NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (table dollar amounts in thousands, except share data) NOTE 2 BUSINESS COMBINATIONS continued NOTE 3 RESTRICTION ON CASH AND DUE FROM BANKS The Banks are required to maintain reserve funds in cash and/or on deposit with the Federal Reserve Bank. The reserve required at December 31, 2003, was $15,092,000. The following proforma disclosures, including the effect of the purchase accounting adjustments, depict the results of operations as though the Frances Slocum merger had taken place at the beginning of 2001. The following table summarizes the estimated fair values of the assets acquired and liabilities assumed at the date of acquisition. Loans........................... $ 134,505 Premises and equipment.......... 4,401 Core deposit intangibles........ 4,804 Goodwill........................ 7,907 Other........................... 34,581 --------- Total assets acquired......... 186,198 --------- Deposits........................ 150,252 Other........................... 6,492 --------- Total liabilities acquired.... 156,744 --------- Net assets acquired........... $ 29,454 ========= Year Ended December 31, 2001 ----------- Net Interest Income......................... $ 67,352 Net Income.................................. 21,876 Per share - combined: Basic Net Income.......................... 1.55 Diluted Net Income........................ 1.54 35