First Charter 8-K First Charter Reports Record Quarterly Net Interest Income

Exhibit 99.1

For Additional Information Contact:

Charles A. Caswell,	Robin S. Leslie
Chief Financial Officer	Investor Relations
(704) 688-1112	(704) 688-4505

FOR IMMEDIATE RELEASE

January 23, 2006

First Charter Reports Record Quarterly Net Interest Income

Benefits From Loan and Deposit Growth and
Previously Reported Balance Sheet Repositioning

Fourth Quarter 2005 Highlights

• Net Interest Income on a Taxable Equivalent Basis Increases to $32.5 Million.

• Net Income (Loss) of $(8.3) Million due to Previously Reported Balance Sheet Repositioning.

• Commercial and Consumer Loan Growth Drives $296.0 Million, or 12%, Increase in Total Loan Average Balances (excluding 2005 Mortgage Loan Purchase) Compared to Fourth Quarter 2004.

• Strong Money Market and Noninterest Bearing Deposit Growth Drives $111.7 Million, or 8%, Increase in Core Deposit Average Balances Compared to Fourth Quarter 2004.

• Net Interest Margin Improves 35 Basis Points During the Quarter to 3.27%.

• Securities Portfolio Yields Improve 32 Basis Points; Portfolio Reduced to 23% of Earning Assets versus 40% a Year Ago, Returning Focus to Core Bank.

• First Charter Enters Raleigh With One Branch; Three More to Follow in 2006 First Quarter

CHARLOTTE, North Carolina – First Charter Corporation (NASDAQ: FCTR) today reported continued strong core revenue growth driven by increased fee-based revenues and an improved net interest margin. As previously reported, an approximate $20.0 million after-tax charge resulting from a series of balance sheet initiatives, which included the sale of securities and the extinguishment of debt and interest rate swaps, resulted in net income (loss) of $(8.3) million, or $(0.27) per diluted share in the fourth quarter of 2005. This compares to net income of $11.6 million, or $0.38 per diluted share, in the same quarter of 2004.

Net income for 2005 totaled $25.3 million, or $0.82 per diluted share, a decrease from net income of $42.4 million, or $1.40 per diluted share for 2004. The decrease was driven by the previously discussed balance sheet repositioning charges.

Return on average assets and return on average equity were (.77) percent and (10.21) percent, respectively, for the fourth quarter of 2005 compared to 1.04 percent and 14.73 percent for the fourth quarter of 2004. For 2005, return on average assets and return on average equity were .56 percent and 7.86 percent, respectively, compared to .98 percent and 14.05 percent for 2004.

“This quarter caps a year of transition for our company,” said Bob James, President & CEO of First Charter Corporation. “As we mentioned in our third quarter earnings announcement, the balance sheet repositioning executed in October will improve our net interest margin, our earnings, and our capital ratios. Most significantly, these initiatives allow us to renew our focus on our core business, which is taking care of our customers.”

Financial Highlights

	For the Three Months						For the Twelve Months
(Dollars in thousands,	Ended December 31						Ended December 31
except per share data)	2005			2004			2005			2004
Earnings
Total revenues(1)	$	31,969		$	47,112		$	175,096		$	183,906
Net income		(8,330	)		11,559			25,311			42,442
Diluted earnings per share		(0.27	)		0.38			0.82			1.40
Financial Ratios
Return on average assets		(0.77	)%		1.04	%		0.56	%		0.98	%
Return on average equity		(10.21	)		14.73			7.86			14.05
Efficiency-taxable equivalent ratio(2)		59.70			58.41			60.05			60.44
Average Balance Sheet
Loans, net	$	2,932,195		$	2,444,827		$	2,795,711		$	2,363,107
Securities		1,028,477			1,637,050			1,361,507			1,623,101
Total assets		4,303,821			4,426,604			4,489,083			4,322,727
Total deposits		2,838,566			2,614,161			2,740,742			2,544,865
Other borrowings		1,099,350			1,441,129			1,375,910			1,428,124
Shareholders’ equity		323,753			312,122			322,226			302,101
Asset Quality Ratios(3)
Past due loans over 30 days as a percentage of loans		0.50	%		0.51	%		0.50	%		0.51	%
Allowance for loan losses as a percentage of loans		0.98			1.10			0.98			1.10
Allowance for loan losses as a percentage of nonaccrual loans		265.69			192.35			265.69			192.35
Net charge-offs as a percentage of average loans-annualized		0.39			0.30			0.27			0.28

(1)	Net interest income plus noninterest income.
(2)	Noninterest expense less debt extinguishment expense and derivative termination costs divided by the sum of taxable equivalent net interest income plus noninterest income less (loss) gain on sale of securities.
(3)	Ratios exclude loans held for sale.

Double Digit Loan Growth

Total loan average balances increased $487.4 million, or 20 percent, to $2.93 billion compared to the same quarter a year ago. The purchase of adjustable rate mortgage (ARM) loans in the first quarter of 2005 accounted for $191.4 million of the increase. Commercial and construction loan average balances increased $164.8 million, or 12 percent, while consumer and home equity loan average balances increased $82.1 million, or 11 percent. Mortgage loan average balances increased $45.9 million, or 13 percent, excluding the first quarter mortgage loan purchase.

