First Charter 8-K First Charter Reports Record Quarterly Net Income of $12.1 Million

Exhibit 99.1

NEWS RELEASE DATED 10-24-2005

	For Additional Information Contact:
	Charles A. Caswell,	Jan H. Hollar,
	Chief Financial Officer	Director of Finance
	(704) 688-1112	(704) 688-4467

FOR IMMEDIATE RELEASE
October 24, 2005

First Charter Reports Record Quarterly Net Income of $12.1 Million

Announces Fourth Quarter Balance Sheet Initiatives to Improve Long-Term Financial Performance

Third Quarter 2005 Highlights

• Net Income Rose to a Record $12.1 Million, or by 6%, Compared to Third Quarter 2004.

• Noninterest Income Grew 6% Compared to Third Quarter 2004 on Higher Deposit, Mortgage and Insurance Revenues.

• Total Loan Average Balances Grew $116.5 Million, or 17% Annualized, on a Linked-Quarter Comparison, Driven by Commercial and Consumer Loan Growth.

• Core Deposit Balances Surged $159.4 Million, or Over 48% Annualized, on a Linked-Quarter Comparison.

• Asset Quality Trends Remain Positive with Nonperforming Assets Down $6 Million From Third Quarter 2004.

CHARLOTTE, North Carolina — First Charter Corporation (NASDAQ: FCTR) today reported record quarterly net income of $12.1 million for the 2005 third quarter, or 39 cents on a fully diluted per-share

basis. This represents a 6 percent increase in net income from $11.4 million, or 38 cents per fully diluted share in the same quarter a year ago.

For the first nine months of 2005, First Charter earned $33.6 million, or $1.10 per diluted share, compared to $30.8 million, or $1.02 per diluted share, a year earlier.

Return on average assets and return on average equity were 1.02 percent and 14.57 percent, respectively, for the third quarter of 2005 compared to 1.04 percent and 15.28 percent for the third quarter of 2004 and 1.00 percent and 14.12 percent for the second quarter of 2005.

“First Charter is pleased to report record earnings this quarter, despite the challenging interest rate environment in which we operate. We are particularly pleased by our ability to generate strong core deposit growth in this environment,” said Bob James, President & CEO of First Charter Corporation. “These results are a testament to the success of our community banking strategy and the attention our sales team places on every customer contact.”

Financial Highlights

	For the Three Months						For the Nine Months
	Ended September 30						Ended September 30
(Dollars in thousands, except per share data)	2005			2004			2005			2004
Earnings
Total revenues(1)	$	48,133		$	46,834		$	143,128		$	136,794
Net income		12,052			11,388			33,641			30,883
Diluted earnings per share		0.39			0.38			1.10			1.02
Financial Ratios
Return on average assets		1.02	%		1.04	%		0.99	%		0.96	%
Return on average equity		14.57			15.28			13.98			13.81
Efficiency-taxable equivalent ratio(2)		59.44			59.35			60.17			61.15
Average Balance Sheet
Loans, net	$	2,904,954		$	2,393,362		$	2,749,716		$	2,335,669
Securities		1,420,033			1,627,156			1,473,737			1,618,418
Total assets		4,665,301			4,343,207			4,551,516			4,290,442
Total deposits		2,812,165			2,586,524			2,707,776			2,524,190
Other borrowings		1,471,482			1,411,579			1,469,110			1,422,049
Shareholders’ equity		328,115			296,539			321,711			298,737
Asset Quality Ratios(3)
Past due loans over 30 days as a percentage of loans		0.56	%		0.61	%		0.56	%		0.61	%
Allowance for loan losses as a percentage of loans		1.02			1.11			1.02			1.11
Allowance for loan losses as a percentage of nonaccrual loans		421.30			188.66			421.30			188.66
Net charge-offs as a percentage of average loans-annualized		0.28			0.13			0.23			0.27

(1)	Net interest income plus noninterest income.
(2)	Noninterest expense divided by the sum of taxable equivalent net interest income plus noninterest income less gains or losses on sale of securities.
(3)	Ratios exclude loans held for sale.

Raleigh Market Expansion

On October 3, 2005 First Charter opened its first financial center in Raleigh, offering a full suite of banking services to individuals and small businesses, commercial lending, mortgages, and brokerage services. First Charter had previously opened a loan production office in Raleigh in the first quarter of 2005. The Corporation expects to expand its presence in the Raleigh area by opening additional financial centers in 2006.

“Our entry into Raleigh represents a significant milestone in the evolution of First Charter. We entered Raleigh during the first quarter with a team of experienced lenders focused on personal mortgage and construction lending. Our achievements in the ensuing months confirmed our view that the Raleigh area is a great market, and our dedication to delivering exceptional service quality would be well received there,” James commented.

Additionally, First Charter opened new replacement financial centers in Monroe, NC and Concord, NC during the third quarter, providing an even greater level of service and convenience for customers in those markets. First Charter also added a new financial center in Charlotte on October 24, 2005, bringing the total number of financial centers to 55.

Double Digit Loan Growth in Third Quarter

Total loan average balances increased $511.6 million, or 21 percent, to $2.90 billion compared to the same quarter a year ago. This includes the purchase of $203.9 of adjustable rate mortgage (ARM) loans in the first quarter of 2005. Commercial and construction loan average balances increased $163.8 million, while consumer and home equity loan average balances increased $92.3 million. These both represent a 12 percent increase from the third quarter of 2004. Mortgage loan average balances increased $51.7 million, or 15 percent, excluding the first quarter mortgage loan purchase.

