<PAGE>

                     ADVANCE FINANCIAL SAVINGS BANK, F.S.B.
                     CONSOLIDATED BALANCE SHEET (UNAUDITED)
<TABLE>
<CAPTION>


                                                            September 30,      June 30,      
                                                                1996             1996
                                                          --------------  ---------------
<S>                                                       <C>             <C>       
ASSETS                                                    
Cash and Cash Equivalents                                 
   Cash and amounts due from banks                        $      821,219  $       948,671
   Interest - bearing deposits with other institutions         2,816,503        3,067,912
                                                          --------------  ---------------
      Total cash and cash equivalents                          3,637,722        4,016,583
                                                          
                                                          
Investment Securities                                     
   Securities held to maturity (fair value of $4,299,999   
      and $4,761,709)                                          4,299,534        4,799,596
   Securities available for sale                                  65,735           68,549
                                                          --------------  ---------------
      Total investment securities                              4,365,269        4,868,145
                                                          
                                                          
Mortgage - backed securities (fair value of $517,883
   and $561,203)                                                 517,544          536,808
Loans held for sale                                              380,000        1,375,143
Loans receivable, (net of allowance for loan losses
   of $328,275 and $324,983)                                  80,769,371       77,565,831
Office properties and equipment, net                           2,094,207        2,099,470
Federal Home Loan Bank Stock, at cost                            559,500          559,500
Accrued interest receivable                                      543,897          521,187
Other assets                                                     308,416          309,726
                                                          --------------  ---------------
      Total assets                                        $   93,175,926  $    91,852,393
                                                          ==============  ===============
                                                          
LIABILITIES AND RETAINED EARNINGS                         
Deposits                                                  $   79,013,919  $    80,770,646
Advances from Federal Home Loan Bank                           7,368,202        4,376,452
Advances from borrowers for taxes and insurance                  121,434          182,977
Accrued interest payable and other liabilities                   621,384          322,439
                                                          --------------  ---------------
      Total liabilities                                       87,124,939       85,652,514
                                                          --------------  ---------------
                                                          
Retained Earnings - substantially restricted                   6,059,898        6,209,329
Net unrealized loss on securities                                 (8,911)          (9,450)
                                                          --------------  ---------------
      Total retained earnings                                  6,050,987        6,199,879
                                                          --------------  ---------------
                                                         
      Total liabilities and retained earnings             $   93,175,926  $    91,852,393
                                                          ==============  ===============
</TABLE>
                                                              
See accompanying notes to the unaudited consolidated financial statements.



<PAGE>

                     ADVANCE FINANCIAL SAVINGS BANK, F.S.B.
                  CONSOLIDATED STATEMENT OF INCOME (UNAUDITED)
<TABLE>
<CAPTION>
                                                               Three Months Ended                           
                                                                  September 30,
                                                               1996             1995
                                                         --------------  ---------------

INTEREST AND DIVIDEND INCOME                             
<S>                                                      <C>             <C>            
   Loans                                                 $    1,623,884  $     1,498,671
   Investment securities                                         70,004           44,379
   Interest - bearing deposits with other institutions           29,303           30,171
   Mortgage - backed securities                                  21,735           27,691
   Dividends on Federal Home Loan Bank Stock                      8,966            8,538
                                                         --------------  ---------------
      Total interest and dividend income                      1,753,892        1,609,450
                                                         --------------  ---------------
                                                         
INTEREST EXPENSE                                         
   Deposits                                                     905,796          893,553
   Advances from Federal Home Loan Bank                          73,516           36,424
                                                         --------------  ---------------
                Total interest expense                          979,312          929,977
                                                         --------------  ---------------
                                                         
NET INTEREST INCOME                                             774,580          679,473
                                                         
Provision for loan losses                                         3,000            4,553
                                                         --------------  ---------------
                                                        
NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES             771,580          674,920
                                                         --------------  ---------------
                                                        
NONINTEREST INCOME                                       
   Service charges on deposit accounts                           57,208           42,457
   Gain on sale of loans                                          7,043              -  
   Other income                                                  18,633           15,594
                                                         --------------  ---------------
      Total noninterest income                                   82,884           58,051
                                                         --------------  ---------------
                                                         
NONINTEREST EXPENSE                                      
   Compensation and employee benefits                           229,087          195,355
   Occupancy and equipment                                       52,227           51,009
   Deposit insurance premiums                                   515,593           41,125
   Professional fees                                             23,358           23,259
   Advertising                                                   29,050           16,261
   Data processing charges                                       39,988           36,293
   Other expenses                                               170,188          130,192
                                                         --------------  ---------------
      Total noninterest expense                               1,059,491          493,494
                                                         --------------  ---------------
                                                        
Income before income taxes                                     (205,027)         239,477
                                                         
Income taxes                                                    (55,596)          89,918
                                                         --------------  ---------------
                                                        
NET INCOME                                               $     (149,431) $       149,559
                                                         ==============  ===============
</TABLE>
                                                              
                                                         
See accompanying notes to the unaudited consolidated financial statements.