For 2005, total average loan balances grew $432.6 million, or 18 percent, compared to 2004. The first quarter mortgage loan purchase accounted for $178.9 million of the growth.

“Our strong commercial loan growth reflects the impact of the new commercial lenders we hired throughout the year in Charlotte and Raleigh,” said Bob James. “As we look forward to 2006, we expect most of our loan growth to occur in the commercial and consumer categories.”

Core Deposit Balances Continue to Build

First Charter’s focus on building core deposits (money market, demand and savings accounts) yielded strong growth during the quarter. Core deposit average balances increased $93.3 million, or 27 percent annualized, compared to the third quarter of 2005. Compared with the year ago quarter, core deposit average balances increased $111.7 million, or 8 percent. The increase was driven by a $61.1 million, or 12 percent, increase in money market average balances and a $35.4 million, or 9 percent, increase in noninterest bearing demand deposit average balances.

Certificate of deposit (CD) average balances grew by $16.8 million, or 2 percent, compared with the fourth quarter of 2004. Average CD balances fell, however, by $61.5 million compared to the third quarter of 2005 due to a conscious effort to refrain from aggressively pricing a large concentration of ten-month CDs that had been gathered with premium pricing in the fall of 2004.

Presence in Raleigh Market Expands

On October 3, 2005 First Charter opened its first full-service financial center in Raleigh, offering a full suite of banking services to individuals and small businesses, commercial lending, mortgages, and brokerage services. In addition, during the fourth quarter of 2005 First Charter added 24 ATMs in the Raleigh market. As previously announced, the Corporation will expand its presence in the Raleigh area by opening three additional financial centers in the first quarter of 2006.

“Our entry into the Raleigh market represents a significant milestone in the evolution of First Charter. We entered Raleigh during the first quarter of 2005 with a team of experienced lenders focused on residential mortgage and construction lending. Our achievements in the ensuing months confirmed our view that the Raleigh area is a great market, and our delivery of exceptional service quality would be well received by both consumers and businesses there,” James commented.

Additionally, First Charter added a new financial center in Charlotte on October 24, 2005, bringing its total number of financial centers to 55. First Charter also opened a commercial loan production office in Asheville in the fourth quarter of 2005.

Balance Sheet Repositioning Begins to Pay Off — Net Interest Margin Improves 35 Basis Points

As discussed in detail in its third quarter earnings release, First Charter executed a series of balance sheet initiatives on October 20 and 21, 2005 designed to:

• Improve net interest income and the net interest margin

• Reduce the size of the investment portfolio and reliance on wholesale funding

• Improve interest rate risk and liquidity risk profiles

• Strengthen capital ratios (in addition to issuing $25 million in Trust Preferred Securities late in the third quarter)

Specifically, First Charter deleveraged its balance sheet by approximately $446 million, or 10 percent of its asset size, through the sale of $466 million in fixed-rate investment securities, using the proceeds to extinguish approximately $446 million in debt and terminate $222 million of related interest rate swaps. First Charter recognized an approximate $20 million after-tax charge as a result of executing these initiatives.

First Charter began to realize the benefits from these initiatives in late October, once these transactions mentioned above settled.

The net interest margin on a tax equivalent basis increased 35 basis points to 3.27 percent in the fourth quarter of 2005 from 2.92 percent for the third quarter of 2005 and represents a 12 basis point improvement from 3.15 percent in the year ago quarter. Management expects further margin improvement in the first quarter of 2006 following a full quarter of recognizing the benefits from the balance sheet repositioning.

Compared to the third quarter of 2005, earning asset yields increased 45 basis points. This was driven by two factors. First, securities yields increased 32 basis points to 4.16 percent while loan yields increased 29 basis points to 6.57 percent. Second, as a result of the balance sheet repositioning, the percentage of lower yielding investment securities to total earning assets was reduced from 32 percent at the end of September to 23 percent at the end of December. A year ago, the securities portfolio represented 40 percent of earning assets. Over the past year, the portfolio was reduced by $753.6 million, or 46 percent, to $899.1 million. The duration of the remaining securities portfolio was approximately 2.5 years at December 31, 2005.

A similar benefit was realized on the liability side of the balance sheet. The cost of interest bearing liabilities increased only 15 basis points during the quarter to 3.02 percent. This was comprised of a 27 basis point increase in interest bearing deposit costs to 2.67 percent while other borrowing costs increased only 14 basis points to 3.78 percent. Also, as a result of the balance sheet repositioning, the percentage of higher- cost wholesale borrowings was reduced from 41 to 33 percent of total liabilities.

First Charter reported record quarterly net interest income on a tax equivalent basis of $32.5 million, representing a $0.9 million, or 3 percent, increase over the third quarter of 2005, and a $0.1 million increase over the year ago quarter.

