Exhibit 99.1
P.O. Box 3793
Charlotte, NC 28237-793
(704) 688-4300 / (800) 422-465
fax (704) 688-214
Charlotte, NC 28237-793
(704) 688-4300 / (800) 422-465
fax (704) 688-214
[FCTR NASDAQ Listed] | For Additional Information Contact: | |||
| Charles A. Caswell, | Robin S. Leslie | |||
| Chief Financial Officer | Investor Relations | |||
| (704) 688-1112 | (704) 688-4505 |
FOR IMMEDIATE RELEASE
July 24, 2006
July 24, 2006
First Charter Reports Record Quarterly Net Interest Income
Second Quarter 2006 Highlights — Compared to Second Quarter 2005:
| • | Balance Sheet Growth and Net Interest Margin Improvement Drive Record Tax Equivalent Net Interest Income of $33.2 Million. | ||
| • | Net Income Increases $0.3 Million to $11.5 Million. | ||
| • | Commercial Lending Focus And Raleigh Market Entry Help Push Commercial Loan Average Balances Up $244.5 Million, or 18%. | ||
| • | Money Market and Noninterest Bearing Deposit Growth Drive $181.5 Million, or 14%, Increase in Core Deposit Average Balances. | ||
| • | Net Interest Margin Improves 33 Basis Points to 3.36%. |
Additional Second Quarter 2006 Highlights at First Charter
| • | First Charter Announced Atlanta, GA Market Entry Through Merger With Gwinnett Banking Company — Expected To Close Fourth Quarter 2006. | ||
| • | Strong Credit Quality Continues, Annualized Net Charge-offs 0.11% of Average Loans. | ||
| • | Raleigh Balance Sheet Growth Exceeds Expectations. | ||
| • | Customer Satisfaction Scores Continue Strong — 84% Rate “Very-Satisfied” With First Charter. |
| • | First Charter Looks to Optimize Retail Network Through Announced Sale of Two Branches. | ||
| • | First Charter Announced Fifteenth Consecutive Annual Increase In Dividends. |
CHARLOTTE, North Carolina — First Charter Corporation (NASDAQ: FCTR) today reported that 2006 second quarter net income increased 2 percent to $11.5 million from $11.3 million in the same quarter a year ago. The improved performance was driven largely by an improved net interest margin, strong loan and deposit growth and solid credit quality. On a fully diluted basis, earnings per share were $0.37, the same level as the second quarter of 2005 and the first quarter of 2006. The impact of expensing equity compensation under FAS 123R reduced quarterly net income by approximately 1.4 cents per share in each quarter of 2006. Earnings in the second quarter of 2005 were not similarly impacted.
Return on average assets and return on average equity were 1.08 percent and 13.78 percent, respectively, for the second quarter of 2006 compared to 1.00 percent and 14.12 percent for the second quarter of 2005 and 1.10 percent and 14.12 percent for the first quarter of 2006.
For the first six months of 2006, First Charter earned $23.0 million, or $0.74 per share, compared to $21.6 million, or $0.71 per share, a year earlier.
“First Charter’s journey towards becoming a high-performing financial services company took several critical steps in the second quarter,” said Bob James, President and CEO of First Charter Corporation. “This quarter was marked with a number of significant accomplishments that we know we can build upon. Specifically, we are referring to our record net interest income, strong overall commercial loan growth, our deposit growth — particularly in the second half of the quarter, continued strong credit quality, and our recently announced 15th consecutive year of increased annual dividends.”
“Further,” James continued, “we are executing our growth strategy with several significant developments for our company. For example, our de novo Raleigh market entry has produced better balance sheet growth than we expected at this time, and we have found the right partner and platform, Gwinnett Banking Company, to introduce First Charter to the high-growth metro Atlanta market. Additionally, we continue to look for additional operating efficiencies as evidenced by the recently announced sale of 2 financial centers in western North Carolina.”
Financial Highlights
| For the Three Months | For the Six Months | |||||||||||||||
| Ended June 30 | Ended June 30 | |||||||||||||||
| (Dollars in thousands, except per share data) | 2006 | 2005 | 2006 | 2005 | ||||||||||||
Earnings | ||||||||||||||||
Total revenues(1) | $ | 49,887 | $ | 48,607 | $ | 100,218 | $ | 94,995 | ||||||||
| Net income | 11,546 | 11,280 | 22,990 | 21,589 | ||||||||||||
| Diluted earnings per share | 0.37 | 0.37 | 0.74 | 0.71 | ||||||||||||
Financial Ratios | ||||||||||||||||
| Return on average assets | 1.08 | % | 1.00 | % | 1.09 | % | 0.97 | % | ||||||||
| Return on average equity | 13.78 | 14.12 | 13.95 | 13.67 | ||||||||||||
Efficiency-taxable equivalent ratio(2) | 62.33 | 59.70 | 62.11 | 60.54 | ||||||||||||
Average Balance Sheet | ||||||||||||||||
| Loans, net | $ | 3,030,815 | $ | 2,788,438 | $ | 2,988,596 | $ | 2,670,810 | ||||||||
| Securities | 921,026 | 1,441,853 | 917,910 | 1,501,035 | ||||||||||||
| Total assets | 4,276,335 | 4,543,846 | 4,240,006 | 4,492,094 | ||||||||||||
| Total deposits | 2,790,197 | 2,689,390 | 2,787,928 | 2,659,757 | ||||||||||||
| Other borrowings | 1,108,734 | 1,491,636 | 1,079,295 | 1,467,904 | ||||||||||||
| Shareholders’ equity | 335,979 | 320,412 | 332,391 | 318,455 | ||||||||||||
Asset Quality Ratios(3) | ||||||||||||||||
| Past due loans over 30 days as a percentage of loans | 0.28 | % | 0.45 | % | 0.28 | % | 0.45 | % | ||||||||
| Allowance for loan losses as a percentage of loans | 0.96 | 1.02 | 0.96 | 1.02 | ||||||||||||
| Allowance for loan losses as a percentage of nonaccrual loans | 380.27 | 294.50 | 380.27 | 294.50 | ||||||||||||
| Net charge-offs as a percentage of average loans-annualized | 0.11 | 0.19 | 0.11 | 0.20 | ||||||||||||
| | ||||||||||||||||
| (1) | Net interest income plus noninterest income. | |
| (2) | Noninterest expense less debt extinguishment expense and derivative termination costs divided by the plus noninterest income less gain (loss) on sale of securities. on sale of securities. | |
| (3) | Ratios exclude loans held for sale. |
Commercial Lending is Catalyst For Loan Growth
First Charter continues to achieve strong loan growth. Total loan average balances increased $242.4 million, or 9 percent, to $3.03 billion compared to the same quarter a year ago. Commercial and construction loan average balances contributed $244.5 million of the increase, growing at a rate of 18 percent. Consumer loan average balances grew $14.6 million, or 2 percent. Mortgage loan average balances decreased $16.7 million, or 3 percent. The decline in mortgage loan balances is due, in part, to normal loan amortization and First Charter’s strategy of selling most of its new mortgage production in the secondary market.
