14. BORROWINGS A summary of the borrowings, including the outstanding balance of lines of credit, from the FHLBB is as follows: Short- and long-term borrowings from the FHLBB consist of both fixed and adjustable rate borrowings and are collateralized by all stock in the FHLBB and a blanket lien on qualified collateral consisting primarily of loans with first mortgages secured by one-to-four family properties, certain pledged investment securities and other qualified assets. The carrying value of loans pledged as collateral was $236,254,000 and $194,659,000 at December 31, 2002 and 2001, respectively. The FHLBB at its discretion can call $101,000,000 of the CompanyGLYPH<213>s long-term borrowings. The Company, through its bank subsidiaries, has an available line of credit with FHLBB of $12,980,000 at December 31, 2002 and 2001. The Company had no outstanding balance on its line of credit with the FHLBB at December 31, 2002 or 2001. The Company utilizes other borrowings in the form of treasury, tax and loan deposits and repurchase agreements secured by U.S. government or agency securities. Balances outstanding at December 31 are shown in the table below: The CompanyGLYPH<213>s postretirement plans provide medical and life insurance to certain eligible retired employees. It is the CompanyGLYPH<213>s policy to fund the cost of postretirement health care and life insurance plans as premiums are paid; therefore, there are no  plan assets. On October 17, 2000, the Company terminated the defined-benefit noncontributory pension plan, which covered substantially all eligible employees over 21 years of age with 1 year of employment. Total plan assets of $5,168,000 were distributed to eligible 54 Camden National Corporation and Subsidiaries 15. EMPLOYEE BENEFIT PLANS Pension and Other Postretirement Plans 2002 2001 Treasury, tax and loan deposits $ 1,000 $ 1,058  Securities sold under repurchase agreements 45,960  40,953 Total other borrowed funds $46,960 $42,011 Weighted-average rate at the end of period 1.74% 3.68% Principal Amounts Interest Rates Maturity Date $ 76,405 1.35% — 6.12% 2003 12,000 3.27% — 5.19% 2004 28,101 3.97% — 5.55% 2006 19,395 4.27% — 4.47% 2007 12,000 4.88% — 4.97% 2009 10,000 4.95% 2010 34,000 4.07% — 5.02% 2011 $191,901 Principal Amounts Interest Rates Maturity Date $ 24,578 4.82% — 5.19% 2002 45,000 4.24% — 6.12% 2003 12,000 3.27% — 5.19% 2004 31,254 3.97% — 5.55% 2006 12,000 4.88% — 4.97% 2009 10,000 4.95% 2010 34,000 4.07% — 5.02% 2011 $168,832 DECEMBER 31, 2001 DECEMBER 31, 2002 Information regarding the postretirement benefit plan is as follows: employees during the first half of 2001. During 2000, the Company recognized $437,000 of net income due to the over accrual of the benefit obligation at the date of plan termination. 2002 2001 2000 Change in benefit obligation Benefit obligation at beginning of the year $ 765 $ 724 $ 481 Service cost 57 43 38 Interest cost 53 50 32 Actuarial gain (loss) 15 (22) 200 Benefits paid (38) (30) (27) Benefit obligation at end of year 852 765 724 Funded status (852) (765) (724) Unrecognized net actuarial loss 242 237 273 Unrecognized net prior service cost (62) (78) (94) Accrued benefit cost, included in other liabilities $(672) $(606) $(545) Weighted-average discount rate assumption 7.0% 7.0% 7.0% 2002 2001 2000 Components of net periodic benefit cost Service cost $ 57 $43 $ 38 Interest cost 53 50 32 Amortization of prior service cost (16) (16) (16) Recognized net actuarial loss 11 14 3 Net periodic benefit cost $105 $ 91 $ 57 For measurement purposes, a 6.2% annual rate of increase in the per capita cost to cover health care benefits was assumed for 2003. The rate was assumed to decrease gradually to a 6.0% annual growth rate after 3 years, and remain at a 6.0% annual growth rate thereafter. A 1.0% increase or decrease in the assumed health care cost trends rate would not have a material impact on the accumulated postretirement benefit obligation due to a built-in cap on annual benefits. The Company also sponsors an unfunded, non-qualified supplemental retirement plan for certain officers. The agreement provides that participants will be paid a life annuity upon retirement or death. Prior to September 1, 1999, the plan provided supplemental retirement payments over 15 years upon retirement or death.  The expense of this supplemental plan was $403,000, $399,000 and $274,000 in 2002, 2001 and 2000, respectively. The accrued liability of this plan at December 31, 2002 and 2001 was $1,788,000 and $1,562,000, respectively. The Company has a 401(k) plan whereby substantially all employees participate in the plan. Employees may contribute up to 15% of their compensation subject to certain limits based on federal tax laws. The Company makes matching contributions and may make additional contributions subject to the discretion of the Board of Directors. For the years ended December 31, 2002, 2001 and 2000, aggregate expenses under the plan amounted to $772,000, $527,000 and $214,000, respectively. The Company maintained a Bank Recognition and Retention Plan (GLYPH<210>BRRPGLYPH<211>) as a method of providing certain officers and other employees of the Company with a proprietary interest in the Company. During 1994, the Company contributed funds to the BRRP  to enable such Company officers and employees to acquire, in the aggregate, 56,045 shares of common stock of the Company. The Company recognizes expense related to the BRRP based on the vesting schedule. Participants are vested at a rate of 20% per year commencing 1 year from the date of the award. Total expense related to the BRRP was $5,712 for 2002, 2001 and 2000. Camden National Corporation and Subsidiaries 55 401(k) / Profit Sharing Plan Bank Recognition and Retention Plan