5 FINANCIAL HIGHLIGHTS THREE CONSECUTIVE YEARS OF SOLID GROWTH IN RETURN ON EQUITY AND RETURN ON ASSETS. In 2003, we produced strong gains across a number of fronts, including net earnings, where we recorded $3.99 per diluted share* versus $2.09 per diluted share in 2002, a 90.9 percent increase.  We posted our third consecutive year of growth in return on average equity and return on assets, achieving 47.6 percent and 2.52 percent, respectively, in these key measures of profitability. Annual dividends per share* rose from $0.03 to $0.15 during the year, and shareholder’s equity increased 56.3 percent to $654.7 million, giving us an equity-to-assets ratio of 5.30 percent at year-end 2003.  Asset quality improved during the year with nonperforming loans falling to $58.3 million at year-end 2003, down $9.7 million from December 31, 2002. Even though our investment loans grew significantly, total delinquencies as a percentage of our investment portfolio declined to 0.85 percent at December 31, 2003, compared to 1.71 percent at December 31, 2002. Consistent with our business model, 94.7 percent of nonperforming loans are backed by single-family homes. Additionally, our real estate owned portfolio com- prises single-family homes acquired in foreclosure.  *All statistics that relate to share data have been restated for a 2-for-1 stock dividend on May 15, 2003.  NET EARNINGS HIT  A NEW HIGH IN 2003. 99 00 01 02 03 21.37% 15.47% 34.98% 37.14% 47.58% RETURN ON AVERAGE EQUITY