Compared to the first quarter of 2006, total average loan balances grew $84.9 million, or 12 percent annualized, on the strength of $103.0 million of commercial and construction loan growth. Both consumer and mortgage loans declined in the quarter, with average loan balances falling $11.0 and $7.1 million, respectively. The decline in consumer loan balances was partly the result of customers refinancing adjustable rate home equity loans into fixed rate first mortgage loans.
“Our recent commercial loan growth is directly attributable to our renewed focus on that line of business and the energy of the retooled commercial lending team over this period,” said Bob James. “Investing in talented, self-motivated teammates who value long term relationships with their clients and who have strong ties to the community is paying off for us.”
Core Deposit Balances Continue to Build — Deposit Growth Comes Late in Second Quarter
Deposit growth, particularly low-cost transaction (or core) deposit growth (money market, demand and savings accounts), continues to be an area of emphasis at First Charter. Core deposit average balances increased $181.5 million, or 14 percent, compared to the second quarter of 2005. The increase was driven by a $122.9 million, or 28 percent, increase in money market average balances and a $40.0 million, or 10 percent, increase in noninterest bearing demand deposit average balances.
Retail certificate of deposit (CD) average balances declined $74.9 million compared with the second quarter of 2005. Retail CD balances in the 2005 second quarter were positively impacted by an aggressively priced CD campaign dating to the fall of 2004. Among First Charter’s efforts to improve its net interest margin, it refrained from aggressively repricing the large concentration of maturing CDs in the fall of 2005. This contributed to a decline in retail CD balances in the fourth quarter of 2005 and the decline in the year over year retail CD average balance comparison.
Compared to the first quarter of 2006 core deposit average balances increased $12.6 million, or 4 percent annualized. The growth was concentrated in noninterest bearing demand deposits and NOW accounts.
There was, however, significantly more deposit growth recognized late in the second quarter as evidenced by the $60 million, or 16 percent annualized, increase in period end core deposit balances between the first and second quarters of 2006. Additionally, retail CD balance growth also picked up in the latter half of the quarter. Looking at period end balances between the end of the first and second quarters of 2006, retail CD balances grew $94.6 million, or 43 percent annualized. The increase appeared to be largely driven by customer preferences for the higher yields offered by CDs relative to other bank deposit products at the time.
Net Interest Margin Expands 33 Basis Points Over Year Ago Levels
The net interest margin, on a tax equivalent basis, increased 33 basis points to 3.36 percent in the second quarter of 2006 from 3.03 percent for the second quarter of 2005. The margin improvement continues to benefit, in part, from the previously disclosed October 2005 balance sheet repositioning. Net interest income on a tax equivalent basis increased to $33.2 million, representing a $1.3 million, or 4 percent, increase over the second quarter of 2005.
Compared to the second quarter of 2005, earning asset yields increased 119 basis points. This was driven by two factors. First, loan yields increased 113 basis points to 7.17 percent and securities yields increased 45 basis points to 4.37 percent. Second, the mix of higher yielding (loan) assets improved as a result of the balance sheet repositioning. The percentage of investment securities (which have lower yields than loans, on average) to total earning assets was reduced from 33 percent to 22 percent over the past year.
On the liability side of the balance sheet, the cost of interest bearing liabilities increased 104 basis points compared to the second quarter of 2005. This was comprised of a 98 basis point increase in interest bearing deposit costs to 3.11 percent while other borrowing costs increased 140 basis points to 4.88 percent. During this period, the Federal Reserve raised the rate at which banks can lend funds to each other (the Fed Funds rate) by 200 basis points. Also, as a result of the balance sheet repositioning, the percentage of higher-cost wholesale borrowings was reduced from 42 to 33 percent of total liabilities over the past year.
The net interest margin during the quarter decreased 4 basis points from a net interest margin of 3.40 percent in the first quarter of 2006. Several factors contributed to the margin decline, including an apparent shift in deposit customer preferences towards higher yielding CDs at the expense of lower yielding transaction deposits, an uptick in competitive pricing pressure in regional deposits, and less consumer loan growth than anticipated.
Compared to the first quarter of 2006, earning asset yields increased 22 basis points. This was driven by a 26 basis point increase in loan yields and a 6 basis point increase in securities yields.
On the liability side of the balance sheet, interest-bearing liabilities increased 32 basis points to 3.59 percent. This was primarily the result of a 36 basis point increase in other borrowing costs as a result of an increase in the fed funds rate and a 28 basis point increase in interest bearing deposit costs.
Noninterest Income
Noninterest income decreased $0.1 million, or less than 1 percent, to $17.2 million compared to the second quarter of 2005. The year over year comparison of noninterest income was impacted by several unique transactions which include: Bank Owned Life Insurance (“BOLI”) claims of $0.9 million in the second quarter of 2005 versus none in the same quarter of 2006; $0.2 million of losses in the Corporation’s SBIC/Venture Capital portfolio in the second quarter of 2005 versus marginal gains in the same quarter of 2006; and $0.2 million of gains on the sale of bank property in the second quarter of 2005 versus $0.1 million in the second quarter of 2006. Excluding these transactions, noninterest income increased $0.7 million, or 5 percent, compared to the second quarter of 2005. This improvement was primarily due to a $0.4 million increase in service charges resulting from increased NSF volume, a $0.4 million increase in ATM, debit card and merchant income as a result of increased transaction volume and a $0.1 million increase in mortgage loan fees. Insurance and brokerage revenues declined $0.2 million and $0.1 million, respectively.
Noninterest income decreased $1.0 million, or 5 percent, compared to the first quarter of 2006. The decline was primarily due to a $1.4 million decrease in insurance revenues as a result of seasonal factors and a $0.5 million gain in the Corporation’s SBIC/Venture Capital portfolio in the first quarter of 2006 versus marginal gains in the second quarter. The decline was partially offset by a $0.8 million increase in service charges and a $0.2 million increase in ATM, debit card and merchant income.
Raleigh Growth Update
In October 2005 and mid-February 2006, the Corporation expanded into the Raleigh, North Carolina market with one and three de novo financial centers, respectively. As previously disclosed, the expenses associated with the Raleigh initiative are front-end loaded and will be ahead of revenues during 2006.
