M D and F Employees

Morganton, NC · Charter 17852

Q2 1997

Board Package

Performance Trends and Peer Comparison

Part 1Performance Trends, own institution only2

Part 2Peer Comparison, not published for this institution and quartern/a

Basis

Quarter: Q2 1997, the quarter ended June 30, 1997, on both parts.

Income statement: year to date as filed, annualized, on both parts.

Balance sheet: as filed at quarter end.

No peer standings are published for this institution and quarter.

Peer groups below the disclosure floor are suppressed.

Morganton, NC · Charter 17852

Q2 1997

$515KAssets

$315KLoans

$375KShares

n/aNet Worth

Return on Assets (YTD, annualized)

2.70%-117 bps YoY

Net Interest Margin (YTD, annualized)

n/a

Efficiency Ratio (YTD, annualized)

n/a

Net Worth / Assets

n/a

Year to date, annualized, through each quarter.

Metric	Q2 1994	Q4 1994	Q2 1995	Q4 1995	Q2 1996	Q4 1996	Q2 1997	YoY Δ	Trend
Earnings
Return on Assets	2.97%	3.81%	3.87%	4.02%	3.82%	3.80%	2.70%	-117 bps
Return on Equity	n/a	n/a	n/a	n/a	n/a	n/a	n/a	n/a	n/a
Net Interest Margin	n/a	n/a	n/a	n/a	n/a	n/a	n/a	n/a	n/a
Efficiency Ratio	n/a	n/a	n/a	n/a	n/a	n/a	n/a	n/a	n/a
Growth
Asset Growth (YoY)	n/a	n/a	n/a	n/a	-34.58%	-40.80%	-42.24%	n/a
Loan Growth (YoY)	n/a	n/a	n/a	n/a	-17.78%	-34.48%	-39.24%	n/a
Share Growth (YoY)	n/a	n/a	n/a	n/a	-41.12%	-48.88%	-50.62%	n/a
Asset Quality
Delinquent Loans / Loans	0.00%	0.25%	0.22%	0.18%	0.35%	7.37%	7.14%	+692 bps
Net Charge-Offs / Loans	n/a	n/a	n/a	n/a	n/a	n/a	n/a	n/a	n/a
Allowance / Loans	0.90%	0.88%	0.87%	1.01%	1.10%	1.13%	0.42%	-45 bps
Capital
Risk-Based Capital	n/a	n/a	n/a	n/a	n/a	n/a	n/a	n/a	n/a
Net Worth / Assets	n/a	n/a	n/a	n/a	n/a	n/a	n/a	n/a	n/a
Liquidity & Funding
Loans / Shares	53.14%	64.16%	68.25%	69.45%	74.20%	82.22%	83.98%	+1,573 bps
Liquid Assets / Assets	46.48%	41.64%	39.99%	36.56%	38.24%	32.98%	36.01%	-398 bps