provide a suitable seal containing the name of the corporation, which seal shall be in the charge and custody of the Secretary and Treasurer.</font></p> <p align="center"><font size="2">ARTICLE
VI<br><br> DIVIDENDS</font></p> <p align="left"><font size="2"><br> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section 1. <u>Dividends.</u> The Board of Directors may from time to time declare and pay dividends from the surplus or any profits
of the corporation, whenever they shall deem it expedient in the exercise of discretion and in conformity with the provisions upon which the capital stock of the corporation has been issued. If any shareholder shall be indebted to the corporation,
his dividend, or so much as is necessary thereof, may be applied to the payment of such indebtedness, if then due and payable.</font></p> <p align="left"><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section 2. <u>Working
Capital.</u> The Board of Directors may fix a sum which may be set aside or retained over and above the corporation's capital stock paid in as working capital for the corporation, and from time to time as the Board may increase, diminish and vary
the same in its absolute judgment and discretion.</font></p> <p align="center"><font size="2"><br> ARTICLE VII<br> <br> AMENDMENT OF BYLAWS</font></p> <p align="left"><font size="2"><br> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section 1.
<u>Amendment.</u> The Board of Directors shall have the power to make, amend and repeal the bylaws of the corporation at any regular or special meeting by a majority of the votes cast thereat.</font></p> <p align="center"><font size="2">* * * * * *
* *</font></p> <p align="left"><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;I hereby certify that the foregoing Amended and Restated Bylaws consisting of eight (8) pages, are the Amended and Restated Bylaws of City Holding Company
adopted by the directors of the corporation as of May 28, 2002, and that they are the whole thereof exactly as adopted, and that I make this certificate to identify the same pursuant to instructions of the Board of Directors.</font></p> <p></p> <p
align="center"><font size="2"><br> ______________________<br> Victoria A. Evans, Secretary<br> </font></p>
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<TYPE>EX-10.1
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<DESCRIPTION>EXHIBIT 10.1
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<TITLE>Prepared by R.R. Donnelley Financial -- Exhibit 10.1</TITLE>
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  <p align="right"><font size="2"><b>Exhibit 10.1</b></font></p> <p align="center"><font size="2"><b>CITY HOLDING COMPANY<br> AMENDMENT NO. 2 TO 1993 STOCK INCENTIVE PLAN</b></font></p> <p align="left"><font
size="2"><br> This Amendment No. 2, dated as of June 26, 2002, to the City Holding Company 1993 Stock Incentive Plan, recites and provides as follows:</font></p> <p align="left"><font size="2">Section 12.07 of the City Holding Company 1993 Stock
Incentive Plan is amended by adding a new paragraph (e) to read as follows:</font></p>
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<td width="8%">&nbsp;</td>
<td width="92%"> <p><font size="2">This section shall not apply to awards made on or after January 1, 2002, or, with the Participant's consent, awards made prior to that date if the Agreement or another agreement between the Participant and the
Company, provides that the Company shall indemnify the Participant against any liability that the Participant may incur under Section 4999 of the Code.</font></p> </td> </tr>
<tr>
<td width="8%">&nbsp;</td>
<td width="92%">&nbsp;</td> </tr> </table> <div align="right"><font size="2"> </font> </div> <div align="right"> <p align="left">&nbsp; </p> </div>
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