“Our early experience in Raleigh has validated our belief in the potential of this high growth market,” James commented. “While it will take us a while to become well-known throughout the region, our Raleigh team is working hard to position First Charter as a strong banking option for individuals and businesses.”
For the second quarter of 2006, Raleigh-related expenses, including marketing expenses, were $1.4 million versus revenues and transfer-priced net income (net of loan loss provision) of $0.2 million. This negatively impacted EPS by 2.5 cents during the quarter. Year-to-date Raleigh-related expenses were $2.5 million versus revenues of $0.4 million. This negatively impacted EPS by 4.6 cents on a year-to-date basis.
During the second quarter, total loans in the Raleigh market grew $39.3 million to $81.2 million, exceeding growth expectations. During the same period, deposits grew $26.6 million totaling $30.0 million at June 30, 2006.
“Our stronger than anticipated loan growth in Raleigh has actually accelerated some of our start-up costs, primarily due to the additional loan loss provision immediately required to support the loan growth,” James commented. “Over time, spread income will more than offset this.”
Noninterest Expense Impacted by Raleigh Initiative and Personnel Costs
Noninterest expense increased $2.1 million to $31.4 million compared to the second quarter of 2005. Of this, $1.5 million is attributable to expenses related to First Charter’s Raleigh investments and the recent opening of a de novo branch in South Charlotte.
Salaries and employee benefits increased $0.9 million compared to the second quarter of 2005, of which $0.7 million is due to additional personnel in the Raleigh market and the Charlotte de novo branch. Expenses associated with equity-based compensation (FAS 123R) totaled $0.6 million, while increased commission-based compensation contributed $0.4 million toward the increase in salary and employee benefits. These increases were partially offset by a $1.1 million expense associated with a legacy employee benefit plan in the second quarter of 2005, which did not recur in 2006.
Professional services increased $0.3 million, data processing increased $0.2 million as a result of increased ATM and debit transaction costs, and occupancy and equipment expense increased $0.2 million due to additional financial center lease and depreciation costs, of which $0.3 million were related to additional Raleigh financial centers and the Charlotte de novo branch.
Noninterest expense decreased $0.1 million, or less than 1 percent, compared to the first quarter of 2006. Salaries and employee benefits decreased $0.9 million due to lower medical costs and lower employee benefit expenses. This was partially offset by increased professional fees and foreclosed properties expense.
Strong Credit Quality
Credit quality continues to be very strong with net charge-offs only 0.11 percent of average loans in the second quarter of 2006 compared to 0.19 percent in the same quarter a year ago.
Nonperforming assets totaled $13.7 million at June 30, 2006, representing a $2.6 million decrease from a year ago and a $2.3 million decrease from December 31, 2005. Nonperforming assets as a percentage of total loans and other real estate owned decreased to 0.44 percent at June 30, 2006 compared to 0.57 percent at June 30, 2005 and 0.54 percent at December 31, 2005.
The allowance for loan losses as a percent of total loans was 0.96 percent at June 30, 2006, a decrease from 0.98 at December 31, 2005 and a decrease from 1.02 percent in the same quarter a year ago. The provision for loan losses was $0.9 million for the three months ended June 30, 2006, equal to net charge-offs for the period. For the same year ago period, the provision for loan losses was $2.9 million and net charge-offs were $1.3 million. The lower allowance for loan loss ratio and the reduction in the provision expense are related to the Corporation’s improved credit quality trends.
Customer Satisfaction
Second quarter results from our Customer Satisfaction Survey indicated that 84 percent of our customers were “Very Satisfied” with the “Expect More” service they received from our teammates in the financial centers. “Very Satisfied” customers are more likely to consolidate their business at First Charter, recommend us to their friends and family, and look to us for financial solutions in the future.
Conference Call
The First Charter executive management team will be available via telephone conference to discuss the contents of this press release on Tuesday, July 25, 2006 at 10:00 a.m. EDT. Slides designed to accompany the presentation will be available after 6:00 p.m. EDT on Monday, July 24, 2006 on the Corporation’s web site, www.firstcharter.com. 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 # 2646631 | 706-679-5254 ID # 2646631 | ||||||
| Internet Live and Replay | www.FirstCharter.com “Investor Relations” section | www.FirstCharter.com “Investor Relations” section | ||||||
| Audio Replay | 800-642-1687 ID # 2646631 | 706-645-9291 ID # 2646631 | ||||||
Corporate Profile
First Charter Corporation is a regional financial services company with assets of approximately $4.4 billion and is the holding company for First Charter Bank. First Charter operates 58 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, wealth management, investments, insurance, mortgages and a broad 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 Global Select.
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 the Corporation’s control, include, among others, the following possibilities: (1) projected results in connection with management’s implementation of, or changes in, the Corporation’s business plan and strategic initiatives, including the recent 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) the Corporation’s competitors may have greater financial resources and may develop products that enable them to compete more successfully in the markets in which it operates; and (12) changes in the securities markets, including changes in interest rates, may adversely affect the Corporation’s ability to raise capital from time to time.
