VALUE

BANK OF GRANITE NDQ--GRAN 8.4 12.4 13.4

RECENT
PRICE
15.5
24 TRAILING
15.5
RELATIVE DIV’D
P/E RATIO 20.3 P/E RATIO 1.19 YLD 1.5%
26.4 26.8 47.0
LINE
29.5 High
RANKS 5.8 7.8 11.3 12.2 12.8 14.7 21.7 24.0 21.9 Low
PERFORMANCE 3 Average LEGENDS 50
12 Mos Mov Avg 40
Technical 3 Average . . . . Rel Price Strength
5-for-4 split 6/92 32
Above
SAFETY 2 Average
5-for-4
3-for-2
split
split
6/94
6/96
24
20
5-for-4 split 6/98 16
BETA .55 (1.00 = Market)
12
10
8
Financial Strength A 6
Price Stability 80 4
Price Growth Persistence 90 3
125
Earnings Predictability 95
VOL.
(thous.)
© VALUE LINE PUBLISHING, INC. 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000/2001
EARNINGS PER SH .62 .70 .79 .87 1.02 1.13 1.26 1.17 1.35 A,B 1.50 C/NA
DIV’DS DECL’D PER SH .15 .16 .18 .20 .23 .28 .30 .34 --
BOOK VALUE PER SH 3.86 4.41 5.03 5.65 6.56 7.40 8.33 9.20 --
COMMON SHS OUTST’G (MILL) 11.03 11.05 11.13 11.17 11.22 11.26 11.43 11.47 --
AVG ANN’L P/E RATIO 11.4 14.9 15.7 15.9 13.5 17.7 19.3 24.7 17.8 16.0/NA
RELATIVE P/E RATIO .83 .99 .96 1.04 .90 1.11 1.11 1.30 --
AVG ANN’L DIV’D YIELD 2.1% 1.5% 1.4% 1.5% 1.7% 1.4% 1.2% 1.2% --
TOTAL ASSETS ($MILL) 335.1 361.5 387.7 412.2 456.5 487.6 529.0 606.2 -- Bold figures
LOANS ($MILL) 217.4 226.4 240.2 265.9 297.0 315.5 352.6 381.0 -- are consensus
NET INTEREST INC ($MILL) 14.0 15.3 16.9 20.1 23.4 24.4 28.6 31.5 -- earnings
LOAN LOSS PROV’N ($MILL) .8 .9 .6 .7 1.1 .8 1.2 4.3 -- estimates
NONINTEREST INC ($MILL) 3.5 4.1 4.2 4.3 4.1 5.0 8.1 8.7 -- and, using the
NONINTEREST EXP ($MILL) 7.0 7.3 7.6 9.2 9.3 9.6 14.1 15.8 -- recent prices,
NET PROFIT ($MILL) 6.9 7.8 8.9 9.8 11.5 12.7 14.4 13.5 -- P/E ratios.
INCOME TAX RATE 28.0% 30.3% 30.9% 32.0% 32.7% 32.9% 32.5% 32.8% --
RETURN ON TOTAL ASSETS 2.06% 2.16% 2.29% 2.39% 2.52% 2.60% 2.73% 2.22% --
LONG-TERM DEBT ($MILL) .1 .1 .0 -- -- -- -- -- --
SHR. EQUITY ($MILL) 42.6 48.7 56.0 63.2 73.6 83.3 95.2 105.4 --
SHR. EQ. TO TOTAL ASSETS 12.7% 13.5% 14.5% 15.3% 16.1% 17.1% 18.0% 17.4% --
LOANS TO TOT ASSETS 64.9% 62.6% 62.0% 64.5% 65.1% 64.7% 66.7% 62.8% --
RETURN ON SHR. EQUITY 16.2% 16.0% 15.9% 15.6% 15.6% 15.2% 15.2% 12.8% --
RETAINED TO COM EQ 12.3% 12.4% 12.3% 12.0% 12.1% 11.6% 11.6% 9.1% --
ALL DIV’DS TO NET PROF 24% 23% 22% 23% 23% 24% 23% 29% --
ANo. of analysts changing earn. est. in last 22 days: 0 up, 0 down, consensus 5-year earnings growth 10.0% per year. BBased upon one analyst’s estimate. CBased upon one analyst’s estimate.

