Exhibit 99.1
NEWS RELEASE DATED 10-29-2002
| | 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
October 29, 2002
First Charter Announces 10% Increase in EPS
Charlotte, North Carolina – First Charter Corporation (NASDAQ: FCTR) reported today third quarter diluted earnings per share of $0.33, a 10% increase from diluted earnings per share of $0.30 in the third quarter of 2001. Earnings for the third quarter of 2002 amounted to $10.2 million compared to $9.5 million in the third quarter of 2001, an increase of 7% or $0.7 million.
For the nine month period ended September 30, 2002, First Charter reported diluted earnings per share of $0.93, an 8% increase from diluted earnings per share of $0.86 for the same 2001 period. Earnings for the nine months ended September 30, 2002 amounted to $28.7 million compared to $27.2 million for the same 2001 period, an increase of 6% or $1.5 million.
“First Charter is pleased to report increased earnings for the third quarter of 2002” commented President and Chief Executive Officer Lawrence M. Kimbrough. “We realized strong growth in consumer lending, while controlling noninterest expense. The $0.33 diluted earnings per share achieved in the third quarter exemplifies our continued focus on exceptional customer service and our drive to understand the individual needs of our clients.”
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Net Interest Income
Third Quarter
Net interest income increased to $29.0 million compared to $26.8 million for the same period in 2001, an 8% increase. 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 3.54% in the third quarter of 2002 from 3.68% 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. In addition, assets added to the balance sheet during 2002 have been added at rates below the weighted average yield of assets previously on the balance sheet.
Year-to-Date
Net interest income increased $6.6 million or 8% to $85.1 million for the nine months ended September 30, 2002 compared to the same 2001 period. 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 nine months ended September 30, 2002 decreased to 3.60% from 3.76% for the same period in 2001. As noted above, the asset sensitive nature of the balance sheet has led to this decrease. In addition, assets added to the balance sheet during 2002 have been added at rates below the weighted average yield of assets previously on the balance sheet.
Noninterest Income
Third Quarter
Noninterest income decreased to $8.7 million compared to $10.4 million for the same period in 2001. The decrease was primarily due to net losses from equity method investments of $2.5 million. First Charter’s equity method investments represent investments in venture capital limited partnerships, and gains or losses are recognized based upon changes in its share of the fair market value of the limited partnership’s investee companies. Lower trading gains and decreased mortgage fee income also contributed to a reduction in noninterest income. While First Charter has experienced record mortgage loan volume during 2002, a portion of mortgage loans originated have been retained by the bank to replace normal amortization and run-off due to refinancings. 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.
Comparing the third quarter of 2002 to the third quarter of 2001, First Charter experienced a 12% increase in service charge income, a 34% increase in brokerage income, an 18% increase in insurance services income and a 71% increase in gains on sale of securities which partially offset the net losses from equity method investments.
Year-to-Date
Noninterest income increased 14% to $31.4 million compared to $27.6 million for the same period in 2001. The increase includes a $1.0 million gain on sale of excess bank property. Excluding the $1.0 million gain on sale of excess bank property, noninterest income increased 10% to $30.4 million. The primary drivers of this increase were gains from the repositioning of the equity and fixed income securities available for sale portfolio (as described below), a 35% increase in service charges on deposit accounts, a 22% increase in brokerage income, and a 14% increase in insurance services income. Net losses from equity method investments (as described below) and decreased mortgage fee income offset a portion of these increases.
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During 2002, a portion of the fixed income securities available for sale portfolio was repositioned to reduce interest rate risk. Approximately $248.8 million of securities with longer maturities were sold and replaced 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. Combined, these transactions resulted in gains of approximately $4.0 million. As part of the active management of the fixed income securities available for sale portfolio, callable securities which appear to be on the verge of being called at par are sold in order to realize their gain in value. Gains from these activities for the nine months ended September 30, 2002 amounted to $1.2 million.
Net losses from equity method investments of $5.5 million offset a portion of the increase in noninterest income. First Charter’s equity method investments represent investments in venture capital limited partnerships, and gains or losses are recognized based upon changes in its share of the fair market value of the limited partnership’s investee companies. At September 30, 2002, the total book value in equity method investments was $3.8 million and the remaining commitment to fund equity method investments was $1.6 million. Due to the nature of these investments, further volatility may occur.
Noninterest Expense
Third Quarter
First Charter is focused on expense control. Noninterest expense remained essentially unchanged, totaling $22.0 million compared to $21.9 million for the same 2001 period. Collectively, the positive and negative variances offset each other. The positive variances were reduced postage, supplies, professional services, telephone and other noninterest expense. Factors contributing to the negative variance were the costs associated with additional personnel and incentive compensation based on increases in certain noninterest income categories under established sales incentive plans. In addition, the third quarter of 2002 reflects the depreciation and data processing costs associated with the implementation of a new operating system placed into service during the fourth quarter of 2001.
Year-to-Date
Noninterest expense totaled $70.9 million compared to $62.8 million a year ago. The major contributing factors to this increase were the costs associated with additional personnel, increased incentive compensation based on increases in certain noninterest income categories under established sales incentive plans and increased occupancy and equipment depreciation expense associated with putting the First Charter Center into service in April of 2001. In addition, 2002 results reflect the depreciation and data processing costs associated with the implementation of a new operating system placed into service during the fourth quarter of 2001.
The efficiency ratio increased to 63.47% compared to 59.14% for the nine months ended September 30, 2001. A significant portion of the increase in the efficiency ratio relates to the $5.5 million in net losses from equity method investments recognized during 2002.
Income Tax Expense
Total income tax expense for the third quarter of 2002 amounted to $3.8 million compared to $4.5 million for the same period in 2001, while income tax expense for the nine months ended September 30, 2002 amounted to $10.8 million compared to $12.9 million for same 2001 period. 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 third quarter of 2002 and the nine months ended September 30, 2002 decreased to 27.3% compared to 32.2% for the three and nine months ended September 30, 2001.
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Balance Sheet
Total assets at September 30, 2002 amounted to $3.7 billion as compared to $3.33 billion at December 31, 2001 and $3.35 billion at September 30, 2001, respectively. Net loans at September 30, 2002 amounted to $2.21 billion as compared to $1.93 billion at December 31, 2001 and $1.96 billion at September 30, 2001, respectively. Year-to-date net loan growth was approximately 15%. While commercial loans accounted for 24% of the loan growth, 1-4 family mortgages accounted for approximately 43% of the loan growth, and direct marketing efforts to attract home equity lines of credit and other secured retail credit accounted for the remaining 33% of the growth.
The securities available for sale portfolio was $1.21 billion at September 30, 2002 as compared to $1.08 billion at December 31, 2001 and $1.1 billion at September 30, 2001, respectively. Approximately $249 million in securities were sold to reduce interest rate risk during 2002. Net additions to the portfolio have been in the one-to-five year average life range. Combined, these activities have shortened the average life of the portfolio from 4.77 years at December 31, 2001 to 2.07 years at September 30, 2002. Concurrently, the weighted average yield has declined to 5.27% at September 30, 2002 compared to 6.23% at December 31, 2001.
Total deposits at September 30, 2002 amounted to $2.31 billion compared to $2.16 billion at both December 31, 2001 and September 30, 2001. Deposit growth has occurred across every major deposit category. The increase in deposits reflects the continued efforts to broaden existing customer relationships and to develop new ones.
Other borrowings increased to $1.0 billion at September 30, 2002 compared to $808.5 million at December 31, 2001, and $806.1 million at September 30, 2001, respectively. The increase was primarily due to increases in Federal Home Loan Bank borrowings, which were at rates better than comparable retail funding rates. The proceeds of these borrowings were principally used to fund loan growth and security purchases.
First Charter intends to leverage its capital through growth of the balance sheet and share repurchases. Shareholders’ equity at September 30, 2002 decreased slightly to $324.2 million versus $327.6 million at September 30, 2001 as a result of the continuation of the share repurchase program. As of September 30, 2002, 698,600 shares had been repurchased and retired under the January 24, 2002 authorization. At September 30, 2002 the book value per share was $10.76 and the equity-to-asset ratio was 8.76%. Based on the $16.57 closing price of First Charter Corporation common stock at September 30, 2002, the Corporation had a market capitalization of $499.4 million.
Asset Quality
Provision for Loan Losses
The provision for loan losses for the three months ended September 30, 2002 amounted to $1.8 million compared to $2.2 million for the three months ended June 30, 2002 and $1.3 million for the three months ended September 30, 2001. The decrease in the provision for loan losses compared to the three months ended June 30, 2002 was due to lower levels of nonaccrual loans (as described below) as well as 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 accounted for 65% of the loan growth for the three months ended September 30, 2002. This type of secured lending generally carries lower credit risk and thus lower allocations in our allowance for loan losses model. Compared to the three months ended September 30, 2001, the increase in the provision for loan losses during the three months ended September 30, 2002 was due to increased loan growth and slightly higher net charge-offs.
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The provision for loan losses for the nine months ended September 30, 2002 amounted to $6.1 million compared to $3.3 million a year ago. This increase in the provision for loan losses was due to increased net charge-offs, higher levels of nonaccrual loans and increased net loan growth.
Net Charge-Offs
Net charge-offs for the three months ended September 30, 2002 decreased to $1.2 million compared to $1.6 million for three months ended June 30, 2002 and remained essentially unchanged compared to the three months ended September 30, 2001. The decrease in net charge-offs compared to the three months ended June 30, 2002 was due to decreases in commercial loan charge-offs as well as a $0.2 million recovery related to a commercial loan previously charged-off during 2001. In addition, the allowance for loan losses was reduced by $0.3 million due to the sale of $3.1 million of residential nonaccrual loans during the third quarter of 2002.
Net charge-offs for the nine months ended September 30, 2002 increased to $4.2 million from $3.1 million during the comparable prior year period. The increase in net charge-offs was due to increases in commercial loan charge-offs during 2002. Partially offsetting these increases in net charge-offs was a $0.2 million recovery (as described above).
Net loan charge-offs as a percentage of average gross loans decreased significantly to 0.22% annualized for the three months ended September 30, 2002 compared to 0.31% annualized for the three months ended June 30, 2002 and 0.33% for the year ended December 31, 2001. Net loan charge-offs as a percentage of average gross loans remained essentially unchanged at 0.22% annualized for the three months ended September 30, 2002 compared to 0.23% annualized for the three months ended September 30, 2001.
Nonperforming Assets
Nonaccrual loans at September 30, 2002 decreased to $24.4 million from $30.7 million at June 30, 2002. The decrease in nonaccrual loans was primarily due to the sale of $3.1 million of residential nonaccrual loans during the third quarter of 2002, the transfer of one large commercial relationship totaling approximately $1.3 million from nonaccrual status to other real estate, and net repayments of approximately $1.9 million. Other real estate, received through loan foreclosure, increased to $9.7 million from $8.4 million at June 30, 2002 primarily due to the aforementioned foreclosure on one large commercial property during the third quarter of 2002. This increase was partially offset by the sale of $0.2 million of residential other real estate during the third quarter of 2002. Total nonperforming assets and loans 90 days or more past due and still accruing decreased to $34.1 million at September 30, 2002 compared to $39.0 million at June 30, 2002. As a percentage of total assets, nonperforming assets decreased to 0.92% at September 30, 2002 compared to 1.12% at June 30, 2002.
Compared to December 31, 2001, nonaccrual loans at September 30, 2002 were up $0.6 million. The increase in nonaccrual loans during the first nine months of 2002 was primarily due to the addition of several large commercial loans totaling approximately $11.0 million to nonaccrual status. This increase was partially offset by the sale of $3.1 million of residential nonaccrual loans during the third quarter of 2002 and net repayments of approximately $7.3 million. During the nine months ended September 30, 2002, other real estate, received through loan foreclosure, increased to $9.7 million from $8.0 million at December 31, 2001. The increase in other real estate was primarily due to the foreclosure on one large commercial property during the third quarter of 2002. This increase was partially offset by the sale of $0.2 million of other real estate during the third quarter of 2002. Total nonperforming assets and loans
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90 days or more past due and still accruing at September 30, 2002, increased $2.1 million over December 31, 2001. As a percentage of total assets, nonperforming assets decreased to 0.92% at September 30, 2002 compared to 0.96% at December 31, 2001.
Nonaccrual loans at September 30, 2002 decreased $2.1 million from September 30, 2001. The decrease in nonaccrual loans was primarily due to the sale of $3.1 million of residential nonaccrual loans during the third quarter of 2002, the transfer of two large commercial relationships totaling $7.7 million from nonaccrual status to other real estate, and net repayments of approximately $5.1 million. This decrease was partially offset by the addition of approximately $13.8 million of real estate and commercial relationships to nonaccrual status. Other real estate, received through loan foreclosure, increased to $9.7 million from $3.1 million at September 30, 2002 primarily due to the aforementioned foreclosures on two large commercial properties. Total nonperforming assets and loans 90 days or more past due and still accruing at September 30, 2002, increased $4.4 million compared to September 30, 2001. As a percentage of total assets, nonperforming assets increased to 0.92% at September 30, 2002 compared to 0.88% at September 30, 2001.
Allowance for Loan Losses
The allowance for loan losses as a percentage of total loans decreased to 1.22% at September 30, 2002 compared to 1.28% at June 30, 2002, 1.32% at December 31, 2001 and 1.42% at September 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. The decrease in the allowance for loan losses as a percentage of total loans since June 30, 2002 is primarily due to lower levels of nonaccrual loans (as described above) as well as 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 65% of the loan growth for the three months ended September 30, 2002. This type of secured lending generally carries lower credit risk and thus requires lower allocations in our allowance model. In addition, the allowance for loan losses was reduced by $0.3 million due to the sale of $3.1 million of residential nonaccrual loans during the third quarter of 2002.
The decrease in the allowance for loan losses as a percentage of total loans at September 30, 2002 when compared to December 31, 2001 and September 30, 2001, is primarily due to an increase in 1-4 family mortgages and home equity lines of credit which require lower allocations in our allowance model (as described above). Growth in 1-4 family mortgages and home equity lines of credit account for 67% of the loan growth for the nine months ended September 30, 2002 and 77% of the loan growth compared to September 30, 2001. In addition, the allowance for loan losses was reduced by $0.3 million related to the sale of certain nonaccrual loans (as described above).
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 fourth quarter of 2002 on Wednesday, October 30, 2002 at 1:00 p.m. The following table outlines access information for the conference call and audio replay:
| | | | | |
| | | US/Canada Participants | | International Participants |
| | |
| |
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| Live Conference Call | | 800-379-3953 | | 706-679-5254 |
| | | ID # 5873316 | | ID # 5873316 |
| | | | | |
| Internet Live and Replay | | www.FirstCharter.com | | www.FirstCharter.com |
| | | “Investor Relations” section | | “Investor Relations” section |
| | | | | |
| Audio Replay | | 800-642-1687 | | 706-645-9291 |
| | | ID # 5873316 | | ID # 5873316 |
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Corporate Profile
First Charter Corporation is a regional financial services company with assets of $3.7 billion and is the holding company for First Charter Bank. First Charter operates 52 financial centers, five insurance offices and 93 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 thereto 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)
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| First Charter Corporation and Subsidiaries | | (NASDAQ: | | FCTR) |
| Quarterly Earnings Release | | | | |
| | | | | | | | | | | | | | | | | | | |
| | | | | For the Three Months Ended | | Increase (Decrease) |
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| (Dollars in thousands, except per share data) | | 9/30/2002 | | 9/30/2001 | | Amount | | Percentage |
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INCOME STATEMENT | | | | | | | | | | | | | | | | |
| | Interest income — taxable equivalent | | $ | 50,218 | | | $ | 55,115 | | | $ | (4,897 | ) | | | (8.9 | )% |
| | Interest expense | | | 20,817 | | | | 27,826 | | | | (7,009 | ) | | | (25.2 | ) |
| | |
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| | Net interest income — taxable equivalent | | | 29,401 | | | | 27,289 | | | | 2,112 | | | | 7.7 | |
| | Less: Taxable equivalent adjustment | | | 436 | | | | 466 | | | | (30 | ) | | | (6.4 | ) |
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| | | Net interest income | | | 28,965 | | | | 26,823 | | | | 2,142 | | | | 8.0 | |
| | Provision for loan losses | | | 1,750 | | | | 1,325 | | | | 425 | | | | 32.1 | |
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| | | Net interest income after provision for loan losses | | | 27,215 | | | | 25,498 | | | | 1,717 | | | | 6.7 | |
| | Noninterest income | | | 8,730 | | | | 10,356 | | | | (1,626 | ) | | | (15.7 | ) |
| | Noninterest expense | | | 21,979 | | | | 21,892 | | | | 87 | | | | 0.4 | |
| | |
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| | Income before income taxes | | | 13,966 | | | | 13,962 | | | | 4 | | | | 0.0 | |
| | Income taxes | | | 3,813 | | | | 4,502 | | | | (689 | ) | | | (15.3 | ) |
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| | | Net income | | $ | 10,153 | | | $ | 9,460 | | | $ | 693 | | | | 7.3 | % |
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EARNINGS PER SHARE DATA | | | | | | | | | | | | | | | | |
| | Basic | | $ | 0.33 | | | $ | 0.30 | | | $ | 0.03 | | | | 10.0 | % |
| | Diluted | | | 0.33 | | | | 0.30 | | | | 0.03 | | | | 10.0 | |
| | Weighted average shares — basic | | | 30,379,838 | | | | 31,314,550 | | | | | | | | | |
| | Weighted average shares — diluted | | | 30,506,426 | | | | 31,545,721 | | | | | | | | | |
| | Dividends paid on common shares | | $ | 0.185 | | | $ | 0.180 | | | $ | 0.01 | | | | 5.6 | % |
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PERFORMANCE RATIOS | | | | | | | | | | | | | | | | |
| | Return on average assets | | | 1.12 | % | | | 1.18 | % | | | | | | | | |
| | Return on average equity | | | 12.09 | | | | 11.72 | | | | | | | | | |
| | Efficiency — taxable equivalent (*) | | | 59.86 | | | | 59.46 | | | | | | | | | |
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| | | | | For the Three Months Ended | | |
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| | 9/30/2002 | | 9/30/2001 | | | | |
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SCHEDULE OF OTHER ITEMS INCLUDED IN EARNINGS | | | | | | | | | | | | | | | | |
| | Noninterest income |
| | | Equity portfolio repositioning gains | | $ | 509 | | | $ | — | | | | | | | | | |
| | | Equity method income (loss) | | | (2,525 | ) | | | 73 | | | | | | | | | |
| | | Gain on sale of properties | | | — | | | | 129 | | | | | | | | | |
| | Noninterest expense | | | | | | | | | | | | | | | | |
| | | Amortization of intangibles | | | (327 | ) | | | (472 | ) | | | | | | | | |
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| | Total other items | | $ | (2,343 | ) | | $ | (270 | ) | | | | | | | | |
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| | Other items, net of tax | | $ | (1,703 | ) | | $ | (183 | ) | | | | | | | | |
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| 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. |
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| First Charter Corporation and Subsidiaries | | (NASDAQ: | | FCTR) |
| Quarterly Earnings Release | | | | |
| | | | | | | | | | | | | | | | | | | |
| | | | | For the Nine Months Ended | | Increase (Decrease) |
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| (Dollars in thousands, except per share data) | | 9/30/2002 | | 9/30/2001 | | Amount | | Percentage |
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INCOME STATEMENT | | | | | | | | | | | | | | | | |
| | Interest income — taxable equivalent | | $ | 149,590 | | | $ | 165,552 | | | $ | (15,962 | ) | | | (9.6 | )% |
| | Interest expense | | | 63,132 | | | | 85,560 | | | | (22,428 | ) | | | (26.2 | ) |
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| | Net interest income — taxable equivalent | | | 86,458 | | | | 79,992 | | | | 6,466 | | | | 8.1 | |
| | Less: Taxable equivalent adjustment | | | 1,335 | | | | 1,442 | | | | (107 | ) | | | (7.4 | ) |
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| | | Net interest income | | | 85,123 | | | | 78,550 | | | | 6,573 | | | | 8.4 | |
| | Provision for loan losses | | | 6,095 | | | | 3,265 | | | | 2,830 | | | | 86.7 | |
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| | | Net interest income after provision for loan losses | | | 79,028 | | | | 75,285 | | | | 3,743 | | | | 5.0 | |
| | Noninterest income | | | 31,352 | | | | 27,590 | | | | 3,762 | | | | 13.6 | |
| | Noninterest expense | | | 70,857 | | | | 62,813 | | | | 8,044 | | | | 12.8 | |
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| | Income before income taxes | | | 39,523 | | | | 40,062 | | | | (539 | ) | | | (1.3 | ) |
| | Income taxes | | | 10,790 | | | | 12,887 | | | | (2,097 | ) | | | (16.3 | ) |
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| | | Net income | | $ | 28,733 | | | $ | 27,175 | | | $ | 1,558 | | | | 5.7 | % |
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EARNINGS PER SHARE DATA | | | | | | | | | | | | | | | | |
| | Basic | | $ | 0.94 | | | $ | 0.86 | | | $ | 0.08 | | | | 9.3 | % |
| | Diluted | | | 0.93 | | | | 0.86 | | | | 0.07 | | | | 8.1 | |
| | Weighted average shares — basic | | | 30,667,773 | | | | 31,575,452 | | | | | | | | | |
| | Weighted average shares — diluted | | | 30,864,476 | | | | 31,760,942 | | | | | | | | | |
| | Dividends paid on common shares | | $ | 0.545 | | | $ | 0.540 | | | $ | 0.01 | | | | 1.9 | % |
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PERFORMANCE RATIOS | | | | | | | | | | | | | | | | |
| | Return on average assets | | | 1.10 | % | | | 1.19 | % | | | | | | | | |
| | Return on average equity | | | 11.78 | | | | 11.43 | | | | | | | | | |
| | Efficiency — taxable equivalent (*) | | | 63.47 | | | | 59.14 | | | | | | | | | |
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| | | | | For the Nine Months Ended | | |
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| | 9/30/2002 | | 9/30/2001 | | | | |
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SCHEDULE OF OTHER ITEMS INCLUDED IN EARNINGS | | | | | | | | | | | | | | | | |
| | Noninterest income |
| | | Equity portfolio repositioning gains | | $ | 1,779 | | | $ | — | | | | | | | | | |
| | | Fixed income portfolio repositioning gains | | | 2,265 | | | | — | | | | | | | | | |
| | | Equity investment write down | | | (20 | ) | | | (144 | ) | | | | | | | | |
| | | Equity method income (loss) | | | (5,461 | ) | | | 82 | | | | | | | | | |
| | | Gain on sale of properties | | | 1,013 | | | | 129 | | | | | | | | | |
| | Noninterest expense | | | | | | | | | | | | | | | | |
| | | Amortization of intangibles | | | (994 | ) | | | (1,409 | ) | | | | | | | | |
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| | Total other items | | $ | (1,418 | ) | | $ | (1,342 | ) | | | | | | | | |
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| | Other items, net of tax | | $ | (1,031 | ) | | $ | (912 | ) | | | | | | | | |
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| 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. |
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| First Charter Corporation and Subsidiaries | | (NASDAQ: | | FCTR) |
| Quarterly Earnings Release | | | | |
| | | | | | | | | | | | | | | | | | | | |
| | | | | | As of / For the Nine Months Ended | | Increase (Decrease) |
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|
| (Dollars in thousands, except per share data) | | 9/30/2002 | | 9/30/2001 | | Amount | | Percentage |
| |
| |
| |
| |
|
BALANCE SHEET | | | | | | | | | | | | | | | | |
| | ASSETS: | | | | | | | | | | | | | | | | |
| | Cash and due from banks | | $ | 85,811 | | | $ | 79,288 | | | $ | 6,523 | | | | 8.2 | % |
| | Federal funds sold | | | 3,570 | | | | — | | | | 3,570 | | | | N/A | |
| | Interest earning bank deposits | | | 9,849 | | | | 3,194 | | | | 6,655 | | | | 208.4 | |
| | Securities available for sale | | | 1,212,742 | | | | 1,133,333 | | | | 79,409 | | | | 7.0 | |
| | Loans | | | | | | | | | | | | | | | | |
| | | Commercial | | | 1,167,866 | | | | 1,137,570 | | | | 30,296 | | | | 2.7 | |
| | | Real estate | | | 624,605 | | | | 511,357 | | | | 113,248 | | | | 22.1 | |
| | | Home equity | | | 296,073 | | | | 212,763 | | | | 83,310 | | | | 39.2 | |
| | | Installment | | | 153,351 | | | | 125,707 | | | | 27,644 | | | | 22.0 | |
| | |
|
| | | | Total loans | | | 2,241,895 | | | | 1,987,397 | | | | 254,498 | | | | 12.8 | |
| | | Less: Unearned income | | | (225 | ) | | | (227 | ) | | | 2 | | | | (0.9 | ) |
| | | | Allowance for loan losses | | | (27,411 | ) | | | (28,221 | ) | | | 810 | | | | (2.9 | ) |
| | |
|
| | | Loans, net | | | 2,214,259 | | | | 1,958,949 | | | | 255,310 | | | | 13.0 | |
| | |
|
| | Other assets | | | 173,983 | | | | 174,106 | | | | (123 | ) | | | (0.1 | ) |
| | |
|
| | | Total assets | | $ | 3,700,214 | | | $ | 3,348,870 | | | $ | 351,344 | | | | 10.5 | % |
| | |
|
| | LIABILITIES AND SHAREHOLDERS’ EQUITY: | | | | | | | | | | | | | | | | |
| | Deposits | | | | | | | | | | | | | | | | |
| | | Noninterest-bearing deposits | | $ | 302,584 | | | $ | 262,331 | | | $ | 40,253 | | | | 15.3 | % |
| | | Interest checking and savings | | | 407,019 | | | | 370,120 | | | | 36,899 | | | | 10.0 | |
| | | Money market deposits | | | 299,456 | | | | 274,697 | | | | 24,759 | | | | 9.0 | |
| | | Time deposits | | | 1,304,729 | | | | 1,256,651 | | | | 48,078 | | | | 3.8 | |
| | |
|
| | | | Total deposits | | | 2,313,788 | | | | 2,163,799 | | | | 149,989 | | | | 6.9 | |
| | Other borrowings | | | 1,004,836 | | | | 806,141 | | | | 198,695 | | | | 24.6 | |
| | Other liabilities | | | 57,355 | | | | 51,357 | | | | 5,998 | | | | 11.7 | |
| | |
|
| | | Total liabilities | | | 3,375,979 | | | | 3,021,297 | | | | 354,682 | | | | 11.7 | |
| | |
|
| | | Total shareholders’ equity | | | 324,235 | | | | 327,573 | | | | (3,338 | ) | | | (1.0 | ) |
| | |
|
| | | Total liabilities and shareholders’ equity | | $ | 3,700,214 | | | $ | 3,348,870 | | | $ | 351,344 | | | | 10.5 | % |
| | |
|
|
SELECTED AVERAGE BALANCES | | | | | | | | | | | | | | | | |
| | Loans | | $ | 2,078,937 | | | $ | 1,994,709 | | | $ | 84,228 | | | | 4.2 | % |
| | Securities | | | 1,120,581 | | | | 835,458 | | | | 285,123 | | | | 34.1 | |
| | Interest earning assets | | | 3,209,160 | | | | 2,839,531 | | | | 369,629 | | | | 13.0 | |
| | Assets | | | 3,486,391 | | | | 3,057,129 | | | | 429,262 | | | | 14.0 | |
| | Deposits | | | 2,231,470 | | | | 2,057,337 | | | | 174,133 | | | | 8.5 | |
| | Interest bearing liabilities | | | 2,843,817 | | | | 2,446,528 | | | | 397,289 | | | | 16.2 | |
| | Shareholders’ equity | | | 326,026 | | | | 317,790 | | | | 8,236 | | | | 2.6 | |
|
| | | | | | | | | | | | | | | | | | | | | | | |
| | | | | As of / For the Quarter Ended |
| | | | |
|
| | | | | 9/30/2002 | | 6/30/2002 | | 3/31/2002 | | 12/31/2001 | | 9/30/2001 |
| | | | |
| |
| |
| |
| |
|
MISCELLANEOUS INFORMATION | | | | | | | | | | | | | | | | | | | | |
| | Common stock prices (daily close) | | | | | | | | | | | | | | | | | | | | |
| | | High | | $ | 17.9900 | | | $ | 20.5700 | | | $ | 19.4500 | | | $ | 18.4900 | | | $ | 18.4500 | |
| | | Low | | | 15.3300 | | | | 17.3000 | | | | 16.7500 | | | | 15.8500 | | | | 15.4600 | |
| | | End of period | | | 16.5700 | | | | 18.0800 | | | | 18.6700 | | | | 16.9100 | | | | 16.3500 | |
| | Book Value | | | 10.76 | | | | 10.51 | | | | 9.86 | | | | 10.06 | | | | 10.49 | |
| | Market Capitalization | | | 499,413,073 | | | | 557,404,502 | | | | 575,138,200 | | | | 519,856,216 | | | | 510,503,408 | |
| | Weighted average shares — basic | | | 30,379,838 | | | | 30,829,356 | | | | 30,798,728 | | | | 31,197,190 | | | | 31,314,550 | |
| | Weighted average shares — diluted | | | 30,506,426 | | | | 31,098,379 | | | | 30,993,981 | | | | 31,364,373 | | | | 31,545,721 | |
| | End of period shares outstanding | | | 30,139,594 | | | | 30,829,895 | | | | 30,805,474 | | | | 30,742,532 | | | | 31,223,450 | |
|
10
| | | | | |
| First Charter Corporation and Subsidiaries | | (NASDAQ: | | FCTR) |
| Quarterly Earnings Release | | | | |
| | | | | | | | | | | | | | | | | | | | | | | |
| | | | | As of / For the Quarter Ended |
| | | | |
|
| (Dollars in thousands, except per share data) | | 9/30/2002 | | 6/30/2002 | | 3/31/2002 | | 12/31/2001 | | 9/30/2001 |
| |
| |
| |
| |
| |
|
INCOME STATEMENT | | | | | | | | | | | | | | | | | | | | |
| | Interest income — taxable equivalent | | | | | | | | | | | | | | | | | | | | |
| | Interest and fees on loans | | $ | 34,828 | | | $ | 33,600 | | | $ | 32,920 | | | $ | 35,735 | | | $ | 39,155 | |
| | Interest on securities | | | 15,340 | | | | 16,239 | | | | 16,543 | | | | 15,764 | | | | 15,898 | |
| | Other interest income | | | 50 | | | | 38 | | | | 32 | | | | 129 | | | | 62 | |
| | |
|
| | | Total interest income — taxable equivalent | | | 50,218 | | | | 49,877 | | | | 49,495 | | | | 51,628 | | | | 55,115 | |
| | |
|
| | Interest expense | | | | | | | | | | | | | | | | | | | | |
| | Interest on deposits | | | 12,498 | | | | 12,694 | | | | 13,749 | | | | 16,781 | | | | 19,704 | |
| | Other interest expense | | | 8,319 | | | | 8,131 | | | | 7,741 | | | | 7,571 | | | | 8,122 | |
| | |
|
| | | Total interest expense | | | 20,817 | | | | 20,825 | | | | 21,490 | | | | 24,352 | | | | 27,826 | |
| | |
|
| | Net interest income — taxable equivalent | | | 29,401 | | | | 29,052 | | | | 28,005 | | | | 27,276 | | | | 27,289 | |
| | Less: Taxable equivalent adjustment | | | 436 | | | | 444 | | | | 455 | | | | 462 | | | | 466 | |
| | |
|
| | | Net interest income | | | 28,965 | | | | 28,608 | | | | 27,550 | | | | 26,814 | | | | 26,823 | |
| | Provision for loan losses | | | 1,750 | | | | 2,240 | | | | 2,105 | | | | 1,200 | | | | 1,325 | |
| | |
|
| | | Net interest income after provision for loan losses | | | 27,215 | | | | 26,368 | | | | 25,445 | | | | 25,614 | | | | 25,498 | |
| | |
|
| | Noninterest income | | | | | | | | | | | | | | | | | | | | |
| | Service charges on deposit accounts | | | 4,689 | | | | 4,781 | | | | 4,665 | | | | 4,255 | | | | 3,689 | |
| | Financial management income | | | 566 | | | | 679 | | | | 668 | | | | 339 | | | | 569 | |
| | Gain on sale of securities | | | 1,416 | | | | 989 | | | | 3,763 | | | | 1,026 | | | | 824 | |
| | Income (loss) from equity method investments | | | (2,525 | ) | | | 23 | | | | (2,959 | ) | | | (524 | ) | | | 73 | |
| | Mortgage loan fees | | | 504 | | | | 409 | | | | 407 | | | | 723 | | | | 662 | |
| | Brokerage services income | | | 640 | | | | 420 | | | | 637 | | | | 356 | | | | 476 | |
| | Insurance services income | | | 2,313 | | | | 2,114 | | | | 2,231 | | | | 1,866 | | | | 1,959 | |
| | Trading gains | | | 298 | | | | 322 | | | | 420 | | | | 1,530 | | | | 829 | |
| | Other noninterest income | | | 829 | | | | 1,957 | | | | 1,096 | | | | 1,612 | | | | 1,275 | |
| | |
|
| | | Total noninterest income | | | 8,730 | | | | 11,694 | | | | 10,928 | | | | 11,183 | | | | 10,356 | |
| | |
|
| | Noninterest expense | | | | | | | | | | | | | | | | | | | | |
| | Salaries and employee benefits | | | 11,988 | | | | 13,208 | | | | 12,897 | | | | 12,501 | | | | 11,206 | |
| | Occupancy and equipment | | | 3,839 | | | | 4,184 | | | | 4,241 | | | | 3,804 | | | | 3,434 | |
| | Data processing | | | 758 | | | | 828 | | | | 622 | | | | 615 | | | | 601 | |
| | Marketing | | | 630 | | | | 634 | | | | 640 | | | | 575 | | | | 593 | |
| | Postage and supplies | | | 967 | | | | 1,078 | | | | 1,189 | | | | 1,155 | | | | 1,340 | |
| | Professional services | | | 1,393 | | | | 1,719 | | | | 1,662 | | | | 2,531 | | | | 1,614 | |
| | Telephone | | | 461 | | | | 568 | | | | 546 | | | | 448 | | | | 576 | |
| | Amortization of intangibles | | | 327 | | | | 328 | | | | 339 | | | | 466 | | | | 472 | |
| | Other noninterest expense | | | 1,616 | | | | 1,775 | | | | 2,420 | | | | 2,671 | | | | 2,056 | |
| | |
|
| | | Total noninterest expense | | | 21,979 | | | | 24,322 | | | | 24,556 | | | | 24,766 | | | | 21,892 | |
| | |
|
| | Income before taxes | | | 13,966 | | | | 13,740 | | | | 11,817 | | | | 12,031 | | | | 13,962 | |
| | Income taxes | | | 3,813 | | | | 3,751 | | | | 3,226 | | | | 3,881 | | | | 4,502 | |
| | |
|
| | | Net income | | $ | 10,153 | | | $ | 9,989 | | | $ | 8,591 | | | $ | 8,150 | | | $ | 9,460 | |
| | |
|
|
EARNINGS PER SHARE DATA | | | | | | | | | | | | | | | | | | | | |
| | Basic | | $ | 0.33 | | | $ | 0.32 | | | $ | 0.28 | | | $ | 0.26 | | | $ | 0.30 | |
| | Diluted | | | 0.33 | | | | 0.32 | | | | 0.28 | | | | 0.26 | | | | 0.30 | |
| | Dividends paid on common shares | | | 0.185 | | | | 0.180 | | | | 0.180 | | | | 0.180 | | | | 0.180 | |
|
PERFORMANCE RATIOS | | | | | | | | | | | | | | | | | | | | |
| | Return on average assets | | | 1.12 | % | | | 1.15 | % | | | 1.03 | % | | | 1.00 | % | | | 1.18 | % |
| | Return on average equity | | | 12.09 | | | | 12.42 | | | | 10.82 | | | | 9.88 | | | | 11.72 | |
| | Efficiency — taxable equivalent (*) | | | 59.86 | | | | 61.18 | | | | 69.82 | | | | 66.16 | | | | 59.46 | |
| | Noninterest income as a percentage of total income | | | 23.16 | | | | 29.02 | | | | 28.40 | | | | 29.43 | | | | 27.85 | |
| | Equity as a percentage of total assets | | | 8.76 | | | | 9.28 | | | | 8.92 | | | | 9.28 | | | | 9.78 | |
| | Average earning assets as a percentage of average assets | | | 92.33 | | | | 92.21 | | | | 91.58 | | | | 92.56 | | | | 92.86 | |
| | Average loans as a percentage of average deposits | | | 95.27 | | | | 93.26 | | | | 90.82 | | | | 91.15 | | | | 92.38 | |
|
|
| | | | | As of / For the Quarter Ended |
| | | | |
|
| | 9/30/2002 | | 6/30/2002 | | 3/31/2002 | | 12/31/2001 | | 9/30/2001 |
| |
| |
| |
| |
| |
|
SCHEDULE OF OTHER ITEMS INCLUDED IN EARNINGS | | | | | | | | | | | | | | | | | | | | |
| | Noninterest income | | | | | | | | | | | | | | | | | | | | |
| | | Equity portfolio repositioning gains | | $ | 509 | | | $ | 436 | | | $ | 834 | | | $ | — | | | $ | — | |
| | | Fixed income portfolio repositioning gains | | | — | | | | 195 | | | | 2,070 | | | | — | | | | — | |
| | | Equity investment write down | | | — | | | | — | | | | (20 | ) | | | — | | | | — | |
| | | Equity method income (loss) | | | (2,525 | ) | | | 23 | | | | (2,959 | ) | | | (524 | ) | | | 73 | |
| | | Gain on sale of properties | | | — | | | | 1,013 | | | | — | | | | 287 | | | | 129 | |
| | Noninterest expense | | | | | | | | | | | | | | | | | | | | |
| | | Amortization of intangibles | | | (327 | ) | | | (328 | ) | | | (339 | ) | | | (466 | ) | | | (472 | ) |
| | |
|
| | Total other items | | $ | (2,343 | ) | | $ | 1,339 | | | $ | (414 | ) | | $ | (703 | ) | | $ | (270 | ) |
| | |
|
| | Other items, net of tax | | $ | (1,703 | ) | | $ | 974 | | | $ | (301 | ) | | $ | (479 | ) | | $ | (183 | ) |
| | |
|
|
| | | |
| 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. |
11
| | | | | |
| First Charter Corporation and Subsidiaries | | (NASDAQ: | | FCTR) |
| Quarterly Earnings Release | | | | |
| | | | | | | | | | | | | | | | | | | | | | | |
| | | | | As of / For the Quarter Ended |
| | | | |
|
| (Dollars in thousands, except per share data) | | 9/30/2002 | | 6/30/2002 | | 3/31/2002 | | 12/31/2001 | | 9/30/2001 |
| |
| |
| |
| |
| |
|
BALANCE SHEET | | | | | | | | | | | | | | | | | | | | |
| ASSETS: | | | | | | | | | | | | | | | | | | | | |
| Cash and due from banks | | $ | 85,811 | | | $ | 93,287 | | | $ | 89,611 | | | $ | 134,084 | | | $ | 79,288 | |
| Federal funds sold | | | 3,570 | | | | 948 | | | | 1,363 | | | | 1,161 | | | | — | |
| Interest earning bank deposits | | | 9,849 | | | | 16,513 | | | | 16,984 | | | | 6,220 | | | | 3,194 | |
| Securities available for sale | | | 1,212,742 | | | | 1,104,995 | | | | 1,107,939 | | | | 1,076,324 | | | | 1,133,333 | |
| Loans | | | | | | | | | | | | | | | | | | | | |
| | Commercial | | | 1,167,866 | | | | 1,130,425 | | | | 1,114,469 | | | | 1,099,353 | | | | 1,137,570 | |
| | Real estate | | | 624,605 | | | | 574,761 | | | | 536,919 | | | | 500,943 | | | | 511,357 | |
| | Home equity | | | 296,073 | | | | 270,282 | | | | 241,078 | | | | 228,169 | | | | 212,763 | |
| | Installment | | | 153,351 | | | | 150,351 | | | | 137,271 | | | | 126,621 | | | | 125,707 | |
| | |
|
| | | Total loans | | | 2,241,895 | | | | 2,125,819 | | | | 2,029,737 | | | | 1,955,086 | | | | 1,987,397 | |
| | Less: Unearned income | | | (225 | ) | | | (254 | ) | | | (277 | ) | | | (191 | ) | | | (227 | ) |
| | Allowance for loan losses | | | (27,411 | ) | | | (27,213 | ) | | | (26,576 | ) | | | (25,843 | ) | | | (28,221 | ) |
| | |
|
| | Loans, net | | | 2,214,259 | | | | 2,098,352 | | | | 2,002,884 | | | | 1,929,052 | | | | 1,958,949 | |
| | |
|
| Other assets | | | 173,983 | | | | 176,160 | | | | 186,839 | | | | 185,896 | | | | 174,106 | |
| | |
|
| | Total assets | | $ | 3,700,214 | | | $ | 3,490,255 | | | $ | 3,405,620 | | | $ | 3,332,737 | | | $ | 3,348,870 | |
| | |
|
| LIABILITIES AND SHAREHOLDERS’ EQUITY: | | | | | | | | | | | | | | | | | | | | |
| Deposits | | | | | | | | | | | | | | | | | | | | |
| | Noninterest-bearing deposits | | $ | 302,584 | | | $ | 282,324 | | | $ | 257,864 | | | $ | 276,699 | | | $ | 262,331 | |
| | Interest checking and savings | | | 407,019 | | | | 390,270 | | | | 383,145 | | | | 378,341 | | | | 370,120 | |
| | Money market deposits | | | 299,456 | | | | 295,243 | | | | 298,574 | | | | 286,653 | | | | 274,697 | |
| | Time deposits | | | 1,304,729 | | | | 1,295,122 | | | | 1,270,725 | | | | 1,221,252 | | | | 1,256,651 | |
| | |
|
| | | Total deposits | | | 2,313,788 | | | | 2,262,959 | | | | 2,210,308 | | | | 2,162,945 | | | | 2,163,799 | |
| Other borrowings | | | 1,004,836 | | | | 847,752 | | | | 836,769 | | | | 808,512 | | | | 806,141 | |
| Other liabilities | | | 57,355 | | | | 55,493 | | | | 54,798 | | | | 51,939 | | | | 51,357 | |
| | |
|
| | Total liabilities | | | 3,375,979 | | | | 3,166,204 | | | | 3,101,875 | | | | 3,023,396 | | | | 3,021,297 | |
| | |
|
| | Total shareholders’ equity | | | 324,235 | | | | 324,051 | | | | 303,745 | | | | 309,341 | | | | 327,573 | |
| | |
|
| | Total liabilities and shareholders’ equity | | $ | 3,700,214 | | | $ | 3,490,255 | | | $ | 3,405,620 | | | $ | 3,332,737 | | | $ | 3,348,870 | |
| | |
|
|
SELECTED AVERAGE BALANCES | | | | | | | | | | | | | | | | | | | | |
| | Loans | | $ | 2,170,961 | | | $ | 2,080,227 | | | $ | 1,983,455 | | | $ | 1,977,638 | | | $ | 1,973,373 | |
| | Securities | | | 1,129,206 | | | | 1,130,552 | | | | 1,101,683 | | | | 1,001,763 | | | | 977,176 | |
| | Interest earning assets | | | 3,311,707 | | | | 3,219,752 | | | | 3,093,516 | | | | 3,005,225 | | | | 2,957,440 | |
| | Assets | | | 3,586,969 | | | | 3,491,868 | | | | 3,377,791 | | | | 3,246,863 | | | | 3,184,788 | |
| | Deposits | | | 2,278,758 | | | | 2,230,620 | | | | 2,183,990 | | | | 2,169,743 | | | | 2,136,217 | |
| | Interest bearing liabilities | | | 2,914,391 | | | | 2,859,137 | | | | 2,756,185 | | | | 2,605,572 | | | | 2,565,744 | |
| | Shareholders’ equity | | | 333,165 | | | | 322,508 | | | | 321,966 | | | | 327,410 | | | | 320,242 | |
|
12
| | | | | |
| First Charter Corporation and Subsidiaries | | (NASDAQ: | | FCTR) |
| Quarterly Earnings Release | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | As of / For the Quarter Ended |
| | | | | |
|
| (Dollars in thousands, except per share data) | | 9/30/2002 | | 6/30/2002 | | 3/31/2002 | | 12/31/2001 | | 9/30/2001 |
| |
| |
| |
| |
| |
|
ASSET QUALITY ANALYSIS | | | | | | | | | | | | | | | | | | | | |
| | Allowance for Loan Losses | | | | | | | | | | | | | | | | | | | | |
| | | Beginning balance | | $ | 27,213 | | | $ | 26,576 | | | $ | 25,843 | | | $ | 28,221 | | | $ | 28,049 | |
| | | Provision for loan losses | | | 1,750 | | | | 2,240 | | | | 2,105 | | | | 1,200 | | | | 1,325 | |
| | | Allowance related to loans sold | | | (322 | ) | | | — | | | | — | | | | — | | | | — | |
| | | Charge-offs | | | (1,517 | ) | | | (1,778 | ) | | | (1,557 | ) | | | (3,719 | ) | | | (1,372 | ) |
| | | Recoveries | | | 287 | | | | 175 | | | | 185 | | | | 141 | | | | 219 | |
| | |
|
| | | | Net charge-offs | | | (1,230 | ) | | | (1,603 | ) | | | (1,372 | ) | | | (3,578 | ) | | | (1,153 | ) |
| | |
|
| | | Ending balance | | $ | 27,411 | | | $ | 27,213 | | | $ | 26,576 | | | $ | 25,843 | | | $ | 28,221 | |
| | |
|
| | Nonperforming Assets and Loans 90 days or more past due accruing interest | | | | | | | | | | | | | | | | | | | | |
| | | Nonaccrual loans | | $ | 24,418 | | | $ | 30,656 | | | $ | 27,558 | | | $ | 23,824 | | | $ | 26,502 | |
| | | Other real estate | | | 9,675 | | | | 8,367 | | | | 7,208 | | | | 8,049 | | | | 3,067 | |
| | |
|
| | | | Total nonperforming assets | | | 34,093 | | | | 39,023 | | | | 34,766 | | | | 31,873 | | | | 29,569 | |
| | |
|
| | | Loans 90 days or more past due accruing interest | | | — | | | | — | | | | 38 | | | | 152 | | | | 114 | |
| | |
|
| | | | Total | | $ | 34,093 | | | $ | 39,023 | | | $ | 34,804 | | | $ | 32,025 | | | $ | 29,683 | |
| | |
|
| | Asset Quality Ratios | | | | | | | | | | | | | | | | | | | | |
| | | Nonaccrual loans as a percentage of total loans | | | 1.09 | % | | | 1.44 | % | | | 1.36 | % | | | 1.22 | % | | | 1.33 | % |
| | | Nonperforming assets as a percentage of total assets | | | 0.92 | | | | 1.12 | | | | 1.02 | | | | 0.96 | | | | 0.88 | |
| | | Nonperforming assets as a percentage of total loans and other real estate | | | 1.51 | | | | 1.83 | | | | 1.71 | | | | 1.62 | | | | 1.49 | |
| | | Net charge-offs as a percentage of average loans (annualized) | | | 0.22 | | | | 0.31 | | | | 0.28 | | | | 0.72 | | | | 0.23 | |
| | | Allowance for loan losses as a percentage of loans | | | 1.22 | | | | 1.28 | | | | 1.31 | | | | 1.32 | | | | 1.42 | |
| | | Ratio of allowance for loan losses to: | | | | | | | | | | | | | | | | | | | | |
| | | | Net charge-offs | | | 5.62x | | | | 4.23x | | | | 4.78x | | | | 1.82x | | | | 6.17x | |
| | | | Nonaccrual loans | | | 1.12 | | | | 0.89 | | | | 0.96 | | | | 1.08 | | | | 1.06 | |
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| | | | | | | | | | As of / For the Nine Months Ended | | Increase (Decrease) |
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| | | | 9/30/2002 | | 9/30/2001 | | Amount | | Percentage |
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| | Allowance for Loan Losses | | | | | | | | | | | | | | | | | | | | |
| | | Beginning balance | | | | | | $ | 25,843 | | | $ | 28,447 | | | $ | (2,604 | ) | | | (9.2 | )% |
| | | Provision for loan losses | | | | | | | 6,095 | | | | 3,265 | | | | 2,830 | | | | 86.7 | |
| | | Allowance related to loans sold and securitized | | | | | | | (322 | ) | | | (417 | ) | | | 95 | | | | (22.8 | ) |
| | | Charge-offs | | | | | | | (4,852 | ) | | | (3,687 | ) | | | (1,165 | ) | | | 31.6 | |
| | | Recoveries | | | | | | | 647 | | | | 613 | | | | 34 | | | | 5.5 | |
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| | | | Net charge-offs | | | | | | | (4,205 | ) | | | (3,074 | ) | | | (1,131 | ) | | | 36.8 | |
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| | | Ending balance | | | | | | $ | 27,411 | | | $ | 28,221 | | | $ | (810 | ) | | | (2.9 | )% |
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| | Asset Quality Ratios | | | | | | | | | | | | | | | | | | | | |
| | | Net charge-offs as a percentage of average loans (annualized) | | | | | | | 0.27 | % | | | 0.21 | % | | | | | | | | |
| | | Ratio of allowance for loan losses to net charge-offs (annualized) | | | | | | | 4.88x | | | | 6.87x | | | | | | | | | |
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| | | | | | For the Quarter Ended |
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| | 9/30/2002 | | 6/30/2002 | | 3/31/2002 | | 12/31/2001 | | 9/30/2001 |
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ANNUALIZED INTEREST YIELDS / RATES (*) | | | | | | | | | | | | | | | | | | | | |
| | Interest income: | | | | | | | | | | | | | | | | | | | | |
| | | Yield on loans | | | 6.36 | % | | | 6.48 | % | | | 6.73 | % | | | 7.17 | % | | | 7.87 | % |
| | | Yield on securities | | | 5.43 | | | | 5.75 | | | | 6.01 | | | | 6.29 | | | | 6.51 | |
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| | | Yield on interest earning assets | | | 6.03 | | | | 6.21 | | | | 6.46 | | | | 6.83 | | | | 7.41 | |
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| | Interest expense: | | | | | | | | | | | | | | | | | | | | |
| | | Cost of interest bearing deposits | | | 2.49 | | | | 2.58 | | | | 2.89 | | | | 3.50 | | | | 4.15 | |
| | | Cost of borrowings | | | 3.57 | | | | 3.67 | | | | 3.80 | | | | 4.27 | | | | 4.72 | |
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| | | Cost of interest bearing liabilities | | | 2.83 | | | | 2.92 | | | | 3.16 | | | | 3.71 | | | | 4.30 | |
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| | Interest rate spread | | | 3.20 | | | | 3.29 | | | | 3.30 | | | | 3.12 | | | | 3.11 | |
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| | Net yield on earning assets | | | 3.54 | % | | | 3.61 | % | | | 3.64 | % | | | 3.62 | % | | | 3.68 | % |
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| Notes: | | Applicable ratios are annualized. |
| | | * — Fully taxable equivalent yields. |
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