First Charter Corporation and Subsidiaries | (NASDAQ: FCTR) | |
Quarterly Earnings Release |
| As of / For the Six Months Ended | Increase (Decrease) | |||||||||||||||||||
| (Dollars in thousands, except per share data) | 6/30/2006 | 6/30/2005 | Amount | Percentage | ||||||||||||||||
BALANCE SHEET | ||||||||||||||||||||
| ASSETS: | ||||||||||||||||||||
| Cash and due from banks | $ | 115,557 | $ | 104,886 | $ | 10,671 | 10.2 | % | ||||||||||||
| Federal funds sold | 2,347 | 2,250 | 97 | 4.3 | ||||||||||||||||
| Interest earning bank deposits | 13,432 | 3,167 | 10,265 | 324.1 | ||||||||||||||||
| Securities available for sale | 884,370 | 1,412,885 | (528,515 | ) | (37.4 | ) | ||||||||||||||
| Loans held for sale | 8,382 | 8,159 | 223 | 2.7 | ||||||||||||||||
| Loans | ||||||||||||||||||||
| Commercial Real Estate | 885,981 | 785,718 | 100,263 | 12.8 | ||||||||||||||||
| Commercial Non Real Estate | 220,433 | 219,029 | 1,404 | 0.6 | ||||||||||||||||
| Construction | 584,094 | 444,125 | 139,969 | 31.5 | ||||||||||||||||
| Mortgage | 557,338 | 581,257 | (23,919 | ) | (4.1 | ) | ||||||||||||||
| Consumer | 355,815 | 328,163 | 27,652 | 8.4 | ||||||||||||||||
| Home equity | 468,685 | 500,080 | (31,395 | ) | (6.3 | ) | ||||||||||||||
| Total loans | 3,072,346 | 2,858,372 | 213,974 | 7.5 | ||||||||||||||||
| Less: Unearned income | (58 | ) | (213 | ) | 155 | (72.8 | ) | |||||||||||||
| Allowance for loan losses | (29,520 | ) | (29,032 | ) | (488 | ) | 1.7 | |||||||||||||
| Loans, net | 3,042,768 | 2,829,127 | 213,641 | 7.6 | ||||||||||||||||
| Other assets | 296,418 | 272,762 | 23,656 | 8.7 | ||||||||||||||||
| Total assets | $ | 4,363,274 | $ | 4,633,236 | $ | (269,962 | ) | (5.8 | )% | |||||||||||
| LIABILITIES AND SHAREHOLDERS’ EQUITY: | ||||||||||||||||||||
| Deposits | ||||||||||||||||||||
| Noninterest-bearing deposits | $ | 449,732 | $ | 406,982 | $ | 42,750 | 10.5 | % | ||||||||||||
| Interest checking and savings | 508,587 | 475,643 | 32,944 | 6.9 | ||||||||||||||||
| Money market deposits | 611,886 | 440,117 | 171,769 | 39.0 | ||||||||||||||||
| Retail certificates of deposit | 972,395 | 994,671 | (22,276 | ) | (2.2 | ) | ||||||||||||||
| Wholesale certificates of deposit | 446,202 | 433,972 | 12,230 | 2.8 | ||||||||||||||||
| Total deposits | 2,988,802 | 2,751,385 | 237,417 | 8.6 | ||||||||||||||||
| Other borrowings | ||||||||||||||||||||
| Retail other borrowings | 102,839 | 118,557 | (15,718 | ) | (13.3 | ) | ||||||||||||||
| Wholesale short-term other borrowings | 250,041 | 637,445 | (387,404 | ) | (60.8 | ) | ||||||||||||||
| Wholesale long-term other borrowings | 642,827 | 747,320 | (104,493 | ) | (14.0 | ) | ||||||||||||||
| Total other borrowings | 995,707 | 1,503,322 | (507,615 | ) | (33.8 | ) | ||||||||||||||
| Other liabilities | 41,830 | 50,831 | (9,001 | ) | (17.7 | ) | ||||||||||||||
| Total liabilities | 4,026,339 | 4,305,538 | (279,199 | ) | (6.5 | ) | ||||||||||||||
| Total shareholders’ equity | 336,935 | 327,698 | 9,237 | 2.8 | ||||||||||||||||
| Total liabilities and shareholders’ equity | $ | 4,363,274 | $ | 4,633,236 | $ | (269,962 | ) | (5.8 | )% | |||||||||||
SELECTED AVERAGE BALANCES | ||||||||||||||||||||
| Loans and loans held for sale | $ | 2,988,596 | $ | 2,670,810 | $ | 317,786 | 11.9 | % | ||||||||||||
| Securities | 917,910 | 1,501,035 | (583,125 | ) | (38.8 | ) | ||||||||||||||
| Interest earning assets | 3,914,969 | 4,179,587 | (264,618 | ) | (6.3 | ) | ||||||||||||||
| Assets | 4,240,006 | 4,492,094 | (252,088 | ) | (5.6 | ) | ||||||||||||||
| Noninterest bearing deposits | 420,364 | 380,421 | 39,943 | 10.5 | ||||||||||||||||
| Interest checking and savings | 482,309 | 459,101 | 23,208 | 5.1 | ||||||||||||||||
| Money market deposits | 568,263 | 471,955 | 96,308 | 20.4 | ||||||||||||||||
| Retail certificates of deposit | 900,400 | 969,822 | (69,422 | ) | (7.2 | ) | ||||||||||||||
| Wholesale certificates of deposit | 416,592 | 356,057 | 60,535 | 17.0 | ||||||||||||||||
| Deposits | 2,787,928 | 2,659,757 | 128,171 | 4.8 | ||||||||||||||||
| Other borrowings | 1,079,295 | 1,467,904 | (388,609 | ) | (26.5 | ) | ||||||||||||||
| Interest bearing liabilities | 3,446,859 | 3,747,241 | (300,382 | ) | (8.0 | ) | ||||||||||||||
| Shareholders’ equity | 332,391 | 318,455 | 13,936 | 4.4 | ||||||||||||||||
| As of / For the Quarter Ended | ||||||||||||||||||||
| 6/30/2006 | 3/31/2006 | 12/31/2005 | 9/30/2005 | 6/30/2005 | ||||||||||||||||
MISCELLANEOUS INFORMATION | ||||||||||||||||||||
| Common stock prices (daily close) | ||||||||||||||||||||
| High | $ | 25.38 | $ | 25.05 | $ | 26.66 | $ | 25.73 | $ | 23.34 | ||||||||||
| Low | 23.51 | 23.28 | 22.34 | 22.25 | 20.85 | |||||||||||||||
| End of period | 24.53 | 24.70 | 23.66 | 24.48 | 21.97 | |||||||||||||||
| Book Value | 10.83 | 10.77 | 10.53 | 10.82 | 10.73 | |||||||||||||||
| Tangible Book Value | 10.36 | 10.30 | 10.06 | 10.35 | 10.25 | |||||||||||||||
| Market Capitalization | 763,383,927 | 765,059,628 | 727,235,906 | 749,010,521 | 670,822,115 | |||||||||||||||