<PAGE>

                     ADVANCE FINANCIAL SAVINGS BANK, F.S.B.
                CONSOLIDATED STATEMENT OF CASH FLOWS (UNAUDITED)
<TABLE>
<CAPTION>
                                                                    Three Months Ended               
                                                                      September 30,
                                                                   1996           1995
                                                               -----------  --------------
                                                           
   OPERATING ACTIVITIES                                    
<S>                                                            <C>         <C>
       Net income                                                (149,431)         339,251              
       Adjustments to reconcile net income to net cash           
       provided by operating activities:                         
       Depreciation, amortization and accretion, net               15,222          (10,964)
       Provision for loan losses                                    3,000            4,553
       Proceeds from sale of loans                                995,143              -  
       Increase in federal deposit insurance premiums             469,908              -  
       Decrease (increase) in accrued interest receivable      
              and other assets                                    (21,400)          53,791
       Decrease in accrued interest payable                      
              and other liabilities                               (24,301)         (48,694)
       Decrease (increase) in federal income tax receivable      (159,768)           3,171
       Increase (decrease) in deferred federal income taxes        13,106         (185,715)
                                                               ----------  ---------------
                                                                
         Net cash provided by operating activities              1,141,479          155,393
                                                               ----------  ---------------
                                                                 
   INVESTING ACTIVITIES                                          
       Proceeds from maturities of held to maturities             500,000              -  
         securities                                              
       Principal collected on mortgage - backed securities         19,264           29,199
       Net increase in loans                                   (3,195,917)      (2,141,081)
       Proceeds from the sale of other real estate                      -          298,000
       Purchases of office properties and equipment               (17,167)        (224,389)
                                                               ----------  ---------------
                                                                 
       Net cash used for investing activities                  (2,693,820)      (2,038,271)
                                                               ----------  ---------------
                                                                 
   FINANCING ACTIVITIES                                          
       Net increase (decrease) in deposits                     (1,756,727)       1,488,479
       Net increase (decrease) in advances                       
           from Federal Home Loan Bank                          2,991,750         (247,700)
       Net change in advances for taxes and insuraance            (61,543)         (49,341)
                                                               ----------  ---------------
                                                                
       Net cash provided by financing activities                1,173,480        1,191,438
                                                               ----------  ---------------  
                                                               
       Decrease in cash and cash equivalents                     (378,861)        (691,440)
                                                                 
   CASH AND CASH EQUIVALENTS                                     
       AT BEGINNING OF YEAR                                     4,016,583        3,139,383
                                                               ----------  ---------------
                                                                 
   CASH AND CASH EQUIVALENTS                                     
       AT END OF YEAR                                           3,637,722        2,447,943
                                                               ----------  ---------------
                                                                 
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION                
   Cash paid during the period for:                              
        Interest on deposits and borrowings                    $  974,509  $       928,853
        Income taxes                                               87,500           85,500
                                                               
</TABLE>                                                 
                                                           
<PAGE>
                                                           
                                                           
                     ADVANCE FINANCIAL SAVINGS BANK, F.S.B.
              NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

NOTE 1 - BASIS OF PRESENTATION

     The consolidated  financial  statements of Advance  Financial Savings Bank,
     f.s.b.  ("Savings  Bank")  includes its wholly - owned  subsidiary  Advance
     Financial   Service   Corporation   of  West  Virginia.   All   significant
     intercompany items have been eliminated.

     The  accompanying  unaudited  consolidated  financial  statements have been
     prepared  in  accordance  with  the  instructions  to  Form  10 - KSB  and,
     therefore,  do not  necessarily  include  all  information  that  would  be
     included  in  audited  financial  statements.   The  information  furnished
     reflects all adjustments which are, in the opinion of management, necessary
     for a fair statement of the results of operations. All such adjustments are
     of a normal  recurring  nature.  The results of operations  for the interim
     periods are not  necessarily  indicative  of the results to be expected for
     the full year.

Note 2 - SAVINGS ASSOCIATION INSURANCE FUNDS RECAPITALIZATION

     On September 30, 1996,  the  President  signed into law  legislation  which
     included,  among other things,  recapitalization of the Savings Association
     Insurance  Fund  ("SAIF")  of the  Federal  Deposit  Insurance  Corporation
     ("FDIC") by a one time charge to SAIF - insured  institutions of 65.7 basis
     points per one hundred dollars of insurable  deposits.  The gross effect to
     the Bank  amounted to $469,908,  which was paid on November 29, 1996 and is
     reflected  in the  financial  results of the Bank,  for the quarter  ended
     September 30, 1996.

Note 2 - CONVERSION AND REORGANIZATION

     On September  3, 1996,  the Board of Directors of the Bank adopted the Plan
     of  Conversion  pursuant  to which  the Bank  proposed  to  convert  from a
     federally-chartered  mutual  savings  bank to a  federally-chartered  stock
     savings bank and concurrently  form a Bank Holding Company.  The conversion
     is expected to be accomplished throught the amendment of the Bank's federal
     charter and the sale of the  holding  company's  common  stock in an amount
     equal to the pro forma market value of the Bank after giving  effect of the
     conversion.  A subscription offering of the sale of the Bank's common stock
     will be offered initially to the Bank's  depositors,  then to other members
     and  directors,  officers,  and  employees  of the Bank.  Any shares of the
     Bank's common stock not sold in the  subscription  offering will be offered
     for sale to the general public in the Bank's market area. The Bank received
     regulatory approval on November 12, 1996.