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## NOTESTO CONSOLIDATED FINANCIAL STATEMENTS 

(Dollar Amounts in Thousands) 

## NOTE 9— Securities Held to Maturity 

Below is an analysis of the amortized cost and approximate fair values of debt securities held to maturity at December 31, 2003 and 2002: 

<img src='content_image/15486.jpg'>

The amortized cost and estimated market value of debt securities at December 31, 2003, by contractual maturity, are shown below. Expected maturities will differ from contractual maturities because borrowers may have the right to call or repay obligations with or without call or prepayment penalties. 

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There were no sales of securities held to maturity in 2003, 2002 or 2001. 

Securities held to maturity with an amortized cost of $98,173 and $149,119 were pledged at December 31, 2003 and 2002, respectively, to secure public deposits and for other purposes required or permitted by law. 

## NOTE 10— Other Than Temporary Impairment of Investments 

The following table presents the gross unrealized losses and fair values at December 31, 2003 by investment category and time frame for which the loss has been outstanding: 

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There were no unrealized losses in the investment portfolio that were outstanding for twelve months or more. In addition, there were no unrealized losses on equity securities. 

Management does not believe any individual unrealized loss as of December 31, 2003 represents an other-than-temporary impairment. The unrealized losses are primarily attributed to changes in interest rates. Finally, the Corporation has both the intent and the ability to hold the securities contained in the previous table for a time necessary to recover the amortized cost. 