| Weighted average shares — basic | 31,058,858 | 30,859,461 | 30,678,743 | 30,575,440 | 30,409,307 | |||||||||||||||
| Weighted average shares — diluted | 31,339,325 | 31,153,338 | 30,678,743 | 30,891,887 | 30,679,636 | |||||||||||||||
| End of period shares outstanding | 31,120,421 | 30,974,074 | 30,736,936 | 30,596,835 | 30,533,551 | |||||||||||||||
First Charter Corporation and Subsidiaries | (NASDAQ: FCTR) | |
Quarterly Earnings Release |
| As of / For the Quarter Ended | ||||||||||||||||||||
| (Dollars in thousands, except per share data) | 6/30/2006 | 3/31/2006 | 12/31/2005 | 9/30/2005 | 6/30/2005 | |||||||||||||||
BALANCE SHEET | ||||||||||||||||||||
| ASSETS: | ||||||||||||||||||||
| Cash and due from banks | $ | 115,557 | $ | 95,382 | $ | 119,080 | $ | 123,489 | $ | 104,886 | ||||||||||
| Federal funds sold | 2,347 | 2,706 | 2,474 | 1,997 | 2,250 | |||||||||||||||
| Interest earning bank deposits | 13,432 | 3,745 | 3,998 | 5,885 | 3,167 | |||||||||||||||
| Securities available for sale | 884,370 | 900,424 | 899,111 | 1,374,163 | 1,412,885 | |||||||||||||||
| Loans held for sale | 8,382 | 8,719 | 6,447 | 7,309 | 8,159 | |||||||||||||||
| Loans | ||||||||||||||||||||
| Commercial Real Estate | 885,981 | 820,318 | 780,597 | 795,362 | 785,718 | |||||||||||||||
| Commercial Non Real Estate | 220,433 | 213,338 | 233,409 | 227,762 | 219,029 | |||||||||||||||
| Construction | 584,094 | 583,288 | 517,392 | 484,911 | 444,125 | |||||||||||||||
| Mortgage | 557,338 | 565,166 | 573,007 | 582,673 | 581,257 | |||||||||||||||
| Consumer | 355,815 | 355,636 | 358,592 | 346,772 | 328,163 | |||||||||||||||
| Home equity | 468,685 | 473,342 | 482,921 | 492,881 | 500,080 | |||||||||||||||
| Total loans | 3,072,346 | 3,011,088 | 2,945,918 | 2,930,361 | 2,858,372 | |||||||||||||||
| Less: Unearned income | (58 | ) | (125 | ) | (173 | ) | (216 | ) | (213 | ) | ||||||||||
| Allowance for loan losses | (29,520 | ) | (29,505 | ) | (28,725 | ) | (29,788 | ) | (29,032 | ) | ||||||||||
| Loans, net | 3,042,768 | 2,981,458 | 2,917,020 | 2,900,357 | 2,829,127 | |||||||||||||||
| Other assets | 296,418 | 290,922 | 284,290 | 286,522 | 272,762 | |||||||||||||||
| Total assets | $ | 4,363,274 | $ | 4,283,356 | $ | 4,232,420 | $ | 4,699,722 | $ | 4,633,236 | ||||||||||
| LIABILITIES AND SHAREHOLDERS’ EQUITY: | ||||||||||||||||||||
| Deposits | ||||||||||||||||||||
| Noninterest-bearing deposits | $ | 449,732 | $ | 422,184 | $ | 429,758 | $ | 420,531 | $ | 406,982 | ||||||||||
| Interest checking and savings | 508,587 | 500,392 | 488,115 | 481,293 | 475,643 | |||||||||||||||
| Money market deposits | 611,886 | 587,516 | 559,865 | 580,312 | 440,117 | |||||||||||||||
| Retail certificates of deposit | 972,395 | 877,769 | 916,569 | 938,871 | 994,671 | |||||||||||||||
| Wholesale certificates of deposit | 446,202 | 412,485 | 405,172 | 451,986 | 433,972 | |||||||||||||||
| Total deposits | 2,988,802 | 2,800,346 | 2,799,479 | 2,872,993 | 2,751,385 | |||||||||||||||
| Other borrowings | ||||||||||||||||||||
| Retail other borrowings | 102,839 | 121,740 | 170,094 | 116,562 | 118,557 | |||||||||||||||
| Wholesale short-term other borrowings | 250,041 | 339,201 | 340,620 | 502,821 | 637,445 | |||||||||||||||
| Wholesale long-term other borrowings | 642,827 | 642,843 | 557,859 | 819,005 | 747,320 | |||||||||||||||
| Total other borrowings | 995,707 | 1,103,784 | 1,068,573 | 1,438,388 | 1,503,322 | |||||||||||||||
| Other liabilities | 41,830 | 45,599 | 40,772 | 57,296 | 50,831 | |||||||||||||||
| Total liabilities | 4,026,339 | 3,949,729 | 3,908,824 | 4,368,677 | 4,305,538 | |||||||||||||||
| Total shareholders’ equity | 336,935 | 333,627 | 323,596 | 331,045 | 327,698 | |||||||||||||||
| Total liabilities and shareholders’ equity | $ | 4,363,274 | $ | 4,283,356 | $ | 4,232,420 | $ | 4,699,722 | $ | 4,633,236 | ||||||||||
SELECTED AVERAGE BALANCES | ||||||||||||||||||||
| Loans and loans held for sale | $ | 3,030,815 | $ | 2,945,908 | $ | 2,932,195 | $ | 2,904,954 | $ | 2,788,438 | ||||||||||
| Securities | 921,026 | 914,759 | 1,028,477 | 1,420,033 | 1,441,853 | |||||||||||||||
| Interest earning assets | 3,960,835 | 3,868,518 | 3,969,620 | 4,331,780 | 4,236,232 | |||||||||||||||
| Assets | 4,276,335 | 4,203,273 | 4,303,821 | 4,665,301 | 4,543,846 | |||||||||||||||
| Noninterest bearing deposits | 427,923 | 412,720 | 424,118 | 417,013 | 387,898 | |||||||||||||||
| Interest checking and savings | 488,276 | 476,275 | 469,594 | 469,283 | 469,752 | |||||||||||||||
| Money market deposits | 561,005 | 575,601 | 581,324 | 495,401 | 438,065 | |||||||||||||||
| Retail certificates of deposit | 906,672 | 894,059 | 930,395 | 993,352 | 981,600 | |||||||||||||||
| Wholesale certificates of deposit | 406,322 | 426,977 | 433,135 | 437,116 | 412,075 | |||||||||||||||
| Deposits | 2,790,197 | 2,785,633 | 2,838,566 | 2,812,165 | 2,689,390 | |||||||||||||||
| Other borrowings | 1,108,734 | 1,049,529 | 1,099,350 | 1,471,482 | 1,491,636 | |||||||||||||||
| Interest bearing liabilities | 3,471,008 | 3,422,441 | 3,513,797 | 3,866,634 | 3,793,128 | |||||||||||||||