For 2005, the net interest margin on a tax equivalent basis decreased to 3.05 percent compared to 3.14 percent for 2004. Since the balance sheet repositioning occurred in the fourth quarter of 2005, the benefit to the margin for the year was minimal.

Noninterest Income Impacted by Balance Sheet Repositioning

Fourth quarter noninterest income totaled $39 thousand compared to $15.3 million for the fourth quarter of 2004. Included in the totals were securities gains (losses) of $(16.7) million for the fourth quarter of 2005 resulting from the balance sheet repositioning compared to securities gains of $0.3 million for the fourth quarter of 2004. Excluding securities gains and losses, noninterest income increased $1.7 million, or 11 percent, to $16.7 million. Increases in deposit, ATM, debit card, mortgage, and financial management revenues were key contributors to the growth. The Corporation incurred approximately $(0.1) million in losses in its SBIC / Venture Capital portfolio, a loss that was approximately equal to charges taken in the same portfolio in the fourth quarter of 2004. In addition, $0.6 million of property sale gains were recognized in the fourth quarter of 2005 compared to no similar gain in the fourth quarter of 2004.

For 2005, noninterest income totaled $50.2 million compared to $60.9 million for 2004. Securities gains (losses) of $(16.7) million were recognized in 2005 compared to securities gains of $2.4 million in 2004. Excluding securities gains and losses, noninterest income increased $8.4 million, or 14 percent. Increases in deposit, ATM, debit card, mortgage, and insurance revenues were key contributors to the growth. In addition, property sale gains were $1.9 million for 2005 compared to $0.8 million for 2004 and 2005 included $0.9 million related to bank owned life insurance payments versus none in 2004.

Noninterest Expense Impacted by Balance Sheet Repositioning

Noninterest expense for the fourth quarter of 2005 totaled $44.0 million and included a $7.8 million charge to terminate derivative transactions and a $6.9 million charge due to the early extinguishment of debt, both of which related to the balance sheet repositioning. Excluding these charges, noninterest expense was $29.4 million. This compares to fourth quarter 2004 noninterest expense of $27.7 million. The increase was due to a $1.9 million increase in salaries and employee benefits related to additional personnel, increased commission-based compensation and higher medical costs. Part of the increase in medical costs was related to an acceleration of health insurance claims from the Corporation’s third party benefits administrator in connection with the transition to a new administrator in 2006. In addition, marketing expense increased $0.5 million due, in part, to increased activity in advertising and public relations. Included in the marketing and other expense lines were approximately $0.3 million in back state sales and use taxes primarily related to direct mail and consulting services over the past three years. Partially offsetting these increases was a $1.1 million decrease in occupancy and equipment expense due to a $1.4 million correction related to the Corporation’s fixed asset records. This adjustment was made after the Corporation conducted a thorough fixed asset inventory in 2005.

Noninterest expense for 2005 totaled $131.2 million compared to $111.0 million for 2004. The year over year comparison of noninterest expense was impacted by several unique transactions, including: a $7.8 million charge to terminate derivative transactions in 2005; $6.9 million charge due to the early extinguishment of debt in 2005; the previously mentioned $1.4 million fixed asset correction; a $1.1 million expense associated with a legacy employee benefit plan in 2005; and a $1.0 million expense associated with the former CFO’s retirement in 2005. Excluding these items, noninterest expense increased $4.8 million, or 4 percent, to $115.9 million. Expenses related to the Raleigh market expansion contributed approximately $1.2 million towards the increase in noninterest expense. Additionally, there was an increase in salaries and employee benefits related to additional personnel, increased commission-based compensation and higher medical costs; an increase in occupancy and

equipment, excluding the fixed asset correction, due to additional financial center lease and depreciation expenses; the above mentioned back sales tax payment, and an increase in data processing expenses due to increased debit card processing and software maintenance expenses.

Income Tax Expense

An income tax benefit of $5.5 million was recognized in the fourth quarter of 2005 compared to an income tax expense of $6.1 million for the fourth quarter of 2004. The income tax benefit for the fourth quarter was due to a decrease in the estimated 2005 effective tax rate resulting from a charge related to the previously mentioned balance sheet repositioning. The income tax expense for the year ended December 31, 2005 amounted to $9.2 million for an effective tax rate of 26.7 percent, compared to $22.0 million for an effective tax rate of 34.2 percent for the year ended December 31, 2004. The decrease in the income tax expense and the effective tax rate for 2005 was attributable to lower income and the reduction in previously accrued taxes due to reduced risk on certain tax contingencies. Management currently believes that the effective tax rate for 2006 will be similar to that recorded in 2004.

Efficiency Ratio

The efficiency ratio for 2005 was 60.1 percent compared to 60.4 percent for 2004. The calculation of the efficiency ratio excludes the impact of securities sales in both years, and the charges related to the balance sheet repositioning in 2005.