ANNUAL RATES
ASSETS ($mill.) 1996 1997 12/31/98 INDUSTRY: Bank
of change (per share) 5 Yrs. 1 Yr.
Loans 315.5 352.6 381.0
Loans 8.5% 7.5% BUSINESS: Bank of Granite Corp. is a multibank holding
Earnings 11.0% -7.0% Funds Sold 4.5 .0 .0
Dividends 13.5% 15.0% company. It owns Bank of Granite, a state bank, and GLL
Securities 128.7 130.6 149.0
Book Value 13.5% 10.5% Associates, Inc., a mortgage bank. The corporation conducts
Total Assets 8.0% 14.5% Other Earning .0 .2 .0
its banking business from twelve offices located in Cald-
Other 38.9 45.6 76.2 well, Catawba, and Burke Counties in North Carolina. Bank
Fiscal LOANS ($mill.)
Year 1Q 2Q 3Q 4Q LIABILITIES ($mill.) of Granite is an independent community bank. Its principal
12/31/96 298.0 302.3 311.8 315.5
Deposits 397.7 414.6 458.7 activities include 24-hour on-line account information, au-
12/31/97 321.9 336.4 341.6 352.6 Funds Borrowed 3.0 8.9 1.5 tomatic debit cards, the taking of demand and time deposits
12/31/98 368.5 365.2 367.1 381.0 Long-Term Debt .0 .0 .0 and the making of loans, secured and unsecured, to indi-
12/31/99 368.5 Net Worth 83.3 95.2 105.4 viduals, associations, partnerships, and corporations. The
Fiscal EARNINGS PER SHARE Full Other 3.6 10.3 40.6 majority of the bank’s customers are individuals and small
Year 1Q 2Q 3Q 4Q Year businesses. GLL’s principal activities include the origina-
Total 487.6 529.0 606.2
12/31/95 .24 .25 .26 .27 1.02 Loan Loss Resrv. tion and writing of mortgage loans to individuals. GLL also
4.8 5.2 4.6
12/31/96 .26 .27 .29 .31 1.13 sells mortgage servicing rights and appraisal services. GLL
12/31/97 .30 .31 .30 .35 1.26 specializes in government guaranteed mortgage products.
12/31/98 .32 .34 .17 .34 1.17 Has 215 employees. Chairman & C.E.O.: John A. Forlines,
12/31/99 .33 .33 .34 .35 LONG-TERM DEBT AND EQUITY Jr.. Inc.: DE. Address: 23 N. Main St., P.O. Box 128, Granite
QUARTERLY DIVIDENDS PAID as of 12/31/98 Falls, NC 28630. Tel.: 828-496-2000. Internet:
Cal- Full
endar 1Q 2Q 3Q 4Q Year http://www.bankofgranite.com.
LT Debt None Due in 5 Yrs. None
1996 .064 .064 .072 .072 .27 Including Cap. Leases None
1997 .072 .072 .072 .08 .30
Leases, Uncapitalized Annual rentals $106.1 mill.
C.C.
1998 .08 .08 .09 .09 .34
1999 .09 .09 Pension Liability None in ’98 vs. None in ’97
June 4, 1999
INSTITUTIONAL DECISIONS Pfd Stock None Pfd Div’d Paid None TOTAL SHAREHOLDER RETURN
2Q’98 3Q’98 4Q’98 Dividends plus appreciation as of 4/30/1999
to Buy 13 14 13 Common Stock 11,464,914 shares
3 Mos. 6 Mos. 1 Yr. 3 Yrs. 5 Yrs.
to Sell 10 8 5
Hld’s(000) 1153 1159 1190 -10.79% -27.87% -19.28% 28.92% 105.17%
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