ASSET QUALITYMay 31, 2013

Loans Past Due

More Than 30 Days $ 0.00 Million

Nonaccrual Loans $ 0.00 Million

Repossessed Assets

And Real Estate Owned

From Loan Defaults 0.00 Million

Real Estate Owned

From Branch Restructuring 1.29 Million

Total Nonperforming Assets $ 1.29 Million

Total Nonperforming Assets

As A Percentage Of Total Assets 0.40%

YEAR-OVER-YEAR NONINTEREST EXPENSE IMPROVEMENT

First Quarter

2012

First Quarter

2013

First Quarter 2013

Excluding $136,000 of

Branch Closing Expense

Comparing

First Quarter

2012 to

First Quarter 2013 Ex-Item

$2,081,000 $1,969,000 $1,833,000 $248,000 Decrease

FULL-TIME-EQUIVALENT EMPLOYEES (“FTEs”) AND ASSETS PER EMPLOYEE COMPARISONS

March 31, 2011

FTEs

March 31, 2013

FTEs Percentage Change

57 44 -22.8%

March 31, 2011

Assets Per Employee

March 31, 2013

Assets Per Employee Percentage Change

$4.77 Million $7.34 Million +53.9%

OPERATING COMPARISON OF MILITARY HIGHWAYAND LYNNHAVEN BRANCHES

February 2013

Military Highway Branch Lynnhaven Branch

Year opened 1977 2007

Deposits at

February 28, 2013$12.2 Million $67.7 Million

Demand Deposits at

February 28, 2013$ 3.0 Million $34.3 Million

Teller Transactions in

February 20132,085 1,504