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FHLB advances are collateralized by residential real estate loans, consumer loans and FHLB stock with an aggregate carrying value of $2.5 billion at December 31, 2002 and are generally fixed-rate advances. Included in FHLB advances at December 31, 2002 are $928.5 mil- lion of fixed-rate advances which are callable at par on certain dates. If called, the FHLB will provide replacement funding at the then-pre- vailing market interest rates. The probability that these advances will be called depends primarily on the level of related interest rates during the call period. At December 31, 2002, the contract rate exceeded the market rate on all of the fixed-rate callable advances. The stated maturity dates and the next call dates for the callable FHLB advances outstanding at December 31, 2002 were as follows (dollars in thousands): 

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## 14. Income Taxes 

Income tax expense consists of the following: 

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Income tax expense differs from the amounts computed by applying the federal income tax rate of 35% to income before income tax expense as a result of the following: 

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