Asset Quality Remains Sound

Nonperforming assets totaled $15.9 million at December 31, 2005, representing a $1.9 million decrease from a year ago and a $2.8 million increase from September 30, 2005. The increase from September 30, 2005 was primarily due to $1.8 million of a $3.0 million commercial loan moving to nonaccrual status during the fourth quarter. Approximately $1.1 million of the original loan balance was charged-off and $0.2 million in previously accrued interest income was reversed and applied against principal. Of the remaining $1.8 million balance, $1.6 million was paid down in January 2006. Nonperforming assets as a percentage of total loans and other real estate owned increased to 0.54 percent at December 31, 2005 compared to 0.45 percent at September 30, 2005.

Net charge-offs increased to 0.39 percent of average total loans in the fourth quarter of 2005 from 0.30 percent in the same quarter a year ago, and 0.28 percent in the third quarter of 2005. Net charge-offs for the fourth quarter of 2005 were impacted by the one commercial loan mentioned above. As discussed above, a charge-off of $1.1 million was taken for this loan against specific reserves that had been previously provided for in the allowance for loan losses. Net charge-offs as a percent of average total loans for 2005 was 0.27 percent compared to 0.28 percent for 2004.

The allowance for loan losses as a percent of total loans was 0.98 percent at December 31, 2005, a decrease from 1.02 percent at September 30, 2005 and 1.10 percent at December 31, 2004. The lower allowance for loan loss ratio is related to the increased proportion of lower-risk mortgage and home equity loans in the loan portfolio, the Corporation’s improved credit quality trends, and the removal of the previously discussed commercial loan loss allowance. The provision for loan losses was $1.8 million both for the three months ended December 31, 2005 and December 31, 2004. For 2005, the provision for loan losses was $9.3 million, exceeding net charge-offs of $7.5 million. This is compared to a provision for loan losses of $8.4 million for 2004 and net charge-offs of $6.6 million.

FAS 123r

The Corporation expects to incur approximately $0.9 million in expense in 2006 for stock option grants made prior to 2006 due to the adoption of FAS 123r. There were no similar charges recognized by the Corporation in prior years. The Corporation is in the process of a thorough review of all of its equity-based compensation programs. One outcome of this review is that the Corporation may increase the proportion of compensation awarded through restricted stock grants and correspondingly reduce the proportion of compensation awarded through stock options. The Corporation will provide additional guidance on expected costs related to stock options and restricted stock grants following completion of this review and approval of the 2006 compensation plan by its Board of Directors.

Conference Call

The First Charter executive management team will be available via telephone conference to discuss the contents of this press release on Tuesday, January 24, 2006 at 10:00 a.m. EST. 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 # 3998790	ID # 3998790
	www.FirstCharter.com	www.FirstCharter.com
Internet Live and Replay	“Investor Relations” section	“Investor Relations” section
	SHOW # 283623	SHOW # 283623
Audio Replay	800-642-1687	706-645-9291
	ID # 3998790	ID # 3998790

Corporate Profile

First Charter Corporation is a regional financial services company with assets of $4.2 billion and is the holding company for First Charter Bank. First Charter operates 55 financial centers, four insurance offices and 137 ATMs located throughout North Carolina. First Charter also operates loan origination offices in Asheville, North Carolina and Reston, 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 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 may contain certain forward looking statements which involve certain risks and uncertainties. Various factors may cause actual results to differ materially from those contemplated by such forward looking statements. For further information and a summary of certain of the factors which could affect the accuracy of these 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. First Charter undertakes no obligation to publicly revise those forward looking statements to reflect events and circumstances that arise after the date hereof.

