Consolidated Statements of Condition Bucksport Belfast Madison Farmington Consolidated Statements of Income The accompanying notes are an integral part of these Consolidated Financial Statements. The accompanying notes are an integral part of these Consolidated Financial Statements. Camden National Corporation and Subsidiaries 41 40 Camden National Corporation and Subsidiaries (In thousands, except number of shares and per share data) DECEMBER 31, 2002 2001  Assets Cash and due from banks $ 33,523 $ 38,861 Securities available for sale, at market 313,780 262,866 Securities held to maturity (market value $995 and $944  at December 31, 2002 and 2001, respectively) 995 944 Loans, less allowance for loan losses of $15,242 and $13,514 at December 31, 2002 and 2001, respectively 793,640 710,528 Premises and equipment, net 16,710 17,437 Other real estate owned 490 195 Interest receivable 5,778 5,054 Core deposit intangible 4,767 5,708 Goodwill 3,518 4,208 Other assets 45,218 43,554 Total assets  $1,218,419 $1,089,355 Liabilities Deposits: Demand $ 105,091 $ 96,162 NOW  107,383 95,664 Money market 169,457 134,333 Savings 98,197 88,226 Certificates of deposit 370,006 349,183 Total deposits 850,134 763,568 Borrowings from Federal Home Loan Bank 191,901 168,832 Other borrowed funds 46,960 42,011 Accrued interest and other liabilities 10,596 9,876 Total liabilities  1,099,591 984,287 Commitments and Contingencies (Notes 6, 15, 17, 21, 22 and 23) ShareholdersGLYPH<213> Equity Common stock, no par value; authorized 10,000,000 shares, issued 8,609,898 shares in 2002 and 2001 2,450 2,450 Surplus 5,719 5,795 Retained earnings 114,131 102,630 Accumulated other comprehensive income Net unrealized gains on securities available for sale, net of tax 6,800 4,514 Net unrealized gains on derivative instruments, marked to market, net of tax 914 — Total accumulated other comprehensive income 7,714 4,514 Less remaining obligation under: Bank recognition and retention plan  3 9 Less cost of 582,524 and 552,117 shares of  treasury stock on December 31, 2002 and 2001, respectively  11,183 10,312 Total shareholdersGLYPH<213> equity 118,828 105,068 Total liabilities and shareholdersGLYPH<213> equity $1,218,419 $1,089,355 (In thousands, except number of shares and per share data) YEAR ENDED DECEMBER 31, 2002 2001 2000 Interest Income Interest and fees on loans $54,594 $62,362 $61,540 Interest on U.S. government and agency obligations 16,840 14,659 14,753 Interest on state and political subdivision obligations 372 388 393 Interest on interest rate swap agreements 1,897 1,370 1,434 Interest on federal funds sold and other investments 869 1,091 1,435 Total interest income 74,572  79,870 79,555 Interest Expense Interest on deposits 17,090 24,895 27,066 Interest on other borrowings 9,325 9,846 11,650 Interest on interest rate swap agreements 1,300 948 1,326 Total interest expense 27,715  35,689 40,042 Net interest income 46,857 44,181 39,513 Provision for Loan Losses 3,080 3,681 2,930 Net interest income after provision for loan losses 43,777  40,500 36,583 Other Income Service charges on deposit accounts 3,770 3,542 2,880 Other service charges and fees 1,965 2,390 1,764 Merchant assessments 2,135 2,086 1,802 Trust fees 3,625 2,503 1,281 Brokerage and insurance commissions 252 30 — Gain on sale of derivatives — 932 — Gain on sale of securities 156 336 — Other income 2,556 1,275 1,188 Total other income 14,459  13,094 8,915 58,236  53,594 45,498 Operating Expenses Salaries and employee benefits 16,500 14,279 11,558 Net occupancy 2,299 2,075 1,666 Furniture, equipment and data processing 2,132 2,125 2,097 Merchant program 1,812 1,995 1,778 Amortization of core deposit intangible 941 952 986 Acquisition related  75 353 232 Other 8,552 9,235 7,079 Total operating expenses 32,311  31,014 25,396 Income before income taxes and cumulative effect of accounting change 25,925 22,580 20,102 Income Taxes  8,425 7,162 6,243 Income before cumulative effect of accounting change 17,500  15,418 13,859 Cumulative effect of change in accounting for  goodwill, net of tax benefit of $241 449 — — Net Income $17,051 $15,418 $13,859 Per Share Data Basic earnings per share before cumulative effect of accounting change $ 2.18 $ 1.90 $ 1.70 Cumulative effect of change in accounting for goodwill, net of tax benefit  (0.06) — — Basic earnings per share 2.12 1.90 1.70 Diluted earnings per share before cumulative effect of accounting change 2.17 1.89 1.69 Cumulative effect of change in accounting for goodwill, net of tax benefit (0.06) — — Diluted earnings per share 2.11 1.89 1.69 Weighted average number of shares outstanding 8,049,629 8,123,928 8,164,188