| Shareholders’ equity | 335,979 | 328,763 | 323,753 | 328,115 | 320,412 | |||||||||||||||
First Charter Corporation and Subsidiaries | (NASDAQ: FCTR) | |
Quarterly Earnings Release |
| For the Three Months Ended | Increase (Decrease) | |||||||||||||||
| (Dollars in thousands, except per share data) | 6/30/2006 | 6/30/2005 | Amount | Percentage | ||||||||||||
INCOME STATEMENT | ||||||||||||||||
| Interest income — taxable equivalent | $ | 64,318 | $ | 56,199 | $ | 8,119 | 14.4 | % | ||||||||
| Interest expense | 31,095 | 24,314 | 6,781 | 27.9 | ||||||||||||
| Net interest income — taxable equivalent | 33,223 | 31,885 | 1,338 | 4.2 | ||||||||||||
| Less: taxable equivalent adjustment | 576 | 595 | (19 | ) | (3.2 | ) | ||||||||||
| Net interest income | 32,647 | 31,290 | 1,357 | 4.3 | ||||||||||||
| Provision for loan losses | 880 | 2,878 | (1,998 | ) | (69.4 | ) | ||||||||||
| Net interest income after provision for loan losses | 31,767 | 28,412 | 3,355 | 11.8 | ||||||||||||
| Noninterest income | 17,240 | 17,317 | (77 | ) | (0.4 | ) | ||||||||||
| Noninterest expense | 31,436 | 29,364 | 2,072 | 7.1 | ||||||||||||
| Income before income taxes | 17,571 | 16,365 | 1,206 | 7.4 | ||||||||||||
| Income tax expense | 6,025 | 5,085 | 940 | 18.5 | ||||||||||||
Net income | $ | 11,546 | $ | 11,280 | $ | 266 | 2.4 | % | ||||||||
EARNINGS PER SHARE DATA | ||||||||||||||||
| Basic | $ | 0.37 | $ | 0.37 | $ | — | — | % | ||||||||
| Diluted | 0.37 | 0.37 | — | — | ||||||||||||
| Weighted average shares — basic | 31,058,858 | 30,409,307 | ||||||||||||||
| Weighted average shares — diluted | 31,339,325 | 30,679,636 | ||||||||||||||
| Dividends paid on common shares | $ | 0.190 | $ | 0.190 | $ | — | — | % | ||||||||
PERFORMANCE RATIOS | ||||||||||||||||
| Return on average assets | 1.08 | % | 1.00 | % | ||||||||||||
| Return on average equity | 13.78 | 14.12 | ||||||||||||||
| Efficiency — taxable equivalent (*) | 62.33 | 59.70 | ||||||||||||||
| For the Three Months Ended | ||||||||||||||||
| 6/30/2006 | 6/30/2005 | |||||||||||||||
SCHEDULE OF SELECTED ITEMS INCLUDED IN EARNINGS | ||||||||||||||||
| Noninterest income | ||||||||||||||||
| Gain on sale of securities | $ | 32 | $ | 18 | ||||||||||||
| Equity method investment gain (loss) | 11 | (174 | ) | |||||||||||||
| Gain on sale of properties | 107 | 188 | ||||||||||||||
| Bank owned life insurance payment | — | 925 | ||||||||||||||
| Noninterest expense | ||||||||||||||||
| Employee benefit plan modification | — | 1,079 | ||||||||||||||
| 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 gain (loss) on sale of securities. |
First Charter Corporation and Subsidiaries | (NASDAQ: FCTR) | |
Quarterly Earnings Release |
| For the Six Months Ended | Increase (Decrease) | |||||||||||||||
| (Dollars in thousands, except per share data) | 6/30/2006 | 6/30/2005 | Amount | Percentage | ||||||||||||
INCOME STATEMENT | ||||||||||||||||
| Interest income — taxable equivalent | $ | 124,550 | $ | 108,056 | $ | 16,494 | 15.3 | % | ||||||||
| Interest expense | 58,651 | 45,022 | 13,629 | 30.3 | ||||||||||||
| Net interest income — taxable equivalent | 65,899 | 63,034 | 2,865 | 4.5 | ||||||||||||
| Less: taxable equivalent adjustment | 1,162 | 1,170 | (8 | ) | (0.7 | ) | ||||||||||
| Net interest income | 64,737 | 61,864 | 2,873 | 4.6 | ||||||||||||
| Provision for loan losses | 2,399 | 4,778 | (2,379 | ) | (49.8 | ) | ||||||||||
| Net interest income after provision for loan losses | 62,338 | 57,086 | 5,252 | 9.2 | ||||||||||||
| Noninterest income | 35,481 | 33,131 | 2,350 | 7.1 | ||||||||||||
| Noninterest expense | 62,948 | 58,233 | 4,715 | 8.1 | ||||||||||||
| Income before income taxes | 34,871 | 31,984 | 2,887 | 9.0 | ||||||||||||
| Income taxes | 11,881 | 10,395 | 1,486 | 14.3 | ||||||||||||
Net income | $ | 22,990 | $ | 21,589 | $ | 1,401 | 6.5 | % | ||||||||
EARNINGS PER SHARE DATA | ||||||||||||||||
| Basic | $ | 0.74 | $ | 0.71 | $ | 0.03 | 4.2 | % | ||||||||
| Diluted | 0.74 | 0.71 | 0.03 | 4.2 | ||||||||||||
| Weighted average shares — basic | 30,959,711 | 30,285,244 | ||||||||||||||
| Weighted average shares — diluted | 31,249,049 | 30,607,931 | ||||||||||||||
| Dividends paid on common shares | $ | 0.38 | $ | 0.38 | $ | — | — | % | ||||||||
PERFORMANCE RATIOS | ||||||||||||||||
| Return on average assets | 1.09 | % | 0.97 | % | ||||||||||||
| Return on average equity | 13.95 | 13.67 | ||||||||||||||
| Efficiency — taxable equivalent (*) | 62.11 | 60.54 | ||||||||||||||
| | ||||||||||||||||
| For the Six Months Ended | ||||||||||||||||
| 6/30/2006 | 6/30/2005 | |||||||||||||||
SCHEDULE OF SELECTED ITEMS INCLUDED IN EARNINGS | ||||||||||||||||
| Noninterest income | ||||||||||||||||
| Gain (loss) on sale of securities | $ | 32 | $ | (31 | ) | |||||||||||
| Equity method investment gain (loss) | 556 | (232 | ) | |||||||||||||
| Gain on sale of properties | 188 | 717 | ||||||||||||||
