Evertrust Financial (EVRT) 10-Q 2002 Q4 Quarterly report

SECURITIES AND EXCHANGE COMMISSION
Washington, D.C.20549
FORM 10-Q
[X]	QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
	For the Quarterly period ended..............................December 31, 2002
[   ]	TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
	For the transition period from ____________________ to ___________________
Commission File Number: 0-26993
EVERTRUST FINANCIAL GROUP, INC.(Exact name of registrant as specified in its charter)

Washington(State or other jurisdiction of  incorporation or organization)	91-1613658(I.R.S. Employer I.D. Number)
2707 Colby Avenue, Suite 600, Everett, Washington 98201(Address of principal executive offices and zip code)
(425) 258-3645(Registrant's telephone number, including area code)
NA(Former name, former address and former fiscal year, if changed since last report)

Check whether the registrant is an accelerated filer (as defined in Rule 12b-2 of the Exchange Act).

(1)   Yes              No   X 

Indicate by check whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the
Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant
was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

(1)   Yes   X         No 

APPLICABLE ONLY TO CORPORATE ISSUERS

Indicate the number of shares outstanding of each of the issuer's classes of common stock, as of the latest practicable date.

Title of class:Common stock, no par value      As of January 31, 2003                 4,906,741

<PAGE>

EVERTRUST FINANCIAL GROUP, INC.
Table of Contents

			Page
PART I	-	FINANCIAL INFORMATION
ITEM 1	-	Financial Statements. The Consolidated Financial Statements of EverTrustFinancial Group, Inc. filed as a part of the report are as follows:
		Consolidated Statements of Financial Condition as of December 31, 2002 and March 31, 2002	1
		Consolidated Statements of Operations for the three and nine months ended December 31, 2002 and 2001	2
		Consolidated Statements of Comprehensive Income for the nine months ended December 31, 2002 and 2001	3
		Consolidated Statements of Changes in Equity for the twelve months ended March 31, 2002 and nine months ended December 31, 2002	4
		Consolidated Statements of Cash Flows for the nine months ended December 31, 2002 and 2001	5
		Notes to Consolidated Financial Statements	6
ITEM 2	-	Management's Discussion and Analysis of Financial Condition and Results of Operations
		General	11
		Comparison of Financial Condition at December 31, and March 31, 2002	12
		Comparison of Operating Results for the Three Months Ended December 31, 2002 and 2001	15
		Comparison of Operating Results for the Nine Months Ended December 31, 2002 and 2001	18
		Liquidity and Capital Resources	21
ITEM 3	-	Quantitative and Qualitative Disclosures About Market Risk
		Asset and Liability Management and Market Risk	22
ITEM 4	-	Controls and Procedures	22
PART II	-	OTHER INFORMATION
		Item 1. Legal Proceedings	23
		Item 2. Changes in Securities	23
		Item 3. Defaults upon Senior Securities	23
		Item 4. Submission of Matters to a Vote of Stockholders	23
		Item 5. Other Information	23
		Item 6. Exhibits and Reports on Form 8-K	23
SIGNATURES			24
CERTIFICATIONS - Pursuant to Section 302 of the Sarbanes-Oxley Act			25

i

<PAGE>

Part 1 - Financial Information
Item 1 - Financial Statements

EverTrust Financial Group, Inc
Consolidated Statements of Financial Condition
December 31, 2002 and March 31, 2002
(Dollar amounts in thousands)

	December 31,	March 31,
	2002	2002
ASSETS	(Unaudited)
Cash and cash equivalents, including interest bearing deposits
of $20,153 and $8,975	$   32,044	$   19,166
Securities available for sale, amortized cost of $33,526 and $49,336	34,126	49,903
Securities held to maturity, fair value of $4,100 and $5,126	3,873	4,955
Federal Home Loan Bank stock, at cost	6,231	5,946
Loans receivable, net of allowances of $9,036 and $8,754	607,354	574,646
Loans held for sale, fair value of $922 and $634	908	625
Accrued interest receivable	3,298	3,638
Premises and equipment, net	9,398	10,196
Other real estate owned	-	524
Prepaid expenses and other assets	6,255	6,210
Total Assets	$ 703,487	$ 675,809
LIABILITIES AND EQUITY
LIABILITIES:
Deposit accounts	$ 502,622	$ 449,611
Federal Home Loan Bank advances and other borrowings	104,848	129,338
Accounts payable and other liabilities	4,028	4,036
Total Liabilities	611,498	582,985
COMMITMENTS AND CONTINGENCIES
EQUITY:
Common stock - no par value, 49,000,000 shares authorized,
4,903,741 shares and 5,170,569 shares outstanding at
December 31, 2002 and March 31, 2002, respectively	32,340	37,390
Employee Stock Ownership Plan (ESOP) debt	(396)	(792)
Retained earnings	61,167	58,019
Shares held in trust for stock-related
compensation plans	(1,518)	(2,167)
Accumulated other comprehensive income	396	374
Total Equity	91,989	92,824
Total Liabilities and Equity	$ 703,487	$ 675,809

