VALUE

BANK OF GRANITE NDQ--GRAN 13.44 15.47 15.47

RECENT
PRICE 20.01 TRAILING
26.40
RELATIVE

26.80
DIV’D
P/E RATIO 14.2 P/E RATIO 0.85 YLD 2.2%
47.00 32.37 24.50
LINE
23.06 High
RANKS 11.31 12.16 12.80 14.67 21.70 24.00 18.50 16.13 18.86 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 .60 (1.00 = Market)
12
10
8
Financial Strength B++ 6
Price Stability 80 4
Price Growth Persistence 70 3
175
Earnings Predictability 90
VOL.
(thous.)
© VALUE LINE PUBLISHING, INC. 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002/2003
EARNINGS PER SH .79 .87 1.02 1.13 1.26 1.17 1.28 1.38 1.45 A,B 1.59 C/NA
DIV’DS DECL’D PER SH .18 .20 .23 .28 .30 .34 .38 .42 --
BOOK VALUE PER SH 5.03 5.65 6.56 7.40 8.33 9.20 9.87 10.70 --
COMMON SHS OUTST’G (MILL) 11.13 11.17 11.22 11.26 11.43 11.47 11.50 11.15 --
AVG ANN’L P/E RATIO 15.7 15.9 13.5 17.7 19.3 24.7 18.8 15.0 13.8 12.6/NA
RELATIVE P/E RATIO .96 1.04 .90 1.11 1.11 1.28 1.07 .98 --
AVG ANN’L DIV’D YIELD 1.4% 1.5% 1.7% 1.4% 1.2% 1.2% 1.6% 2.0% --
TOTAL ASSETS ($MILL) 387.7 412.2 456.5 487.6 529.0 606.2 610.7 661.6 -- Bold figures
LOANS ($MILL) 240.2 265.9 297.0 315.5 352.6 381.0 385.4 444.0 -- are consensus
NET INTEREST INC ($MILL) 16.9 20.1 23.4 24.4 28.6 31.5 32.3 36.1 -- earnings
LOAN LOSS PROV’N ($MILL) .6 .7 1.1 .8 1.2 4.3 1.9 3.9 -- estimates
NONINTEREST INC ($MILL) 4.2 4.3 4.1 5.0 8.1 8.7 8.2 8.0 -- and, using the
NONINTEREST EXP ($MILL) 7.6 9.2 9.3 9.6 14.1 15.8 16.5 16.8 -- recent prices,
NET PROFIT ($MILL) 8.9 9.8 11.5 12.7 14.4 13.5 14.7 15.6 -- P/E ratios.
INCOME TAX RATE 30.9% 32.0% 32.7% 32.9% 32.5% 32.8% 33.2% 33.6% --
RETURN ON TOTAL ASSETS 2.29% 2.39% 2.52% 2.60% 2.73% 2.22% 2.41% 2.35% --
LONG-TERM DEBT ($MILL) .0 -- -- -- -- -- -- -- --
SHR. EQUITY ($MILL) 56.0 63.2 73.6 83.3 95.2 105.4 113.5 119.3 --
SHR. EQ. TO TOTAL ASSETS 14.5% 15.3% 16.1% 17.1% 18.0% 17.4% 18.6% 18.0% --
LOANS TO TOT ASSETS 62.0% 64.5% 65.1% 64.7% 66.7% 62.8% 63.1% 67.1% --
RETURN ON SHR. EQUITY 15.9% 15.6% 15.6% 15.2% 15.2% 12.8% 13.0% 13.1% --
RETAINED TO COM EQ 12.3% 12.0% 12.1% 11.6% 11.6% 9.1% 9.1% 9.1% --
ALL DIV’DS TO NET PROF 22% 23% 23% 24% 23% 29% 30% 31% --
ANo. of analysts changing earn. est. in last 19 days: 0 up, 0 down, consensus 5-year earnings growth not available. BBased upon one analyst’s estimate. CBased upon one analyst’s estimate.

