CONSOLIDATED FINANCIAL STATEMENTS CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY 25 Year Ended December 31,  (in thousands) 2003 2002 2001 =================================================================================================================================== Net income ............................................................................ $ 27,571 $ 27,836 $ 22,209 -------- -------- -------- Other comprehensive income (loss), net of tax: Unrealized gains (losses) on securities available for sale: Unrealized holding gains (losses) arising during the period, net of income tax (expense) benefit of $1,465, $(2,426), $(1,848)................. (2,197) 3,639 2,775 Less: Reclassification adjustment for gains (losses) included in net income, net of income tax (expense) benefit of $(380), $(296), $80 ..................... 570 443 (120) Unrealized loss on pension minimum funding liability: Unrealized loss arising during the period, net of income tax benefit of $357 and $879 ....................................... (536) (1,318) -------- -------- -------- (2,231) 1,878 2,895 -------- -------- -------- COMPREHENSIVE INCOME $ 25,340 $ 29,714 $ 25,104 ======== ======== ======== (in thousands, except share data) ----------------------------------------------------------------------------------------------------------------------------------- COMMON STOCK ----------------------- ADDITIONAL RETAINED ACCUMULATED OTHER SHARES AMOUNT PAID-IN CAPITAL EARNINGS COMPREHENSIVE TOTAL INCOME (LOSS) ----------- -------- -------------- --------- -------------------- ------- Balances, January 1, 2001 .................... 11,611,732 $ 1,451 $ 41,665 $113,244 $ (297) $156,063 Net income for 2001.......................... 22,209 22,209 Cash dividends ($.84 per share).............. (11,127) (11,127) Other comprehensive income (loss), net of tax ............................... 2,895 2,895 Stock issued under employee benefit plans ... 28,466 4 500 504 Stock issued under dividend reinvestment and stock purchase plan .................. 35,348 4 799 803 Stock options exercised ..................... 19,627 2 223 225 Stock redeemed .............................. (306,966) (38) (6,985) (7,023) Issuance of stock related to acquisition..... 677,972 85 14,516 14,601 Five percent (5%) stock dividend............. 604,128 76 (76) Cash paid in lieu of fractional shares....... (22) (22) ----------- -------- -------- --------- --------- --------- Balances, December 31, 2001 12,670,307 1,584 50,642 124,304 2,598 179,128 Net income for 2002.......................... 27,836 27,836 Cash dividends ($.86 per share).............. (13,995) (13,995) Other comprehensive income (loss), net of tax ............................... 1,878 1,878 Stock issued under employee benefit plans ... 35,613 4 654 658 Stock issued under dividend reinvestment and stock purchase plan .................. 28,487 5 946 951 Stock options exercised ..................... 49,689 6 488 494 Stock redeemed .............................. (148,405) (20) (4,313) (4,333) Issuance of stock related to acquisitions.... 2,912,869 364 68,183 68,547 Five percent (5%) stock dividend............. 774,188 97 (97) Cash paid in lieu of fractional shares....... (35) (35) ----------- -------- -------- --------- --------- --------- Balances, December 31, 2002 16,322,748 2,040 116,503 138,110 4,476 261,129 Net income for 2003.......................... 27,571 27,571 Cash dividends ($.90 per share).............. (16,557) (16,557) Other comprehensive income (loss), net of tax ............................... (2,231) (2,231) Stock issued under employee benefit plans ... 39,747 5 814 819 Stock issued under dividend reinvestment and stock purchase plan .................. 48,168 6 1,218 1,224 Stock options exercised ..................... 66,513 8 1,183 1,191 Stock redeemed .............................. (17,915) (2) (486) (488) Issuance of stock related to acquisition..... 1,173,996 147 31,188 31,335 Five percent (5%) stock dividend............. 879,577 110 (110) Cash paid in lieu of fractional shares....... (28) (28) ----------- -------- -------- --------- --------- --------- Balances, December 31, 2003 18,512,834 $ 2,314 $150,310 $149,096 $ 2,245 $ 303,965 =========== ======== ======== ========= ========= ========= See notes to consolidated financial statements.