First National Bank and Trust Company

Asheboro, NC · Cert 4879

FDIC · 45 branches

Q3 2016

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: Q3 2016, the quarter ended September 30, 2016, 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.

Asheboro, NC · Cert 4879

FDIC · 45 branches

Q3 2016

$2.3BAssets

$1.5BLoans

$1.9BDeposits

$344.7MEquity

Loan mix

Deposit mix

Market Position · Hickory-Lenoir-Morganton, NC · 2016 SOD (annual) · 13.3% share · #5 of 18 inst. · $0.6B of $4.4B

24.9% Randolph

11.1% Catawba

0.1% Mecklenburg

32.6% Caldwell

Earnings: ROA of 0.61%, up 13 bps year over year; NIM at 3.30%.
Asset quality: problem loans at 0.00% of loans (0 bps YoY), with net charge-offs at 0.21%.
Capital: tier 1 leverage ratio of 10.30%, up 77 bps from a year ago.
Funding: loans stand at 80.87% of deposits as of Q3 2016.

Return on Assets (YTD, annualized)

0.61%+13 bps YoY

Net Interest Margin (YTD, annualized)

3.30%+14 bps YoY

Efficiency Ratio (YTD, annualized)

68.92%-1,039 bps YoY

Tier 1 Leverage Ratio

10.30%+77 bps YoY

Year to date, annualized, through each quarter.

Metric	Q4 2014	Q1 2015	Q2 2015	Q3 2015	Q4 2015	Q1 2016	Q2 2016	Q3 2016	YoY Δ	Trend
Earnings
Return on Assets	7.31%	0.51%	0.50%	0.48%	0.45%	0.79%	0.76%	0.61%	+13 bps
Return on Equity	81.01%	3.48%	3.48%	3.33%	3.20%	5.67%	5.38%	4.24%	+91 bps
Net Interest Margin	3.18%	3.30%	3.23%	3.15%	3.08%	3.20%	3.27%	3.30%	+14 bps
Efficiency Ratio	93.62%	82.73%	81.93%	79.31%	81.10%	69.71%	68.96%	68.92%	-1,039 bps
Non-Interest Burden	3.00%	2.51%	2.44%	2.28%	2.29%	1.87%	1.90%	1.95%	-33 bps
Growth
Asset Growth (YoY)	11.46%	10.98%	13.74%	16.62%	8.17%	6.94%	2.90%	-0.16%	-1,678 bps
Loan Growth (YoY)	12.07%	14.88%	13.92%	15.61%	13.86%	8.92%	5.59%	1.14%	-1,447 bps
Deposit Growth (YoY)	2.92%	2.33%	5.31%	7.94%	8.24%	8.06%	3.16%	0.54%	-740 bps
Asset Quality
Nonperforming Loans / Loans	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0 bps
Net Charge-Offs / Loans	0.08%	0.06%	0.06%	0.10%	0.14%	0.11%	0.19%	0.21%	+11 bps
Allowance / Loans	1.50%	1.35%	1.24%	1.13%	0.98%	0.93%	0.90%	0.85%	-28 bps
Allowance Coverage of NPLs	n/a	n/a	n/a	n/a	n/a	n/a	n/a	n/a	n/a	n/a
Capital
Tier 1 Leverage Ratio	n/a	9.69%	9.67%	9.53%	9.30%	9.62%	10.00%	10.30%	+77 bps
Total Risk-Based Capital	14.88%	14.66%	14.49%	14.04%	13.48%	13.57%	13.98%	14.30%	+26 bps
Equity / Assets	14.52%	14.60%	14.16%	14.03%	13.74%	14.16%	14.60%	14.70%	+67 bps
Liquidity & Funding
Loans / Deposits	75.57%	77.54%	77.97%	80.39%	79.50%	78.16%	79.81%	80.87%	+48 bps
Liquid Assets / Assets	9.46%	7.31%	7.11%	6.68%	6.83%	7.84%	7.12%	7.13%	+45 bps
CRE / Total Capital	n/a	n/a	n/a	n/a	n/a	n/a	n/a	n/a	n/a	n/a