2002 TABLE OF TAXABLE EQUIVALENT YIELDS

"BANK-QUALIFIED" INSTRUMENTS

SUBCHAPTER S BANKS IN FOURTH OR LATER YEARS OF S ELECTION

Percentage of Interest Expense Disallowed 0.00%

Federal Marginal Income Tax Rate 38.60%

Cost of Funds

                 
  2.00% 2.50% 3.00% 3.50% 4.00% 4.50% 5.00% 5.50% 6.00% 6.50% 7.00% 7.50% 8.00% 8.50% 9.00%

Municipal Bond Rate

                 
3.00%  4.89% 4.89% 4.89% 4.89% 4.89% 4.89% 4.89% 4.89% 4.89% 4.89% 4.89% 4.89% 4.89% 4.89% 4.89% 
3.25%  5.29% 5.29% 5.29% 5.29% 5.29% 5.29% 5.29% 5.29% 5.29% 5.29% 5.29% 5.29% 5.29% 5.29% 5.29% 
3.50%  5.70% 5.70% 5.70% 5.70% 5.70% 5.70% 5.70% 5.70% 5.70% 5.70% 5.70% 5.70% 5.70% 5.70% 5.70% 
3.75%  6.11% 6.11% 6.11% 6.11% 6.11% 6.11% 6.11% 6.11% 6.11% 6.11% 6.11% 6.11% 6.11% 6.11% 6.11% 
4.00%  6.51% 6.51% 6.51% 6.51% 6.51% 6.51% 6.51% 6.51% 6.51% 6.51% 6.51% 6.51% 6.51% 6.51% 6.51% 
4.25%  6.92% 6.92% 6.92% 6.92% 6.92% 6.92% 6.92% 6.92% 6.92% 6.92% 6.92% 6.92% 6.92% 6.92% 6.92% 
4.50%  7.33% 7.33% 7.33% 7.33% 7.33% 7.33% 7.33% 7.33% 7.33% 7.33% 7.33% 7.33% 7.33% 7.33% 7.33% 
4.75%  7.74% 7.74% 7.74% 7.74% 7.74% 7.74% 7.74% 7.74% 7.74% 7.74% 7.74% 7.74% 7.74% 7.74% 7.74% 
5.00%  8.14% 8.14% 8.14% 8.14% 8.14% 8.14% 8.14% 8.14% 8.14% 8.14% 8.14% 8.14% 8.14% 8.14% 8.14% 
5.25%  8.55% 8.55% 8.55% 8.55% 8.55% 8.55% 8.55% 8.55% 8.55% 8.55% 8.55% 8.55% 8.55% 8.55% 8.55% 
5.50%  8.96% 8.96% 8.96% 8.96% 8.96% 8.96% 8.96% 8.96% 8.96% 8.96% 8.96% 8.96% 8.96% 8.96% 8.96% 
5.75%  9.36% 9.36% 9.36% 9.36% 9.36% 9.36% 9.36% 9.36% 9.36% 9.36% 9.36% 9.36% 9.36% 9.36% 9.36% 
6.00%  9.77% 9.77% 9.77% 9.77% 9.77% 9.77% 9.77% 9.77% 9.77% 9.77% 9.77% 9.77% 9.77% 9.77% 9.77% 
6.25%  10.18% 10.18% 10.18% 10.18% 10.18% 10.18% 10.18% 10.18% 10.18% 10.18% 10.18% 10.18% 10.18% 10.18% 10.18% 
6.50%  10.59% 10.59% 10.59% 10.59% 10.59% 10.59% 10.59% 10.59% 10.59% 10.59% 10.59% 10.59% 10.59% 10.59% 10.59% 
6.75%  10.99% 10.99% 10.99% 10.99% 10.99% 10.99% 10.99% 10.99% 10.99% 10.99% 10.99% 10.99% 10.99% 10.99% 10.99% 
7.00%  11.40% 11.40% 11.40% 11.40% 11.40% 11.40% 11.40% 11.40% 11.40% 11.40% 11.40% 11.40% 11.40% 11.40% 11.40% 
7.25%  11.81% 11.81% 11.81% 11.81% 11.81% 11.81% 11.81% 11.81% 11.81% 11.81% 11.81% 11.81% 11.81% 11.81% 11.81% 
7.50%  12.21% 12.21% 12.21% 12.21% 12.21% 12.21% 12.21% 12.21% 12.21% 12.21% 12.21% 12.21% 12.21% 12.21% 12.21% 
7.75%  12.62% 12.62% 12.62% 12.62% 12.62% 12.62% 12.62% 12.62% 12.62% 12.62% 12.62% 12.62% 12.62% 12.62% 12.62% 
8.00%  13.03% 13.03% 13.03% 13.03% 13.03% 13.03% 13.03% 13.03% 13.03% 13.03% 13.03% 13.03% 13.03% 13.03% 13.03% 
8.25%  13.44% 13.44% 13.44% 13.44% 13.44% 13.44% 13.44% 13.44% 13.44% 13.44% 13.44% 13.44% 13.44% 13.44% 13.44% 
8.50%  13.84% 13.84% 13.84% 13.84% 13.84% 13.84% 13.84% 13.84% 13.84% 13.84% 13.84% 13.84% 13.84% 13.84% 13.84% 
8.75%  14.25% 14.25% 14.25% 14.25% 14.25% 14.25% 14.25% 14.25% 14.25% 14.25% 14.25% 14.25% 14.25% 14.25% 14.25% 
9.00%  14.66% 14.66% 14.66% 14.66% 14.66% 14.66% 14.66% 14.66% 14.66% 14.66% 14.66% 14.66% 14.66% 14.66% 14.66% 
 

Note: The table of taxable equivalent yields shown above is for commercial banks. This table assumes that the bonds constitute qualified tax-exempt bonds which are no longer subject to the 20% interest expense disallowance.

A 38.6% marginal Federal tax rate is assumed to be in effect over the life of the bonds.

Cost of funds is total annual interest expense as a percentage of total average assets.

The information is not guaranteed but is believed to be accurate within the above limitations.