1

<PAGE>

EverTrust Financial Group, Inc.
Consolidated Statements of Operations
For the Three and Nine Months Ended December 31, 2002 and 2001
(Dollar amounts in thousands, except per share amounts)

	Three Months Ended December 31,		Nine Months Ended December 31,
	2002	2001	2002	2001
	(Unaudited)		(Unaudited)
INTEREST INCOME:
Loans receivable	$       10,574	$      10,907	$      32,041	$     32,356
Investment securities:
Taxable interest income	589	739	2,055	2,563
Tax-exempt interest income	48	62	160	191
Dividend income	111	116	310	372
Total investment security income	748	917	2,525	3,126
Total interest income	11,322	11,824	34,566	35,482
INTEREST EXPENSE:
Deposit accounts	3,461	3,834	10,371	12,669
Federal Home Loan Bank advances
and other borrowings	1,391	1,343	4,387	3,675
Total interest expense	4,852	5,177	14,758	16,374
Net interest income	6,470	6,647	19,808	19,108
PROVISION FOR LOAN LOSSES	200	625	390	1,250
Net interest income after provision for
loan losses	6,270	6,022	19,418	17,858
NONINTEREST INCOME:
Loan service fees	559	348	1,655	762
Gain (Loss) on sale of securities	(53)	-	(4)	24
Gain on sale of loans	566	131	864	360
Other, net	593	435	1,691	1,181
Total noninterest income	1,665	914	4,206	2,327
NONINTEREST EXPENSES:
Salaries and employee benefits	2,947	2,752	9,091	8,203
Occupancy and equipment	753	746	2,340	2,180
Information processing costs	369	300	1,089	787
Other, net	1,854	1,200	4,301	3,195
Total noninterest expenses	5,923	4,998	16,821	14,365
Earnings before federal income taxes	2,012	1,938	6,803	5,820
FEDERAL INCOME TAXES	570	654	1,925	1,823
NET INCOME	$       1,442	$      1,284	$       4,877	$       3,997
Net income per common share - basic	$         0.30	$        0.25	$         1.03	$         0.66
Net income per common share - diluted	$         0.29	$        0.25	$         0.97	$         0.65
Weighted average shares outstanding - basic	4,749,598	5,073,771	4,758,054	6,022,999
Weighted average shares outstanding - diluted	5,033,333	5,229,360	5,044,074	6,187,628
Dividends paid per share	$        0.115	$      0.110	$       0.345	$       0.315

2

<PAGE>

EverTrust Financial Group, Inc.
Consolidated Statements of Comprehensive Income
For the Nine Months Ended December 31, 2002 and 2001
(Dollar amounts in thousands)

	2002	2001
	(Unaudited)
NET INCOME	$ 4,877	$ 3,997
OTHER COMPREHENSIVE INCOME, net of income taxes:
Gross unrealized gain (loss) on securities:
Unrealized holding gain during the period, net
of deferred income tax expense of $13 and $53	25	103
Less adjustment of gains included in net income,
net of income tax of $(1) and $(8)	(3)	(16)
Other comprehensive income	22	87
COMPREHENSIVE INCOME	$ 4,899	$ 4,804

3

<PAGE>

EverTrust Financial Group, Inc.
Consolidated Statements of Changes in Equity
For the Twelve Months Ended March 31, 2002 and Nine Months Ended December 31, 2002
(Dollar amounts in thousands, Unaudited)