Total loans increased by $72.0 million, or 10 percent annualized, to $2.93 billion by quarter-end compared to June 30, 2005. Similar to last quarter, loan growth was concentrated in the loan categories with the highest risk adjusted rates of return. Commercial and construction loan balances increased $59.2 million, or 16 percent annualized while consumer and home equity loans increased $11.4 million, or 5 percent annualized, and mortgage loans increased $1.4 million, or 1 percent annualized.

Total loan average balances for the quarter were $116.5 million, or 17 percent higher on an annualized basis over the linked-quarter. Commercial and construction loan average balances increased $88.7 million, or 25 percent annualized, and consumer and home equity loan average balances increased $24.0 million, or 12 percent annualized.

Loan growth was largely due to strong performance in commercial lending. “Beginning in the first quarter of this year, First Charter expanded its emphasis on commercial lending,” James said. “The hiring of 10 new experienced commercial relationship officers in Charlotte and Raleigh, combined with our increased emphasis on commercial lending, is driving our growth in loans.”

Reduction of Securities Portfolio

The Corporation continues to reduce its securities portfolio as a part of its strategy to de-emphasize its reliance on securities portfolio earnings. During the third quarter of 2005, the securities portfolio was reduced by $38.7 million, or 11 percent annualized, as portfolio cash flows were primarily used to fund loan growth. Over the past year, the securities portfolio has been reduced by $256.5 million to $1.37 billion. As a result, the portfolio as a percent of earning assets has been reduced to 32 percent at September 30, 2005, from 40 percent at September 30, 2004. Additional reductions in the securities portfolio during the fourth quarter of 2005 are discussed later in this press release.

Core Deposit Focus Pays Dividends

First Charter made a concerted effort to promote core deposit (money market, demand and savings accounts) growth in the quarter. Total deposit average balances increased $122.8 million, or 18 percent annualized, to $2.81 billion compared to the previous quarter and by $225.6 million, or 8.7 percent, from the third quarter of 2004. Money market and non-interest bearing deposits were the key contributors to driving deposit growth in the quarter.

Average noninterest bearing deposits grew by $29.1 million, or 30 percent annualized, compared with the previous quarter and by $44.6 million, or 12 percent, from the third quarter of 2004. Money market, NOW, and savings account average balances grew by $56.9 million, or 25 percent annualized, compared with the previous quarter. Money market balance growth was concentrated in the second half of the quarter as evidenced by the $140.2 million increase in money market balances from June 30, 2005 to September 30, 2005. Retail certificates of deposit (CDs) average balances increased $11.8 million, or 5 percent annualized, compared with the previous quarter.

Net Interest Margin Impacted by Wholesale Borrowing Costs

The net interest margin on a tax equivalent basis decreased to 2.92 percent in the third quarter of 2005 from 3.10 percent for the same period in 2004 and 3.03 percent in the second quarter of 2005. Net interest income increased $0.4 million, or 1 percent, to $31.7 million compared to the third quarter of 2004, and decreased $0.2 million, or 1 percent, compared to the second quarter of 2005.

The pressure on the net interest margin is largely due to continued increases in wholesale borrowing costs and the relative reliance on floating-rate wholesale funding relative to total funding. Other borrowing costs (primarily wholesale funding) were 156 basis points higher in the third quarter of 2005 compared to the same quarter in 2004, while deposit yields increased 80 basis points over the comparable periods. In tandem, these factors combined to increase the cost of interest bearing liabilities by 108 basis points. In the third quarter of 2005, other borrowing costs rose 43 basis points while deposit yields rose only 27 basis points, leading to a 32 basis point increase in interest bearing liability costs.

Earning asset yields, particularly in the investment securities portfolio, did not rise sufficiently to offset higher funding costs. Loan yields increased by 106 basis points, while securities yields decreased 13 basis points comparing the third quarter of 2005 with the third quarter of 2004. A significant portion of the decrease in securities yields (6 basis points or $0.2 million in interest income) in the third quarter of 2005 was the result of a reduced dividend received during the third quarter from First Charter’s investment in Federal Home Loan Bank (FHLB) of Atlanta stock.

First Charter continued to diversify its wholesale funding sources as evidenced by a $101.0 million decrease in FHLB advances during the third quarter and a total reduction of $228.6 million year-to-date.

The balance sheet initiative discussed later in this press release is designed to improve the net interest margin in future periods.

On September 29, 2005 the Corporation and First Charter Capital Trust II completed the issuance and sale in a private placement of $25 million in floating rate preferred securities (Trust Preferred Securities) issued by the Trust. The Trust Preferred Securities mature on December 15, 2035 and are redeemable at the Corporation’s option (subject to prior approval from the Federal Reserve System Board of

Governors) beginning December 15, 2010. The proceeds served to strengthen the Corporation’s capital position and further diversify its wholesale funding sources. The transaction was priced at three-month Libor plus 142 basis points, with an initial interest rate of 5.56 percent.

Noninterest Income Benefits From Greater Fee Revenue

Noninterest income increased $1.0 million, or 6 percent, to $17.0 million from the third quarter of 2004. Increases in deposit, ATM, debit card, mortgage, insurance, and brokerage revenues were key contributors to the growth. The year over year comparison of noninterest income is impacted by several unique items which include: the recognition of $1.3 million in gains from securities sales in the third quarter of 2004 compared to none in the same quarter of 2005; a $0.3 million deposit and loan sale gain in the third quarter of 2004 compared to none in the same quarter of 2005; and $0.6 million of property sale gains in the third quarter of 2005 compared to no similar gain in the third quarter of 2004. Excluding these items, noninterest income increased $2.0 million, or 14 percent, compared to the third quarter of 2004.

