Bank Of Granite 8-K Results of Operations and Financial Condition

Exhibit 99 (a)

Bank of Granite Corporation
     News

For Release: April 11, 2005

BANK OF GRANITE CORPORATION REPORTS INCREASED EARNINGS
FOR FIRST QUARTER OF 2005

     Bank of Granite Corporation (NASDAQ: GRAN) reported improved earnings for the first quarter of 2005.

     Net income for the quarter, ending March 31, 2005 was $3,185,237 compared to $2,991,327 in 2004—an increase of 6.5%. On a per share basis, this equates to 24¢ vs. 22¢ for the first quarter of 2004—an increase of 9.1%. Earnings in the first quarter of the previous year included a nonrecurring charge of approximately 2¢ per share. Charles M. Snipes, President and Chief Executive Officer, said the low comparable earnings continue to reflect the Bank’s investment in new markets and a continued weak economy in the bank’s “core” market area. He said, “the Federal Reserve’s increase in the Fed Funds rate in March and their indication of further increases in the future should provide a better interest rate margin and, hopefully, better earnings going forward.” Snipes thanked the entire Bank of Granite staff for their hard work during a very challenging quarter.

     Consolidated balance sheet data revealed total assets of approximately $1,039,124,000 compared to $977,445,000 for the first quarter of 2004, an increase of 6.3%. Deposits of approximately $795,929,000 were up 7.4% compared with deposits of $740,846,000 in 2004. Total loans of approximately $792,509,000, compared to $726,375,000 in 2004, were up 9.1%. All of these amounts are all-time highs for the bank. Snipes said he expected 2005 to mark the 52nd consecutive year of increased dividends to shareholders, a record for any public banking company in the country.

     Bank of Granite Corporation is the parent company of Bank of Granite and Granite Mortgage, Inc. The bank operates 21 full service banking offices in Caldwell, Catawba, and Burke Counties—the “Unifour” area of North Carolina, and in Mecklenburg, Watauga, Forsyth and Wilkes Counties. Granite Mortgage, headquartered in Winston- Salem, originates home mortgages in the Catawba Valley and the Central and Southern Piedmont regions of North Carolina, in addition to Boone and Wilkesboro, and in Hilton Head, South Carolina. Bank of Granite Corporation has an estimated 6,900 shareholders. Its stock trades on the national NASDAQ Stock Market® under the symbol GRAN.

     Bank of Granite’s Annual Shareholder’s Meeting will be held at 10:30 AM at the Holiday Inn Select, in Hickory, NC on Monday, April 25, 2005.

* * * * *

Please see the attached “Financial Data” tables.
For further information, contact Kirby Tyndall, Chief Financial Officer
Voice (828) 496-2026, Fax (828) 496-2010 or Internet: ktyndall@bankofgranite.com.

Bank of Granite Corporation, PO Box 128, Granite Falls, NC 28630 www.bankofgranite.com

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Bank of Granite Corporation
Selected Financial Data

	Three Months Ended
	March 31,
(in thousands except per share data)	2005			2004			% change
Consolidated earnings summary:
Interest income, taxable equivalent	$	15,273		$	13,676			11.7	%
Interest expense		4,076			3,078			32.4	%
Net interest income, taxable equivalent		11,197			10,598			5.7	%
Taxable equivalent adjustment		311			365			-14.8	%
Net interest income		10,886			10,233			6.4	%
Loan loss provision		1,230			1,245			-1.2	%
Noninterest income		2,458			2,649			-7.2	%
Noninterest expense		7,315			7,209			1.5	%
Income before income taxes		4,799			4,428			8.4	%
Income taxes		1,614			1,437			12.3	%
Net income	$	3,185		$	2,991			6.5	%
Earnings per share — Basic	$	0.24		$	0.22			9.1	%
Earnings per share — Diluted		0.24			0.22			9.1	%
Average shares — Basic		13,285			13,623			-2.5	%
Average shares — Diluted		13,323			13,683			-2.6	%
Consolidated balance sheet data at March 31:
Total assets	$	1,039,124		$	977,445			6.3	%
Total deposits		795,929			740,846			7.4	%
Loans (gross)		792,509			726,375			9.1	%
Shareholders’ equity		139,922			142,300			-1.7	%
Consolidated average balance sheet data:
Total assets	$	1,032,133		$	967,298			6.7	%
Total deposits		772,582			724,811			6.6	%
Loans (gross)		784,679			719,853			9.0	%
Shareholders’ equity		140,889			142,486			-1.1	%
Consolidated performance ratios:
Return on average assets*		1.25	%		1.24	%
Return on average equity*		9.17	%		8.44	%
Efficiency ratio		53.57	%		54.42	%
Consolidated asset quality data and ratios:
Nonaccruing loans	$	6,791		$	4,229			60.6	%
Accruing loans 90 days past due		4,211			2,568			64.0	%
Nonperforming loans		11,002			6,797			61.9	%
Foreclosed properties		1,790			1,709			4.7	%
Nonperforming assets		12,792			8,506			50.4	%
Allowance for loan losses		13,970			11,583			20.6	%
Loans charged off		1,017			556			82.9	%
Recoveries of loans charged off		92			95			-3.2	%
Net loan charge-offs (recoveries)		925			461			100.7	%
Net charge-offs to average loans*		0.48	%		0.26	%
Nonperforming loans to total assets		1.06	%		0.70	%
Allowance coverage of nonperforming loans		126.98	%		170.41	%
Allowance for loan losses to gross loans		1.76	%		1.59	%
Allowance for loan losses to net loans		1.79	%		1.62	%
Subsidiary earnings summary:
Bank of Granite
Net interest income	$	10,243		$	9,472			8.1	%
Loan loss provision		1,224			1,245			-1.7	%
Noninterest income		1,637			1,722			-4.9	%
Noninterest expense		5,743			5,602			2.5	%
Income taxes		1,599			1,354			18.1	%
Net income		3,314			2,993			10.7	%
Granite Mortgage
Net interest income	$	708		$	807			-12.3	%
Loan loss provision		6			—			n/a
Noninterest income		820			927			-11.5	%
Noninterest expense		1,489			1,527			-2.5	%
Income taxes		15			83			-81.9	%
Net income		24			124			-80.6	%

