NOTE 6 – PREMISES AND EQUIPMENT: Premises and equipment at December 31, 2002 and 2001 is summarized as follows: Depreciation expense was $2,341,000, $2,559,000 and $2,670,000 for the years ended December 31, 2002, 2001 and 2000, respectively. The Company actively engages in leasing office space that it has available. Leases have different terms ranging from monthly rental to five-year leases. At December 31, 2002, the monthly lease income was $27,000 per month. Total lease income for 2002, 2001 and 2000 was $304,000, $288,000 and $394,000, respectively. Income from leases was reported as a reduction in occupancy and equipment expense. The total allocated cost of the portion of the buildings held for lease at December 31, 2002 and 2001 was $1,995,000 and $1,542,000, respectively, with related accumulated depreciation of $746,000 and $588,000, respectively. The Company leases certain branch offices, land and ATM facilities through noncancellable operating leases with terms that range from one to twenty years, with renewal options thereafter. Total rent expense for the years ended December 31, 2002, 2001 and 2000 amounted to $805,000, $674,000 and $548,000, respectively. Minimum future annual rent commitments under these agreements for the indicated periods follow: Certificates of deposit with a balance of $100,000 and over were $150,926,000 and $153,948,000 at December 31, 2002 and 2001, respectively. NOTE 7 – DEPOSITS: 47 (dollars in thousands) Amount Year Ending December 31, 2003 $ 777 2004 645 2005 559 2006 387 2007 and thereafter 1,660 Total $4,028 (dollars in thousands) 2002 2001 Land $ 3,379 $ 3,503 Buildings 15,767 15,952 Furniture, fixtures and equipment 14,418 16,050 Total premises and equipment 33,564 35,505 Less accumulated depreciation 15,403 16,050 Total premises and equipment, net $18,161 $19,455