					Shares held
					in trust for	Accumulated
	Common Stock				stock-related	other
			Debt related	Retained	compensation	comprehensive
	Shares	Amount	to ESOP	Earnings	plans	Income	Total
BALANCE, April 1, 2001	7,258,243	$ 68,940	$ (1,188)	$ 55,033	$ (3,034)	$ (395)	$ 120,146
Common stock repurchased	(2,087,674)	(31,701)					(31,701)
Repayment of ESOP debt			396				396
ESOP activity- Change in value of
shares committed to be released		151					151
Amortization of compensation related to
Management Recognition Plan (MRP)					867		867
Net income				5,579			5,579
Dividends paid				(2,593)			(2,593)
Other comprehensive income,				V
net of income taxes						(21)	(21)
BALANCE, March 31, 2002	5,170,569	$ 37,390	$ (792)	$ 58,019	$ (2,167)	$ 374	$ 92,824
Common stock repurchased	(280,827)	(5,480)					(5,480)
Common stock options exercised	13,999	165					165
Repayment of ESOP debt			396				396
ESOP activity- Change in value of
shares committed to be released		265					265
Amortization of compensation related to
Management Recognition Plan (MRP)					649		649
Net income				4,877			4,877
Dividends paid				(1,729)			(1,729)
Other comprehensive income, net of
income taxes						22	22
BALANCE, December 31, 2002	4,903,741	$ 32,340	$ (396)	$ 61,167	$ (1,518)	$ 396	$ 91,989

4

<PAGE>

EverTrust Financial Group, Inc and Subsidiaries
Consolidated Statements of Cash Flows (In thousands)
For the Nine Months Ended December 31, 2002 and 2001

	2002	2001
OPERATING ACTIVITIES:
Net income	$   4,877	$   3,997
Adjustments to reconcile net income to net cash
provided (used) by operating activities:
Depreciation and amortization of premises
and equipment	1,325	1,101
Dividends on Federal Home Loan Bank stock and
accretion of investment security discounts	(479)	(640)
Gain on sale of premises and equipment	(15)	26
Amortization of investment security premiums	66	722
Loss on limited partnership	649	81
Provision for losses on loans	390	1,250
Amortization of deferred loan fees and costs	(1,686)	(1,379)
Loan fees deferred	1,843	1,611
Proceeds from sale of loans	43,762	19,218
Loans originated for sale	(44,045)	(19,233)
Deferred taxes	(53)	112
Amortization of compensation related to MRP	649	649
Cash provided (used) by changes in operating
assets and liabilities:
Accrued interest receivable	340	332
Prepaid expenses and other assets	293	(404)
Accounts payable and other liabilities	(8)	(194)
Net cash provided by operating activities	7,322	7,251
INVESTING ACTIVITIES:
Proceeds from maturities of securities available for sale	3,385	21,932
Proceeds from maturities of securities held to maturity	1,085	2,725
Proceeds from sale of securities available for sale	31,829	7,899
Purchases of securities available for sale	(19,279)	(13,608)
Loan principal payments	213,175	120,070
Loans originated or acquired	(246,430)	(195,583)
Proceeds from sales of reaquired assets and OREO	524	-
Investment in limited partnership	(359)	276
Net additions to premises and equipment	(512)	(1,473)
Net cash used by investing activities	(16,582)	(57,762)
FINANCING ACTIVITIES:
Net increase in deposit accounts	53,011	37,099
Proceeds from stock options exercised	165	-
Repurchase shares of common stock	(5,215)	(28,979)
Dividends paid on common stock	(1,729)	(2,019)
Repayment of loan to ESOP	396	396
Proceeds from other borrowings	-	3,850
Repayment of other borrowings	(12,050)	(4,202)
Proceeds from Federal Home Loan Bank advances	34,400	85,904
Repayments of Federal Home Loan Bank advances	(46,840)	(51,994)
Net cash provided by financing activities	22,138	40,056
NET INCREASE (DECREASE) IN CASH AND
CASH EQUIVALENTS	12,878	(10,456)
CASH AND CASH EQUIVALENTS:
Beginning of period	19,166	22,383
End of period	$ 32,044	$ 11,927
SUPPLEMENTAL DISCLOSURES OF CASH FLOW
INFORMATION:
Cash paid during the period for:
Interest on deposits	$ 10,418	$ 12,866
Federal income taxes	$   2,105	$   1,690
Interest on borrowings	$   3,019	$   3,509

5

<PAGE>

EverTrust Financial Group, Inc.
Notes to Consolidated Financial Statements
Nine Months Ended December 31, 2002
(Unaudited)

Note 1 - Basis of Presentation

The unaudited consolidated financial statements of EverTrust Financial Group, Inc. (EverTrust or the Company) and its subsidiaries reflect all adjustments which are, in the opinion of management, necessary to present fairly the statements of financial position and results of operations for the interim periods presented. All such adjustments are of a normal recurring nature. The consolidated financial statements include EverTrust's wholly owned subsidiaries, EverTrust Bank (EverTrust Bank or Bank) and Mutual Bancshares Capital Inc. (MB Cap). All significant intercompany accounts and transactions have been eliminated in consolidation.

The balance sheet data as of March 31, 2002 was derived from audited financial statements, but does not include all disclosures which have been omitted pursuant to the rules and regulations of the Securities and Exchange Commission (SEC) rules pertaining to the presentation of interim financial statements. The results of operations for the nine months ended December 31, 2002 are not necessarily indicative of the results which may be expected for the entire year. It is suggested that these consolidated financial statements and notes are read in conjunction with the consolidated financial statements and notes included in EverTrust's Form 10-K filed with the SEC on June 19, 2002.

Note 2 - Recent Events

In January 2003, the Company announced that it had reached a tentative agreement to shift the day-to-day operations of MB Cap to a local venture capital firm. As a result of the agreement, the sole activity of MB Cap will be to hold its limited partnership investment. The limited partnership will be managed by the former employees of MB Cap along with an additional venture capitalist. The agreement is subject to approval by the limited partners and regulatory authorities. MB Cap has committed to a total investment of $2.3 million. As of December 31, 2002, MB Cap has invested $2.1 million. The book value of the limited partnership investment at December 31, 2002 was $1.2 million compared to $1.4 million at March 31, 2002, net of a $577,000 pre-tax write-down of the investment to market value that occurred during the quarter.

Note 3 - Stock Repurchases

In October 2001, the Company announced a seventh repurchase plan of up to 542,977 shares, or 10%, of the Company's outstanding common stock. The Company repurchased 106,850 shares during the quarter ended December 31, 2002, leaving a balance of 2,950 shares to be repurchased under the current plan. In January 2003, the Company announced an eighth repurchase plan of up to 490,000 shares, or 10%, of the Company's outstanding common stock. The Company has now repurchased a total of 4.1 million shares since its initial plan was approved in January 2000.

Note 4 - Earnings per share

Earnings per share (EPS) is computed using the weighted average number of common and diluted shares outstanding during the period. Basic EPS is computed by dividing income available to common stockholders by the weighted average number of common shares outstanding for the period. Diluted EPS reflects the potential dilution that occurs if securities or other contracts to issue common stock were exercised or converted into common stock. The only reconciling items after the calculation of basic EPS are the inclusion of stock options and restricted stock awards, which increase the shares outstanding in diluted EPS by 283,735 and 155,589, for the three months ended December 31, 2002 and 2001, respectively, and 286,020, and 164,629, for the nine months ended December 31, 2002 and 2001, respectively. 

The large increase in diluted shares for both the three months and nine months ended December 31, 2002 compared to December 31, 2001, is primarily the result of the increase in EverTrust's average stock price from $15.33 to $20.50, for the three months ended December 31, 2002, and from $14.78 to $19.26, for the nine months ended December 31, 2002.

6

<PAGE>

Note 5 - Lines of Business

EverTrust manages the business activities of EverTrust Bank's retail division (including ETAM), business banking group, and MB Cap. The operating results of EverTrust and MB Cap have been included in Other as their results are not significant when taken on an individual basis.

Financial highlights by lines of business are as follows (in thousands):

	Three Months Ended December 31, 2002
		The Bank's
	The Bank's	business and
	retail	private banking
	division	group	Other	Eliminations	Total
Condensed income statement:
Net interest income after
provision for loan losses	$    5,551	$    666	$       55	$         (2)	$      6,270
Noninterest income	1,515	138	1,864	(1,852)	1,665
Noninterest expense	3,835	700	1,397	(9)	5,923
Income before federal income taxes	3,231	104	522	(1,845)	2,012
Income taxes	929	31	(390)	-	570
Net Income	$     2,302	$       73	$      912	$   (1,845)	$     1,442
Total assets	$ 636,555	$ 59,799	$ 95,663	$ (88,530)	$ 703,487

	Three Months Ended December 31, 2001
		The Bank's
	The Bank's	business and
	retail	private banking
	division	group	Other	Eliminations	Total
Condensed income statement:
Net interest income after
provision for loan losses	$    5,548	$      367	$     107	$             - -	$     6,022
Noninterest income	827	84	1,717	(1,714)	914
Noninterest expense	4,002	289	722	(15)	4,998
Income before federal income taxes	2,373	162	1,102	(1,699)	1,938
Income taxes	733	56	(136)	1	654
Net Income	$     1,640	$      106	$   1,238	$   (1,700)	$     1,284
Total assets	$ 593,385	$ 46,178	$ 98,664	$ (91,230)	$ 646,997

7

<PAGE>

	Nine Months Ended December 31, 2002
		The Bank's
	The Bank's	business and
	retail	private banking
	division	group	Other	Eliminations	Total
Condensed income statement:
Net interest income after
provision for loan losses	$   17,498	$     1,725	$      201	$          (6)	$    19,418
Noninterest income	3,824	382	6,151	(6,151)	4,206
Noninterest expense	11,910	2,031	2,920	(40)	16,821
Income before federal income taxes	9,412	76	3,432	(6,117)	6,803
Income taxes	2,683	24	(781)	-	1,925
Net Income	$     6,729	$        52	$   4,213	$   (6,117)	$     4,877
Total assets	$ 636,555	$ 59,799	$ 95,663	$ (88,530)	$ 703,487

	Nine Months Ended December 31, 2001
		The Bank's
	The Bank's	business and
	retail	private banking
	division	group	Other	Eliminations	Total
Condensed income statement:
Net interest income after
provision for loan losses	$   15,817	$    1,149	$      892	$             -	$   17,858
Noninterest income	2,078	240	4,738	(4,729)	2,327
Noninterest expense	11,493	831	2,082	(41)	14,365
Income before federal income taxes	6,402	558	3,548	(4,688)	5,820
Income taxes	1,950	191	(319)	1	1,823
Net Income	$     4,452	$      367	$   3,867	$   (4,689)	$     3,997
Total assets	$ 593,385	$ 46,178	$ 98,664	$ (91,230)	$ 646,997

8

<PAGE>

Note 6 - Additional Information Regarding Investment Securities

The following table sets forth the composition of the Company's investment portfolio at the dates indicated (in thousands):

		December 31, 2002		March 31, 2002
		Amortized	Fair	Amortized	Fair
		Cost	Value	Cost	Value
Available for sale:
Investment securities:
	U.S. Government Agency obligations	$ 10,038	$ 10,282	$   4,426	$   4,515
	Corporate obligations	4,350	4,408	9,363	9,537
	Municipal obligations	2,426	2,466	3,896	3,929
	Equity securities	1,862	1,502	3,304	3,154
	Certificates of deposit	-	-	-	-
	Mortgage-backed securities	14,850	15,468	28,347	28,768
	Total available for sale	$ 33,526	$ 34,126	$ 49,336	$ 49,903
Held to Maturity:
Investment securities:
	U.S. Government Agency obligations	$   1,003	$   1,120	$   1,003	$   1,080
	Corporate obligations	-	-	498	508
	Municipal obligations	2,402	2,475	2,848	2,902
	Certificates of deposit	-	-	-	-
	Mortgage-backed securities	468	505	606	636
	Total held to maturity	$   3,873	$   4,100	$   4,955	$  5,126
	Total	$ 37,399	$ 38,226	$ 54,291	$ 55,029

Corporate obligations at cost decreased $5.5 million from $9.9 million at March 31, 2002 to $4.4 million at December 31, 2002. The primary reason for the decrease in the corporate obligation portfolio was as a result of the sale of lower credit quality investments in order to enhance the quality of the investment portfolio. Mortgage-backed securities at cost decreased $13.7 million from $29.0 million at March 31, 2002 to $15.3 million at December 31, 2002. The primary reason for the large decrease in mortgage-backed securities was due to the sale of longer term, higher interest rate risk investments. The proceeds from the sales will be used to purchase investment securities or to fund loan growth during the next several months.

At December 31, 2002 equity securities were comprised of, at cost, $1.4 million ($1.1 million fair value) in common stock of publicly traded companies and $444,000 ($444,000 fair value) in money market mutual funds.

9

<PAGE>

Note 7 - Additional Information Regarding Federal Home Loan Bank advances and other borrowings

The following table sets forth maturity detail on EverTrust's Federal Home Loan Bank advances and other borrowings (in thousands):

	December 31, 2002	March 31, 2002
Nonamortizing:
Due within 1 year	$   17,550	$   34,800
After 1 year through 2 years	19,450	19,400
After 2 years through 3 years	19,200	17,750
After 3 years through 5 years	28,700	32,250
After 5 years through 10 years	17,000	21,150
After 10 years	2,300	3,300
Amortizing:
After 10 years	648	688
	$ 104,848	$ 129,338

At December 31, 2002, the Bank had $47.0 million available in unsecured lines of credit with the commercial banks compared to $42.0 million at March 31, 2002. At December 31, 2002 there were no advances on the lines of credit with commercial banks. In addition, the Bank has a revolving line of credit with the FHLB of up to 35% of total assets or the Bank's available collateral, whichever is less.

Note 8 - Recently Issued Accounting Standards

In December 2002, the Financial Accounting Standards Board ("FASB") issued Statement of Financial Accounting Standards ("SFAS") No. 148,"Accounting for Stock based Compensation - Transition and Disclosure." SFAS No. 148 amends SFAS No. 123, "Accounting for Stock-Based Compensation," to provide alternative methods of transition for a voluntary change to the fair value based method of accounting for stock-based employee compensation. In addition, SFAS No. 148 amends the disclosure requirements of SFAS No.123 to require prominent disclosures in both annual and interim financial statements about the method of accounting for stock-based employee compensation and the effect of the method used on reported results. The Company may choose to adopt the prospective method of SFAS No. 148 effective April 1, 2003. If adopted, the Company does not expect a material impact on consolidated results of operations, financial position, or cash flows.

In October 2002, the FASB issued SFAS No. 147,"Acquisitions of Certain Financial Institutions." SFAS No. 147 allows financial institutions meeting certain criteria to reclassify unidentifiable intangible asset balances to goodwill and cease amortization. SFAS No. 147 is generally effective as of October 31, 2002. The adoption of SFAS No. 147 did not materially impact the Company's consolidated results of operations, financial position, or cash flows.

In June 2002, the FASB issued SFAS No. 146,"Accounting for Costs Associated with Exit or Disposal Activities". SFAS No. 146 requires recording costs associated with exit or disposal activities when a liability has been incurred. Under previous guidance, certain exit costs were accrued upon management's commitment to an exit plan, which is generally before an actual liability has been incurred. SFAS No. 146 is effective for exit or disposal activities initiated after December 31, 2002. The adoption of SFAS No. 146 is not expected to materially impact the Company's consolidated results of operations, financial position, or cash flows.

In April 2002, the FASB issued Statement No. 145, "Rescission of FASB Statements No. 4, 44, and 64, Amendment of FASB Statement No. 13, and Technical Corrections". SFAS No.145 eliminates extraordinary accounting treatment for reporting gain or loss on debt extinguishment, and amends other existing authoritative pronouncements to make various technical corrections, clarify meanings, or describe their applicability under changed conditions. The provisions of SFAS No. 145 related to the rescission of SFAS No. 4 is effective for fiscal years beginning after May 15, 2002. The

10

<PAGE>

provisions related to SFAS No. 13 is effective for transactions occurring after May 15, 2002. All other provisions are effective for financial statements issued on or after May 15, 2002. The adoption of SFAS No. 145 did not materially impact the Company's consolidated results of operations, financial position, or cash flows.

In October 2001, the FASB issued SFAS No. 144,"Accounting for the Impairment or Disposal of Long-Lived Assets", which supercedes SFAS No. 121,"Accounting for the Impairment of Long-Lived Assets and for Long-Lived Assets to Be Disposed Of". SFAS No. 144 retains the fundamental provisions of SFAS No. 121 but sets forth new criteria for asset classification and broadens the scope of qualifying discontinued operations. SFAS No. 144 is effective for fiscal years beginning after December 15, 2001. The Company adopted SFAS No. 144 on April 1, 2002. The adoption of SFAS No. 144 did not have a material impact on the Company's consolidated results of operations, financial position, or cash flows.

In August 2001, the FASB issued SFAS No. 143,"Accounting for Asset Retirement Obligations", which takes effect for fiscal years beginning after June 15, 2002. SFAS No. 143 establishes the initial and subsequent accounting for legal obligations associated with the retirement of long-lived assets that result from the acquisition, construction, development, and/or normal operation of a long-lived asset. The Company will adopt SFAS No. 143 as of April 1, 2003. The adoption of SFAS No. 143 is not expected to materially impact the Company's consolidated results of operations, financial position, or cash flows. 

In July 2001, the FASB issued SFAS No. 141, "Accounting for Business Combinations", and SFAS No. 142, "Accounting for Goodwill and Other Intangible Assets", which is effective for the Company on April 1, 2002.  SFAS NO. 141 requires all business combinations initiated after June 30, 2001, to be accounted for using the purchase method.  Under SFAS No. 142, goodwill is no longer subject to amortization over its estimated useful life but instead is subject to an impairment assessment at least annually.  The Company does not currently have any goodwill.