meeting customer demand by offering variable-rate loans. TCF has experienced growth in non-rate sensitive checking accounts and has experienced a lengthening of the maturity of certificates of deposit. TCF’s net interest income is positioned to benefit from rising short-term rates due to a positive gap position. TCF would also likely benefit from an increase in short-term interest rates as this might signify that economic conditions are improving. An increase in short-term interest rates would affect TCF’s fixed-rate/variable-rate product origination mix and origination volumes and would likely slow prepayments.  While this positive gap may compress net interest income in the short-term or if the current interest rate environment continues for an extended period of time, TCF believes this positive gap to be warranted because current rates are well below historical averages and, consequently, there is a greater possibility over time of higher inter- est rates versus lower interest rates. However, if long-term interest rates remain stable or decrease, TCF could continue to experience an increase in prepayments of residential loans, mortgage-backed secu- rities and mortgage servicing rights and may experience further com- pression of net interest margin or net interest income. The following table summarizes TCF’s interest-rate gap position at December 31, 2002:  Maturity/Rate Sensitivity Within 30 Days to 6 Months to (Dollars in thousands) 30 Days 6 Months 1 Year 1 to 3 Years 3+ Years Total Interest-earning assets: Loans held for sale . . . . . . . . . . . $ 346,341 $ 120,210 $ 9,924 $ – $ – $ 476,475 Securities available for sale (1)  . . . . 91,387 409,120 395,087 728,409 802,791 2,426,794 Real estate loans (1)  . . . . . . . . . . . . 44,330 479,118 403,702 512,546 360,648 1,800,344 Leasing and equipment finance (1) 41,543 177,544 189,985 455,467 174,501 1,039,040 Other loans (1)(2)  . . . . . . . . . . . . . . 1,872,051 493,522 368,941 1,581,347 965,883 5,281,744 Investments . . . . . . . . . . . . . . . . 868 128,855 – – 23,999 153,722 2,396,520 1,808,369 1,367,639 3,277,769 2,327,822 11,178,119 Interest-bearing liabilities: Checking deposits  (3)  . . . . . . . . . . 213,612 – – – 2,651,284 2,864,896 Savings deposits  (3)  . . . . . . . . . . . . 950,693 123,245 129,659 366,680 471,446 2,041,723 Money market deposits  (3)  . . . . . . 465,687 – – – 418,927 884,614 Certificate deposits . . . . . . . . . . . 151,137 642,122 642,940 407,787 74,769 1,918,755 Short-term borrowings . . . . . . . 842,051  – – – – 842,051 Long-term borrowings  (4)  . . . . . . 217,193 54,995 29,091 1,340,906 626,059 2,268,244 2,840,373 820,362 801,690 2,115,373 4,242,485 10,820,283 Interest-earning assets over (under) interest-bearing liabilities . . . $ (443,853) $ 988,007 $ 565,949 $ 1,162,396 $(1,914,663) $ 357,836 Cumulative gap . . . . . . . . . . . . . . . . $ (443,853) $ 544,154 $ 1,110,103 $ 2,272,499 $ 357,836 $ 357,836 Cumulative gap as a percentage  of total assets: At December 31, 2002 . . . . . . (4)% 4 % 9% 19% 3% 3% At December 31, 2001 . . . . . . (4)% (1)% 2% 14% 3% 3% $^{(1)}$Based upon contractual maturity, repricing date, if applicable, scheduled repayments of principal and projected prepayments of principal based upon experience and third party projections. (2) At December 31, 2002, $1 billion of consumer variable rate loans were at their floor rate and were treated as fixed-rate for gap reporting purposes. At December 31, 2001, $892 million of consumer variable rate loans were at their floor rate and were treated as fixed-rate. $^{(3)}$Includes non-interest bearing deposits. At December 31, 2002, 7% of checking deposits, 59% of savings deposits, and 53% of money market deposits are included in amounts repricing within one year. 18% of savings deposits are included in the “1 to 3 Years” category. All remaining checking, savings and money market deposits are assumed to mature in the “3+ Years” category. While management believes that these assumptions are reasonable, no assurance can be given that amounts on deposit in checking, savings, and money market accounts will not significantly change or be repriced in the event of a general change in interest rates. At December 31, 2001, 8% of checking deposits, 34% of savings deposits, and 59% of money market deposits were included in amounts repricing within one year. 29% of savings deposits were included in the “1 to 3 Years” category.  (4) Includes $1.1 billion of callable borrowings. At December 31, 2002, the contract rates on all callable borrowings exceeded current market rates. page 42