TABLE 7 - AVERAGE BALANCES, NET INTEREST INCOME AND INTEREST YIELDS / RATES The following table sets forth, for the periods indicated, information regarding (i) the total dollar amount of interest income of the Company from earning assets and the resultant average yields; (ii) the total dollar amount of interest expense on interest-bearing liabilities and the resultant average rate; (iii) net interest income; (iv) net interest spread; and (v) net interest margin. Information is based on average daily balances during the indicated periods. Tax equivalent (TE) yields are calculated using a marginal tax rate of 35%. 27 Years Ended December 31, (dollars in thousands) 2002 2001  2000  Average Average Average Average Yield/ Average Yield/ Average Yield/ Balance Interest Rate Balance Interest Rate Balance Interest Rate Earning assets: Loans receivable: Mortgage loans $ 197,239  $14,881  7.54% $ 252,696  $19,859  7.86% $ 288,198  $22,654  7.86% Commercial loans (TE) 378,090  23,211  6.27 298,586  23,945  7.98  261,463  24,763  9.37  Consumer and other loans 400,997  33,061  8.24 396,778  35,461  8.94  361,022  31,963  8.85  Total loans  976,326  71,153  7.34 948,060  79,265  8.35  910,683  79,380  8.69  Loans held for sale 6,149  362  5.89 9,184  682  7.43  1,785  167  9.36  Investment securities (TE) 333,850  15,316  4.78 298,601  17,833  6.04  370,836  23,545  6.36  Other earning assets 36,732  721  1.96  68,725  2,588  3.77  12,284  874  7.11  Total earning assets 1,353,057  87,552  6.55  1,324,570  100,368  7.58  1,295,588  103,966  8.01  Allowance for loan losses (11,774) (10,061)(9,096) Nonearning assets 123,136 104,471  96,996  Total assets $1,464,419 $1,418,980  $1,383,488  Interest-bearing liabilities: Deposits: NOW accounts $ 258,087  3,055  1.18 $ 207,851  3,473  1.67  $ 179,746  3,554  1.98  Savings and money market accounts 318,708  4,353  1.37 291,009  7,794  2.68  251,834  8,879  3.53  Certificates of deposit 497,988  17,154  3.44 572,532  30,860  5.39  575,828  32,133  5.58  Total deposits 1,074,783  24,562  2.29 1,071,392  42,127  3.93  1,007,408  44,566  4.42  Short-term borrowings 32,961  619  1.85 13,508  617  4.51  65,831  4,243  6.34  Long-term debt 46,346  2,777  5.91 47,308  3,274  6.83  56,691  3,921  6.80  Total interest-bearing liabilities 1,154,090  27,958  2.42 1,132,208  46,018  4.06  1,129,930  52,730  4.65  Noninterest-bearing demand deposits 149,739 140,393  121,494  Noninterest-bearing liabilities 19,965 12,473  11,378  Total liabilities 1,323,794  1,285,074  1,262,802  Shareholders' equity 140,625  133,906  120,686  Total liabilities and shareholders' equity $1,464,419 $1,418,980  $1,383,488  Net earning assets $ 198,967 $ 192,362  $ 165,658  Net interest spread $59,594  4.13% $54,350  3.52% $51,236  3.36% Net interest margin (TE) 4.49% 4.11% 3.95% Ratio of earning assets to interest-bearing liabilities 117.24% 116.99% 114.66%