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

	As of / For the Twelve Months Ended						Increase (Decrease)
(Dollars in thousands, except per share data)	12/31/2005			12/31/2004			Amount			Percentage
BALANCE SHEET
ASSETS:
Cash and due from banks	$	119,080		$	90,238		$	28,842			32.0	%
Federal funds sold		2,474			1,589			885			55.7
Interest earning bank deposits		3,998			6,184			(2,186	)		(35.3	)
Securities available for sale		899,111			1,652,732			(753,621	)		(45.6	)
Loans held for sale		6,447			5,326			1,121			21.0
Loans
Commercial Real Estate		780,597			776,474			4,123			0.5
Commercial Non Real Estate		233,409			212,031			21,378			10.1
Construction		517,392			332,264			185,128			55.7
Mortgage		573,007			347,606			225,401			64.8
Consumer		358,592			304,151			54,441			17.9
Home equity		482,921			467,166			15,755			3.4
Total loans		2,945,918			2,439,692			506,226			20.7
Less: Unearned income		(173	)		(291	)		118			(40.5	)
Allowance for loan losses		(28,725	)		(26,872	)		(1,853	)		6.9
Loans, net		2,917,020			2,412,529			504,491			20.9
Other assets		284,290			263,007			21,283			8.1
Total assets	$	4,232,420		$	4,431,605		$	(199,185	)		(4.5	)%
LIABILITIES AND SHAREHOLDERS’ EQUITY:
Deposits
Noninterest-bearing deposits	$	429,758		$	377,793		$	51,965			13.8	%
Interest checking and savings		488,115			468,292			19,823			4.2
Money market deposits		559,865			478,314			81,551			17.0
Retail certificates of deposit		916,569			967,884			(51,315	)		(5.3	)
Wholesale certificates of deposit		405,172			317,563			87,609			27.6
Total deposits		2,799,479			2,609,846			189,633			7.3
Other borrowings
Retail other borrowings		170,094			139,039			31,055			22.3
Wholesale other borrowings		898,479			1,310,697			(412,218	)		(31.5	)
Total other borrowings		1,068,573			1,449,736			(381,163	)		(26.3	)
Other liabilities		40,772			57,336			(16,564	)		(28.9	)
Total liabilities		3,908,824			4,116,918			(208,094	)		(5.1	)
Total shareholders’ equity		323,596			314,687			8,909			2.8
Total liabilities and shareholders’ equity	$	4,232,420		$	4,431,605		$	(199,185	)		(4.5	)%
SELECTED AVERAGE BALANCES
Loans and loans held for sale	$	2,795,711		$	2,363,107		$	432,604			18.3	%
Securities		1,361,507			1,623,101			(261,594	)		(16.1	)
Interest earning assets		4,164,969			4,004,678			160,291			4.0
Assets		4,489,083			4,322,727			166,356			3.8
Noninterest bearing deposits		398,158			362,038			36,120			10.0
Interest checking and savings		466,969			448,704			18,265			4.1
Money market deposits		496,982			522,232			(25,250	)		(4.8	)
Retail certificates of deposit		968,750			904,907			63,843			7.1
Wholesale certificates of deposit		409,882			306,983			102,899			33.5
Deposits		2,740,742			2,544,865			195,877			7.7
Other borrowings		1,375,910			1,428,124			(52,214	)		(3.7	)
Interest bearing liabilities		3,718,494			3,610,950			107,544			3.0
Shareholders’ equity		322,226			302,101			20,125			6.7

					As of / For the Quarter Ended
	12/31/2005		9/30/2005		6/30/2005		3/31/2005		12/31/2004
MISCELLANEOUS INFORMATION
Common stock prices (daily close)
High	$	26.66	$	25.73	$	23.34	$	25.74	$	28.11
Low		22.34		22.25		20.85		22.33		25.00
End of period		23.66		24.48		21.97		22.59		26.17
Book Value		10.53		10.82		10.73		10.31		10.47
Tangible Book Value		9.79		10.08		9.99		9.56		9.70
Market Capitalization		727,235,906		749,010,521		670,822,115		683,929,554		786,519,880
Weighted average shares — basic		30,678,743		30,575,440		30,409,307		30,234,683		29,973,996
Weighted average shares — diluted		30,678,743		30,891,887		30,679,636		30,630,601		30,605,826
End of period shares outstanding		30,736,936		30,596,835		30,533,551		30,275,766		30,054,256

8

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

	As of / For the Quarter Ended
(Dollars in thousands, except per share data)	12/31/2005			9/30/2005			6/30/2005			3/31/2005			12/31/2004
BALANCE SHEET
ASSETS:
Cash and due from banks	$	119,080		$	123,489		$	104,886		$	110,745		$	90,238
Federal funds sold		2,474			1,997			2,250			1,951			1,589
Interest earning bank deposits		3,998			5,885			3,167			5,507			6,184
Securities available for sale		899,111			1,374,163			1,412,885			1,440,494			1,652,732
Loans held for sale		6,447	��		7,309			8,159			6,006			5,326
Loans
Commercial Real Estate		780,597			795,362			785,718			774,088			776,474
Commercial Non Real Estate		233,409			227,762			219,029			210,990			212,031
Construction		517,392			484,911			444,125			347,877			332,264
Mortgage		573,007			582,673			581,257			582,893			347,606
Consumer		358,592			346,772			328,163			310,690			304,151
Home equity		482,921			492,881			500,080			477,884			467,166
Total loans		2,945,918			2,930,361			2,858,372			2,704,422			2,439,692
Less: Unearned income		(173	)		(216	)		(213	)		(232	)		(291	)
Allowance for loan losses		(28,725	)		(29,788	)		(29,032	)		(27,483	)		(26,872	)
Loans, net		2,917,020			2,900,357			2,829,127			2,676,707			2,412,529
Other assets		284,290			286,522			272,762			271,643			263,007
Total assets	$	4,232,420		$	4,699,722		$	4,633,236		$	4,513,053		$	4,431,605
LIABILITIES AND SHAREHOLDERS’ EQUITY:
Deposits
Noninterest-bearing deposits	$	429,758		$	420,531		$	406,982		$	402,986		$	377,793
Interest checking and savings		488,115			481,293			475,643			472,063			468,292
Money market deposits		559,865			580,312			440,117			455,870			478,314
Retail certificates of deposit		916,569			938,871			994,671			971,199			967,884
Wholesale certificates of deposit		405,172			451,986			433,972			400,590			317,563
Total deposits		2,799,479			2,872,993			2,751,385			2,702,708			2,609,846
Other borrowings
Retail other borrowings		170,094			116,562			118,557			115,836			139,039
Wholesale other borrowings		898,479			1,321,826			1,384,765			1,335,920			1,310,697
Total other borrowings		1,068,573			1,438,388			1,503,322			1,451,756			1,449,736
Other liabilities		40,772			57,296			50,831			46,335			57,336
Total liabilities		3,908,824			4,368,677			4,305,538			4,200,799			4,116,918
Total shareholders’ equity		323,596			331,045			327,698			312,254			314,687
Total liabilities and shareholders’ equity	$	4,232,420		$	4,699,722		$	4,633,236		$	4,513,053		$	4,431,605
SELECTED AVERAGE BALANCES
Loans and loans held for sale	$	2,932,195		$	2,904,954		$	2,788,438		$	2,551,876		$	2,444,827
Securities		1,028,477			1,420,033			1,441,853			1,560,874			1,637,050
Interest earning assets		3,969,620			4,331,780			4,236,232			4,122,175			4,101,708
Assets		4,303,821			4,665,301			4,543,846			4,439,768			4,426,604
Noninterest bearing deposits		424,118			417,013			387,898			372,861			388,725
Interest checking and savings		469,594			469,283			469,752			459,101			454,418
Money market deposits		581,324			495,401			438,065			471,955			520,187
Retail certificates of deposit		930,395			993,352			981,600			969,822			918,955
Wholesale certificates of deposit		433,135			437,116			412,075			356,057			331,875
Deposits		2,838,566			2,812,165			2,689,390			2,629,795			2,614,161
Other borrowings		1,099,350			1,471,482			1,491,636			1,443,909			1,441,129
Interest bearing liabilities		3,513,797			3,866,634			3,793,128			3,700,843			3,666,565
Shareholders’ equity		323,753			328,115			320,412			316,476			312,122

