Exhibit 99.1
NEWS RELEASE DATED 10-14-2004
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 14, 2004
First Charter Earnings Increase 28% in the Third Quarter
Charlotte, North Carolina – First Charter Corporation (NASDAQ: FCTR) today reported third quarter 2004 earnings of $11.4 million or $0.38 per diluted share compared to $8.9 million, or $0.30 per diluted share, for the same period in 2003. Strong loan growth and a decrease in prepayment speeds in the securities available for sale portfolio resulted in a 9 percent increase in interest income. In addition, the Corporation continued to realize the benefits resulting from the refinancing of fixed term advances during 2003 and certain asset-liability management transactions entered into during 2004 as interest expense decreased 4 percent. Asset quality remained stable, with nonperforming assets at 0.79 percent of loans plus other real estate owned and 30 day past due loans at 0.61 percent of loans.
“Loans to individuals and businesses continued to grow in the third quarter and our sales force continued to add new core households,” said Lawrence M. Kimbrough, President & CEO of First Charter Corporation. “Our distinctive Free Checking offer and reputation for exceptional service helped us attract individuals and businesses looking for a new and better banking relationship.”
For the nine months ended September 30, 2004, First Charter reported earnings of $30.9 million, or $1.02 per diluted share, compared to earnings of $14.6 million, or $0.49 per diluted share, for the same period in 2003. Earnings for the nine months ended September 30, 2003 were impacted by a higher provision for loan losses primarily attributable to the sale of $60.9 million of nonaccruing and accruing higher risk loans. In addition, interest expense declined 16 percent primarily due to the refinancing of fixed term advances during 2003 and certain asset-liability management transactions entered into during 2004.
Third Quarter 2004 compared to Third Quarter 2003
| • | | Total revenues, which are comprised of net interest income and noninterest income, increased $5.9 million or 15 percent driven by loan growth, slower prepayment speeds in the securities available for sale portfolio, higher fee income and reduced interest expense. |
| • | | Provision for loan losses decreased $0.8 million or 33 percent due to improved asset quality. |
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| • | | Strong loan growth with average loans up 12 percent. |
Key Customer Indicators
| • | | Third quarter 2004 customer service quality score was 82 percentvery satisfied. |
| • | | During the first nine months of 2004, 29,635 new checking accounts were opened. |
| • | | During the first nine months of 2004, core households increased 8,027. |
| • | | Customer retention ratio as of September 30, 2004 was 86 percent. |
Financial Highlights
| | | | | | | | | | | | | | | | | |
| | | For the Three Months | | For the Nine Months |
| | | Ended September 30
| | Ended September 30
|
(Dollars in thousands, except per share data)
| | 2004
| | 2003
| | 2004
| | 2003
|
Earnings | | | | | | | | | | | | | | | | |
| Total revenues | | $ | 46,834 | | | $ | 40,900 | | | $ | 136,794 | | | $ | 129,276 | |
| Net income | | | 11,388 | | | | 8,894 | | | | 30,883 | | | | 14,636 | |
| Diluted earnings per share | | | 0.38 | | | | 0.30 | | | | 1.02 | | | | 0.49 | |
| Return on average assets | | | 1.04 | % | | | 0.87 | % | | | 0.96 | % | | | 0.50 | % |
| Return on average equity | | | 15.28 | | | | 11.64 | | | | 13.81 | | | | 6.15 | |
| Efficiency-taxable equivalent ratio (*) | | | 59.47 | | | | 64.14 | | | | 61.24 | | | | 70.47 | |
|
| * - Noninterest expense divided by the sum of taxable equivalent net interest income plus noninterest income less gain on sale of securities. |
| | | | | | | | | | | | | | | | | |
| | | September 30 | | December 31 | | Increase (Decrease)
|
(Dollars in thousands)
| | 2004
| | 2003
| | Amount
| | Percentage
|
Balance Sheet | | | | | | | | | | | | | | | | |
| Loans held for sale | | $ | 5,468 | | | $ | 5,137 | | | $ | 330 | | | | 6.43 | % |
| Loans, net | | | 2,398,116 | | | | 2,227,030 | | | | 171,086 | | | | 7.68 | |
| Investments | | | 1,630,655 | | | | 1,601,900 | | | | 28,755 | | | | 1.80 | |
| Total assets | | | 4,409,044 | | | | 4,206,693 | | | | 202,351 | | | | 4.81 | |
| Demand, savings and money market deposits | | | 1,361,618 | | | | 1,237,726 | | | | 123,892 | | | | 10.01 | |
| Total deposits | | | 2,557,062 | | | | 2,427,897 | | | | 129,165 | | | | 5.32 | |
| Other borrowings | | | 1,482,340 | | | | 1,432,200 | | | | 50,140 | | | | 3.50 | |
| Shareholders’ equity | | | 308,651 | | | | 299,439 | | | | 9,212 | | | | 3.08 | |
| | | | | | | | | | | | | | | | | |
| | | For the Nine Months | | |
| | | Ended September 30
| | Increase (Decrease)
|
(Dollars in thousands)
| | 2004
| | 2003
| | Amount
| | Percentage
|
Average Balances | | | | | | | | | | | | | | | | |
| Loans held for sale | | $ | 11,022 | | | $ | 32,560 | | | $ | (21,537 | ) | | | (66.15 | )% |
| Loans, net | | | 2,324,646 | | | | 2,108,092 | | | | 216,554 | | | | 10.27 | |
| Investments | | | 1,618,418 | | | | 1,423,936 | | | | 194,481 | | | | 13.66 | |
| Total assets | | | 4,290,442 | | | | 3,950,565 | | | | 339,877 | | | | 8.60 | |
| Total deposits | | | 2,524,190 | | | | 2,481,486 | | | | 42,703 | | | | 1.72 | |
| Other borrowings | | | 1,422,049 | | | | 1,105,708 | | | | 316,341 | | | | 28.61 | |
| Shareholders’ equity | | | 298,737 | | | | 318,089 | | | | (19,353 | ) | | | (6.08 | ) |
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Net Interest Income/Margin
Third quarter
Net interest income increased $4.6 million, or 18 percent, to $30.8 million compared to the third quarter of 2003. The increase was primarily due to a $3.7 million increase in interest income primarily resulting from loan growth and a decrease in prepayment speeds in the securities available for sale portfolio. In addition, interest expense decreased $0.7 million, or 4 percent, due to (a) a shift in funding sources from higher-cost retail certificates of deposit to lower-cost transaction based accounts, (b) the benefits from the refinancing of $81 million of fixed-term advances in the fourth quarter of 2003, and (c) the benefits from certain asset-liability management transactions entered into during 2004. These decreases in interest expense were partially offset by the increase in interest rates.
The net interest margin increased to 3.09 percent in the third quarter of 2004 from 2.86 percent for the same period in 2003 as yields earned on interest bearing assets increased slightly and rates paid on interest bearing liabilities declined.
Year-to-Date
Net interest income increased $12.4 million, or 16 percent, to $91.2 million compared to the same period in 2003. The increase was primarily due to an $8.9 million decrease in interest expense primarily resulting from (a) a shift in funding sources from higher-cost retail certificates of deposit to lower-cost transaction based accounts, (b) the benefits from the refinancing of $50 million and $81 million of fixed-term advances in the second quarter and fourth quarter of 2003, respectively, and (c) the benefits from certain asset-liability management transactions entered into during 2004. In addition, interest income increased $3.1 million due mainly to loan growth, increases in the securities available for sale portfolio and a decrease in prepayment speeds in the securities available for sale portfolio
The net interest margin for the nine months ended September 30, 2004 increased to 3.11 percent from 2.97 percent for the same period in 2003 as rates paid on interest bearing liabilities declined faster than yields earned on interest bearing assets.
Noninterest Income
Third quarter
Noninterest income increased $1.3 million to $16.0 million compared to the third quarter of 2003. The increase was primarily due to (a) a $1.1 million increase in service charges, (b) a $1.0 million increase in gains on the sale of securities, and (c) a $0.4 million increase in other noninterest income due to growth in ATM, debit card and other miscellaneous fees. In addition, a $0.3 million gain was recognized on the sale of our Lake Lure branch deposits and loans in August of 2004. These increases were partially offset by (a) a $0.8 million decrease in mortgage loan fees as origination volume has declined and the Bank has retained a larger portion of mortgage loans in 2004 and (b) a $0.2 million decrease in brokerage income. In addition, trading gains of $0.2 million and property sale gains of $0.4 million were recognized in the third quarter of 2003.
Year-to-Date
Noninterest income decreased $4.9 million to $45.6 million compared to the same period in 2003. Gains on the sale of securities of $2.1 million were recognized in the first nine months of 2004 compared to $9.8 million in 2003, representing a decrease of $7.7 million. Gains totaling $2.3 million from the sale of the Corporation’s credit card portfolio and $1.8 million of trading gains were recognized in the first nine months of 2003. In addition, mortgage loan fees decreased $1.0 million as origination volume has declined and the Bank has retained a larger portion of mortgage loans in 2004. These decreases in noninterest income were partially offset by (a) a $2.4 million increase in service charges, (b) a $2.2
3
million increase in financial management income primarily due to the acquisition of a third party benefits administrator in the third quarter of 2003, (c) a $1.4 million increase in other noninterest income due to growth in ATM, debit card and other miscellaneous fees, and (d) a $1.1 million increase in insurance services income primarily due to the acquisition of two insurance agencies in the third and fourth quarter of 2003. In addition, gains totaling $0.8 million from the sale of bank property were recognized in the first nine months of 2004 versus $0.4 million in the same 2003 period and a $0.3 million gain was recognized on the sale of our Lake Lure branch deposits and loans in 2004.
Noninterest Expense
Third quarter
Noninterest expense increased $0.9 million to $27.3 million compared to the third quarter of 2003. The increase was primarily due to a $1.6 million increase in salaries and employee benefits due to (a) additional personnel, including the acquisition of two insurance agencies and (b) increased 401(k) accruals for the Corporation’s contribution resulting from a projected increase in 2004 earnings. This increase was partially offset by a $0.9 million decrease in professional service fees.
Year-to-Date
Noninterest expense decreased $2.1 million to $83.3 million compared to the first nine months of 2003. The decrease was due to $7.4 million of prepayment costs associated with refinancing $50 million in fixed term advances in the second quarter of 2003 that did not recur in 2004. In addition, professional service fees decreased $0.8 million. These decreases were partially offset by a $4.8 million increase in salaries and employee benefits due to (a) additional personnel, including the acquisition of a third party benefits administrator and two insurance agencies and (b) increased 401(k) accruals for the Corporation’s contribution resulting from a projected increase in 2004 earnings.
Efficiency Ratio
The efficiency ratio decreased to 59.5 percent compared to 64.1 percent for the third quarter of 2003. The calculation of the efficiency ratio excludes gains on sale of securities of $1.3 million and $0.3 million for the three months ended September 30, 2004 and 2003, respectively.
Income Tax Expense
Third quarter
Total income tax expense for the third quarter of 2004 was $6.5 million for an effective tax rate of 36.3 percent compared to $3.2 million for an effective tax rate of 26.5 percent for the third quarter of 2003. The increase in the effective tax rate for 2004 was due to an increase in projected taxable income relative to nontaxable adjustments and an increase in accrued taxes resulting from a proposed tax assessment received in the third quarter. The Corporation is appealing this assessment.
Year-to-Date
The income tax expense for the first nine months of 2004 amounted to $16.0 million for an effective tax rate of 34.1 percent compared to $5.3 million for an effective tax rate of 26.5 percent the first nine months of 2003. The increase in the effective tax rate for 2004 was due to an increase in projected taxable income relative to nontaxable adjustments and an increase in accrued taxes resulting from a proposed tax assessment received in the third quarter. The Corporation is appealing this assessment.
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Loans Held for Sale
Loans held for sale consist primarily of 15 and 30 year residential mortgage loans which the Corporation intends to sell as whole loans. Loans held for sale increased to $5.5 million at September 30, 2004 as compared to $5.1 million at December 31, 2003. During the first nine months of 2004, $40.7 million of residential mortgage loans were moved to securities available for sale (“securitized”) and subsequently sold.
Loans
Gross loans increased $172.5 million to $2.43 billion at September 30, 2004 as compared to $2.25 billion at December 31, 2003. The growth in loans was due to a $66.5 million increase in home equity loans, a $64.2 million increase in commercial real estate loans, a $50.5 million increase in mortgage loans and a $6.1 million increase in consumer loans. These increases were partially offset by a $13.0 million decrease in construction loans and a $1.8 million decrease in commercial non-real estate loans. In addition, $6.4 million of nonaccruing and accruing higher risk residential mortgage loans were sold to investors during the first quarter of 2004.
Securities
The securities available for sale portfolio increased $28.8 million to $1.63 billion at September 30, 2004 as compared to December 31, 2003. The increase in the securities available for sale portfolio was primarily due to the purchase of agency securities funded by the proceeds from the sale of the previously mentioned securitized residential mortgage loans. The securities available for sale portfolio was also impacted by an increase in the unrealized net losses in the portfolio due to a rise in short and intermediate-term interest rates. Unrealized net losses on securities available for sale were $1.4 million at September 30, 2004 compared to unrealized net gains of $10.1 million at December 31, 2003.
Deposits
The Corporation’s CHecking Account Marketing Program (CHAMP) continues to attract new customers and deposits. During the first nine months of 2004, 29,635 new checking accounts were opened. In addition, during the first quarter of 2004 the Corporation introduced a new money market account, the Performance Plus Account. The emphases of these programs are to develop new customer relationships, shift our funding mix towards lower-cost funding sources and generate additional fee income opportunities.
Total deposits increased $129.2 million, or 5 percent, to $2.56 billion at September 30, 2004 compared to $2.43 billion at December 31, 2003. The increase in deposits was due to a $74.1 million increase in money market accounts, a $49.8 million increase in low-cost interest checking, savings and noninterest bearing deposits. Also, as a result of the Corporation’s strategy of shifting the funding mix, lower-cost brokered certificates of deposit increased $60.7 million, while higher-cost retail certificates of deposit decreased $55.4 million.
Shareholders’ Equity
Shareholders’ equity at September 30, 2004 increased to $308.7 million compared to $299.4 million at December 31, 2003. The after-tax unrealized loss on available for sale securities was $0.9 million at September 30, 2004 compared to an after-tax unrealized gain of $6.2 million at December 31, 2003. The change was due to an increase in short and intermediate-term interest rates. At September 30, 2004, the book value per share was $10.35. Based on the $24.17 closing price of First Charter Corporation common stock at September 30, 2004, the Corporation had a market capitalization of $721.0 million.
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Provision for Loan Losses
The provision for loan losses decreased to $1.6 million for the three months ended September 30, 2004 compared to $2.4 million for the same year ago period. The decrease in the provision for loan losses was due to improved asset quality trends resulting in lower net charge-offs.
The provision for loan losses for the nine months ended September 30, 2004 amounted to $6.6 million compared to $23.9 million for the same year ago period. The decrease in the provision for loan losses was primarily attributable to the previously mentioned $60.9 million sale of nonaccruing and accruing higher risk loans and a $2.4 million increase in the provision related to certain residential rental property loans identified in the second quarter of 2003.
Net Charge-Offs
Third quarter
Net charge-offs for the three months ended September 30, 2004 amounted to $0.8 million, or 0.13 percent of average loans, compared to $2.1 million, or 0.40 percent of average loans for the same 2003 period. The decrease in net charge-offs was due to the recovery of $0.4 million from the sale of previously charged-off loans and lower charge-offs in all loan categories.
Year-to-Date
Net charge-offs for the nine months ended September 30, 2004 amounted to $4.8 million, or 0.27 percent of average loans compared to $6.4 million, or 0.41 percent of average loans for the same 2003 period. Net charge-offs benefited from a $0.6 million commercial loan recovery during the second quarter of 2004 and a third quarter 2004 recovery of $0.4 million from the sale of previously charged-off loans.
Nonperforming Assets
Nonaccrual loans at September 30, 2004 decreased to $14.2 million compared to $14.9 million at December 31, 2003. The decrease includes the sale of $2.1 million of nonaccrual mortgage loans in the first quarter of 2004. Other real estate owned decreased to $5.0 million at September 30, 2004 from $6.8 million at December 31, 2003.
Asset Quality Ratios
As a result of the Corporation’s continued focus on asset quality and the initiatives taken in 2003 and in the first nine months of 2004, our asset quality ratios remain strong as evidenced in the following table.
Asset Quality (1)
| | | | | | | | | | | | | | | | | | | | | |
| | | September 30 | | June 30 | | March 31 | | December 31 | | September 30 |
| | | 2004
| | 2004
| | 2004
| | 2003
| | 2003
|
Past Due Ratio | | | | | | | | | | | | | | | | | | | | |
| Past due loans over 30 days as a percentage of loans | | | 0.61 | % | | | 0.47 | % | | | 0.64 | % | | | 1.04 | % | | | 0.71 | % |
| | | | | | | | | | | | | | | | | | | | | |
Nonaccrual Loans | | | | | | | | | | | | | | | | | | | | |
| Nonaccrual loans as a percentage of loans | | | 0.59 | % | | | 0.53 | % | | | 0.52 | % | | | 0.66 | % | | | 0.64 | % |
| | | | | | | | | | | | | | | | | | | | | |
Nonperforming Assets | | | | | | | | | | | | | | | | | | | | |
| Nonperforming assets as a percentage of loans and other real estate owned | | | 0.79 | % | | | 0.79 | % | | | 0.79 | % | | | 0.96 | % | | | 0.95 | % |
| | | | | | | | | | | | | | | | | | | | | |
Charge-offs | | | | | | | | | | | | | | | | | | | | |
| Net charge-offs as a percentage of average loans-annualized | | | 0.13 | % | | | 0.29 | % | | | 0.41 | % | | | 0.35 | % | | | 0.40 | % |
| | | | | | | | | | | | | | | | | | | | | |
Allowance for Loan Losses | | | | | | | | | | | | | | | | | | | | |
| Allowance for loan losses as a percentage of loans | | | 1.11 | % | | | 1.11 | % | | | 1.13 | % | | | 1.14 | % | | | 1.14 | % |
| Allowance for loan losses as a percentage of nonaccrual loans | | | 189 | % | | | 208 | % | | | 217 | % | | | 172 | % | | | 179 | % |
| (1) Excludes loans held for sale. |
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Allowance for Loan Losses
The allowance for loan losses as a percentage of total loans decreased to 1.11 percent at September 30, 2004 compared to 1.14 percent at December 31, 2003. The allowance for loan losses decreased primarily due to improved asset quality trends as well as a change in the mix of the loan portfolio towards 1-4 family mortgages and home equity lines of credit. This type of secured lending generally carries lower credit risk and thus requires lower allocations in our allowance model. 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. Management believes the Corporation is adequately reserved based on its assessment of its credit risk profile.
Conference Call
First Charter’s executive management will be available via telephone conference to discuss the contents of this press release and to present growth and earnings estimates for the remainder of 2004 on Thursday, October 14, 2004 at 11:00 a.m. The following table outlines access information for the conference call and internet/audio replay:
| | | | | |
| | | US/Canada Participants | | International Participants |
|
Live Conference Call | | 800-379-3953
ID # 1163675 | | 706-679-5254
ID # 1163675 |
|
| Internet Live and Replay | | www.FirstCharter.com
“Investor Relations” section
SHOW # 187603 | | www.FirstCharter.com
“Investor Relations” section
SHOW # 187603 |
|
| Audio Replay | | 800-642-1687
ID # 1163675 | | 706-645-9291
ID # 1163675 |
Corporate Profile
First Charter Corporation is a regional financial services company with assets of $4.4 billion and is the holding company for First Charter Bank. First Charter operates 53 financial centers, six insurance offices and 99 ATMs located in 18 counties throughout the piedmont and 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.comor 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 results in connection with the implementation of our business plan and strategic initiatives 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 Corporation 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
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adversely affect the businesses in which the Corporation is engaged; (9) regulatory compliance cost increases are greater than expected; and (10) the passage of future tax legislation, or any negative regulatory, administrative or judicial position, may adversely impact the Corporation. 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 Corporation 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
Quarterly Earnings Release | | (NASDAQ: | | FCTR) |
| | | | | | | | | | | | | | | | | |
| | | As of / For the Nine Months Ended
| | Increase (Decrease)
|
(Dollars in thousands, except per share data)
| | 9/30/2004
| | 9/30/2003
| | Amount
| | Percentage
|
BALANCE SHEET | | | | | | | | | | | | | | | | |
| ASSETS: | | | | | | | | | | | | | | | | |
| Cash and due from banks | | $ | 98,000 | | | $ | 84,468 | | | $ | 13,532 | | | | 16.0 | % |
| Federal funds sold | | | 2,080 | | | | 2,004 | | | | 76 | | | | 3.8 | |
| Interest earning bank deposits | | | 9,259 | | | | 42,560 | | | | (33,301 | ) | | | (78.2 | ) |
| Securities available for sale | | | 1,630,655 | | | | 1,603,262 | | | | 27,393 | | | | 1.7 | |
| Loans held for sale | | | 5,468 | | | | 14,784 | | | | (9,316 | ) | | | (63.0 | ) |
| Loans | | | | | | | | | | | | | | | | |
| Commercial Real Estate | | | 788,539 | | | | 732,434 | | | | 56,105 | | | | 7.7 | |
| Commercial Non Real Estate | | | 210,214 | | | | 199,412 | | | | 10,802 | | | | 5.4 | |
| Construction | | | 345,178 | | | | 275,005 | | | | 70,173 | | | | 25.5 | |
| Mortgage | | | 331,249 | | | | 258,927 | | | | 72,322 | | | | 27.9 | |
| Consumer | | | 290,569 | | | | 279,512 | | | | 11,057 | | | | 4.0 | |
| Home equity | | | 459,527 | | | | 364,191 | | | | 95,336 | | | | 26.2 | |
| | | |
| | | |
| | | |
| | | |
| |
| Total loans | | | 2,425,276 | | | | 2,109,481 | | | | 315,795 | | | | 15.0 | |
| Less: Unearned income | | | (301 | ) | | | (190 | ) | | | (111 | ) | | | 58.4 | |
| Allowance for loan losses | | | (26,859 | ) | | | (23,953 | ) | | | (2,906 | ) | | | 12.1 | |
| | | |
| | | |
| | | |
| | | |
| |
| Loans, net | | | 2,398,116 | | | | 2,085,338 | | | | 312,778 | | | | 15.0 | |
| | | |
| | | |
| | | |
| | | |
| |
| Other assets | | | 265,466 | | | | 255,551 | | | | 9,915 | | | | 3.9 | |
| | | |
| | | |
| | | |
| | | |
| |
| Total assets | | $ | 4,409,044 | | | $ | 4,087,967 | | | $ | 321,077 | | | | 7.9 | % |
| | | |
| | | |
| | | |
| | | |
| |
| LIABILITIES AND SHAREHOLDERS’ EQUITY: | | | | | | | | | | | | | | | | |
| Deposits | | | | | | | | | | | | | | | | |
| Noninterest-bearing deposits | | $ | 368,156 | | | $ | 337,409 | | | $ | 30,747 | | | | 9.1 | % |
| Interest checking and savings | | | 448,799 | | | | 425,219 | | | | 23,580 | | | | 5.5 | |
| Money market deposits | | | 544,663 | | | | 534,148 | | | | 10,515 | | | | 2.0 | |
| Time deposits | | | 1,195,444 | | | | 1,184,806 | | | | 10,638 | | | | 0.9 | |
| | | |
| | | |
| | | |
| | | |
| |
| Total deposits | | | 2,557,062 | | | | 2,481,582 | | | | 75,480 | | | | 3.0 | |
| Other borrowings | | | 1,482,340 | | | | 1,261,412 | | | | 220,928 | | | | 17.5 | |
| Other liabilities | | | 60,991 | | | | 42,710 | | | | 18,281 | | | | 42.8 | |
| | | |
| | | |
| | | |
| | | |
| |
| Total liabilities | | | 4,100,393 | | | | 3,785,704 | | | | 314,689 | | | | 8.3 | |
| | | |
| | | |
| | | |
| | | |
| |
| Total shareholders’ equity | | | 308,651 | | | | 302,263 | | | | 6,388 | | | | 2.1 | |
| | | |
| | | |
| | | |
| | | |
| |
| Total liabilities and shareholders’ equity | | $ | 4,409,044 | | | $ | 4,087,967 | | | $ | 321,077 | | | | 7.9 | % |
| | | |
| | | |
| | | |
| | | |
| |
|
SELECTED AVERAGE BALANCES | | | | | | | | | | | | | | | | |
| Loans and loans held for sale | | $ | 2,335,669 | | | $ | 2,140,652 | | | $ | 195,017 | | | | 9.1 | % |
| Securities | | | 1,618,418 | | | | 1,423,936 | | | | 194,482 | | | | 13.7 | |
| Interest earning assets | | | 3,972,099 | | | | 3,618,677 | | | | 353,422 | | | | 9.8 | |
| Assets | | | 4,290,442 | | | | 3,950,565 | | | | 339,877 | | | | 8.6 | |
| Deposits | | | 2,524,190 | | | | 2,481,486 | | | | 42,704 | | | | 1.7 | |
| Interest bearing liabilities | | | 3,590,569 | | | | 3,269,824 | | | | 320,745 | | | | 9.8 | |
| Shareholders’ equity | | | 298,737 | | | | 318,089 | | | | (19,352 | ) | | | (6.1 | ) |
|
| | | | | | | | | | | | | | | | | | | | | |
| | | As of / For the Quarter Ended
|
| | | 9/30/2004
| | 6/30/2004
| | 3/31/2004
| | 12/31/2003
| | 9/30/2003
|
MISCELLANEOUS INFORMATION | | | | | | | | | | | | | | | | | | | | |
| Common stock prices (daily close) | | | | | | | | | | | | | | | | | | | | |
| High | | $ | 24.50 | | | $ | 21.89 | | | $ | 21.68 | | | $ | 21.20 | | | $ | 20.40 | |
| Low | | | 20.86 | | | | 20.05 | | | | 19.52 | | | | 19.27 | | | | 17.04 | |
| End of period | | | 24.17 | | | | 21.79 | | | | 21.14 | | | | 19.55 | | | | 19.60 | |
| Book Value | | | 10.35 | | | | 9.53 | | | | 10.38 | | | | 10.08 | | | | 10.20 | |
| Market Capitalization | | | 720,988,635 | | | | 648,666,205 | | | | 628,876,525 | | | | 581,029,187 | | | | 581,005,034 | |
| Weighted average shares — basic | | | 29,810,917 | | | | 29,763,619 | | | | 29,738,553 | | | | 29,685,088 | | | | 29,672,137 | |
| Weighted average shares — diluted | | | 30,231,191 | | | | 30,067,462 | | | | 30,029,056 | | | | 29,685,088 | | | | 29,904,440 | |
| End of period shares outstanding | | | 29,829,898 | | | | 29,768,986 | | | | 29,748,180 | | | | 29,720,163 | | | | 29,643,114 | |
|
9
| | | | | |
First Charter Corporation and Subsidiaries
Quarterly Earnings Release | | (NASDAQ: | | FCTR) |
| | | | | | | | | | | | | | | | | | | | | |
| | | As of / For the Quarter Ended
|
(Dollars in thousands, except per share data)
| | 9/30/2004
| | 6/30/2004
| | 3/31/2004
| | 12/31/2003
| | 9/30/2003
|
BALANCE SHEET | | | | | | | | | | | | | | | | | | | | |
| ASSETS: | | | | | | | | | | | | | | | | | | | | |
| Cash and due from banks | | $ | 98,000 | | | $ | 94,749 | | | $ | 75,040 | | | $ | 88,564 | | | $ | 84,468 | |
| Federal funds sold | | | 2,080 | | | | 1,960 | | | | 1,723 | | | | 1,311 | | | | 2,004 | |
| Interest earning bank deposits | | | 9,259 | | | | 19,513 | | | | 17,951 | | | | 23,631 | | | | 42,560 | |
| Securities available for sale | | | 1,630,655 | | | | 1,604,585 | | | | 1,622,967 | | | | 1,601,900 | | | | 1,603,262 | |
| Loans held for sale | | | 5,468 | | | | 26,768 | | | | 17,969 | | | | 5,137 | | | | 14,784 | |
| Loans | | | | | | | | | | | | | | | | | | | | |
| Commercial Real Estate | | | 788,539 | | | | 768,637 | | | | 749,355 | | | | 724,340 | | | | 732,434 | |
| Commercial Non Real Estate | | | 210,214 | | | | 208,587 | | | | 210,010 | | | | 212,010 | | | | 199,412 | |
| Construction | | | 345,178 | | | | 332,031 | | | | 346,109 | | | | 358,217 | | | | 275,005 | |
| Mortgage | | | 331,249 | | | | 315,005 | | | | 288,505 | | | | 280,748 | | | | 258,927 | |
| Consumer | | | 290,569 | | | | 276,236 | | | | 271,686 | | | | 284,448 | | | | 279,512 | |
| Home equity | | | 459,527 | | | | 447,739 | | | | 414,410 | | | | 393,041 | | | | 364,191 | |
| | | |
| | | |
| | | |
| | | |
| | | |
| |
| Total loans | | | 2,425,276 | | | | 2,348,235 | | | | 2,280,075 | | | | 2,252,804 | | | | 2,109,481 | |
| Less: Unearned income | | | (301 | ) | | | (197 | ) | | | (209 | ) | | | (167 | ) | | | (190 | ) |
| Allowance for loan losses | | | (26,859 | ) | | | (26,052 | ) | | | (25,736 | ) | | | (25,607 | ) | | | (23,953 | ) |
| | | |
| | | |
| | | |
| | | |
| | | |
| |
| Loans, net | | | 2,398,116 | | | | 2,321,986 | | | | 2,254,130 | | | | 2,227,030 | | | | 2,085,338 | |
| | | |
| | | |
| | | |
| | | |
| | | |
| |
| Other assets | | | 265,466 | | | | 269,652 | | | | 258,081 | | | | 259,120 | | | | 255,551 | |
| | | |
| | | |
| | | |
| | | |
| | | |
| |
| Total assets | | $ | 4,409,044 | | | $ | 4,339,213 | | | $ | 4,247,861 | | | $ | 4,206,693 | | | $ | 4,087,967 | |
| | | |
| | | |
| | | |
| | | |
| | | |
| |
| LIABILITIES AND SHAREHOLDERS’ EQUITY: | | | | | | | | | | | | | | | | | | | | |
| Deposits | | | | | | | | | | | | | | | | | | | | |
| Noninterest-bearing deposits | | $ | 368,156 | | | $ | 368,738 | | | $ | 353,133 | | | $ | 326,679 | | | $ | 337,409 | |
| Interest checking and savings | | | 448,799 | | | | 450,950 | | | | 454,024 | | | | 440,496 | | | | 425,219 | |
| Money market deposits | | | 544,663 | | | | 563,523 | | | | 506,504 | | | | 470,551 | | | | 534,148 | |
| Time deposits | | | 1,195,444 | | | | 1,211,554 | | | | 1,193,781 | | | | 1,190,171 | | | | 1,184,806 | |
| | | |
| | | |
| | | |
| | | |
| | | |
| |
| Total deposits | | | 2,557,062 | | | | 2,594,765 | | | | 2,507,442 | | | | 2,427,897 | | | | 2,481,582 | |
| Other borrowings | | | 1,482,340 | | | | 1,410,481 | | | | 1,377,374 | | | | 1,432,200 | | | | 1,261,412 | |
| Other liabilities | | | 60,991 | | | | 50,186 | | | | 54,308 | | | | 47,157 | | | | 42,710 | |
| | | |
| | | |
| | | |
| | | |
| | | |
| |
| Total liabilities | | | 4,100,393 | | | | 4,055,432 | | | | 3,939,124 | | | | 3,907,254 | | | | 3,785,704 | |
| | | |
| | | |
| | | |
| | | |
| | | |
| |
| Total shareholders’ equity | | | 308,651 | | | | 283,781 | | | | 308,737 | | | | 299,439 | | | | 302,263 | |
| | | |
| | | |
| | | |
| | | |
| | | |
| |
| Total liabilities and shareholders’ equity | | $ | 4,409,044 | | | $ | 4,339,213 | | | $ | 4,247,861 | | | $ | 4,206,693 | | | $ | 4,087,967 | |
| | | |
| | | |
| | | |
| | | |
| | | |
| |
|
SELECTED AVERAGE BALANCES | | | | | | | | | | | | | | | | | | | | |
| Loans and loans held for sale | | $ | 2,393,362 | | | $ | 2,339,435 | | | $ | 2,273,575 | | | $ | 2,188,643 | | | $ | 2,130,236 | |
| Securities | | | 1,627,156 | | | | 1,637,918 | | | | 1,590,083 | | | | 1,585,679 | | | | 1,560,430 | |
| Interest earning assets | | | 4,035,259 | | | | 3,995,390 | | | | 3,884,954 | | | | 3,792,383 | | | | 3,730,688 | |
| Assets | | | 4,343,207 | | | | 4,316,360 | | | | 4,210,401 | | | | 4,158,189 | | | | 4,062,106 | |
| Deposits | | | 2,586,524 | | | | 2,547,909 | | | | 2,436,673 | | | | 2,496,810 | | | | 2,543,301 | |
| Interest bearing liabilities | | | 3,625,679 | | | | 3,610,337 | | | | 3,535,305 | | | | 3,431,144 | | | | 3,381,916 | |
| Shareholders’ equity | | | 296,539 | | | | 296,699 | | | | 303,722 | | | | 304,097 | | | | 303,186 | |
|
10
| | | | | |
First Charter Corporation and Subsidiaries
Quarterly Earnings Release | | (NASDAQ: | | FCTR) |
| | | | | | | | | | | | | | | | | |
| | | For the Three Months Ended
| | Increase (Decrease)
|
(Dollars in thousands, except per share data)
| | 9/30/2004
| | 9/30/2003
| | Amount
| | Percentage
|
INCOME STATEMENT | | | | | | | | | | | | | | | | |
| Interest income — taxable equivalent | | $ | 47,496 | | | $ | 43,764 | | | $ | 3,732 | | | | 8.5 | % |
| Interest expense | | | 16,287 | | | | 17,033 | | | | (746 | ) | | | (4.4 | ) |
| | | |
| | | |
| | | |
| | | |
| |
| Net interest income — taxable equivalent | | | 31,209 | | | | 26,731 | | | | 4,478 | | | | 16.8 | |
| Less: taxable equivalent adjustment | | | 414 | | | | 531 | | | | (117 | ) | | | (22.0 | ) |
| | | |
| | | |
| | | |
| | | |
| |
| Net interest income | | | 30,795 | | | | 26,200 | | | | 4,595 | | | | 17.5 | |
| Provision for loan losses | | | 1,600 | | | | 2,400 | | | | (800 | ) | | | (33.3 | ) |
| | | |
| | | |
| | | |
| | | |
| |
| Net interest income after provision for loan losses | | | 29,195 | | | | 23,800 | | | | 5,395 | | | | 22.7 | |
| Noninterest income | | | 16,039 | | | | 14,700 | | | | 1,339 | | | | 9.1 | |
| Noninterest expense | | | 27,347 | | | | 26,399 | | | | 948 | | | | 3.6 | |
| | | |
| | | |
| | | |
| | | |
| |
| Income before income taxes | | | 17,887 | | | | 12,101 | | | | 5,786 | | | | 47.8 | |
| Income tax expense | | | 6,499 | | | | 3,207 | | | | 3,292 | | | | 102.7 | |
| | | |
| | | |
| | | |
| | | |
| |
Net income | | $ | 11,388 | | | $ | 8,894 | | | $ | 2,494 | | | | 28.0 | % |
| | | |
| | | |
| | | |
| | | |
| |
|
EARNINGS PER SHARE DATA | | | | | | | | | | | | | | | | |
| Basic | | $ | 0.38 | | | $ | 0.30 | | | $ | 0.08 | | | | 26.7 | % |
| Diluted | | | 0.38 | | | | 0.30 | | | | 0.08 | | | | 26.7 | |
| Weighted average shares — basic | | | 29,810,917 | | | | 29,672,137 | | | | | | | | | |
| Weighted average shares — diluted | | | 30,231,191 | | | | 29,904,440 | | | | | | | | | |
| Dividends paid on common shares | | $ | 0.190 | | | $ | 0.185 | | | $ | 0.005 | | | | 5.3 | % |
|
PERFORMANCE RATIOS | | | | | | | | | | | | | | | | |
| Return on average assets | | | 1.04 | % | | | 0.87 | % | | | | | | | | |
| Return on average equity | | | 15.28 | | | | 11.64 | | | | | | | | | |
| Efficiency — taxable equivalent (*) | | | 59.47 | | | | 64.14 | | | | | | | | | |
|
| | | | | | | | | | | | | | | | | |
| | | For the Three Months Ended
| | |
| | | 9/30/2004
| | 9/30/2003
| | | | |
SCHEDULE OF SELECTED ITEMS INCLUDED IN EARNINGS | | | | | | | | | | | | | | | | |
| Noninterest income | | | | | | | | | | | | | | | | |
| Gain on sale of securities | | $ | 1,267 | | | $ | 270 | | | | | | | | | |
| Gain on sale of deposits and loans | | | 339 | | | | — | | | | | | | | | |
| Gain on sale of credit card loans | | | — | | | | 49 | | | | | | | | | |
| Equity method investment loss | | | — | | | | 78 | | | | | | | | | |
| Trading gains | | | 7 | | | | 158 | | | | | | | | | |
| Gain on sale of properties | | | — | | | | 382 | | | | | | | | | |
|
| | | |
| 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
Quarterly Earnings Release | | (NASDAQ: | | FCTR) |
| | | | | | | | | | | | | | | | | |
| | | For the Nine Months Ended
| | Increase (Decrease)
|
(Dollars in thousands, except per share data)
| | 9/30/2004
| | 9/30/2003
| | Amount
| | Percentage
|
INCOME STATEMENT | | | | | | | | | | | | | | | | |
| Interest income — taxable equivalent | | $ | 138,608 | | | $ | 135,470 | | | $ | 3,138 | | | | 2.3 | % |
| Interest expense | | | 46,018 | | | | 54,920 | | | | (8,902 | ) | | | (16.2 | ) |
| | | |
| | | |
| | | |
| | | |
| |
| Net interest income — taxable equivalent | | | 92,590 | | | | 80,550 | | | | 12,040 | | | | 14.9 | |
| Less: taxable equivalent adjustment | | | 1,390 | | | | 1,728 | | | | (338 | ) | | | (19.6 | ) |
| | | |
| | | |
| | | |
| | | |
| |
| Net interest income | | | 91,200 | | | | 78,822 | | | | 12,378 | | | | 15.7 | |
| Provision for loan losses | | | 6,600 | | | | 23,943 | | | | (17,343 | ) | | | (72.4 | ) |
| | | |
| | | |
| | | |
| | | |
| |
| Net interest income after provision for loan losses | | | 84,600 | | | | 54,879 | | | | 29,721 | | | | 54.2 | |
| Noninterest income | | | 45,594 | | | | 50,454 | | | | (4,860 | ) | | | (9.6 | ) |
| Noninterest expense | | | 83,340 | | | | 85,420 | | | | (2,080 | ) | | | (2.4 | ) |
| | | |
| | | |
| | | |
| | | |
| |
| Income before income taxes | | | 46,854 | | | | 19,913 | | | | 26,941 | | | | 135.3 | |
| Income taxes | | | 15,971 | | | | 5,277 | | | | 10,694 | | | | 202.7 | |
| | | |
| | | |
| | | |
| | | |
| |
Net income | | $ | 30,883 | | | $ | 14,636 | | | $ | 16,247 | | | | 111.0 | % |
| | | |
| | | |
| | | |
| | | |
| |
|
EARNINGS PER SHARE DATA | | | | | | | | | | | | | | | | |
| Basic | | $ | 1.04 | | | $ | 0.49 | | | $ | 0.55 | | | | 112.2 | % |
| Diluted | | | 1.02 | | | | 0.49 | | | | 0.53 | | | | 108.2 | |
| Weighted average shares — basic | | | 29,797,642 | | | | 29,825,313 | | | | | | | | | |
| Weighted average shares — diluted | | | 30,134,952 | | | | 30,020,709 | | | | | | | | | |
| Dividends paid on common shares | | $ | 0.560 | | | $ | 0.555 | | | $ | 0.005 | | | | 0.9 | % |
|
PERFORMANCE RATIOS | | | | | | | | | | | | | | | | |
| Return on average assets | | | 0.96 | % | | | 0.50 | % | | | | | | | | |
| Return on average equity | | | 13.81 | | | | 6.15 | | | | | | | | | |
| Efficiency — taxable equivalent (*) | | | 61.24 | | | | 70.47 | | | | | | | | | |
|
| | | | | | | | | | | | | | | | | |
| | | For the Nine Months Ended
| | |
| | | 9/30/2004
| | 9/30/2003
| | | | |
SCHEDULE OF SELECTED ITEMS INCLUDED IN EARNINGS | | | | | | | | | | | | | | | | |
| Noninterest income | | | | | | | | | | | | | | | | |
| Gain on sale of securities | | $ | 2,087 | | | $ | 9,782 | | | | | | | | | |
| Gain on sale of deposits and loans | | | 339 | | | | — | | | | | | | | | |
| Gain on sale of credit card loans | | | — | | | | 2,262 | | | | | | | | | |
| Equity method investment loss | | | (300 | ) | | | (298 | ) | | | | | | | | |
| Trading gains | | | 111 | | | | 1,754 | | | | | | | | | |
| Gain on sale of properties | | | 777 | | | | 382 | | | | | | | | | |
| Noninterest expense | | | | | | | | | | | | | | | | |
| Prepayment costs on borrowings | | | — | | | | (7,366 | ) | | | | | | | | |
|
| | | |
| 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. |
12
| | | | | |
First Charter Corporation and Subsidiaries
Quarterly Earnings Release | | (NASDAQ: | | FCTR) |
| | | | | | | | | | | | | | | | | | | | | |
| | | As of / For the Quarter Ended
|
(Dollars in thousands, except per share data)
| | 9/30/2004
| | 6/30/2004
| | 3/31/2004
| | 12/31/2003
| | 9/30/2003
|
INCOME STATEMENT | | | | | | | | | | | | | | | | | | | | |
Interest income — taxable equivalent | | | | | | | | | | | | | | | | | | | | |
| Interest and fees on loans | | $ | 31,406 | | | $ | 29,373 | | | $ | 29,291 | | | $ | 29,282 | | | $ | 29,042 | |
| Interest on securities | | | 16,046 | | | | 15,960 | | | | 16,399 | | | | 15,743 | | | | 14,625 | |
| Other interest income | | | 44 | | | | 42 | | | | 47 | | | | 38 | | | | 97 | |
| | | |
| | | |
| | | |
| | | |
| | | |
| |
| Total interest income — taxable equivalent | | | 47,496 | | | | 45,375 | | | | 45,737 | | | | 45,063 | | | | 43,764 | |
| | | |
| | | |
| | | |
| | | |
| | | |
| |
Interest expense | | | | | | | | | | | | | | | | | | | | |
| Interest on deposits | | | 8,916 | | | | 8,619 | | | | 8,125 | | | | 8,449 | | | | 9,963 | |
| Other interest expense | | | 7,371 | | | | 6,255 | | | | 6,732 | | | | 7,121 | | | | 7,070 | |
| | | |
| | | |
| | | |
| | | |
| | | |
| |
| Total interest expense | | | 16,287 | | | | 14,874 | | | | 14,857 | | | | 15,570 | | | | 17,033 | |
| | | |
| | | |
| | | |
| | | |
| | | |
| |
| Net interest income — taxable equivalent | | | 31,209 | | | | 30,501 | | | | 30,880 | | | | 29,493 | | | | 26,731 | |
| Less: Taxable equivalent adjustment | | | 414 | | | | 469 | | | | 507 | | | | 513 | | | | 531 | |
| | | |
| | | |
| | | |
| | | |
| | | |
| |
Net interest income | | | 30,795 | | | | 30,032 | | | | 30,373 | | | | 28,980 | | | | 26,200 | |
| Provision for loan losses | | | 1,600 | | | | 2,000 | | | | 3,000 | | | | 3,575 | | | | 2,400 | |
| | | |
| | | |
| | | |
| | | |
| | | |
| |
Net interest income after provision for loan losses | | | 29,195 | | | | 28,032 | | | | 27,373 | | | | 25,405 | | | | 23,800 | |
| | | |
| | | |
| | | |
| | | |
| | | |
| |
Noninterest income | | | | | | | | | | | | | | | | | | | | |
| Service charges on deposit accounts | | | 6,781 | | | | 6,346 | | | | 5,605 | | | | 5,768 | | | | 5,674 | |
| Financial management income | | | 1,602 | | | | 1,545 | | | | 1,502 | | | | 1,239 | | | | 1,400 | |
| Gain on sale of securities | | | 1,267 | | | | 494 | | | | 326 | | | | 505 | | | | 270 | |
| Gain on sale of deposits and loans | | | 339 | | | | — | | | | — | | | | — | | | | — | |
| Gain on sale of credit card loan portfolio | | | — | | | | — | | | | — | | | | — | | | | 49 | |
| (Loss) income from equity method investments | | | — | | | | (76 | ) | | | (224 | ) | | | 13 | | | | 78 | |
| Mortgage loan fees | | | 365 | | | | 596 | | | | 428 | | | | 508 | | | | 1,185 | |
| Brokerage services income | | | 612 | | | | 902 | | | | 970 | | | | 857 | | | | 861 | |
| Insurance services income | | | 2,464 | | | | 2,634 | | | | 3,031 | | | | 2,415 | | | | 2,327 | |
| Trading gains (losses) | | | 7 | | | | (5 | ) | | | 109 | | | | 47 | | | | 158 | |
| Bank owned life insurance | | | 860 | | | | 847 | | | | 850 | | | | 983 | | | | 992 | |
| Gain on sale of properties | | | — | | | | — | | | | 777 | | | | — | | | | 382 | |
| Other noninterest income | | | 1,742 | | | | 1,607 | | | | 1,291 | | | | 1,144 | | | | 1,324 | |
| | | |
| | | |
| | | |
| | | |
| | | |
| |
| Total noninterest income | | | 16,039 | | | | 14,890 | | | | 14,665 | | | | 13,479 | | | | 14,700 | |
| | | |
| | | |
| | | |
| | | |
| | | |
| |
Noninterest expense | | | | | | | | | | | | | | | | | | | | |
| Salaries and employee benefits | | | 14,779 | | | | 14,368 | | | | 15,023 | | | | 15,372 | | | | 13,133 | |
| Occupancy and equipment | | | 4,115 | | | | 4,379 | | | | 4,237 | | | | 4,346 | | | | 4,079 | |
| Data processing | | | 945 | | | | 1,006 | | | | 862 | | | | 792 | | | | 712 | |
| Marketing | | | 1,141 | | | | 1,126 | | | | 1,118 | | | | 948 | | | | 1,173 | |
| Postage and supplies | | | 1,204 | | | | 1,306 | | | | 1,271 | | | | 1,251 | | | | 982 | |
| Professional services | | | 2,264 | | | | 2,361 | | | | 2,712 | | | | 3,422 | | | | 3,158 | |
| Telephone | | | 496 | | | | 507 | | | | 494 | | | | 567 | | | | 584 | |
| Amortization of intangibles | | | 111 | | | | 96 | | | | 118 | | | | 152 | | | | 127 | |
| Prepayment costs on borrowings | | | — | | | | — | | | | — | | | | 11,723 | | | | — | |
| Other noninterest expense | | | 2,292 | | | | 2,536 | | | | 2,473 | | | | 2,792 | | | | 2,451 | |
| | | |
| | | |
| | | |
| | | |
| | | |
| |
| Total noninterest expense | | | 27,347 | | | | 27,685 | | | | 28,308 | | | | 41,365 | | | | 26,399 | |
| | | |
| | | |
| | | |
| | | |
| | | |
| |
| Income (loss) before taxes | | | 17,887 | | | | 15,237 | | | | 13,730 | | | | (2,481 | ) | | | 12,101 | |
| Income tax expense (benefit) | | | 6,499 | | | | 4,982 | | | | 4,490 | | | | (1,991 | ) | | | 3,207 | |
| | | |
| | | |
| | | |
| | | |
| | | |
| |
Net income (loss) | | $ | 11,388 | | | $ | 10,255 | | | $ | 9,240 | | | $ | (490 | ) | | $ | 8,894 | |
| | | |
| | | |
| | | |
| | | |
| | | |
| |
|
EARNINGS (LOSS) PER SHARE DATA | | | | | | | | | | | | | | | | | | | | |
| Basic | | $ | 0.38 | | | $ | 0.34 | | | $ | 0.31 | | | $ | (0.02 | ) | | $ | 0.30 | |
| Diluted | | | 0.38 | | | | 0.34 | | | | 0.31 | | | | (0.02 | ) | | | 0.30 | |
| Dividends paid on common shares | | | 0.190 | | | | 0.185 | | | | 0.185 | | | | 0.185 | | | | 0.185 | |
|
PERFORMANCE RATIOS | | | | | | | | | | | | | | | | | | | | |
| Return on average assets | | | 1.04 | % | | | 0.96 | % | | | 0.88 | % | | | (0.05 | )% | | | 0.87 | % |
| Return on average equity | | | 15.28 | | | | 13.90 | | | | 12.20 | | | | (0.64 | ) | | | 11.64 | |
| Efficiency — taxable equivalent (*) | | | 59.47 | | | | 61.66 | | | | 62.60 | | | | 97.41 | | | | 64.14 | |
| Noninterest income as a percentage of total income | | | 34.25 | | | | 33.15 | | | | 32.56 | | | | 31.75 | | | | 35.94 | |
| Equity as a percentage of total assets | | | 7.00 | | | | 6.54 | | | | 7.27 | | | | 7.12 | | | | 7.39 | |
| Average earning assets as a percentage of average assets | | | 92.91 | | | | 92.56 | | | | 92.27 | | | | 91.20 | | | | 91.84 | |
| Average loans as a percentage of average deposits | | | 92.53 | | | | 91.82 | | | | 93.31 | | | | 87.66 | | | | 83.76 | |
|
| | | As of / For the Quarter Ended
|
| | | 9/30/2004
| | 6/30/2004
| | 3/31/2004
| | 12/31/2003
| | 9/30/2003
|
SCHEDULE OF SELECTED ITEMS INCLUDED IN EARNINGS | | | | | | | | | | | | | | | | | | | | |
| Noninterest income | | | | | | | | | | | | | | | | | | | | |
| Gain on sale of securities | | $ | 1,267 | | | $ | 494 | | | $ | 326 | | | $ | 505 | | | $ | 270 | |
| Gain on sale of deposits and loans | | | 339 | | | | — | | | | — | | | | — | | | | — | |
| Gain on sale of credit card loans | | | — | | | | — | | | | — | | | | — | | | | 49 | |
| Equity method investment (loss) income | | | — | | | | (76 | ) | | | (224 | ) | | | 13 | | | | 78 | |
| Trading gains (losses) | | | 7 | | | | (5 | ) | | | 109 | | | | 47 | | | | 158 | |
| Gain on sale of properties | | | — | | | | — | | | | 777 | | | | — | | | | 382 | |
| Noninterest expense | | | | | | | | | | | | | | | | | | | | |
| Prepayment costs on borrowings | | | — | | | | — | | | | — | | | | (11,723 | ) | | | — | |
|
| | | |
| 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. |
13
| | | | | |
First Charter Corporation and Subsidiaries
Quarterly Earnings Release | | (NASDAQ: | | FCTR) |
| | | | | | | | | | | | | | | | | | | | | |
| | | As of / For the Quarter Ended
|
(Dollars in thousands, except per share data)
| | 9/30/2004
| | 6/30/2004
| | 3/31/2004
| | 12/31/2003
| | 9/30/2003
|
ASSET QUALITY ANALYSIS | | | | | | | | | | | | | | | | | | | | |
Allowance for Loan Losses | | | | | | | | | | | | | | | | | | | | |
| Beginning balance | | $ | 26,052 | | | $ | 25,736 | | | $ | 25,607 | | | $ | 23,953 | | | $ | 23,644 | |
| Provision for loan losses | | | 1,600 | | | | 2,000 | | | | 3,000 | | | | 3,575 | | | | 2,400 | |
| Allowance related to loans sold | | | (35 | ) | | | — | | | | (549 | ) | | | — | | | | — | |
| Charge-offs | | | (1,432 | ) | | | (2,475 | ) | | | (2,582 | ) | | | (2,304 | ) | | | (2,238 | ) |
| Recoveries | | | 674 | | | | 791 | | | | 260 | | | | 383 | | | | 147 | |
| | | |
| | | |
| | | |
| | | |
| | | |
| |
| Net charge-offs | | | (758 | ) | | | (1,684 | ) | | | (2,322 | ) | | | (1,921 | ) | | | (2,091 | ) |
| | | |
| | | |
| | | |
| | | |
| | | |
| |
| Ending balance | | $ | 26,859 | | | $ | 26,052 | | | $ | 25,736 | | | $ | 25,607 | | | $ | 23,953 | |
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| |
Nonperforming Assets and Loans 90 days or more past due accruing interest |
|
| Nonaccrual loans | | $ | 14,237 | | | $ | 12,533 | | | $ | 11,845 | | | $ | 14,910 | | | $ | 13,398 | |
| Other real estate | | | 4,962 | | | | 6,159 | | | | 6,199 | | | | 6,836 | | | | 6,709 | |
| | | |
| | | |
| | | |
| | | |
| | | |
| |
| Total nonperforming assets | | | 19,199 | | | | 18,693 | | | | 18,044 | | | | 21,746 | | | | 20,107 | |
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| |
| Loans 90 days or more past due accruing interest | | | 56 | | | | — | | | | — | | | | 21 | | | | 21 | |
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| |
Total | | $ | 19,255 | | | $ | 18,693 | | | $ | 18,044 | | | $ | 21,767 | | | $ | 20,128 | |
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| |
Asset Quality Ratios (*) | | | | | | | | | | | | | | | | | | | | |
| Nonaccrual loans as a percentage of total loans | | | 0.59 | % | | | 0.53 | % | | | 0.52 | % | | | 0.66 | % | | | 0.64 | % |
| Nonperforming assets as a percentage of total assets | | | 0.44 | | | | 0.43 | | | | 0.42 | | | | 0.52 | | | | 0.49 | |
| Nonperforming assets as a percentage of total loans and other real estate | | | 0.79 | | | | 0.79 | | | | 0.79 | | | | 0.96 | | | | 0.95 | |
| Net charge-offs as a percentage of average loans (annualized) | | | 0.13 | | | | 0.29 | | | | 0.41 | | | | 0.35 | | | | 0.40 | |
| Allowance for loan losses as a percentage of loans | | | 1.11 | | | | 1.11 | | | | 1.13 | | | | 1.14 | | | | 1.14 | |
| Ratio of allowance for loan losses to: | | | | | | | | | | | | | | | | | | | | |
| Net charge-offs | | | 8.91 | x | | | 3.85 | x | | | 2.76 | x | | | 3.36 | x | | | 2.89 | x |
| Nonaccrual loans | | | 1.89 | | | | 2.08 | | | | 2.17 | | | | 1.72 | | | | 1.79 | |
|
| | | | | | | As of / For the | | |
| | | | | | | Nine Months Ended
| | Increase (Decrease)
|
| | | | 9/30/2004
| | 9/30/2003
| | Amount
| | Percentage
|
Allowance for Loan Losses | | | | | | | | | | | | | | | | | | | | |
| Beginning balance | | | | | | $ | 25,607 | | | $ | 27,204 | | | $ | (1,597 | ) | | | (5.9 | )% |
| Provision for loan losses | | | | | | | 6,600 | | | | 23,943 | | | | (17,343 | ) | | | (72.4 | ) |
| Allowance related to loans sold | | | | | | | (584 | ) | | | (20,783 | ) | | | 20,199 | | | | (97.2 | ) |
| Charge-offs | | | | | | | (6,489 | ) | | | (7,152 | ) | | | (663 | ) | | | (9.3 | ) |
| Recoveries | | | | | | | 1,725 | | | | 741 | | | | 984 | | | | 132.8 | |
| | | | | | | |
| | | |
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| | | |
| |
| Net charge-offs | | | | | | | (4,764 | ) | | | (6,411 | ) | | | (1,647 | ) | | | (25.7 | ) |
| | | | | | | |
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| | | |
| | | |
| |
| Ending balance | | | | | | $ | 26,859 | | | $ | 23,953 | | | $ | 2,906 | | | | 12.1 | % |
| | | | | | | |
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| | | |
| |
Asset Quality Ratios (*) | | | | | | | | | | | | | | | | | | | | |
| Net charge-offs as a percentage of average loans (annualized) | | | | | | | 0.27 | % | | | 0.41 | % | | | | | | | | |
| Ratio of allowance for loan losses to net charge-offs (annualized) | | | | | | | 4.23 | x | | | 2.79 | x | | | | | | | | |
|
| | | For the Quarter Ended
|
| | | 9/30/2004
| | 6/30/2004
| | 3/31/2004
| | 12/31/2003
| | 9/30/2003
|
ANNUALIZED INTEREST YIELDS / RATES (**) | | | | | | | | | | | | | | | | | | | | |
Interest income: | | | | | | | | | | | | | | | | | | | | |
| Yield on loans and loans held for sale | | | 5.22 | % | | | 5.05 | % | | | 5.18 | % | | | 5.31 | % | | | 5.41 | % |
| Yield on securities | | | 3.94 | | | | 3.90 | | | | 4.13 | | | | 3.97 | | | | 3.75 | |
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| | | |
| |
| Yield on interest earning assets | | | 4.69 | | | | 4.56 | | | | 4.73 | | | | 4.73 | | | | 4.67 | |
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| |
Interest expense: | | | | | | | | | | | | | | | | | | | | |
| Cost of interest bearing deposits | | | 1.60 | | | | 1.59 | | | | 1.55 | | | | 1.59 | | | | 1.80 | |
| Cost of borrowings | | | 2.08 | | | | 1.77 | | | | 1.89 | | | | 2.14 | | | | 2.38 | |
| | | |
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| | | |
| | | |
| | | |
| |
| Cost of interest bearing liabilities | | | 1.79 | | | | 1.66 | | | | 1.69 | | | | 1.80 | | | | 2.00 | |
| | | |
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| | | |
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| | | |
| |
| Interest rate spread | | | 2.90 | | | | 2.90 | | | | 3.04 | | | | 2.93 | | | | 2.67 | |
| | | |
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| | | |
| | | |
| | | |
| |
| Net yield on earning assets | | | 3.09 | % | | | 3.06 | % | | | 3.19 | % | | | 3.10 | % | | | 2.86 | % |
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|
| | | |
| Notes: | | Applicable ratios are annualized. |
| | (*) — Excludes loans held for sale. |
| | (**) — Fully taxable equivalent yields. |
14
