November 8, 1996

Board of Directors
Home Savings, SSB
22 Winston Street
Thomasville, North Carolina 27360

Dear Board of Directors:

The notice of proposed mutual-to-stock conversion and subsequent amendments thereto, filed on behalf of Home Savings, SSB, Thomasville, North Carolina (Bank), have been reviewed by the Federal Deposit Insurance Corporation (FDIC) pursuant to section 303.15 of the FDIC Rules and Regulations. As described in the notice and the amendments, the Bank proposes to convert from a North Carolina-chartered mutual savings bank to a North Carolina-chartered stock savings bank.

Based on the information presented in the Bank's notice of conversion, as amended, the FDIC plans to issue a letter of nonobjection to the proposed conversion transaction, provided that the Bank satisfies the following conditions:

1. The Bank must execute the enclosed Tolling Agreement and deliver it to this office on or before November 15, 1996.

2. The Bank must provide written evidence that its Plan of Conversion has been approved by the affirmative vote of a majority of the votes eligible to be cast at a special meeting of the Bank's members.

3. The Bank must advise this office of the results of the subscription offering and deliver an updated appraisal that:

(a) takes the results of the subscription offering into account;

(b) discusses any material occurrences during the subscription period; and

(c) explains any orders that may have been rejected.

4. The Bank must receive final approval from the appropriate State of North Carolina officials (State Authority) for its establishment as a stock savings bank and final approval must be received from the Federal Reserve Bank of Richmond and the State Authority for Century Bancorp, Inc. to acquire the Bank.

Provided that the Bank meets the conditions outlined above and that the FDIC is satisfied with the appraiser's determination in the updated appraisal that the results of the subscription offering represent fair value for the Bank, and provided further that there has been no significant alteration to the terms of the conversion transaction (by action of other regulators or otherwise) subsequent to the date of this letter the FDIC will issue a letter of nonobjection to the proposed conversion transaction.

Sincerely,

Jesse G. Snyder
Acting Associate Director

Enclosure

cc: Mr. Randall A. Underwood
Brooks, Pierce, McLendon, Humphrey & Leonard, L.L.P.
2000 Renaissance Plaza
Post Office Box 26000
Greensboro, North Carolina 27420