2002 TABLE OF TAXABLE EQUIVALENT YIELDS

"BANK-QUALIFIED" INSTRUMENTS

SUBCHAPTER S BANKS IN FIRST THREE YEARS OF S ELECTION

Percentage of Interest Expense Disallowed 20.00%

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%  4.62% 4.56% 4.49% 4.42% 4.36% 4.29% 4.22% 4.16% 4.09% 4.03% 3.96% 3.89% 3.83% 3.76% 3.69% 
3.25%  5.03% 4.96% 4.90% 4.83% 4.76% 4.70% 4.63% 4.57% 4.50% 4.43% 4.37% 4.30% 4.23% 4.17% 4.10% 
3.50%  5.44% 5.37% 5.30% 5.24% 5.17% 5.10% 5.04% 4.97% 4.91% 4.84% 4.77% 4.71% 4.64% 4.58% 4.51% 
3.75%  5.84% 5.78% 5.71% 5.64% 5.58% 5.51% 5.45% 5.38% 5.31% 5.25% 5.18% 5.11% 5.05% 4.98% 4.92% 
4.00%  6.25% 6.18% 6.12% 6.05% 5.99% 5.92% 5.85% 5.79% 5.72% 5.65% 5.59% 5.52% 5.46% 5.39% 5.32% 
4.25%  6.66% 6.59% 6.52% 6.46% 6.39% 6.33% 6.26% 6.19% 6.13% 6.06% 6.00% 5.93% 5.86% 5.80% 5.73% 
4.50%  7.06% 7.00% 6.93% 6.87% 6.80% 6.73% 6.67% 6.60% 6.53% 6.47% 6.40% 6.34% 6.27% 6.20% 6.14% 
4.75%  7.47% 7.41% 7.34% 7.27% 7.21% 7.14% 7.07% 7.01% 6.94% 6.88% 6.81% 6.74% 6.68% 6.61% 6.55% 
5.00%  7.88% 7.81% 7.75% 7.68% 7.61% 7.55% 7.48% 7.42% 7.35% 7.28% 7.22% 7.15% 7.08% 7.02% 6.95% 
5.25%  8.29% 8.22% 8.15% 8.09% 8.02% 7.95% 7.89% 7.82% 7.76% 7.69% 7.62% 7.56% 7.49% 7.43% 7.36% 
5.50%  8.69% 8.63% 8.56% 8.49% 8.43% 8.36% 8.30% 8.23% 8.16% 8.10% 8.03% 7.97% 7.90% 7.83% 7.77% 
5.75%  9.10% 9.03% 8.97% 8.90% 8.84% 8.77% 8.70% 8.64% 8.57% 8.50% 8.44% 8.37% 8.31% 8.24% 8.17% 
6.00%  9.51% 9.44% 9.37% 9.31% 9.24% 9.18% 9.11% 9.04% 8.98% 8.91% 8.85% 8.78% 8.71% 8.65% 8.58% 
6.25%  9.91% 9.85% 9.78% 9.72% 9.65% 9.58% 9.52% 9.45% 9.39% 9.32% 9.25% 9.19% 9.12% 9.05% 8.99% 
6.50%  10.32% 10.26% 10.19% 10.12% 10.06% 9.99% 9.92% 9.86% 9.79% 9.73% 9.66% 9.59% 9.53% 9.46% 9.40% 
6.75%  10.73% 10.66% 10.60% 10.53% 10.46% 10.40% 10.33% 10.27% 10.20% 10.13% 10.07% 10.00% 9.93% 9.87% 9.80% 
7.00%  11.14% 11.07% 11.00% 10.94% 10.87% 10.81% 10.74% 10.67% 10.61% 10.54% 10.47% 10.41% 10.34% 10.28% 10.21% 
7.25%  11.54% 11.48% 11.41% 11.34% 11.28% 11.21% 11.15% 11.08% 11.01% 10.95% 10.88% 10.82% 10.75% 10.68% 10.62% 
7.50%  11.95% 11.88% 11.82% 11.75% 11.69% 11.62% 11.55% 11.49% 11.42% 11.35% 11.29% 11.22% 11.16% 11.09% 11.02% 
7.75%  12.36% 12.29% 12.23% 12.16% 12.09% 12.03% 11.96% 11.89% 11.83% 11.76% 11.70% 11.63% 11.56% 11.50% 11.43% 
8.00%  12.76% 12.70% 12.63% 12.57% 12.50% 12.43% 12.37% 12.30% 12.24% 12.17% 12.10% 12.04% 11.97% 11.90% 11.84% 
8.25%  13.17% 13.11% 13.04% 12.97% 12.91% 12.84% 12.77% 12.71% 12.64% 12.58% 12.51% 12.44% 12.38% 12.31% 12.25% 
8.50%  13.58% 13.51% 13.45% 13.38% 13.31% 13.25% 13.18% 13.12% 13.05% 12.98% 12.92% 12.85% 12.78% 12.72% 12.65% 
8.75%  13.99% 13.92% 13.85% 13.79% 13.72% 13.66% 13.59% 13.52% 13.46% 13.39% 13.32% 13.26% 13.19% 13.13% 13.06% 
9.00%  14.39% 14.33% 14.26% 14.19% 14.13% 14.06% 14.00% 13.93% 13.86% 13.80% 13.73% 13.67% 13.60% 13.53% 13.47% 

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 only 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.