• Ranked 4 th in “tax friendliness” to retirees and ranked  9 th in  “tax  friendliness”  to  families ( Bloomberg Personal Finance, May 2002). • Ranked 4 th for e-commerce, based on how state laws, regulations and administrative actions support Internet use by Louisiana citizens (Progressive Policy Institute, March 2002). • Ranked 5 th in percentage of earnings given to charity ( Catalogue for Philanthropy, November 2002). • Ranked 45 th in per capita taxation (U.S. Census Bureau, 2001). • Five of the top 12 deepwater ports are in Louisiana. • All seven of Louisiana’s metropolitan areas were included on the Forbes/Milken Institute list of Best Places for Business and Careers. In the large • Three  Louisiana  cities  were named among the best small metropolitan areas for growing businesses—Baton Rouge 10 th , metropolitan  area  category, Lafayette was ranked 70 th and New Orleans was ranked 168th. In the small metro category, Monroe was ranked 22nd and Alexandria was  ranked  66th  ( Forbes Magazine, May 2002). Lafayette 13 th , and Shreveport 48 th ( Inc. magazine, 2000). 80,000 square foot Convention Center ($16 million project), which opened in 2002. Louisiana is an excellent state in which to conduct business and we are delighted to be an integral part of the commercial banking landscape. We are very proud to serve three distinct regions in the State of Louisiana. These markets provide excellent geographic and economic diversification to our franchise. We also believe that we are uniquely positioned to serve commercial banking clients in these markets. The Acadiana area economic statistics continued to demonstrate growth and diversification. Improvements during 2002 included retail sales, general housing market, tourism and healthcare. Lafayette led the state with the largest job growth in 2001. That trend continued as unemployment rates declined in Lafayette from 5.8% in 2001 to 5.3% in 2002. Retail sales climbed in excess of 30% in 2002 compared to 2001. Over the same period, residential construction grew 25% over 2001. Lafayette serves as a regional medical center with recent expansions of three major cardiac care centers and the construction of a neurological spinal hospital. Tourism provides revenues of approximately $51 million annually to Acadiana and is expected to improve with its new • New Orleans ranked 4 th in the nation in “Wealth Builder Areas,” defined as areas having below median population growth, but having above median real per- capita income growth (The Brookings Institution Center on Urban and Metropolitan Policy, February 2002). The New Orleans market has significant ties to tourism. In addition to annual events such as Mardi Gras and Jazz Fest, the city played host to the Super Bowl in 2002 and New Orleans Acadiana OUR MARKETS 12 strength Evangeline Oak, St. Martinville