ANNUAL RATES
ASSETS ($mill.) 1998 1999 12/31/00
INDUSTRY: Bank
of change (per share) 5 Yrs. 1 Yr.
Loans 381.0 385.4 444.0
Loans 8.0% 18.5% BUSINESS: Bank of Granite Corp. operates as a multi-
Earnings 7.5% 8.0% Funds Sold .0 27.7 6.6
Dividends 13.0% 10.5% bank holding company. It owns Bank of Granite, a state
Securities 149.0 155.4 167.5
Book Value 11.5% 8.5% bank, and GLL Associates, Inc., a mortgage bank. The
Total Assets 8.0% 11.5% Other Earning .0 .3 .4
corporation conducts its banking business from 14 offices
Other 76.2 41.9 43.1 located in Caldwell, Catawba, and Burke Counties in North
Fiscal LOANS ($mill.)
Year 1Q 2Q 3Q 4Q LIABILITIES ($mill.) Carolina. Bank of Granite is an independent community
12/31/98 368.5 365.2 367.1 381.0
Deposits 458.7 471.7 517.3 bank. Its principal activities include automatic debit cards,
12/31/99 368.5 377.1 380.1 385.4 Funds Borrowed 1.5 22.1 20.6 the taking of demand and time deposits, and the making of
12/31/00 400.7 416.9 430.5 444.0 Long-Term Debt .0 .0 .0 loans, secured and unsecured, to individuals, associations,
12/31/01 466.2 Net Worth 105.4 113.5 119.3 partnerships, and corporations. The majority of the bank’s
Fiscal EARNINGS PER SHARE Full Other 40.6 3.4 4.4 customers are individuals and small businesses. GLL’s
Year 1Q 2Q 3Q 4Q Year principal activities include the origination and writing of
Total 606.2 610.7 661.6
12/31/97 .30 .31 .30 .35 1.26 Loan Loss Resrv. mortgage loans to individuals. GLL also sells mortgage
4.6 4.8 6.4
12/31/98 .32 .34 .17 .34 1.17 servicing rights and appraisal services. GLL specializes in
12/31/99 .33 .31 .31 .33 1.28 government guaranteed mortgage products. Has 230 em-
12/31/00 .32 .36 .33 .37 1.38 ployees. Chairman & C.E.O.: John A. Forlines, Jr. Inc.: DE.
12/31/01 .35 .36 .37 .37 LONG-TERM DEBT AND EQUITY Address: P.O. Box 128, Granite Falls, NC 28630. Tel.: 828
QUARTERLY DIVIDENDS PAID as of 12/31/00 496-2000. Internet: http://www.bankofgranite.com.
Cal- Full
endar 1Q 2Q 3Q 4Q Year
LT Debt None Due in 5 Yrs. None
1998 .08 .08 .09 .09 .34 Including Cap. Leases None
1999 .09 .09 .10 .10 .38
Leases, Uncapitalized Annual rentals $.2 mill.
O.M.
2000 .10 .10 .11 .11 .42
2001 .11 .11 Pension Liability None in ’00 vs. None in ’99
June 1, 2001
INSTITUTIONAL DECISIONS Pfd Stock None Pfd Div’d Paid None TOTAL SHAREHOLDER RETURN
2Q’00 3Q’00 4Q’00 Dividends plus appreciation as of 4/30/2001
to Buy 8 11 12 Common Stock 11,152,950 shares
3 Mos. 6 Mos. 1 Yr. 3 Yrs. 5 Yrs.
to Sell 8 8 8
Hld’s(000) 1169 1197 1215 -3.71% -13.13% 10.06% -23.17% 22.70%
©2001 Value Line Publishing, Inc. All rights reserved. Factual material is obtained from sources believed to be reliable and is provided without warranties of any kind.
THE PUBLISHER IS NOT RESPONSIBLE FOR ANY ERRORS OR OMISSIONS HEREIN. This publication is strictly for subscriber’s own, non-commercial, internal use. No part To subscribe call 1-800-833-0046.
of it may be reproduced, resold, stored or transmitted in any printed, electronic or other form, or used for generating or marketing any printed or electronic publication, service or product.