First Charter 8-K First Charter Earns $10.0 Million, or $0.32 Per Share, In the Second Quarter

Exhibit 99.1

NEWS RELEASE DATED 07-09-2002

For Additional Information,
Contact Robert O. Bratton,
Chief Financial Officer
(704) 688-4473
        or
Jan H. Hollar,
Director of Finance
(704) 688-4467

FOR IMMEDIATE RELEASE

July 9, 2002

First Charter Earns $10.0 Million, or $0.32 Per Share,
In the Second Quarter

Charlotte, North Carolina – First Charter Corporation (NASDAQ: FCTR) reported today second quarter earnings of $10.0 million, or $0.32 per share (diluted), an increase in earnings from $8.9 million, or $0.28 per share (diluted), a year ago. For the first half of 2002, First Charter reported earnings of $18.6 million, or $0.60 per share (diluted) compared to $17.7 million, or $0.56 per share (diluted) for the same period in 2001. Earnings for the three and six months ended June 30, 2002 included a $1.0 million ($0.7 million, or $0.02 diluted earnings per share, after-tax) gain recognized on the sale of excess bank property.

“First Charter is pleased with our results for the second quarter of 2002,” commented President and Chief Executive Officer Lawrence M. Kimbrough. “The $0.32 diluted earnings per share achieved in the second quarter during weak economic conditions exemplifies our focus on providing our customers the products and services they need with the outstanding customer service they deserve.”

Net Interest Income
Second Quarter
Net interest income increased to $28.6 million compared to $26.3 million for the same period in 2001. Net interest income increased primarily due to an increase in average earning assets, which was partially offset by a decrease in the net interest margin. The net interest margin decreased to 3.61% in the second quarter of 2002 from 3.73% for the same period in 2001. This decrease was driven by the 475 basis point reduction in the prime rate during 2001 that significantly reduced the net interest margin due to the asset sensitive nature of the balance sheet.

Year-to-Date
Net interest income increased $4.4 million to $56.2 million compared to the first half of 2001. Net interest income increased primarily due to an increase in average earning assets, which was partially

offset by a decrease in the net interest margin. The net interest margin for the six months ended June 30, 2002 decreased to 3.63% from 3.81% for the same period in 2001. As noted above, the asset sensitive nature of the balance sheet has led to this decrease.

Noninterest Income
Second Quarter
Noninterest income increased 33% to $11.7 million compared to the same period in 2001. The increase includes a $1.0 million gain on sale of excess bank property. Removing the effect of this gain, noninterest income increased 21% to $10.7 million. The primary drivers of this increase were growth in service charges on deposit accounts, gains from the restructuring of the securities available for sale investment portfolio, growth in First Charter Insurance Services, and increased trading gains. Premiums earned on written covered call options on fixed income securities comprised the majority of the trading gains. Decreased mortgage fee income offset a portion of these increases. During 2002, mortgage loans have been retained by the bank instead of selling these loans into the secondary market. By placing these mortgage loans on the balance sheet, the mortgage fee income is recognized over the life of the loan versus at the time of sale as in prior periods. In order to further reduce interest rate risk, during the second quarter of 2002, restructuring of the securities available for sale investment portfolio resulted in gains of $0.2 million. In addition, the equity securities portfolio was further reduced resulting in gains of $0.4 million.

Year-to-Date
Noninterest income increased 31% to $22.6 million compared to the same period in 2001. Excluding the $1.0 million gain on sale of excess bank property, noninterest income increased 25% to $21.6 million. The primary drivers of this increase were higher service charges on deposit accounts, gains from the restructuring of the securities available for sale investment portfolio (as described below), trading gains, brokerage income, and First Charter Insurance Services income. Net losses from equity method investments and decreased mortgage fee income offset a portion of these increases.

During 2002, we restructured a portion of the securities available for sale investment portfolio to reduce interest rate risk. We sold approximately $248.8 million of longer maturities and replaced them with securities having shorter maturities. In addition, the equity securities portfolio was reduced in order to focus First Charter’s efforts on other activities that could result in greater returns. These restructurings resulted in gains aggregating approximately $0.8 million. In addition, gains on sales of callable securities amounted to $1.2 million for the first half of 2002. As part of the active management of the securities available for sale portfolio, callable securities which appear to be on the verge of being called are sold in order to realize their gain in value.

