Valdese Industries

Valdese, NC · Charter 67177

Q2 2000

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 2000, the quarter ended June 30, 2000, 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.

Valdese, NC · Charter 67177

Q2 2000

$4.7MAssets

$3.6MLoans

$4.3MShares

n/aNet Worth

Return on Assets (YTD, annualized)

0.10%-425 bps YoY

Net Interest Margin (YTD, annualized)

4.62%

Efficiency Ratio (YTD, annualized)

97.79%

Net Worth / Assets

n/a

Year to date, annualized, through each quarter.

Metric	Q4 1996	Q2 1997	Q4 1997	Q2 1998	Q4 1998	Q2 1999	Q4 1999	Q2 2000	YoY Δ	Trend
Earnings
Return on Assets	5.33%	4.96%	4.88%	4.35%	3.82%	3.75%	-1.02%	0.10%	-425 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	4.78%	4.62%	n/a
Efficiency Ratio	n/a	n/a	n/a	n/a	n/a	n/a	91.62%	97.79%	n/a
Growth
Asset Growth (YoY)	6.84%	6.85%	6.35%	-3.08%	2.15%	-0.79%	-9.82%	-8.33%	-525 bps
Loan Growth (YoY)	-4.17%	3.99%	4.07%	-6.57%	-14.64%	-17.37%	-17.29%	-6.97%	-41 bps
Share Growth (YoY)	7.66%	6.15%	4.72%	-5.28%	1.79%	-0.97%	-9.82%	-7.38%	-210 bps
Asset Quality
Delinquent Loans / Loans	1.44%	1.45%	2.07%	1.56%	1.37%	1.66%	1.43%	2.46%	+90 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	0.84%	0.67%	0.69%	0.71%	0.97%	0.88%	1.60%	0.67%	-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	89.99%	94.65%	92.41%	84.37%	75.47%	78.98%	84.75%	84.75%	+37 bps
Liquid Assets / Assets	12.92%	8.81%	9.42%	18.14%	26.04%	22.99%	8.23%	0.00%	-1,814 bps