The group's principal activities include taking of demand and time deposits and granting loans, secured and unsecured, to individuals, associations, partnerships and corporations. the group originates and underwrites mortgage loans to individuals and sells mortgage servicing rights and appraisal services. the group conducts its banking business from 14 offices located in caldwell, catawba and burke counties in north carolina. the group's majority of customers are individuals and small businesses. interest and fees on loans accounted for 69% of 2001 revenues; Other interest income, 15% and non-interest income, 16%.