9

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

	For the Three Months Ended						Increase (Decrease)
(Dollars in thousands, except per share data)	12/31/2005			12/31/2004			Amount			Percentage
INCOME STATEMENT
Interest income — taxable equivalent	$	59,231		$	50,650		$	8,581			16.9	%
Interest expense		26,710			18,275			8,435			46.2
Net interest income — taxable equivalent		32,521			32,375			146			0.5
Less: taxable equivalent adjustment		592			565			27			4.8
Net interest income		31,929			31,810			119			0.4
Provision for loan losses		1,795			1,825			(30	)		(1.6	)
Net interest income after provision for loan losses		30,134			29,985			149			0.5
Noninterest income		39			15,302			(15,263	)		(99.7	)
Noninterest expense		44,046			27,677			16,369			59.1
Income before income taxes		(13,873	)		17,610			(31,483	)		(178.8	)
Income tax expense		(5,543	)		6,051			(11,594	)		(191.6	)
Net income	$	(8,330	)	$	11,559		$	(19,889	)		(172.1	)%
EARNINGS PER SHARE DATA
Basic	$	(0.27	)	$	0.39		$	(0.66	)		(169.2	)%
Diluted		(0.27	)		0.38			(0.65	)		(171.1	)
Weighted average shares — basic		30,678,743			29,973,996
Weighted average shares — diluted		30,678,743			30,605,826
Dividends paid on common shares	$	0.190		$	0.190		$	—			—	%
PERFORMANCE RATIOS
Return on average assets		(0.77	)%		1.04	%
Return on average equity		(10.21	)		14.73
Efficiency — taxable equivalent (*)		59.70			58.41

	For the Three Months Ended
	12/31/2005			12/31/2004
SCHEDULE OF SELECTED ITEMS INCLUDED IN EARNINGS
Noninterest income
(Loss) gain on sale of securities	$	(16,671	)	$	296
Recovery on sale of overdraft deposit accounts		—			222
Equity method investment loss		(68	)		(49	)
Gain on sale of properties		571			—
Noninterest expense
Fixed asset correction		(1,386	)
Debt extinguishment expense		6,884			—
Derivative termination costs		7,770			—

Notes: Applicable ratios are annualized.

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

10

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

	For the Twelve Months Ended						Increase (Decrease)
(Dollars in thousands, except per share data)	12/31/2005			12/31/2004			Amount			Percentage
INCOME STATEMENT
Interest income — taxable equivalent	$	226,941		$	189,459		$	37,482			19.8	%
Interest expense		99,722			64,293			35,429			55.1
Net interest income — taxable equivalent		127,219			125,166			2,053			1.6
Less: taxable equivalent adjustment		2,336			2,156			180			8.3
Net interest income		124,883			123,010			1,873			1.5
Provision for loan losses		9,343			8,425			918			10.9
Net interest income after provision for loan losses		115,540			114,585			955			0.8
Noninterest income		50,213			60,896			(10,683	)		(17.5	)
Noninterest expense		131,222			111,017			20,205			18.2
Income before income taxes		34,531			64,464			(29,933	)		(46.4	)
Income taxes		9,220			22,022			(12,802	)		(58.1	)
Net income	$	25,311		$	42,442		$	(17,131	)		(40.4	)%
EARNINGS PER SHARE DATA
Basic	$	0.83		$	1.42		$	(0.59	)		(41.5	)%
Diluted		0.82			1.40			(0.58	)		(41.4	)
Weighted average shares — basic		30,457,573			29,859,683
Weighted average shares — diluted		30,784,406			30,277,063
Dividends paid on common shares	$	0.76		$	0.75		$	0.01			1.3	%
PERFORMANCE RATIOS
Return on average assets		0.56	%		0.98	%
Return on average equity		7.86			14.05
Efficiency — taxable equivalent (*)		60.05			60.44