| 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 less debt extinguishment expense and derivative termination costs divided by the sum of taxable equivalent net interest income plus noninterest income less gain (loss) 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) | 6/30/2006 | 3/31/2006 | 12/31/2005 | 9/30/2005 | 6/30/2005 | |||||||||||||||
INCOME STATEMENT | ||||||||||||||||||||
Interest income — taxable equivalent | ||||||||||||||||||||
| Interest and fees on loans | $ | 54,167 | $ | 50,306 | $ | 48,505 | $ | 45,941 | $ | 42,016 | ||||||||||
| Interest on securities | 10,054 | 9,852 | 10,646 | 13,660 | 14,145 | |||||||||||||||
| Other interest income | 97 | 75 | 80 | 53 | 38 | |||||||||||||||
| Total interest income — taxable equivalent | 64,318 | 60,233 | 59,231 | 59,654 | 56,199 | |||||||||||||||
Interest expense | ||||||||||||||||||||
| Interest on deposits | 18,343 | 16,562 | 16,245 | 14,487 | 12,210 | |||||||||||||||
| Other interest expense | 12,752 | 10,994 | 10,465 | 13,503 | 12,104 | |||||||||||||||
| Total interest expense | 31,095 | 27,556 | 26,710 | 27,990 | 24,314 | |||||||||||||||
| Net interest income — taxable equivalent | 33,223 | 32,677 | 32,521 | 31,664 | 31,885 | |||||||||||||||
| Less: Taxable equivalent adjustment | 576 | 586 | 592 | 574 | 595 | |||||||||||||||
Net interest income | 32,647 | 32,090 | 31,929 | 31,090 | 31,290 | |||||||||||||||
| Provision for loan losses | 880 | 1,519 | 1,795 | 2,770 | 2,878 | |||||||||||||||
Net interest income after provision for loan losses | 31,767 | 30,571 | 30,134 | 28,320 | 28,412 | |||||||||||||||
Noninterest income | ||||||||||||||||||||
| Service charges on deposit accounts | 7,469 | 6,698 | 7,191 | 7,321 | 7,061 | |||||||||||||||
| Wealth management income | 1,535 | 1,664 | 1,366 | 1,358 | 1,596 | |||||||||||||||
| Gain (loss) on sale of securities | 32 | — | (16,671 | ) | 12 | 18 | ||||||||||||||
| Gain (loss) from equity method investments | 11 | 545 | (68 | ) | 29 | (174 | ) | |||||||||||||
| Mortgage loan fees | 916 | 808 | 789 | 873 | 817 | |||||||||||||||
| Brokerage services income | 692 | 711 | 636 | 888 | 793 | |||||||||||||||
| Insurance services income | 2,857 | 4,290 | 2,953 | 2,796 | 3,099 | |||||||||||||||
| Bank owned life insurance | 850 | 827 | 859 | 863 | 1,762 | |||||||||||||||
| Gain on sale of properties | 107 | 81 | 571 | 566 | 188 | |||||||||||||||
| ATM & merchant income | 2,117 | 1,898 | 1,810 | 1,723 | 1,719 | |||||||||||||||
| Other noninterest income | 654 | 719 | 603 | 614 | 438 | |||||||||||||||
| Total noninterest income | 17,240 | 18,241 | 39 | 17,043 | 17,317 | |||||||||||||||
Noninterest expense | ||||||||||||||||||||
| Salaries and employee benefits | 16,824 | 17,693 | 16,217 | 15,901 | 15,908 | |||||||||||||||
| Occupancy and equipment | 4,887 | 4,770 | 3,395 | 4,344 | 4,687 | |||||||||||||||
| Data processing | 1,491 | 1,453 | 1,412 | 1,310 | 1,333 | |||||||||||||||
| Marketing | 1,196 | 1,288 | 1,447 | 1,076 | 1,065 | |||||||||||||||
| Postage and supplies | 1,328 | 1,231 | 1,172 | 1,092 | 1,187 | |||||||||||||||
| Professional services | 2,305 | 1,950 | 2,299 | 2,064 | 1,984 | |||||||||||||||
| Telephone | 528 | 579 | 578 | 537 | 551 | |||||||||||||||
| Amortization of intangibles | 154 | 150 | 152 | 129 | 126 | |||||||||||||||
| Debt extinguishment expense | — | — | 6,884 | — | — | |||||||||||||||
| Derivative termination costs | — | — | 7,770 | — | — | |||||||||||||||
| Other noninterest expense | 2,723 | 2,398 | 2,720 | 2,490 | 2,523 | |||||||||||||||
| Total noninterest expense | 31,436 | 31,512 | 44,046 | 28,943 | 29,364 | |||||||||||||||
| Income before taxes | 17,571 | 17,300 | (13,873 | ) | 16,420 | 16,365 | ||||||||||||||
| Income tax expense | 6,025 | 5,856 | (5,543 | ) | 4,368 | 5,085 | ||||||||||||||
Net income | $ | 11,546 | $ | 11,444 | $ | (8,330 | ) | $ | 12,052 | $ | 11,280 | |||||||||
EARNINGS PER SHARE DATA | ||||||||||||||||||||
| Basic | $ | 0.37 | $ | 0.37 | $ | (0.27 | ) | $ | 0.39 | $ | 0.37 | |||||||||
| Diluted | 0.37 | 0.37 | (0.27 | ) | 0.39 | 0.37 | ||||||||||||||
| Dividends paid on common shares | 0.190 | 0.190 | 0.190 | 0.190 | 0.190 | |||||||||||||||
PERFORMANCE RATIOS | ||||||||||||||||||||
| Return on average assets | 1.08 | % | 1.10 | % | (0.77 | )% | 1.02 | % | 1.00 | % | ||||||||||
| Return on average equity | 13.78 | 14.12 | (10.21 | ) | 14.57 | 14.12 | ||||||||||||||
| Efficiency — taxable equivalent (*) | 62.33 | 61.89 | 59.70 | 59.44 | 59.70 | |||||||||||||||
| Noninterest income as a percentage of total income | 34.56 | 36.24 | 0.12 | 35.41 | 35.63 | |||||||||||||||
| Equity as a percentage of total assets | 7.72 | 7.79 | 7.65 | 7.04 | 7.07 | |||||||||||||||
| Tangible equity as a percentage of total assets | 7.20 | 7.26 | 7.10 | 6.58 | 6.58 | |||||||||||||||
| Tier 1 Capital to Risk Adjusted Assets | 11.17 | 11.22 | 11.20 | 11.37 | 10.70 | |||||||||||||||
| Total Capital to Risk Adjusted Assets | 12.02 | 12.08 | 12.06 | 12.25 | 11.58 | |||||||||||||||
| As of / For the Quarter Ended | ||||||||||||||||||||
| 6/30/2006 | 3/31/2006 | 12/31/2005 | 9/30/2005 | 6/30/2005 | ||||||||||||||||
SCHEDULE OF SELECTED ITEMS INCLUDED IN EARNINGS | ||||||||||||||||||||
