V. A. C.

Lincolnton, NC · Charter 60644

Q4 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: Q4 1997, the quarter ended December 31, 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.

Lincolnton, NC · Charter 60644

Q4 1997

$2.9MAssets

$2.2MLoans

$2.6MShares

n/aNet Worth

Return on Assets (YTD, annualized)

5.85%+154 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	Q4 1997	YoY Δ	Trend
Earnings
Return on Assets	4.83%	4.85%	5.03%	4.31%	3.75%	4.70%	4.89%	5.85%	+154 bps
Return on Equity	n/a	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	n/a
Efficiency Ratio	n/a	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	-12.35%	-14.19%	-18.42%	-14.91%	n/a
Loan Growth (YoY)	n/a	n/a	n/a	n/a	13.05%	-4.72%	-12.98%	-18.87%	n/a
Share Growth (YoY)	n/a	n/a	n/a	n/a	-13.77%	-15.90%	-18.50%	-16.67%	n/a
Asset Quality
Delinquent Loans / Loans	2.44%	2.09%	2.57%	2.54%	3.11%	1.39%	1.48%	1.68%	-86 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	3.86%	2.77%	2.59%	3.25%	5.17%	3.63%	3.92%	3.29%	+4 bps
Capital
Risk-Based Capital	n/a	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	n/a
Liquidity & Funding
Loans / Shares	63.66%	70.89%	76.90%	85.72%	83.47%	80.32%	82.12%	83.45%	-227 bps
Liquid Assets / Assets	13.56%	5.56%	0.00%	0.00%	9.59%	25.54%	24.49%	24.02%	+2,402 bps