Ericsson Employees

Lynchburg, VA · Charter 23402

Q2 2001

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 2001, the quarter ended June 30, 2001, 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.

Lynchburg, VA · Charter 23402

Q2 2001

$2.8MAssets

$1.9MLoans

$2.4MShares

$312KNet Worth

Return on Assets (YTD, annualized)

0.42%-261 bps YoY

Net Interest Margin (YTD, annualized)

4.56%

Efficiency Ratio (YTD, annualized)

91.06%

Net Worth / Assets

11.33%

Year to date, annualized, through each quarter.

Metric	Q4 1997	Q2 1998	Q4 1998	Q2 1999	Q4 1999	Q2 2000	Q4 2000	Q2 2001	YoY Δ	Trend
Earnings
Return on Assets	3.88%	3.27%	3.72%	3.04%	1.14%	0.59%	0.69%	0.42%	-261 bps
Return on Equity	n/a	n/a	n/a	n/a	n/a	n/a	6.37%	3.72%	n/a
Net Interest Margin	n/a	n/a	n/a	n/a	5.44%	5.01%	5.54%	4.56%	n/a
Efficiency Ratio	n/a	n/a	n/a	n/a	79.90%	89.58%	87.71%	91.06%	n/a
Growth
Asset Growth (YoY)	14.72%	2.30%	1.57%	6.77%	4.59%	14.56%	10.17%	-12.43%	-1,920 bps
Loan Growth (YoY)	5.27%	10.97%	5.44%	12.14%	18.35%	14.98%	16.76%	-9.37%	-2,151 bps
Share Growth (YoY)	12.25%	0.33%	-1.57%	5.96%	3.41%	13.99%	10.13%	-15.19%	-2,115 bps
Asset Quality
Delinquent Loans / Loans	0.30%	0.20%	5.11%	0.00%	15.38%	0.05%	0.83%	0.63%	+63 bps
Net Charge-Offs / Loans	n/a	n/a	n/a	n/a	n/a	n/a	n/a	n/a	n/a	n/a
Allowance / Loans	3.32%	3.41%	2.45%	2.34%	2.89%	2.61%	3.05%	3.42%	+108 bps
Capital
Risk-Based Capital	n/a	n/a	n/a	n/a	n/a	n/a	10.87%	11.33%	n/a
Net Worth / Assets	n/a	n/a	n/a	n/a	n/a	n/a	10.87%	11.33%	n/a
Liquidity & Funding
Loans / Shares	81.52%	79.00%	83.69%	73.04%	93.30%	79.69%	88.72%	78.06%	+502 bps
Liquid Assets / Assets	12.76%	15.95%	17.71%	25.61%	11.56%	0.00%	14.02%	28.85%	+324 bps