| Noninterest income | ||||||||||||||||||||
| Gain (loss) on sale of securities | $ | 32 | $ | — | $ | (16,671 | ) | $ | 12 | $ | 18 | |||||||||
| Equity method investment gain (loss) | 11 | 545 | (68 | ) | 29 | (174 | ) | |||||||||||||
| Gain on sale of properties | 107 | 81 | 571 | 566 | 188 | |||||||||||||||
| Bank owned life insurance payment | — | — | — | — | 925 | |||||||||||||||
| Noninterest expense | ||||||||||||||||||||
| Employee benefit plan modification | — | — | — | — | 1,079 | |||||||||||||||
| Fixed asset adjustment | — | — | (1,386 | ) | — | — | ||||||||||||||
| Prepayment costs on borrowings | — | — | 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 gain (loss) 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) | 6/30/2006 | 3/31/2006 | 12/31/2005 | 9/30/2005 | 6/30/2005 | |||||||||||||||
ASSET QUALITY ANALYSIS | ||||||||||||||||||||
Allowance for Loan Losses | ||||||||||||||||||||
| Beginning balance | $ | 29,505 | $ | 28,725 | $ | 29,788 | $ | 29,032 | $ | 27,483 | ||||||||||
| Provision for loan losses | 880 | 1,519 | 1,795 | 2,770 | 2,878 | |||||||||||||||
| Charge-offs | (1,135 | ) | (1,229 | ) | (3,021 | ) | (2,197 | ) | (1,516 | ) | ||||||||||
| Recoveries | 270 | 490 | 163 | 183 | 187 | |||||||||||||||
| Net charge-offs | (865 | ) | (739 | ) | (2,858 | ) | (2,014 | ) | (1,329 | ) | ||||||||||
| Ending balance | $ | 29,520 | $ | 29,505 | $ | 28,725 | $ | 29,788 | $ | 29,032 | ||||||||||
Nonperforming Assets and Loans 90 days or more past due accruing interest | ||||||||||||||||||||
| Nonaccrual loans | $ | 7,763 | $ | 9,211 | $ | 10,811 | $ | 7,071 | $ | 9,858 | ||||||||||
| Other real estate | 5,902 | 6,072 | 5,124 | 6,079 | 6,390 | |||||||||||||||
| Total nonperforming assets | 13,665 | 15,283 | 15,935 | 13,150 | 16,248 | |||||||||||||||
| Loans 90 days or more past due accruing interest | — | — | — | — | — | |||||||||||||||
Total | $ | 13,665 | $ | 15,283 | $ | 15,935 | $ | 13,150 | $ | 16,248 | ||||||||||
Asset Quality Ratios (*) | ||||||||||||||||||||
| Nonaccrual loans as a percentage of total loans | 0.25 | % | 0.31 | % | 0.37 | % | 0.24 | % | 0.34 | % | ||||||||||
| Nonperforming assets as a percentage of total assets | 0.31 | 0.36 | 0.38 | 0.28 | 0.35 | |||||||||||||||
| Nonperforming assets as a percentage of total loans and other real estate | 0.44 | 0.51 | 0.54 | 0.45 | 0.57 | |||||||||||||||
| Net charge-offs as a percentage of average loans (annualized) | 0.11 | 0.10 | 0.39 | 0.28 | 0.19 | |||||||||||||||
| Allowance for loan losses as a percentage of loans | 0.96 | 0.98 | 0.98 | 1.02 | 1.02 | |||||||||||||||
| Ratio of allowance for loan losses to: | ||||||||||||||||||||
| Net charge-offs (annualized) | 8.51 | x | 9.84 | x | 2.53 | x | 3.73 | x | 5.45 | x | ||||||||||
| Nonaccrual loans | 3.80 | 3.20 | 2.66 | 4.21 | 2.95 | |||||||||||||||
| As of / For the Six Months Ended | Increase (Decrease) | |||||||||||||||||||
| 6/30/2006 | 6/30/2005 | Amount | Percentage | |||||||||||||||||
Allowance for Loan Losses | ||||||||||||||||||||
| Beginning balance | $ | 28,725 | $ | 26,872 | $ | 1,853 | 6.9 | % | ||||||||||||
| Provision for loan losses | 2,399 | 4,778 | (2,379 | ) | (49.8 | ) | ||||||||||||||
| Charge-offs | (2,364 | ) | (3,434 | ) | (1,070 | ) | (31.2 | ) | ||||||||||||
| Recoveries | 760 | 816 | (56 | ) | (6.9 | ) | ||||||||||||||
| Net charge-offs | (1,604 | ) | (2,618 | ) | (1,014 | ) | (38.7 | ) | ||||||||||||
| Ending balance | $ | 29,520 | $ | 29,032 | $ | 488 | 1.7 | % | ||||||||||||
Asset Quality Ratios (*) | ||||||||||||||||||||
| Net charge-offs as a percentage of average loans | 0.11 | % | 0.20 | % | ||||||||||||||||
| Ratio of allowance for loan losses to net charge-offs | 9.13 | x | 5.50 | x | ||||||||||||||||
| | ||||||||||||||||||||
| For the Quarter Ended | ||||||||||||||||||||
| 6/30/2006 | 3/31/2006 | 12/31/2005 | 9/30/2005 | 6/30/2005 | ||||||||||||||||
ANNUALIZED INTEREST YIELDS / RATES (*) | ||||||||||||||||||||
Interest income: | ||||||||||||||||||||
| Yield on loans and loans held for sale | 7.17 | % | 6.91 | % | 6.57 | % | 6.28 | % | 6.04 | % | ||||||||||
| Yield on securities | 4.37 | 4.31 | 4.16 | 3.84 | 3.92 | |||||||||||||||
| Yield on interest earning assets | 6.51 | 6.29 | 5.93 | 5.48 | 5.32 | |||||||||||||||
Interest expense: | ||||||||||||||||||||
| Cost of interest bearing deposits | 3.11 | 2.83 | 2.67 | 2.40 | 2.13 | |||||||||||||||
| Other borrowings | ||||||||||||||||||||
| Cost of retail borrowings | 2.81 | 2.44 | 1.88 | 1.80 | 1.46 | |||||||||||||||
| Cost of wholesale borrowings | 4.88 | 4.50 | 3.99 | 3.82 | 3.40 | |||||||||||||||
| Cost of total borrowings | 4.61 | 4.25 | 3.78 | 3.64 | 3.21 | |||||||||||||||
| Cost of interest bearing liabilities | 3.59 | 3.27 | 3.02 | 2.87 | 2.55 | |||||||||||||||
| Interest rate spread | 2.92 | 3.02 | 2.91 | 2.61 | 2.77 | |||||||||||||||
| Net yield on earning assets | 3.36 | % | 3.40 | % | 3.27 | % | 2.92 | % | 3.03 | % | ||||||||||
| Notes: | Applicable ratios are annualized. (*) — Excludes loans held for sale. |