	For the Twelve Months Ended
	12/31/2005			12/31/2004
SCHEDULE OF SELECTED ITEMS INCLUDED IN EARNINGS
Noninterest income
(Loss) gain on sale of securities	$	(16,690	)	$	2,383
Gain on sale of deposits and loans		—			339
Recovery on sale of overdraft deposit accounts		—			222
Equity method investment loss		(271	)		(349	)
Gain on sale of properties		1,854			777
Bank owned life insurance payment		925			—
Noninterest expense
Employee benefit plan modification		1,079			—
Separation agreement		1,010			—
Financial management charge		166			—
Fixed asset correction		(1,386	)
Debt extinguishment expense		6,884			—
Derivative termination costs		7,770			—

Notes: Applicable ratios are annualized.

* — Noninterest expense less debt extinguishment expense and derivative termination costs 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	(NASDAQ: FCTR)
Quarterly Earnings Release

	As of / For the Quarter Ended
(Dollars in thousands, except per share data)	12/31/2005			9/30/2005			6/30/2005			3/31/2005			12/31/2004
INCOME STATEMENT
Interest income — taxable equivalent
Interest and fees on loans	$	48,505		$	45,941		$	42,016		$	36,499		$	34,426
Interest on securities		10,646			13,660			14,145			15,306			16,137
Other interest income		80			53			38			52			87
Total interest income — taxable equivalent		59,231			59,654			56,199			51,857			50,650
Interest expense
Interest on deposits		16,245			14,487			12,210			10,514			9,690
Other interest expense		10,465			13,503			12,104			10,194			8,585
Total interest expense		26,710			27,990			24,314			20,708			18,275
Net interest income — taxable equivalent		32,521			31,664			31,885			31,149			32,375
Less: Taxable equivalent adjustment		592			574			595			575			565
Net interest income		31,929			31,090			31,290			30,574			31,810
Provision for loan losses		1,795			2,770			2,878			1,900			1,825
Net interest income after provision for loan losses		30,134			28,320			28,412			28,674			29,985
Noninterest income
Service charges on deposit accounts		7,191			7,321			7,061			6,236			6,832
Financial management income		1,366			1,358			1,596			1,580			1,199
Gain (loss) on sale of securities		(16,671	)		12			18			(49	)		296
Loss from equity method investments		(68	)		29			(174	)		(58	)		(49	)
Mortgage loan fees		789			873			817			394			359
Brokerage services income		636			888			793			802			628
Insurance services income		2,953			2,796			3,099			3,512			3,140
Bank owned life insurance		859			863			1,762			827			856
Gain on sale of properties		571			566			188			529			—
Other noninterest income		2,413			2,337			2,157			2,041			2,041
Total noninterest income		39			17,043			17,317			15,814			15,302
Noninterest expense
Salaries and employee benefits		16,217			15,901			15,908			15,569			14,323
Occupancy and equipment		3,395			4,344			4,687			4,381			4,495
Data processing		1,412			1,310			1,333			1,321			1,221
Marketing		1,447			1,076			1,065			1,080			966
Postage and supplies		1,172			1,092			1,187			1,208			1,178
Professional services		2,299			2,064			1,984			1,913			2,237
Telephone		578			537			551			528			501
Amortization of intangibles		152			129			126			131			135
Debt extinguishment expense		6,884			—			—			—			—
Derivative termination costs		7,770			—			—			—			—
Other noninterest expense		2,720			2,490			2,523			2,738			2,621
Total noninterest expense		44,046			28,943			29,364			28,869			27,677
Income before taxes		(13,873	)		16,420			16,365			15,619			17,610
Income tax expense		(5,543	)		4,368			5,085			5,310			6,051
Net income	$	(8,330	)	$	12,052		$	11,280		$	10,309		$	11,559
EARNINGS PER SHARE DATA
Basic	$	(0.27	)	$	0.39		$	0.37		$	0.34		$	0.39
Diluted		(0.27	)		0.39			0.37			0.34			0.38
Dividends paid on common shares		0.190			0.190			0.190			0.190			0.190
PERFORMANCE RATIOS
Return on average assets		(0.77	)%		1.02	%		1.00	%		0.94	%		1.04	%
Return on average equity		(10.21	)		14.57			14.12			13.21			14.73
Efficiency — taxable equivalent (*)		59.70			59.44			59.70			61.41			58.41
Noninterest income as a percentage of total income		0.12			35.41			35.63			34.09			32.48
Equity as a percentage of total assets		7.65			7.04			7.07			6.92			7.10
Tangible equity as a percentage of total assets		7.10			6.58			6.58			6.41			6.58
Tier 1 Capital to Risk Adjusted Assets		11.20			11.37			10.70			9.89			10.08
Total Capital to Risk Adjusted Assets		12.06			12.25			11.58			10.78			10.99

