EXHIBIT 99.1
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REVOCABLE PROXY

                         CATAWBA VALLEY BANCSHARES, INC.
                            1039 Second Street, N.E.
                          Hickory, North Carolina 28601

                              APPOINTMENT OF PROXY
                       SOLICITED BY THE BOARD OF DIRECTORS

     The undersigned hereby appoints R. Steve Aaron, Joe S. Tripp and Carole F.
Teague, or any of them, as attorneys and proxies, with full power of
substitution, to vote all shares of the common stock of Catawba Valley
Bancshares, Inc. ("Bancshares") held of record by the undersigned on October 5,
2001, at the Special Meeting of Shareholders of Bancshares to be held at The
Gateway Conference Center, 909 Highway 70 SW, Hickory, North Carolina, at 10:00
a.m. on November 27, 2001, and at any adjournments thereof. The undersigned
hereby directs that the shares represented by this appointment of proxy be voted
as follows on the proposals listed below:


1.   APPROVAL OF SHARE EXCHANGE. Authorize the Board of Directors to issue
     shares of Bancshares in exchange for all outstanding shares of First Gaston
     Bank of North Carolina.

      [ ] FOR                    [ ] AGAINST                 [ ] ABSTAIN


2.   APPROVAL OF NAME CHANGE. Approval of renaming Bancshares to "United
     Community Bancorp".



      [ ] FOR                     [ ] AGAINST                [ ] ABSTAIN


3.   REDUCTION OF MINIMUM NUMBER OF DIRECTORS. Approval of an amendment to the
     Bylaws of Bancshares reducing the minimum number of directors from nine (9)
     to eight (8).

      [ ] FOR                      [ ] AGAINST               [ ] ABSTAIN


4.   OTHER BUSINESS. On such other matters as may properly come before the
     Special Meeting, the proxies are authorized to vote the shares represented
     by this appointment of proxy in accordance with their best judgment.

       PLEASE DATE AND SIGN THIS APPOINTMENT OF PROXY ON THE REVERSE SIDE
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                 AND RETURN TO CATAWBA VALLEY BANCSHARES, INC.
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THE SHARES REPRESENTED BY THIS APPOINTMENT OF PROXY WILL BE VOTED AS DIRECTED
ABOVE. IN THE ABSENCE OF ANY DIRECTION, SUCH SHARES WILL BE VOTED FOR PROPOSALS
1, 2 AND 3. THIS APPOINTMENT OF PROXY MAY BE REVOKED BY THE HOLDER OF THE SHARES
TO WHICH IT RELATES AT ANY TIME BEFORE IT IS EXERCISED BY FILING WITH THE
SECRETARY OF BANCSHARES A WRITTEN INSTRUMENT REVOKING IT OR A DULY EXECUTED
APPOINTMENT OF PROXY BEARING A LATER DATE OR BY ATTENDING THE SPECIAL MEETING
AND ANNOUNCING HIS OR HER INTENTION TO VOTE IN PERSON.




                                    Dated:                                , 2001
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                                    Signature


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                                    Signature if held jointly


                                    Instruction: Please sign above exactly as
                                                                   -------
                                    your name appears on this appointment of
                                    proxy. Joint owners of shares should both
                                                                         ----
                                    sign. Fiduciaries or other persons signing
                                    in a representative capacity should indicate
                                    the capacity in which they are signing.



     IMPORTANT: TO INSURE THAT A QUORUM IS PRESENT, PLEASE SEND IN YOUR
APPOINTMENT OF PROXY WHETHER OR NOT YOU PLAN TO ATTEND THE SPECIAL MEETING. EVEN
IF YOU SEND IN YOUR APPOINTMENT OF PROXY, YOU WILL BE ABLE TO VOTE IN PERSON AT
THE MEETING IF YOU SO DESIRE.