KEY PERFORMANCE

MEASUREMENTS

TOTAL VS. PER SHARE

Treasury Stock increased $485,000 158,000 shares repurchased in 2012

Total Shareholders Equity Down 0.6%

Due to high level of share buy-backs

Shareholders Equity per share UP 2.6%

Total Stock Dividends Paid UP 10.1%

Stock Dividends per Share UP 11.8%

Total Net Income UP 22.4%

4

Net Income per share UP 24.9%

Total Per Share

Equity (Book Value) -0.6% +2.6%

Dividends Paid +10.1% +11.8%

Net Income +22.4% +24.9%

Annual Percentage Change

Total Assets increased $4.5 million

Mortgage Loans increased $4.5 million Loans originated = $9.2 million

Life Ins Reserves increased $0.1 million Deposit Funds increased $0.7 million

Annuities increased $3.7 million

78% of our Company’s

growth since 2008 has

come from the sale of

annuities.

QUESTION:

Is growing our Company

through the sale of annuities

a good business decision?

Is growth through annuities

good business?

Yes, IF:

1. If we can invest the

reserves profitably & safely;

2. If we maintain sufficient

liquidity & solvency.

How our Assets are Invested

10.5%

Interest

4.0%

Interest 0.6%

Interest

4.0%

Interest

What are our Assets Earning?

Weighted Average = 7.8% Interest

Where do our Assets come from?

What do our Assets Cost us?

5.0%

Interest

4.0%

Interest

4.25%

Interest

Company

Profits

(target 8-

10% yield)

Liabilities Weighted Average = 4.1% Interest

Profitability of our Annuity Business

$1,053,000

Interest

Earnings

(avg. 7.8%)

$574,000 Interest

Paid on Annuities

(avg. 4.25%)

$135,000 Cost of

selling & servicing

$144,000 Income

Tax

$200,000 Net Income

from annuities

Is growth through annuities

good business?

Yes, IF:

1. If we can invest the

reserves profitably & safely;

2. If we maintain sufficient

liquidity & solvency.

Liquidity

Available Liquid Assets = 17.4% of Total Assets

Liquidity

Solvency

CONCLUSION 1: Is growth

through annuities good

business?

1. Yes, we are investing the

annuities profitably & safely.

2. Yes, we are maintaining

sufficient liquidity & solvency.

CONCLUSION 2: Increasing Shareholder Returns

We can look forward to increasing

income over the coming years:

1. Non-performing foreclosed real

estate will be sold and begin adding

to our income.

2. We will continue to grow our

annuities and life insurance reserves,

which will add to our income.

THEREFORE,

The shareholders who hold onto their

shares will benefit from these

expected increased returns in future

years.

ANY QUESTIONS?