	As of / For the Quarter Ended
	12/31/2005			9/30/2005		6/30/2005			3/31/2005			12/31/2004
SCHEDULE OF SELECTED ITEMS INCLUDED IN EARNINGS
Noninterest income
(Loss) gain on sale of securities	$	(16,671	)	$	12	$	18		$	(49	)	$	296
Recovery on sale of overdraft deposit accounts		—			—		—			—			222
Equity method investment (loss) gain		(68	)		29		(174	)		(58	)		(49	)
Gain on sale of properties		571			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			—
Fixed asset correction		(1,386	)		—		—			—			—
Debt extinguishment expense		6,884			—		—			—			—
Derivative termination costs		7,770			—		—			—			—

Notes: Applicable ratios are annualized.
*	— Noninterest expense less debt extinguishment expense and derivative termination costs divided by the sum of taxable equivalent net interest income plus noninterest income less (loss) gain on sale of securities.

12

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

	As of / For the Quarter Ended
(Dollars in thousands, except per share data)	12/31/2005			9/30/2005			6/30/2005			3/31/2005			12/31/2004
ASSET QUALITY ANALYSIS
Allowance for Loan Losses
Beginning balance	$	29,788		$	29,032		$	27,483		$	26,872		$	26,859
Provision for loan losses		1,795			2,770			2,878			1,900			1,825
Charge-offs		(3,021	)		(2,197	)		(1,516	)		(1,918	)		(2,063	)
Recoveries		163			183			187			629			251
Net charge-offs		(2,858	)		(2,014	)		(1,329	)		(1,289	)		(1,812	)
Ending balance	$	28,725		$	29,788		$	29,032		$	27,483		$	26,872
Nonperforming Assets and Loans 90 days or more past due accruing interest
Nonaccrual loans	$	10,811		$	7,071		$	9,858		$	9,282		$	13,970
Other real estate		5,124			6,079			6,390			7,648			3,844
Total nonperforming assets		15,935			13,150			16,248			16,930			17,814
Loans 90 days or more past due accruing interest		—			—			—			—			—
Total	$	15,935		$	13,150		$	16,248		$	16,930		$	17,814
Asset Quality Ratios (*)
Nonaccrual loans as a percentage of total loans		0.37	%		0.24	%		0.34	%		0.34	%		0.57	%
Nonperforming assets as a percentage of total assets		0.38			0.28			0.35			0.38			0.40
Nonperforming assets as a percentage of total loans and other real estate		0.54			0.45			0.57			0.62			0.73
Net charge-offs as a percentage of average loans (annualized)		0.39			0.28			0.19			0.21			0.30
Allowance for loan losses as a percentage of loans		0.98			1.02			1.02			1.02			1.10
Ratio of allowance for loan losses to:
Net charge-offs (annualized)		2.53	x		3.73	x		5.45	x		5.26	x		3.73	x
Nonaccrual loans		2.66			4.21			2.95			2.96			1.92

	As of / For the Twelve Months Ended						Increase (Decrease)
	12/31/2005			12/31/2004			Amount			Percentage
Allowance for Loan Losses
Beginning balance	$	26,872		$	25,607		$	1,265			4.9	%
Provision for loan losses		9,343			8,425			918			10.9
Allowance related to loans sold		—			(584	)		584			(100.0	)
Charge-offs		(8,652	)		(8,552	)		100			1.2
Recoveries		1,162			1,976			(814	)		(41.2	)
Net charge-offs		(7,490	)		(6,576	)		914			13.9
Ending balance	$	28,725		$	26,872		$	1,853			6.9	%
Asset Quality Ratios (*)
Net charge-offs as a percentage of average loans		0.27	%		0.28	%
Ratio of allowance for loan losses to net charge-offs		3.84	x		4.10	x

	For the Quarter Ended
	12/31/2005			9/30/2005			6/30/2005			3/31/2005			12/31/2004
ANNUALIZED INTEREST YIELDS / RATES (**)
Interest income:
Yield on loans and loans held for sale		6.57	%		6.28	%		6.04	%		5.80	%		5.60	%
Yield on securities		4.16			3.84			3.92			3.92			3.94
Yield on interest earning assets		5.93			5.48			5.32			5.08			4.92
Interest expense:
Cost of interest bearing deposits		2.67			2.40			2.13			1.89			1.73
Other borrowings
Cost of retail borrowings		1.88			1.80			1.46			1.10			0.95
Cost of wholesale borrowings		3.99			3.82			3.40			2.98			2.48
Cost of total borrowings		3.78			3.64			3.21			2.82			2.37
Cost of interest bearing liabilities		3.02			2.87			2.55			2.25			1.98
Interest rate spread		2.91			2.61			2.77			2.83			2.94
Net yield on earning assets		3.27	%		2.92	%		3.03	%		3.06	%		3.15	%

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.

13