Net losses from equity method investments of $2.9 million offset a portion of the increase in noninterest income. First Charter’s equity method investments represent investments in venture capital limited partnerships. First Charter recognizes gains or losses from equity method investments based upon changes in its share of the fair market value of the limited partnerships’ investments as reported by such limited partnerships. Due to the nature of these investments, further volatility may occur.

Noninterest Expense
Second Quarter
Noninterest expense totaled $24.3 million compared to $20.9 million for the same period in 2001. The major contributors to this increase for the second quarter relate to the implementation of a new computer operating system beginning in late 2001 and the costs associated with additional personnel. Additionally, as revenues increased in certain noninterest income categories, incentive compensation based on that revenue increased as well. The efficiency ratio increased to 61.18% compared to 59.05% for the second quarter of 2001.

Year-to-Date
Noninterest expense totaled $48.9 million compared to $40.9 million a year ago. The major contributing factors to this increase include expenses associated with the implementation of a new computer operating system beginning in late 2001, increased occupancy and equipment depreciation expense associated with putting the First Charter Center into service in April of 2001, the costs associated with additional personnel, and incentive compensation on noninterest income. The efficiency ratio increased to 65.23% compared to 58.97% for the first six months of 2001. A significant portion of the increase in the efficiency ratio relates to the $2.9 million net losses from equity method investments recognized during the first quarter of 2002. Excluding the net losses from equity method investments, the efficiency ratio for the first half of 2002 was 62.77%.

Income Tax Expense
Total income tax expense for the second quarter of 2002 amounted to $3.8 million compared to $4.2 million for the same period in 2001. Income tax expense for the first half of 2002 amounted to $7.0 million compared to $8.4 million for the first half of 2001. In the normal course of business, First Charter evaluates and implements tax-planning strategies. As a result of these strategies, the effective tax rate for the second quarter of 2002 and the first half of 2002 decreased to 27.3% compared to 32.3% for the second quarter of 2001 and 32.1% for the first half of 2001.

Balance Sheet
Total assets at June 30, 2002 amounted to $3.49 billion as compared to $3.33 billion at December 31, 2001 and $3.14 billion at June 30, 2001. Net loans at June 30, 2002 amounted to $2.10 billion as compared to $1.93 billion at December 31, 2001 and $1.94 billion at June 30, 2001. The increase in net loans reflects increased loan demand experienced during the first half of 2002.

The securities available for sale portfolio increased to $1.10 billion at June 30, 2002 as compared to $1.08 billion at December 31, 2001 and $0.94 billion at June 30, 2001. The increase over the same period in 2001 reflects net additions to the investment portfolio.

Total deposits at June 30, 2002 amounted to $2.26 billion compared to $2.16 billion at December 31, 2001 and $2.12 billion at June 30, 2001. The increase in deposits reflects the continued efforts to broaden existing customer relationships and develop new ones.

Shareholders’ equity at June 30, 2002 was $324.1 million, which represented a book value per share of $10.51 and an equity-to-asset ratio of 9.29%. Based on the $18.45 closing price of First Charter Corporation common stock at June 28, 2002, the last trading day during the quarter, the Corporation had a market capitalization of $568.8 million.

Asset Quality
Provision for Loan Losses
The provision for loan losses for the three months ended June 30, 2002 amounted to $2.2 million compared to $1.2 million for the same period in 2001. The provision for loan losses for the six months ended June 30, 2002 amounted to $4.3 million compared to $1.9 million a year ago. These increases in the provision for loan losses were due to increased net charge-offs, specifically in connection with commercial loans as a result of soft economic conditions, higher levels of nonaccrual loans, and increased net loan growth during 2002.

Net Charge-Offs
Net charge-offs for the three months ended June 30, 2002 increased to $1.6 million from $1.2 million for the same period in 2001. Net charge-offs for the six months ended June 30, 2002 increased to $3.0 million from $1.9 million a year ago. These increases in net charge-offs were due to increases in commercial loan charge-offs during the first half of 2002. First Charter continues to monitor the asset quality of the loan portfolio. Charge-offs are recorded when the financial condition of the borrower and the likelihood of repayment warrant such action.

Net loan charge-offs as a percentage of average gross loans decreased to 0.31% for the annualized three months ended June 30, 2002 compared to 0.33% for the year ended December 31, 2001 and increased from 0.24% for the annualized three months ended June 30, 2001.

Nonperforming Assets
Nonaccrual loans at June 30, 2002 increased to $30.7 million from $23.8 million at December 31, 2001 and $28.6 million at June 30, 2001. The increase in nonaccrual loans during the first half of 2002 was primarily due to the addition of several large real estate loans to nonaccrual status. During the first six months of 2002, other real estate, received through loan foreclosure, increased to $8.4 million from $8.0 million at December 31, 2001 and $3.5 million at June 30, 2001. The increase in other real estate over the same period in 2001 was primarily due to the foreclosure on one large commercial property during the fourth quarter of 2001. Total nonperforming assets and loans 90 days or more past due and still accruing increased to $39.0 million at June 30, 2002 compared to $32.0 million at December 31, 2001 and $32.3 million at June 30, 2001.

As a percentage of total assets, nonperforming assets increased to 1.12% at June 30, 2002 compared to 0.96% at December 31, 2001 and 1.02% at June 30, 2001.

Allowance for Loan Losses
The allowance for loan losses as a percentage of total loans decreased to 1.28% at June 30, 2002 compared to 1.32% at December 31, 2001 and 1.42% at June 30, 2001. First Charter monitors the adequacy of the allowance for loan losses to cover inherent losses in the loan portfolio through the use of a loan loss migration model. Although First Charter has experienced an increase in nonaccrual loans and net charge-offs during 2002, the loan loss migration model supports the current level of allowance for loan losses as a percentage of total loans. The decrease in the allowance for loan losses as a percentage of total loans at June 30, 2002 when compared to December 31, 2001, is primarily due to an increase in 1-4 family mortgages and home equity lines of credit. Growth in 1-4 family mortgages and home equity lines of credit account for 70% and 68% of the loan growth for the three and six months ended June 30, 2002, respectively. This type of secured lending generally requires lower allowance percentages in the allowance model.

Share Repurchase Program
On January 24, 2002, First Charter Corporation announced the authorization to repurchase up to 1.5 million shares of its common stock. As of June 30, 2002, no shares have been repurchased under this authorization.

Conference Call
First Charter executive management will be available via telephone conference to discuss the contents of this press release as well as to present growth and earnings estimates for the third quarter of 2002 on Wednesday, July 10, 2002 at 1:00 p.m. The following table outlines access information for the conference call and audio replay:

	US/Canada Participants	International Participants
Live Conference Call	888-482-0024 ID # 492922	617-801-9702 ID # 492922
Internet Live and Replay	www.FirstCharter.com “Investor Relations” section	www.FirstCharter.com “Investor Relations” section
Audio Replay	888-286-8010 ID # 48366	617-801-6888 ID # 48366

Corporate Profile
First Charter Corporation is a regional financial services company with assets of $3.49 billion and is the holding company for First Charter Bank. First Charter operates 52 financial centers, five insurance offices and 99 ATMs located in 17 counties throughout the western half of North Carolina. First Charter also operates one mortgage origination office in Virginia. First Charter provides businesses and individuals with a broad range of financial services, including banking, financial planning, funds management, investments, insurance, mortgages and a full array of employee benefit programs. Additional information about First Charter can be found by visitingwww.FirstCharter.com or by calling 1-800-601-8471. First Charter’s common stock is traded under the symbol “FCTR” on the NASDAQ National Market.

Forward Looking Statements
This news release contains forward looking statements with respect to the financial conditions and results of operations of First Charter Corporation. These forward looking statements involve certain risks and uncertainties. Factors that may cause actual results to differ materially from those contemplated by such forward looking statements include, among others, the following possibilities: (1) projected business increases in connection with the implementation of our business plan are lower than expected; (2) competitive pressure among financial services companies increases significantly; (3) costs or difficulties related to the integration of acquisitions or expenses in general are greater than expected; (4) general economic conditions, in the markets in which the company does business, are less favorable than expected; (5) risks inherent in making loans, including repayment risks and risks associated with collateral values, are greater than expected; (6) changes in the interest rate environment reduce interest margins and affect funding sources; (7) changes in market rates and prices may adversely affect the value of financial products; (8) legislation or regulatory requirements or changes adversely affect the businesses in which the company is engaged; and (9) decisions to change the business mix of the company. For further information and other factors which could affect the accuracy of forward looking statements, please see First Charter’s reports filed with the SEC pursuant to the Securities Exchange Act of 1934 which are available at the SEC’s website (www.sec.gov) or at First Charter’s website (www.FirstCharter.com). Readers are cautioned not to place undue reliance on these forward looking statements, which reflect management’s judgments only as of the date hereof. The company undertakes no obligation to publicly revise those forward looking statements to reflect events and circumstances that arise after the date hereof.

(Selected financial information is attached)

First Charter Corporation and Subsidiaries	(NASDAQ:   FCTR)
Quarterly Earnings Release

			For the Three Months Ended						Increase (Decrease)
(Dollars in thousands, except per share data)			6/30/2002			6/30/2001			Amount			Percentage
INCOME STATEMENT
	Interest income — taxable equivalent		$	49,877		$	55,870		$	(5,993	)		(10.7	)%
	Interest expense			20,825			29,043			(8,218	)		(28.3	)
	Net interest income — taxable equivalent			29,052			26,827			2,225			8.3
	Less: Taxable equivalent adjustment			444			479			(35	)		(7.3	)
		Net interest income		28,608			26,348			2,260			8.6
	Provision for loan losses			2,240			1,190			1,050			88.2
		Net interest income after provision for loan losses		26,368			25,158			1,210			4.8
	Noninterest income			11,694			8,814			2,880			32.7
	Noninterest expense			24,322			20,878			3,444			16.5
	Income before income taxes			13,740			13,094			646			4.9
	Income taxes			3,751			4,223			(472	)		(11.2	)
		Net income	$	9,989		$	8,871		$	1,118			12.6	%
EARNINGS PER SHARE DATA
	Basic		$	0.32			0.28		$	0.04			14.3	%
	Diluted			0.32			0.28			0.04			14.3
	Weighted average shares — basic			30,829,356			31,719,241
	Weighted average shares — diluted			31,098,379			31,906,705
	Dividends paid on common shares		$	0.18			0.18		$	—			—	%
PERFORMANCE RATIOS
	Return on average assets			1.15	%		1.15	%
	Return on average equity			12.43			11.12
	Efficiency — taxable equivalent (*)			61.18			59.05

		For the Three Months Ended
SCHEDULE OF OTHER ITEMS INCLUDED IN EARNINGS		6/30/2002			6/30/2001
Noninterest income
	Equity portfolio restructuring gains	$	436		$	—
	Bond portfolio restructuring gains		195			—
	Equity method income (loss)		23			(102	)
	Gain on sale of properties		1,013			—
Noninterest expense
	Amortization of intangibles		(328	)		(447	)
Total other items		$	1,339		$	(549	)
Other items, net of tax		$	974		$	(374	)

Notes: Applicable ratios are annualized.

* - Noninterest expense divided by the sum of taxable equivalent net interest income plus noninterest income less gain on sale of securities.

7

First Charter Corporation and Subsidiaries	(NASDAQ:   FCTR)
Quarterly Earnings Release

			For the Six Months Ended						Increase (Decrease)
(Dollars in thousands, except per share data)			6/30/2002			6/30/2001			Amount			Percentage
INCOME STATEMENT
	Interest income — taxable equivalent		$	99,372		$	110,437		$	(11,065	)		(10.0	)%
	Interest expense			42,315			57,734			(15,419	)		(26.7	)
	Net interest income — taxable equivalent			57,057			52,703			4,354			8.3
	Less: Taxable equivalent adjustment			899			976			(77	)		(7.9	)
		Net interest income		56,158			51,727			4,431			8.6
	Provision for loan losses			4,345			1,940			2,405			124.0
		Net interest income after provision for loan losses		51,813			49,787			2,026			4.1
	Noninterest income			22,622			17,234			5,388			31.3
	Noninterest expense			48,878			40,921			7,957			19.4
	Income before income taxes			25,557			26,100			(543	)		(2.1	)
	Income taxes			6,977			8,385			(1,408	)		(16.8	)
		Net income	$	18,580		$	17,715		$	865			4.9	%
EARNINGS PER SHARE DATA
	Basic		$	0.60		$	0.56		$	0.04			7.1	%
	Diluted			0.60			0.56			0.04			7.1
	Weighted average shares — basic			30,814,127			31,708,003
	Weighted average shares — diluted			31,046,469			31,870,134
	Dividends paid on common shares		$	0.36		$	0.36		$	—			—	%
PERFORMANCE RATIOS
	Return on average assets			1.09	%		1.19	%
	Return on average equity			11.63			11.29
	Efficiency — taxable equivalent (*)			65.23			58.97

		For the Six Months Ended
SCHEDULE OF OTHER ITEMS INCLUDED IN EARNINGS		6/30/2002			6/30/2001
Noninterest income
	Equity portfolio restructuring gains	$	1,270		$	—
	Bond portfolio restructuring gains		2,265			—
	Equity investment write down		(20	)		(144	)
	Equity method income (loss)		(2,936	)		9
	Gain on sale of properties		1,013			—
Noninterest expense
	Amortization of intangibles		(667	)		(937	)
Total other items		$	925		$	(1,072	)
Other items, net of tax		$	672		$	(729	)

Notes: Applicable ratios are annualized.

* - Noninterest expense divided by the sum of taxable equivalent net interest income plus noninterest income less gain on sale of securities.

8

First Charter Corporation and Subsidiaries	(NASDAQ:   FCTR)
Quarterly Earnings Release

					As of/For the Six Months Ended						Increase (Decrease)
(Dollars in thousands, except per share data)					6/30/2002			6/30/2001			Amount			Percentage
BALANCE SHEET
	ASSETS:
	Cash and due from banks				$	93,287		$	75,696		$	17,591			23.2	%
	Federal funds sold					948			902			46			5.1
	Interest earning bank deposits					16,513			4,439			12,074			272.0
	Securities available for sale					1,104,995			938,951			166,044			17.7
	Loans
		Commercial				1,130,425			1,089,482			40,943			3.8
		Real estate				574,761			572,004			2,757			0.5
		Home equity				270,282			200,537			69,745			34.8
		Installment				150,351			107,864			42,487			39.4
			Total loans			2,125,819			1,969,887			155,932			7.9
		Less: Unearned income				(254	)		(222	)		(32	)		14.4
				Allowance for loan losses		(27,213	)		(28,049	)		836			(3.0	)
		Loans, net				2,098,352			1,941,616			156,736			8.1
	Other assets					176,160			177,385			(1,225	)		(0.7	)
		Total assets			$	3,490,255		$	3,138,989		$	351,266			11.2	%
	LIABILITIES AND SHAREHOLDERS’ EQUITY:
	Deposits
		Noninterest-bearing deposits			$	282,324		$	257,443		$	24,881			9.7	%
		Interest checking and savings				390,270			369,995			20,275			5.5
		Money market deposits				295,243			262,903			32,340			12.3
		Time deposits				1,295,122			1,228,686			66,436			5.4
			Total deposits			2,262,959			2,119,027			143,932			6.8
	Other borrowings					847,752			643,483			204,269			31.7
	Other liabilities					55,493			52,375			3,118			6.0
		Total liabilities				3,166,204			2,814,885			351,319			12.5
		Total shareholders’ equity				324,051			324,104			(53	)		(0.0	)
		Total liabilities and shareholders’ equity			$	3,490,255		$	3,138,989		$	351,266			11.2	%
SELECTED AVERAGE BALANCES
	Loans				$	2,032,162		$	2,005,554		$	26,608			1.3	%
	Securities					1,116,197			763,425			352,772			46.2
	Interest earning assets					3,157,038			2,779,599			377,439			13.6
	Assets					3,435,191			2,992,241			442,950			14.8
	Deposits					2,207,434			2,017,243			190,191			9.4
	Interest bearing liabilities					2,807,945			2,385,932			422,013			17.7
	Shareholders’ equity					322,214			316,544			5,670			1.8

			As of / For the Quarter Ended
			6/30/2002		3/31/2002		12/31/2001		9/30/2001		6/30/2001
MISCELLANEOUS INFORMATION
	Common stock prices (daily close)
		High	$	20.5700	$	19.4500	$	18.4900	$	18.4500	$	18.7500
		Low		17.3000		16.7500		15.8500		15.4600		15.1250
		End of period		18.4500		18.6700		16.9100		16.3500		18.7500
	Book Value			10.51		9.86		10.06		10.49		10.22
	Market Capitalization			568,811,563		575,138,200		519,856,216		510,503,408		594,775,763
	Weighted average shares — basic			30,829,356		30,798,728		31,197,190		31,314,550		31,719,241
	Weighted average shares — diluted			31,098,379		30,993,981		31,364,373		31,545,721		31,906,705
	End of period shares outstanding			30,829,895		30,805,474		30,742,532		31,223,450		31,721,374

9

First Charter Corporation and Subsidiaries	(NASDAQ:   FCTR)
Quarterly Earnings Release

				As of / For the Quarter Ended
(Dollars in thousands, except per share data)				6/30/2002			3/31/2002			12/31/2001			9/30/2001			6/30/2001
INCOME STATEMENT
	Interest income — taxable equivalent
	Interest and fees on loans			$	33,600		$	32,920		$	35,735		$	39,155		$	40,609
	Interest on securities				16,239			16,543			15,764			15,898			15,165
	Other interest income				38			32			129			62			96
			Total interest income — taxable equivalent		49,877			49,495			51,628			55,115			55,870
	Interest expense
	Interest on deposits				12,694			13,749			16,781			19,704			20,638
	Other interest expense				8,131			7,741			7,571			8,122			8,405
			Total interest expense		20,825			21,490			24,352			27,826			29,043
	Net interest income — taxable equivalent				29,052			28,005			27,276			27,289			26,827
	Less: Taxable equivalent adjustment				444			455			462			466			479
			Net interest income		28,608			27,550			26,814			26,823			26,348
	Provision for loan losses				2,240			2,105			1,200			1,325			1,190
			Net interest income after provision for loan losses		26,368			25,445			25,614			25,498			25,158
	Noninterest income
	Service charges on deposit accounts				4,781			4,665			4,255			3,689			3,568
	Financial management income				679			668			339			569			640
	Gain on sale of securities				989			3,763			1,026			824			282
	Income (loss) from equity method investments				23			(2,959	)		(524	)		73			(102	)
	Mortgage loan fees				409			407			723			662			749
	Brokerage services income				420			637			356			476			520
	Insurance services income				2,114			2,231			1,866			1,959			1,865
	Trading gains				322			420			1,530			829			233
	Other noninterest income				1,957			1,096			1,612			1,275			1,059
		Total noninterest income			11,694			10,928			11,183			10,356			8,814
	Noninterest expense
	Salaries and employee benefits				13,208			12,897			12,501			11,206			10,659
	Occupancy and equipment				4,184			4,241			3,804			3,434			3,799
	Data processing				828			622			615			601			494
	Marketing				634			640			575			593			552
	Postage and supplies				1,078			1,189			1,155			1,340			1,136
	Professional services				1,719			1,662			2,531			1,614			1,418
	Telephone				568			546			448			576			553
	Amortization of intangibles				328			339			466			472			447
	Other noninterest expense				1,775			2,420			2,671			2,056			1,820
			Total noninterest expense		24,322			24,556			24,766			21,892			20,878
	Income before taxes				13,740			11,817			12,031			13,962			13,094
	Income taxes				3,751			3,226			3,881			4,502			4,223
			Net income	$	9,989		$	8,591		$	8,150		$	9,460		$	8,871
EARNINGS PER SHARE DATA
	Basic			$	0.32		$	0.28		$	0.26		$	0.30		$	0.28
	Diluted				0.32			0.28			0.26			0.30			0.28
	Dividends paid on common shares				0.18			0.18			0.18			0.18			0.18
PERFORMANCE RATIOS
	Return on average assets				1.15	%		1.03	%		1.00	%		1.18	%		1.15	%
	Return on average equity				12.43			10.82			9.88			11.72			11.12
	Efficiency — taxable equivalent (*)				61.18			69.82			66.16			59.46			59.05
	Noninterest income as a percentage of total income				29.02			28.40			29.43			27.85			25.07
	Equity as a percentage of total assets				9.28			8.92			9.28			9.78			10.33
	Average earning assets as a percentage of average assets				92.21			91.58			92.56			92.86			93.00
	Average loans as a percentage of average deposits				93.26			90.82			91.15			92.38			95.50

		As of /For the Quarter Ended
SCHEDULE OF OTHER ITEMS INCLUDED IN EARNINGS		6/30/2002			3/31/2002			12/31/2001			9/30/2001			6/30/2001
Noninterest income
Equity portfolio restructuring gains		$	436		$	834		$	—		$	—		$	—
	Bond portfolio restructuring gains		195			2,070			—			—			—
	Equity investment write down		—			(20	)		—			—			—
	Equity method income (loss)		23			(2,959	)		(524	)		73			(102	)
	Gain on sale of properties		1,013			—			287			129			—
Noninterest expense
	Amortization of intangibles		(328	)		(339	)		(466	)		(472	)		(447	)
Total other items		$	1,339		$	(414	)	$	(703	)	$	(270	)	$	(549	)
Other items, net of tax		$	974		$	(301	)	$	(479	)	$	(183	)	$	(374	)

Notes: Applicable ratios are annualized.

     •     - Noninterest expense divided by the sum of taxable equivalent net interest income plus noninterest income less gain on sale of securities.

10

First Charter Corporation and Subsidiaries	(NASDAQ:  FCTR)
Quarterly Earnings Release

					As of / For the Quarter Ended
(Dollars in thousands, except per share data)					6/30/2002				3/31/2002			12/31/2001			9/30/2001			6/30/2001
BALANCE SHEET
ASSETS:
Cash and due from banks					$	93,287			$	89,611		$	134,084		$	79,288		$	75,696
Federal funds sold						948				1,363			1,161			—			902
Interest earning bank deposits						16,513				16,984			6,220			3,194			4,439
Securities available for sale						1,104,995				1,107,939			1,077,365			1,133,333			938,951
Loans
		Commercial				1,130,425				1,114,469			1,099,353			1,137,570			1,089,482
		Real estate				574,761				536,919			500,943			511,357			572,004
		Home equity				270,282				241,078			228,169			212,763			200,537
		Installment				150,351				137,271			126,621			125,707			107,864
				Total loans		2,125,819				2,029,737			1,955,086			1,987,397			1,969,887
		Less: Unearned income				(254	)			(277	)		(191	)		(227	)		(222	)
				Allowance for loan losses		(27,213	)			(26,576	)		(25,843	)		(28,221	)		(28,049	)
		Loans, net				2,098,352				2,002,884			1,929,052			1,958,949			1,941,616
Other assets						176,160				186,839			185,896			174,106			177,385
	Total assets				$	3,490,255			$	3,405,620		$	3,332,737		$	3,348,870		$	3,138,989
LIABILITIES AND SHAREHOLDERS’ EQUITY:
Deposits
		Noninterest-bearing deposits			$	282,324			$	257,864		$	276,699		$	262,331		$	257,443
		Interest checking and savings				390,270				383,145			378,341			370,120			369,995
		Money market deposits				295,243				298,574			286,653			274,697			262,903
		Time deposits				1,295,122				1,270,725			1,221,252			1,256,651			1,228,686
			Total deposits			2,262,959				2,210,308			2,162,945			2,163,799			2,119,027
Other borrowings						847,752				836,769			808,512			806,141			643,483
Other liabilities						55,493				54,798			51,939			51,357			52,375
	Total liabilities					3,166,204				3,101,875			3,023,396			3,021,297			2,814,885
	Total shareholders’ equity					324,051				303,745			309,341			327,573			324,104
		Total liabilities and shareholders’ equity			$	3,490,255			$	3,405,620		$	3,332,737		$	3,348,870		$	3,138,989
SELECTED AVERAGE BALANCES
		Loans			$	2,080,227			$	1,983,455		$	1,977,638		$	1,973,373		$	1,968,304
		Securities				1,130,552				1,101,683			1,001,763			977,176			904,758
		Interest earning assets				3,219,754		��		3,093,516			3,005,225			2,957,440			2,881,629
		Assets				3,491,715				3,377,791			3,246,863			3,184,788			3,098,598
		Deposits				2,230,620				2,183,990			2,169,743			2,136,217			2,060,997
		Interest bearing liabilities				2,859,137				2,756,185			2,605,572			2,565,744			2,484,604
		Shareholders’ equity				322,397				321,966			327,410			320,242			319,968

11

First Charter Corporation and Subsidiaries	(NASDAQ:  FCTR)
Quarterly Earnings Release

				As of / For the Quarter Ended
(Dollars in thousands, except per share data)				6/30/2002			3/31/2002			12/31/2001			9/30/2001			6/30/2001
ASSET QUALITY ANALYSIS
	Allowance for Loan Losses
		Beginning balance		$	26,576		$	25,843		$	28,221		$	28,049		$	28,049
		Provision for loan losses			2,240			2,105			1,200			1,325			1,190
		Charge-offs			(1,778	)		(1,557	)		(3,719	)		(1,372	)		(1,365	)
		Recoveries			175			185			141			219			175
			Net charge-offs		(1,603	)		(1,372	)		(3,578	)		(1,153	)		(1,190	)
		Ending balance		$	27,213		$	26,576		$	25,843		$	28,221		$	28,049
	Nonperforming Assets and Loans 90 days or more past due accruing interest
		Nonaccrual loans		$	30,656		$	27,558		$	23,824		$	26,502		$	28,605
		Other real estate			8,367			7,208			8,049			3,067			3,454
			Total nonperforming assets		39,023			34,766			31,873			29,569			32,059
		Loans 90 days or more past due accruing interest			—			38			152			114			199
			Total	$	39,023		$	34,804		$	32,025		$	29,683		$	32,258
	Asset Quality Ratios
		Nonaccrual loans as a percentage of total loans			1.44	%		1.36	%		1.22	%		1.33	%		1.45	%
		Nonperforming assets as a percentage of total assets			1.12			1.02			0.96			0.88			1.02
		Nonperforming assets as a percentage of total loans and other real estate			1.83			1.71			1.62			1.49			1.62
		Net charge-offs as a percentage of average loans (annualized)			0.31			0.28			0.72			0.23			0.24
		Allowance for loan losses as a percentage of loans			1.28			1.31			1.32			1.42			1.42
		Ratio of allowance for loan losses to:
			Net charge-offs		4.23x			4.78x			1.82x			6.17x			5.88x
			Nonaccrual loans		0.89			0.96			1.08			1.06			0.98

			As of / For the Six Months Ended						Increase (Decrease)
			6/30/2002			6/30/2001			Amount			Percentage
Allowance for Loan Losses
	Beginning balance		$	25,843		$	28,447		$	(2,604	)		(9.2)	%
	Provision for loan losses			4,345			1,940			2,405			124.0
	Allowance related to loans sold and securitized			—			(417	)		417			(100.0	)
	Charge-offs			(3,335	)		(2,315	)		(1,020	)		44.1
	Recoveries			360			394			(34	)		(8.6	)
		Net charge-offs		(2,975	)		(1,921	)		(1,054	)		54.9
	Ending balance		$	27,213		$	28,049		$	(836	)		(3.0)	%
Asset Quality Ratios
	Net charge-offs as a percentage of average loans (annualized)			0.30	%		0.19	%
	Ratio of allowance for loan losses to net charge-offs (annualized)			4.54x			7.24x

			For the Quarter Ended
			6/30/2002			3/31/2002			12/31/2001			9/30/2001			6/30/2001
ANNUALIZED INTEREST YIELDS / RATES (*)
	Interest income:
		Yield on loans		6.48	%		6.73	%		7.17	%		7.87	%		8.28	%
		Yield on securities		5.75			6.01			6.29			6.51			6.70
		Yield on interest earning assets		6.21			6.46			6.83			7.41			7.77
	Interest expense:
		Cost of interest bearing deposits		2.58			2.89			3.50			4.15			4.56
		Cost of borrowings		3.67			3.80			4.27			4.72			5.03
		Cost of interest bearing liabilities		2.92			3.16			3.71			4.30			4.69
	Interest rate spread			3.29			3.30			3.12			3.11			3.08
	Net yield on earning assets			3.61	%		3.64	%		3.62	%		3.68	%		3.73	%

Notes: Applicable ratios are annualized.

• - Fully taxable equivalent yields.

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