First Citizens Proposes Acquisition
of Avery County Bank

May 28, 2003

RALEIGH, N.C. - First Citizens Bank has agreed to acquire Avery County Bank in Newland. The joint announcement was made today by Martha Guy, president of Avery County Bank, and James B. Hyler Jr., vice chairman of First Citizens Bank.

The acquisition is subject to, among other things, approval of Avery County Bank’s shareholders and approval of applicable federal and state regulatory agencies. Completion of the transaction is expected in the third quarter of 2003.

“The proposed acquisition is a natural extension for our bank and will help strengthen our presence in western North Carolina,” Hyler said. “We look forward to extending our superior service and comprehensive personal and business products to new customers in Avery County.”

For the past four years, First Citizens Bank has been serving customers in Avery County at the Banner Elk Lowes Foods store at 4000 Highway 105. For almost 20 years, the bank has had a significant market presence in neighboring Watauga County with offices in Boone and Blowing Rock.

If the acquisition is approved, First Citizens will assume Avery County Bank’s $54.4 million in deposits and will operate its branch at 125 Montezuma St. in Newland. Guy will be a consultant for First Citizens and will be asked to serve, along with her bank’s other directors, on a new First Citizens local board of directors. First Citizens will also offer employment to Avery County Bank associates.

Guy said the decision to affiliate with First Citizens Bank was a strategic one. “We share a commitment with First Citizens to provide high-quality service to the people of this community,” she said. “Our customers will benefit from First Citizens’ stability, long-term perspective and many convenient financial services delivery channels.”

Founded in 1898, First Citizens Bank operates 342 branches in more than 200 cities and towns in North Carolina, Virginia and West Virginia. Headquartered in Raleigh, the bank has $12.39 billion in assets. First Citizens is committed to providing superior financial services to individual customers and small to mid-sized businesses. For more information about First Citizens Bank and its services, visit firstcitizens.com or call toll-free 1-888-FC DIRECT (1-888-323-4732).

Avery County Bank was founded 1913. It has one office in Newland and $72 million in assets.

Barbara Thompson
(919) 716-2716
First Citizens Bank