* Annualized based on number of days in the period. More

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Bank of Granite Corporation
Supplemental Quarterly Financial Data

	Quarters Ended
	Mar 31,			Dec 31,			Sep 30,			Jun 30,			Mar 31,
(in thousands except per share data)	2005			2004			2004			2004			2004
Consolidated earnings summary:
Interest income, taxable equivalent	$	15,273		$	14,818		$	14,100		$	14,018		$	13,676
Interest expense		4,076			3,697			3,259			3,073			3,078
Net interest income, taxable equivalent		11,197			11,121			10,841			10,945			10,598
Taxable equivalent adjustment		311			321			321			340			365
Net interest income		10,886			10,800			10,520			10,605			10,233
Loan loss provision		1,230			1,412			1,678			1,104			1,245
Noninterest income		2,458			2,883			2,850			2,875			2,649
Noninterest expense		7,315			7,356			7,075			7,475			7,209
Income before income taxes		4,799			4,915			4,617			4,901			4,428
Income taxes		1,614			1,622			1,499			1,585			1,437
Net income	$	3,185		$	3,293		$	3,118		$	3,316		$	2,991
Earnings per share — Basic	$	0.24		$	0.25		$	0.23		$	0.25		$	0.22
Earnings per share — Diluted		0.24			0.25			0.23			0.24			0.22
Average shares — Basic		13,285			13,352			13,426			13,522			13,623
Average shares — Diluted		13,323			13,401			13,468			13,569			13,683
Consolidated ending balance sheet data:
Total assets	$	1,039,124		$	1,032,238		$	1,004,006		$	993,985		$	977,445
Total deposits		795,929			749,862			772,672			744,541			740,846
Loans (gross)		792,509			778,137			753,335			740,932			726,375
Shareholders’ equity		139,922			141,016			140,993			140,077			142,300
Consolidated average balance sheet data:
Total assets	$	1,032,133		$	1,016,830		$	1,000,136		$	987,822		$	967,298
Total deposits		772,582			759,430			763,643			738,039			724,811
Loans (gross)		784,679			762,644			745,999			732,768			719,853
Shareholders’ equity		140,889			140,756			140,111			140,739			142,486
Consolidated performance ratios:
Return on average assets*		1.25	%		1.29	%		1.24	%		1.35	%		1.24	%
Return on average equity*		9.17	%		9.31	%		8.85	%		9.48	%		8.44	%
Efficiency ratio		53.57	%		52.53	%		51.68	%		54.09	%		54.42	%
Consolidated asset quality data and ratios:
Nonaccruing loans	$	6,791		$	6,634		$	5,533		$	4,192		$	4,229
Accruing loans 90 days past due		4,211			4,227			3,927			6,274			2,568
Nonperforming loans		11,002			10,861			9,460			10,466			6,797
Foreclosed properties		1,790			1,280			1,352			1,462			1,709
Nonperforming assets		12,792			12,141			10,812			11,928			8,506
Allowance for loan losses		13,970			13,665			12,801			11,864			11,583
Loans charged off		1,017			688			875			920			556
Recoveries of loans charged off		92			139			135			96			95
Net loan charge-offs (recoveries)		925			549			740			824			461
Net charge-offs to average loans*		0.48	%		0.29	%		0.39	%		0.45	%		0.26	%
Nonperforming loans to total assets		1.06	%		1.05	%		0.94	%		1.05	%		0.70	%
Allowance coverage of nonperforming loans		126.98	%		125.82	%		135.32	%		113.36	%		170.41	%
Allowance for loan losses to gross loans		1.76	%		1.76	%		1.70	%		1.60	%		1.59	%
Allowance for loan losses to net loans		1.79	%		1.79	%		1.73	%		1.63	%		1.62	%
Subsidiary earnings summary:
Bank of Granite
Net interest income	$	10,243		$	9,960		$	9,728		$	9,595		$	9,472
Loan loss provision		1,224			1,406			1,676			1,104			1,245
Noninterest income		1,637			1,870			1,926			1,895			1,722
Noninterest expense		5,743			5,516			5,401			5,538			5,602
Income taxes		1,599			1,523			1,417			1,492			1,354
Net income		3,314			3,385			3,160			3,356			2,993
Granite Mortgage
Net interest income	$	708		$	926		$	859		$	1,081		$	807
Loan loss provision		6			6			2			—			—
Noninterest income		820			1,014			924			980			927
Noninterest expense		1,489			1,693			1,579			1,828			1,527
Income taxes		15			99			82			93			83
Net income		24			148			122			140			124

* Annualized based on number of days in the period.

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