Loans receivable include approximately $301,623,000 and $268,583,000 of adjustable rate loans and $742,868,000 and $687,432,000 of fixed rate loans at December 31, 2002 and 2001, respectively. The amount of loans for which the accrual of interest has been discontinued totaled approximately $3,257,000 and $5,263,000 at December 31, 2002 and 2001 respectively.  A summary of changes in the allowance for loan losses for the years ended December 31, 2002, 2001 and 2000 is as follows:  The Company is also committed to lend an additional $513,000 to two customers whose loans are classified as impaired. Mortgage loans serviced for others are not included in the accompanying consolidated balance sheets. The unpaid principal balances of mortgage loans serviced for others were $16,094,000 and $24,382,000 at December 31, 2002 and 2001, respectively. Custodial escrow balances maintained in connection with the foregoing portfolio of loans serviced for others, and included in demand deposits, were approximately $58,000 and $84,000 at December 31, 2002 and 2001, respectively. The balance of mortgage servicing rights was $122,000 and $150,000 at December 31, 2002 and 2001, respectively. The following is a summary of information pertaining to impaired loans as of December 31: (dollars in thousands) 2002 2001 2000 Balance, beginning of year $ 11,117 $ 10,239 $ 8,749 Provision charged to operations 6,197 5,046 3,861 Loans charged-off (4,782) (4,673)(2,865) Recoveries 569 505 494 Balance, end of year $ 13,101 $ 11,117 $ 10,239 (dollars in thousands) 2002 2001 Impaired loans without a valuation allowance $ – $  608 Impaired loans with a valuation allowance 3,504 5,009 Total impaired loans $3,504 $5,617 Valuation allowance related to impaired loans $ 304 $1,309 (dollars in thousands) 2002 2001 2000 Average investment in impaired loans $3,651 $7,561 $3,612 Interest income recognized on impaired loans 236 230 397 Interest income recognized on a cash basis on impaired loans 240 230 397 NOTE 5 - LOAN SERVICING: 46