(dollars in thousands, except per share data) 2002 2001 % Change Income Data Net Interest Income $ 59,594  $ 54,350  10% Net Interest Income (Tax-equivalent Basis) 61,063 54,777  11% Net Income 18,453 14,508  27% Per Share Data Net Income - Basic $ 3.26 $ 2.48  31% Net Income - Diluted 3.02  2.36  28% Cash Earnings - Diluted 3.06  2.76  11% Book Value 24.88 23.03  8% Tangible Book Value 18.57 16.92 10% Cash Dividends 0.76 0.70 9% Average Balance Sheet Data Loans $ 976,326 $ 948,060  3% Earning Assets 1,353,057 1,324,570 2% Total Assets 1,464,419 1,418,980 3% Deposits 1,224,522 1,211,785  1% Shareholders' Equity 140,625 133,906 5% Key Ratios Return on Average Assets 1.26% 1.02% Return on Average Equity 13.12% 10.83% Net Interest Margin (Tax-equivalent Basis) 4.49% 4.11% Efficiency Ratio 56.8% 60.0% Tangible Efficiency Ratio (Tax-equivalent Basis) 55.0% 55.0% Average Loans to Average Deposits 79.7% 78.2% Nonperforming Assets to Total Assets 0.42% 0.91% Allowance For Loan Losses to Loans 1.25% 1.16% Net Charge-Offs to Average Loans 0.43% 0.44% Average Equity to Average Total Assets 9.60% 9.44% Tier 1 Leverage Ratio 7.62% 6.95% Dividend Payout Ratio 23.7% 28.7% CONTENTS [2] Letters to Shareholders [5] Pathways to Growth [15] Financial Information [18] Management’s Discussion and Analysis [34] Consolidated Financial Statements [61] Board and Corporate Information Color inset photo of Allard Oak by Paul Combel financial HIGHLIGHTS