Franklin Community Bank, National Association

Rocky Mount, VA · Cert 57259

FDIC · 3 branches

Q4 2014

$163.6MAssets

$123.0MLoans

$137.2MDeposits

$23.8MEquity

Loan mix

Deposit mix

NIM

Market Position · Roanoke, VA · 2014 SOD (annual) · 1.9% share · #12 of 17 inst. · $0.1B of $7.3B

Earnings: ROA of 0.31%, up 9 bps year over year; NIM at 3.70%.
Asset quality: problem loans at 0.00% of loans (0 bps YoY), with net charge-offs at 3.48%.
Funding: loans stand at 89.65% of deposits as of Q4 2014.

Return on Assets (quarter, annualized)

0.31%+9 bps YoY

Net Interest Margin (quarter, annualized)

3.70%+8 bps YoY

Efficiency Ratio (quarter, annualized)

85.55%+1,277 bps YoY

Tier 1 Leverage Ratio

n/a

Discrete quarter, annualized.

Metric	Q4 2013	Q1 2014	Q2 2014	Q3 2014	Q4 2014	YoY Δ	Trend
Earnings
Return on Assets	0.22%	0.56%	0.81%	0.79%	0.31%	+9 bps
Return on Equity	1.68%	4.08%	5.74%	5.55%	2.16%	+48 bps
Net Interest Margin	3.62%	3.62%	3.79%	3.83%	3.70%	+8 bps
Efficiency Ratio	72.79%	75.92%	71.92%	73.60%	85.55%	+1,277 bps
Non-Interest Burden	2.51%	2.62%	2.56%	2.70%	3.08%	+57 bps
Growth
Asset Growth (YoY)	-7.74%	-7.68%	-7.54%	-4.16%	-2.80%	+494 bps
Loan Growth (YoY)	-8.09%	-4.16%	-1.80%	1.66%	-1.34%	+675 bps
Deposit Growth (YoY)	-5.15%	-8.86%	-9.40%	-5.62%	-4.31%	+83 bps
Asset Quality
Nonperforming Loans / Loans	0.00%	0.00%	0.00%	0.00%	0.00%	0 bps
Net Charge-Offs / Loans	2.21%	0.32%	0.38%	0.08%	3.48%	+127 bps
Allowance / Loans	1.91%	1.86%	1.76%	1.73%	0.99%	-92 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	n/a	n/a	n/a	n/a	n/a	n/a
Total Risk-Based Capital	19.41%	19.51%	19.92%	20.23%	20.88%	+147 bps
Equity / Assets	13.58%	13.99%	14.28%	14.37%	14.56%	+98 bps
Liquidity & Funding
Loans / Deposits	86.95%	90.18%	90.87%	90.80%	89.65%	+270 bps
Liquid Assets / Assets	6.14%	3.16%	7.33%	8.26%	3.51%	-263 bps
CRE / Total Capital	n/a	n/a	n/a	n/a	n/a	n/a	n/a