Noninterest income decreased $0.3 million, or 2 percent, compared to the second quarter of 2005. Noninterest income in the second quarter of 2005 included $0.9 million related to bank owned life insurance payments that did not recur in the third quarter. In addition, insurance revenues decreased $0.3 million primarily due to seasonal factors and financial management income decreased $0.2 million. Partially offsetting these decreases were a $0.3 million increase in service charges and a $0.2 million increase in other noninterest income related to growth in ATM, debit card and other miscellaneous fees. In addition, property sale gains were $0.6 million in the third quarter of 2005 compared to $0.2 million in the second quarter of 2005.

Expenses Impacted by Personnel Costs

Noninterest expense increased $1.6 million, or 6 percent, to $28.9 million compared to the third quarter of 2004. Salaries and employee benefits increased $1.1 million, or 8 percent, primarily due to additional personnel, including the acquisition of an insurance agency during the fourth quarter of 2004. Data processing expenses increased $0.4 million primarily due to increased debit card processing expenses; and occupancy and equipment increased $0.2 million due to additional branch lease and depreciation expenses. These increases were partially offset by a $0.2 million decrease in professional fees.

Noninterest expense decreased $0.4 million, or 1 percent, compared to the second quarter of 2005. Noninterest expense for the second quarter of 2005 was impacted by the previously disclosed $1.1 million expense associated with a legacy employee benefit plan. Excluding this transaction, salaries and employee benefits increased $1.1 million as a result of one additional business day in the third quarter of 2005, additional personnel and increased commission-based compensation in the retail banking and brokerage services areas. Partially offsetting this increase was a $0.3 million decrease in occupancy and equipment.

Income Tax Expense

Income tax expense for the third quarter of 2005 was $4.4 million for an effective rate of 26.6 percent compared to $6.5 million for an effective rate of 36.3 percent for the third quarter of 2004. The decrease in tax expense was attributable to lower pre-tax income in the third quarter 2005 and the reduction in previously accrued taxes due to reduced risk on certain tax contingencies.

Efficiency Ratio

The efficiency ratio remained steady at 59.4 percent compared to the third quarter of 2004, and improved from 59.7 percent for the second quarter of 2005. The calculation of the efficiency ratio excludes the impact of securities sales.

Asset Quality Remains Positive

Nonperforming assets totaled $13.2 million at September 30, 2005, representing a $6.0 million decrease from a year ago and a $3.1 million decrease from June 30, 2005. The decline from June 30, 2005 was primarily due to a $2.8 million decrease in nonaccrual loans. Correspondingly, nonperforming assets as a percentage of total loans and other real estate owned fell to 0.45 percent at September 30, 2005 compared to 0.57 percent at June 30, 2005.

Net charge-offs increased to 0.28 percent of average total loans in the third quarter of 2005 from 0.13 percent in the same quarter a year ago, and 0.19 percent in the second quarter of 2005. Net charge-offs for the third quarter of 2004 were impacted by a large recovery on the sale of a previously charged-off loan.

The allowance for loan losses as a percentage of total loans was 1.02 percent in the third quarter of 2005, the same as the previous quarter and a decrease from 1.11 percent in the same quarter a year-ago. The lower allowance for loan loss ratio is related to the increased proportion of lower-risk mortgage loans in the loan portfolio and the Corporation’s improved credit quality trends. The provision for loan losses was $2.8 million for the three months ended September 30, 2005, exceeding net charge-offs of $2.0 million. For the three months ended September 30, 2004, the provision for loan losses was $1.6 million, exceeding net charge-offs of $0.8 million.

Fourth Quarter Subsequent Event — Balance Sheet Repositioning and Deleveraging

Highlights

• Anticipate Significant Improvement in Net Interest Income and Net Interest Margin

• Significant Reduction in Investment Securities and Wholesale Debt

• Initiatives Require $20 Million After-Tax Charge in the Fourth Quarter of 2005, Remove Major Hurdle for First Charter Growth Strategy

• Initiatives Improve First Charter’s Interest Rate Risk and Liquidity Risk Profile

On October 20 and 21, 2005 First Charter successfully executed a series of initiatives to reposition and deleverage its balance sheet. The Corporation expects that these initiatives will improve earnings and enhance its interest rate risk and liquidity risk profile. In addition, these initiatives will also improve the Corporation’s earnings quality and capital ratios. In executing this repositioning, First Charter will incur an approximate $20 million after-tax charge in the fourth quarter of 2005.

“These initiatives accelerate our plans to build a better company,” said Bob James. “With this step we have overcome a significant drag on earnings due to a balance sheet that was too reliant on outside

funding and non-core assets and that distorted the performance of our core franchise. These initiatives simplify our balance sheet and improve our interest-rate and liquidity risk profiles. In addition, we expect that they will improve our earnings and our earnings quality, improve our net interest margin, and allow us to compete more effectively.”

Summary of Initiatives

First Charter deleveraged its balance sheet by approximately $446 million and significantly reduced its interest rate risk exposure to higher interest rates through the sale of $466 million in fixed-rate investment securities, and used the proceeds to extinguish approximately net $446 million in debt.

