Deposits

The Company offers a variety of deposit accounts having a wide range of interest rates and terms. The Company’s deposits consist of demand, savings, NOW accounts, money market and time accounts. The Company relies primarily on customer service, advertising, and competitive pricing policies to attract and retain these deposits. As of December 31, 2000, the Company had less than two percent of its deposits classified as brokered funds and does not anticipate any significant increase. Deposits provide the majority of the funding for the Company’s lending and investment activities, and the interest paid for deposits must be managed carefully to control the level of interest expense.

The Company’s ratio of average demand deposits to average total deposits for the years ended December 31, 2000, 1999, and 1998 was 29.50% , 30.47% , and 30.67% , respectively.

Average total deposits during 2000 increased to $2.82 billion from $2.38 billion in 1999, an increase of $437.6 million or 18%. Average noninterest-bearing deposits increased to $774.1 million in 2000 from $656.4 million in 1999 due to an increase in the number of deposit accounts. Average deposits in 1999 rose to $2.38 billion from $2.15 billion in 1998, an increase of $230.9 million or 11%.

The average daily balances and weighted average rates paid on deposits for each of the years ended December 31, 2000, 1999, and 1998 are presented below:

The following table sets forth the maturity of the Company’s time deposits that are $100,000 or greater as of the dates indicated: