Lexington State Bank

Lexington, NC · Cert 16799

FDIC · 42 branches

Q4 2015

$2.8BAssets

$2.1BLoans

$2.0BDeposits

$292.3MEquity

Loan mix

Deposit mix

NIM

Market Position · Greensboro-High Point, NC · 2015 SOD (annual) · 7.3% share · #5 of 24 inst. · $0.8B of $11.6B

7.5% Guilford

15.3% Davidson

0.9% Wake

9.1% Brunswick

Earnings: ROA of 0.63%, down 4 bps year over year; NIM at 3.34%.
Asset quality: problem loans at 0.00% of loans (0 bps YoY), with net charge-offs at 0.06%.

Return on Assets (YTD, annualized)

0.63%-4 bps YoY

Net Interest Margin (YTD, annualized)

3.34%+13 bps YoY

Efficiency Ratio (YTD, annualized)

73.96%+102 bps YoY

Tier 1 Leverage Ratio

9.48%

Year to date, annualized, through each quarter.

Metric	Q4 2014	Q1 2015	Q2 2015	Q3 2015	Q4 2015	YoY Δ	Trend
Earnings
Return on Assets	0.66%	0.64%	0.78%	0.80%	0.63%	-4 bps
Return on Equity	6.51%	6.07%	7.39%	7.61%	5.94%	-57 bps
Net Interest Margin	3.21%	3.46%	3.36%	3.35%	3.34%	+13 bps
Efficiency Ratio	72.95%	74.13%	68.54%	67.73%	73.96%	+102 bps
Non-Interest Burden	2.23%	2.43%	2.14%	2.10%	2.35%	+12 bps
Growth
Asset Growth (YoY)	28.24%	34.20%	14.37%	13.47%	11.50%	-1,674 bps
Loan Growth (YoY)	27.49%	35.41%	16.57%	18.06%	15.94%	-1,155 bps
Deposit Growth (YoY)	17.87%	24.83%	7.30%	9.44%	6.16%	-1,171 bps
Asset Quality
Nonperforming Loans / Loans	0.00%	0.00%	0.00%	0.00%	0.00%	0 bps
Net Charge-Offs / Loans	0.18%	0.07%	0.09%	0.06%	0.06%	-12 bps
Allowance / Loans	1.22%	1.12%	1.06%	1.05%	1.00%	-22 bps
Allowance Coverage of NPLs	n/a	n/a	n/a	n/a	n/a	n/a	n/a
Capital
Tier 1 Leverage Ratio	n/a	9.49%	9.31%	9.45%	9.48%	n/a
Total Risk-Based Capital	11.92%	11.81%	11.84%	12.10%	11.80%	-12 bps
Equity / Assets	10.51%	10.48%	10.47%	10.71%	10.41%	-10 bps
Liquidity & Funding
Loans / Deposits	98.47%	96.46%	101.03%	101.52%	107.54%	+907 bps
Liquid Assets / Assets	5.87%	6.15%	5.64%	5.55%	5.05%	-82 bps
CRE / Total Capital	n/a	n/a	n/a	n/a	n/a	n/a	n/a