First Charter will recognize an approximate $20 million after-tax charge in the fourth quarter as a result of executing these initiatives.

Key Steps to First Charter’s Repositioned Balance Sheet Include:

1)	First Charter sold approximately $466 million in fixed rate investment securities with an average book yield of 3.50 percent and an average life of 3.1 years. First Charter incurred a charge of approximately $16.6 million ($10.6 million after-tax) on the securities sales.
2)	First Charter extinguished $222 million in debt and related interest rate swaps with an average effective cost of 3-Month LIBOR plus 183 basis points, or 5.67 percent currently. The remaining average life of the debt and swaps was about 4.2 years and maturities ranged from June 2006 to March 2011. First Charter incurred a charge of approximately $14.2 million ($9.1 million after-tax) to extinguish the debt and swaps.
3)	First Charter extinguished $25 million in debt with a fixed rate of 4.82 percent and a final maturity of June 2011. The debt had an embedded feature that terminates the note if 3-Month LIBOR reached or exceeded 7 percent during the life of the note. First Charter incurred a charge of approximately $0.5 million ($0.3 million after-tax) to extinguish this note.
4)	First Charter used the remaining surplus cash proceeds, inclusive of the Trust Preferred Securities proceeds previously discussed, or approximately $224 million, to extinguish short term debt, primarily with the FHLB, with an average floating rate of Fed Funds plus 25 basis points, or approximately 4.00 percent. First Charter did not incur any charge to repay this short term debt.

“We took these actions at this time because of the relatively low interest rate environment, the increased risks that interest rates will rise, our strong capital structure, and our enhanced financial management capabilities, “ James added.

“With these initiatives, First Charter has reduced the size of its investment portfolio as a percentage of total assets from 29 percent at the end of September, 2005 to approximately 22 percent,” said Charles Caswell, Executive Vice President and Chief Financial Officer. “In addition, First Charter has reduced its reliance on wholesale borrowings as a percentage of total liabilities from 41 percent at the end of September to approximately 34 percent.”

Earnings Guidance for 2005

As a result of the initiatives discussed, First Charter withdraws its 2005 earnings guidance. There are additional, non-balance sheet related, initiatives currently being explored that may impact earnings during the rest of 2005. First Charter anticipates providing earnings guidance for 2006 during its 2005 fourth quarter earnings webcast.

Conference Call

The First Charter executive management team will be available via telephone conference to discuss the contents of this press release on Tuesday, October 25, 2005 at 10:00 a.m. EDT. 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	706-679-5254
	ID # 1181432	ID # 1181432
Internet Live and Replay	www.FirstCharter.com	www.FirstCharter.com
	“Investor Relations” section	“Investor Relations” section
	SHOW # 255947	SHOW # 255947
Audio Replay	800-642-1687	706-645-9291
	ID # 1181432	ID # 1181432

Corporate Profile

First Charter Corporation is a regional financial services company with assets of $4.7 billion at September 30, 2005 and is the holding company for First Charter Bank. Today, First Charter operates 55 financial centers, four insurance offices and 112 ATMs located in 19 counties throughout North Carolina. First Charter also operates a loan origination office in Reston, VA. 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 may 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, and which may be beyond our control, include, among others, the following possibilities: (1) projected results in connection with management’s implementation of, or changes in, our business plan and strategic initiatives, including the balance sheet initiatives, are lower than expected; (2) competitive pressure among financial services companies increases significantly; (3) costs or difficulties related to the integration of acquisitions, including deposit attrition, customer retention and revenue loss, 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,

or interest rate policies of the Board of Governors of the Federal Reserve System, may 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, including changes in accounting standards, may adversely affect the businesses in which the Corporation is engaged; (9) regulatory compliance cost increases are greater than expected; (10) the passage of future tax legislation, or any negative regulatory, administrative or judicial position, may adversely impact the Corporation; (11) our competitors may have greater financial resources and may develop products that enable them to compete more successfully in the markets in which we operate; and (12) changes in the securities markets, including changes in interest rates, may adversely affect our ability to raise capital from time to time. 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.

INSERT PRESS RELEASE TABLES

Exhibit 99.2

POWERPOINT SLIDES TO BE INSERTED

First Charter Corporation and Subsidiaries Quarterly Earnings Release	(NASDAQ: FCTR)
Balance Sheet Repositioning Detail
(Dollars in thousands)

Investment Securities Sold

						Average Life
	Book Value		Book Yield			(in yrs)
Treasury, Agency bullet securities	$	134,865		3.55	%		3.1
Callable Agency securities		169,843		3.30			2.9
Mortgage Backed securities		161,377		3.68			3.4
	$	466,085		3.50	%		3.1

FHLB Fixed-Rate Advances — Swapped to Floating — Extinguished

Advance						Average Life										Pay Floating
Amount	Advance Rate			Maturity Date		(in yrs)		Swap Amount		Receive Rate			Libor +			Rate
$25,000		5.50	%		3/14/2011		5.4	$	25,000		5.50	%		1.17	%		5.02	%
25,000		5.52			3/1/2011		5.4		25,000		5.52			1.12			4.99
30,000		4.58			2/2/2011		5.3		30,000		4.58			1.50			5.20
50,000		4.95			1/3/2011		5.2		50,000		4.95			1.68			5.73
26,000		5.96			2/2/2010		4.3		26,000		5.96			2.56			6.26
26,000		5.59			12/14/2009		4.2		26,000		5.59			2.28			6.14
40,000		4.60			6/5/2006		0.6		40,000		4.60			2.34			6.10
222,000		5.16	%				4.2		222,000		5.16	%		1.83	%		5.67	%

FHLB Fixed-Rate Advances — With Knockout Option— Extinguished

				Maturity		Average Life
Advance Amount	Advance Rate			Date		(in yrs)
25,000		4.82	%		6/1/2011		5.7

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)	9/30/2005			9/30/2004			Amount			Percentage
BALANCE SHEET
ASSETS:
Cash and due from banks	$	123,489		$	98,000		$	25,489			26.0	%
Federal funds sold		1,997			2,080			(83	)		(4.0	)
Interest earning bank deposits		5,885			9,259			(3,374	)		(36.4	)
Securities available for sale		1,374,163			1,630,655			(256,492	)		(15.7	)
Loans held for sale		7,309			5,468			1,841			33.7
Loans
Commercial Real Estate		795,362			788,539			6,823			0.9
Commercial Non Real Estate		227,762			210,214			17,548			8.3
Construction		484,911			345,178			139,733			40.5
Mortgage		582,673			331,249			251,424			75.9
Consumer		346,772			290,569			56,203			19.3
Home equity		492,881			459,527			33,354			7.3
Total loans		2,930,361			2,425,276			505,085			20.8
Less: Unearned income		(216	)		(301	)		85			(28.2	)
Allowance for loan losses		(29,788	)		(26,859	)		(2,929	)		10.9
Loans, net		2,900,357			2,398,116			502,241			20.9
Other assets		286,522			265,466			21,056			7.9
Total assets	$	4,699,722		$	4,409,044		$	290,678			6.6	%
LIABILITIES AND SHAREHOLDERS’ EQUITY:
Deposits
Noninterest-bearing deposits	$	420,531		$	368,156		$	52,375			14.2	%
Interest checking and savings		481,293			448,799			32,494			7.2
Money market deposits		580,312			544,663			35,649			6.5
Retail certificates of deposit		938,871			877,541			61,330			7.0
Wholesale certificates of deposit		451,986			317,903			134,083			42.2
Total deposits		2,872,993			2,557,062			315,931			12.4
Other borrowings
Retail other borrowings		116,562			128,903		��	(12,341	)		(9.6	)
Wholesale other borrowings		1,321,826			1,353,437			(31,611	)		(2.3	)
Total other borrowings		1,438,388			1,482,340			(43,952	)		(3.0	)
Other liabilities		57,296			60,991			(3,695	)		(6.1	)
Total liabilities		4,368,677			4,100,393			268,284			6.5
Total shareholders’ equity		331,045			308,651			22,394			7.3
Total liabilities and shareholders’ equity	$	4,699,722		$	4,409,044		$	290,678			6.6	%
SELECTED AVERAGE BALANCES
Loans and loans held for sale	$	2,749,716		$	2,335,669		$	414,047			17.7	%
Securities		1,473,737			1,618,418			(144,681	)		(8.9	)
Interest earning assets		4,230,801			3,972,099			258,702			6.5
Assets		4,551,516			4,290,442			261,074			6.1
Noninterest bearing deposits		389,410			355,670			33,740			9.5
Interest checking and savings		466,083			446,786			19,297			4.3
Money market deposits		468,560			522,918			(54,358	)		(10.4	)
Retail certificates of deposit		981,677			900,190			81,487			9.1
Wholesale certificates of deposit		402,046			298,625			103,421			34.6
Deposits		2,707,776			2,524,190			183,586			7.3
Other borrowings		1,469,110			1,422,049			47,061			3.3
Interest bearing liabilities		3,787,476			3,590,569			196,907			5.5
Shareholders’ equity		321,711			298,737			22,974			7.7

	As of / For the Quarter Ended
	9/30/2005		6/30/2005		3/31/2005		12/31/2004		9/30/2004
MISCELLANEOUS INFORMATION
Common stock prices (daily close)
High	$	25.73	$	23.34	$	25.74	$	28.11	$	24.50
Low		22.25		20.85		22.33		25.00		20.86
End of period		24.48		21.97		22.59		26.17		24.17
Book Value		10.82		10.73		10.31		10.47		10.35
Tangible Book Value		10.08		9.99		9.56		9.70		9.59
Market Capitalization		749,010,521		670,822,115		683,929,554		786,519,880		720,988,635
Weighted average shares — basic		30,575,440		30,409,307		30,234,683		29,973,996		29,810,917
Weighted average shares — diluted		30,891,887		30,679,636		30,630,601		30,605,826		30,231,191
End of period shares outstanding		30,596,835		30,533,551		30,275,766		30,054,256		29,829,898

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

	As of / For the Quarter Ended
(Dollars in thousands, except per share data)	9/30/2005			6/30/2005			3/31/2005			12/31/2004			9/30/2004
BALANCE SHEET
ASSETS:
Cash and due from banks	$	123,489		$	104,886		$	110,745		$	90,238		$	98,000
Federal funds sold		1,997			2,250			1,951			1,589			2,080
Interest earning bank deposits		5,885			3,167			5,507			6,184			9,259
Securities available for sale		1,374,163			1,412,885			1,440,494			1,652,732			1,630,655
Loans held for sale		7,309			8,159			6,006			5,326			5,468
Loans
Commercial Real Estate		795,362			785,718			774,088			776,474			788,539
Commercial Non Real Estate		227,762			219,029			210,990			212,031			210,214
Construction		484,911			444,125			347,877			332,264			345,178
Mortgage		582,673			581,257			582,893			347,606			331,249
Consumer		346,772			328,163			310,690			304,151			290,569
Home equity		492,881			500,080			477,884			467,166			459,527
Total loans		2,930,361			2,858,372			2,704,422			2,439,692			2,425,276
Less: Unearned income		(216	)		(213	)		(232	)		(291	)		(301	)
Allowance for loan losses		(29,788	)		(29,032	)		(27,483	)		(26,872	)		(26,859	)
Loans, net		2,900,357			2,829,127			2,676,707			2,412,529			2,398,116
Other assets		286,522			272,762			271,643			263,007			265,466
Total assets	$	4,699,722		$	4,633,236		$	4,513,053		$	4,431,605		$	4,409,044
LIABILITIES AND SHAREHOLDERS’ EQUITY:
Deposits
Noninterest-bearing deposits	$	420,531		$	406,982		$	402,986		$	377,793		$	368,156
Interest checking and savings		481,293			475,643			472,063			468,292			448,799
Money market deposits		580,312			440,117			455,870			478,314			544,663
Retail certificates of deposit		938,871			994,671			971,199			967,884			877,541
Wholesale certificates of deposit		451,986			433,972			400,590			317,563			317,903
Total deposits		2,872,993			2,751,385			2,702,708			2,609,846			2,557,062
Other borrowings
Retail other borrowings		116,562			118,557			115,836			139,039			128,903
Wholesale other borrowings		1,321,826			1,384,765			1,335,920			1,310,697			1,353,437
Total other borrowings		1,438,388			1,503,322			1,451,756			1,449,736			1,482,340
Other liabilities		57,296			50,831			46,335			57,336			60,991
Total liabilities		4,368,677			4,305,538			4,200,799			4,116,918			4,100,393
Total shareholders’ equity		331,045			327,698			312,254			314,687			308,651
Total liabilities and shareholders’ equity	$	4,699,722		$	4,633,236		$	4,513,053		$	4,431,605		$	4,409,044
SELECTED AVERAGE BALANCES
Loans and loans held for sale	$	2,904,954		$	2,788,438		$	2,551,876		$	2,444,827		$	2,393,362
Securities		1,420,033			1,441,853			1,560,874			1,637,050			1,627,156
Interest earning assets		4,331,780			4,236,232			4,122,175			4,101,708			4,035,259
Assets		4,665,301			4,543,846			4,439,768			4,426,604			4,343,207
Noninterest bearing deposits		417,013			387,898			372,861			388,725			372,424
Interest checking and savings		469,283			469,752			459,101			454,418			451,305
Money market deposits		495,401			438,065			471,955			520,187			557,015
Retail certificates of deposit		993,352			981,600			969,822			918,955			883,727
Wholesale certificates of deposit		437,116			412,075			356,057			331,875			322,053
Deposits		2,812,165			2,689,390			2,629,795			2,614,161			2,586,524
Other borrowings		1,471,482			1,491,636			1,443,909			1,441,129			1,411,579
Interest bearing liabilities		3,866,634			3,793,128			3,700,843			3,666,565			3,625,679
Shareholders’ equity		328,115			320,412			316,476			312,122			296,539

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

	For the Three Months Ended						Increase (Decrease)
(Dollars in thousands, except per share data)	9/30/2005			9/30/2004			Amount			Percentage
INCOME STATEMENT
Interest income — taxable equivalent	$	59,654		$	47,594		$	12,060			25.3	%
Interest expense		27,990			16,287			11,703			71.9
Net interest income — taxable equivalent		31,664			31,307			357			1.1
Less: taxable equivalent adjustment		574			512			62			12.1
Net interest income		31,090			30,795			295			1.0
Provision for loan losses		2,770			1,600			1,170			73.1
Net interest income after provision for loan losses		28,320			29,195			(875	)		(3.0	)
Noninterest income		17,043			16,039			1,004			6.3
Noninterest expense		28,943			27,347			1,596			5.8
Income before income taxes		16,420			17,887			(1,467	)		(8.2	)
Income tax expense		4,368			6,499			(2,131	)		(32.8	)
Net income	$	12,052		$	11,388		$	664			5.8	%
EARNINGS PER SHARE DATA
Basic	$	0.39		$	0.38		$	0.01			2.6	%
Diluted		0.39			0.38			0.01			2.6
Weighted average shares — basic		30,575,440			29,810,917
Weighted average shares — diluted		30,891,887			30,231,191
Dividends paid on common shares	$	0.190		$	0.190		$	—			—	%
PERFORMANCE RATIOS
Return on average assets		1.02	%		1.04	%
Return on average equity		14.57			15.28
Efficiency — taxable equivalent (*)		59.44			59.35

	For the Three Months Ended
SCHEDULE OF SELECTED ITEMS INCLUDED IN EARNINGS	9/30/2005		9/30/2004
Noninterest income
Gain on sale of securities	$	12	$	1,267
Gain on sale of deposits and loans		—		339
Equity method investment loss		29		—
Gain on sale of properties		566		—

Notes: Applicable ratios are annualized.

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

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

	For the Nine Months Ended						Increase (Decrease)
(Dollars in thousands, except per share data)	9/30/2005			9/30/2004			Amount			Percentage
INCOME STATEMENT
Interest income — taxable equivalent	$	167,710		$	138,809		$	28,901			20.8	%
Interest expense		73,012			46,018			26,994			58.7
Net interest income — taxable equivalent		94,698			92,791			1,907			2.1
Less: taxable equivalent adjustment		1,744			1,591			153			9.6
Net interest income		92,954			91,200			1,754			1.9
Provision for loan losses		7,548			6,600			948			14.4
Net interest income after provision for loan losses		85,406			84,600			806			1.0
Noninterest income		50,174			45,594			4,580			10.0
Noninterest expense		87,176			83,340			3,836			4.6
Income before income taxes		48,404			46,854			1,550			3.3
Income taxes		14,763			15,971			(1,208	)		(7.6	)
Net income	$	33,641		$	30,883		$	2,758			8.9	%
EARNINGS PER SHARE DATA
Basic	$	1.11		$	1.04		$	0.07			6.7	%
Diluted		1.10			1.02			0.08			7.8
Weighted average shares — basic		30,383,039			29,797,642
Weighted average shares — diluted		30,704,138			30,134,952
Dividends paid on common shares	$	0.57		$	0.56		$	0.01			1.8	%
PERFORMANCE RATIOS
Return on average assets		0.99	%		0.96	%
Return on average equity		13.98			13.81
Efficiency — taxable equivalent (*)		60.17			61.15

	For the Nine Months Ended
SCHEDULE OF SELECTED ITEMS INCLUDED IN EARNINGS	9/30/2005			9/30/2004
Noninterest income
Gain on sale of securities	$	(19	)	$	2,087
Gain on sale of deposits and loans		—			339
Equity method investment loss		(203	)		(300	)
Gain on sale of properties		1,283			777
Bank owned life insurance payment		925			—
Noninterest expense
Employee benefit plan modification		1,079			—
Separation agreement		1,010			—
Financial management charge		166			—

Notes: Applicable ratios are annualized.
	* -	Noninterest expense divided by the sum of taxable equivalent net interest income plus noninterest income less (loss) gain on sale of securities.

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

	As of / For the Quarter Ended
(Dollars in thousands, except per share data)	9/30/2005			6/30/2005			3/31/2005			12/31/2004			9/30/2004
INCOME STATEMENT
Interest income — taxable equivalent
Interest and fees on loans	$	45,941		$	42,016		$	36,499		$	34,426		$	31,406
Interest on securities		13,660			14,145			15,306			16,137			16,144
Other interest income		53			38			52			87			44
Total interest income — taxable equivalent		59,654			56,199			51,857			50,650			47,594
Interest expense
Interest on deposits		14,487			12,210			10,514			9,690			8,916
Other interest expense		13,503			12,104			10,194			8,585			7,371
Total interest expense		27,990			24,314			20,708			18,275			16,287
Net interest income — taxable equivalent		31,664			31,885			31,149			32,375			31,307
Less: Taxable equivalent adjustment		574			595			575			565			512
Net interest income		31,090			31,290			30,574			31,810			30,795
Provision for loan losses		2,770			2,878			1,900			1,825			1,600
Net interest income after provision for loan losses		28,320			28,412			28,674			29,985			29,195
Noninterest income
Service charges on deposit accounts		7,321			7,061			6,236			6,832			6,781
Financial management income		1,358			1,596			1,580			1,199			1,602
Gain (loss) on sale of securities		12			18			(49	)		296			1,267
Gain on sale of deposits and loans		—			—			—			—			339
Loss from equity method investments		29			(174	)		(58	)		(49	)		—
Mortgage loan fees		873			817			394			359			365
Brokerage services income		888			793			802			628			612
Insurance services income		2,796			3,099			3,512			3,140			2,464
Bank owned life insurance		863			1,762			827			856			860
Gain on sale of properties		566			188			529			—			—
Other noninterest income		2,337			2,157			2,041			2,041			1,749
Total noninterest income		17,043			17,317			15,814			15,302			16,039
Noninterest expense
Salaries and employee benefits		15,901			15,908			15,569			14,323			14,779
Occupancy and equipment		4,344			4,687			4,381			4,495			4,115
Data processing		1,310			1,333			1,321			1,221			945
Marketing		1,076			1,065			1,080			966			1,141
Postage and supplies		1,092			1,187			1,208			1,178			1,204
Professional services		2,064			1,984			1,913			2,237			2,264
Telephone		537			551			528			501			496
Amortization of intangibles		129			126			131			135			111
Other noninterest expense		2,490			2,523			2,738			2,621			2,292
Total noninterest expense		28,943			29,364			28,869			27,677			27,347
Income before taxes		16,420			16,365			15,619			17,610			17,887
Income tax expense		4,368			5,085			5,310			6,051			6,499
Net income	$	12,052		$	11,280		$	10,309		$	11,559		$	11,388
EARNINGS PER SHARE DATA
Basic	$	0.39		$	0.37		$	0.34		$	0.39		$	0.38
Diluted		0.39			0.37			0.34			0.38			0.38
Dividends paid on common shares		0.190			0.190			0.190			0.190			0.190
PERFORMANCE RATIOS
Return on average assets		1.02	%		1.00	%		0.94	%		1.04	%		1.04	%
Return on average equity		14.57			14.12			13.21			14.73			15.28
Efficiency — taxable equivalent (*)		59.44			59.70			61.41			58.41			59.35
Noninterest income as a percentage of total income		35.41			35.63			34.09			32.48			34.25
Equity as a percentage of total assets		7.04			7.07			6.92			7.10			7.00
Tangible equity as a percentage of total assets		6.58			6.58			6.41			6.58			6.49
Tier 1 Capital to Risk Adjusted Assets		11.37			10.70			9.89			10.08			9.92
Total Capital to Risk Adjusted Assets		12.25			11.58			10.78			10.99			10.84

	As of / For the Quarter Ended
SCHEDULE OF SELECTED ITEMS INCLUDED IN EARNINGS	9/30/2005		6/30/2005			3/31/2005			12/31/2004			9/30/2004
Noninterest income
Gain (loss) on sale of securities	$	12	$	18		$	(49	)	$	296		$	1,267
Gain on sale of deposits and loans		—		—			—			—			339
Recovery on sale of overdraft deposit accounts		—		—			—			222			—
Equity method investment loss		29		(174	)		(58	)		(49	)		—
Gain on sale of properties		566		188			529			—			—
Bank owned life insurance payment		—		925			—			—			—
Noninterest expense
Employee benefit plan modification		—		1,079			—			—			—
Separation agreement		—		—			1,010			—			—
Financial management charge		—		—			166			—			—

Notes: Applicable ratios are annualized.
	* -	Noninterest expense divided by the sum of taxable equivalent net interest income plus noninterest income less (loss) gain on sale of securities.

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

	As of / For the Quarter Ended
(Dollars in thousands, except per share data)	9/30/2005			6/30/2005			3/31/2005			12/31/2004			9/30/2004
ASSET QUALITY ANALYSIS
Allowance for Loan Losses
Beginning balance	$	29,032		$	27,483		$	26,872		$	26,859		$	26,052
Provision for loan losses		2,770			2,878			1,900			1,825			1,600
Allowance related to loans sold		—			—			—			—			(35	)
Charge-offs		(2,197	)		(1,516	)		(1,918	)		(2,063	)		(1,432	)
Recoveries		183			187			629			251			674
Net charge-offs		(2,014	)		(1,329	)		(1,289	)		(1,812	)		(758	)
Ending balance	$	29,788		$	29,032		$	27,483		$	26,872		$	26,859
Nonperforming Assets and Loans 90 days or more past due accruing interest
Nonaccrual loans	$	7,071		$	9,858		$	9,282		$	13,970		$	14,237
Other real estate		6,079			6,390			7,648			3,844			4,962
Total nonperforming assets		13,150			16,248			16,930			17,814			19,199
Loans 90 days or more past due accruing interest		—			—			—			—			56
Total	$	13,150		$	16,248		$	16,930		$	17,814		$	19,255
Asset Quality Ratios (*)
Nonaccrual loans as a percentage of total loans		0.24	%		0.34	%		0.34	%		0.57	%		0.59	%
Nonperforming assets as a percentage of total assets		0.28			0.35			0.38			0.40			0.44
Nonperforming assets as a percentage of total loans and other real estate		0.45			0.57			0.62			0.73			0.79
Net charge-offs as a percentage of average loans (annualized)		0.28			0.19			0.21			0.30			0.13
Allowance for loan losses as a percentage of loans		1.02			1.02			1.02			1.10			1.11
Ratio of allowance for loan losses to:
Net charge-offs (annualized)		3.73	x		5.45	x		5.26	x		3.73	x		8.91	x
Nonaccrual loans		4.21			2.95			2.96			1.92			1.89

	As of / For the Nine Months Ended						Increase (Decrease)
	9/30/2005			9/30/2004			Amount			Percentage
Allowance for Loan Losses
Beginning balance	$	26,872		$	25,607		$	1,265			4.9	%
Provision for loan losses		7,548			6,600			948			14.4
Allowance related to loans sold		—			(584	)		584			(100.0	)
Charge-offs		(5,631	)		(6,489	)		(858	)		(13.2	)
Recoveries		999			1,725			(726	)		(42.1	)
Net charge-offs		(4,632	)		(4,764	)		(132	)		(2.8	)
Ending balance	$	29,788		$	26,859		$	2,929			10.9	%
Asset Quality Ratios (*)
Net charge-offs as a percentage of average loans		0.23	%		0.27	%
Ratio of allowance for loan losses to net charge-offs		4.81x			4.23x

	For the Quarter Ended
	9/30/2005			6/30/2005			3/31/2005			12/31/2004			9/30/2004
ANNUALIZED INTEREST YIELDS / RATES (**)
Interest income:
Yield on loans and loans held for sale		6.28	%		6.04	%		5.80	%		5.60	%		5.22	%
Yield on securities		3.84			3.92			3.92			3.94			3.97
Yield on interest earning assets		5.48			5.32			5.08			4.92			4.70
Interest expense:
Cost of interest bearing deposits		2.40			2.13			1.89			1.73			1.60
Cost of borrowings		3.64			3.21			2.82			2.37			2.08
Cost of interest bearing liabilities		2.87			2.55			2.25			1.98			1.79
Interest rate spread		2.61			2.77			2.83			2.94			2.91
Net yield on earning assets		2.92	%		3.03	%		3.06	%		3.15	%		3.10	%

Notes: Applicable ratios are annualized.
(*) — Excludes loans held for sale.
(**) — Fully taxable equivalent yields. The calculation of the yield on securities for 2004 has been adjusted to reflect a correction in the taxable equivalent adjustment.