Financial Highlights (1) The following table presents a reconciliation of financial results presented in accordance with accounting principles generally  accepted in the United States of America and operating basis results: (2) Phoenix Investment Management Company, Inc. operated as a sub-S corporation prior to the June 26, 2000 acquisition. The acquisition was accounted for as a pooling of interests. As of or for the years ended December 31, (Dollars in millions, except per share amounts) 2002 2001 2000 1999 1998 FINANCIAL RESULTS Net interest income $ 44.3 $ 39.4 $ 37.9 $ 35.6 $ 32.6 Provision for loan losses .4 .6 1.2 1.8 1.9 Noninterest income 23.3 21.5 19.7 18.8 16.5 Net income 16.8 13.1 13.2 12.5 12.2 Net income – operating basis (1) 17.2 15.6 13.9 12.8 11.5 PER SHARE INFORMATION Diluted earnings per share $ 1.30 $ 1.07 $ 1.09 $ 1.03 $ 1.01 Diluted earnings per share – operating basis (1) 1.33 1.28 1.15 1.06 .95 Cash dividends declared .56 .52 .48 .44 .40 Book value 9.87 8.15 7.43 6.55 6.66 Market value – closing stock price 19.53 19.00 14.00 17.75 21.50 FINANCIAL CONDITION Net loans $ 779.6 $ 592.1 $ 584.0 $ 536.7 $ 486.0 Securities 795.8 629.1 511.5 446.8 415.5 Total assets 1,745.7 1,362.2 1,218.1 1,105.6 995.2 Total deposits 1,110.5 816.9 735.7 660.8 627.8 Shareholders’ equity 128.7 97.9 89.2 78.2 78.4 RATIOS (%) Return on average assets 1.07 1.01 1.14 1.19 1.31 Return on average assets – operating basis (1) 1.09 1.20 1.20 1.21 1.24 Return on average equity 14.25 13.86 16.14 15.73 16.09 Return on average equity – operating basis (1) 14.60 16.54 16.98 16.04 15.21 Nonperforming assets to total assets .24 .28 .28 .35 .61 Allowance for loan losses to total loans 1.95 2.24 2.20 2.25 2.21 2002 2001 2000 1999 1998 Net income $ 16.8 $ 13.1 $ 13.2 $ 12.5 $ 12.2 Nonoperating items, net of tax: Acquisition costs .4 1.1 1.3 Litigation settlement, net of insurance recovery 2.5 Pro-forma income taxes on pre-acquisition  earnings of acquired company  (2) (.4) (.7) (.7) Net gain on sale of credit card portfolio (.3) Total nonoperating items .4 2.5 .7 .3 (.7) Net income - operating basis $ 17.2 $ 15.6 $ 13.9 $ 12.8 $ 11.5 Total Assets Net Loans 1998 1999 2000 2001 2002 $995.2 $1,105.6 $1,218.1 $1,362.2 $1,745.7 dollars in millions 1998 1999 2000 2001 2002 $486.0 $536.7 $584.0 $592.1 $779.6 dollars in millions