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At December 31, 2001, the Company had $90 million (notional principal amount) in cap contracts ($20 million and $70 million) with strike rates of 7.50% and 7.00%, respectively, both of which matured in 2002. During 2001, the Company had $25 million (notional principal amount) in callable interest rate swaps that were called. The Company also sold its interest in $10 million (notional principal amount) of interest rate swaps and $10 million (notional principal amount) of floor contracts during 2001. 

At December 31, 2002 and 2001, the contractual or notional amounts of credit related and derivative financial instruments were as follows: 

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The estimated fair values of the CompanyGLYPH<213>s financial instruments reported in the Consolidated Statements of Condition were as follows: 

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The estimated fair values of the CompanyGLYPH<213>s derivative financial instruments were as follows: 

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## 23. REGULATORY MATTERS 

The Company and its bank subsidiaries are subject to various regulatory capital requirements administered by the FRB, the Comptroller of the Currency, and the FDIC. Failure to meet minimum capital requirements can result in mandatory and possible additional discretionary actions by regulators that, if undertaken, could have a direct material effect on the CompanyGLYPH<213>s Consolidated Financial Statements. 

These capital requirements represent quantitative measures of the CompanyGLYPH<213>s assets, liabilities and certain off-balance sheet items as calculated under regulatory accounting practices. The CompanyGLYPH<213>s capital classification is also subject to qualitative judgments by its regulators about components, risk weightings and other factors. 

Quantitative measures established by regulation to ensure capital adequacy require the Company to maintain minimum amounts and ratios of total and Tier 1 capital (as defined in the regulations) to risk-weighted assets (as defined), and of Tier 1 capital to average assets (as defined). Management believes that, as of December 31, 2002, the Company and its bank subsidiaries meet all capital requirements to which they are subject. 

As of December 31, 2002, both bank subsidiaries were categorized by their supervisory regulatory agencies as well capitalized. To be categorized as well capitalized, each bank subsidiary of the Company must maintain minimum total risk-based, Tier 1 risk-based, and Tier 1 leverage ratios as set forth in the table. There are no conditions or events that management believes have changed the banksGLYPH<213> respective capital categories. 

The ability of the Company to pay cash dividends depends on the receipt of dividends from its subsidiaries. The Company, as the sole shareholder of its subsidiaries, is entitled to dividends from legally available funds when and as declared by each subsidiaryGLYPH<213>s Board of Directors. 

The CompanyGLYPH<213>s actual capital amounts and ratios are also presented in the table. 

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