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

Exhibit 99 (a)

Bank of Granite NEWS

 — C O R P O R A T I O N —

FOR RELEASE: April 12, 2007

BANK OF GRANITE CORPORATION REPORTS
EARNINGS FOR FIRST QUARTER OF 2007

     Bank of Granite Corporation (NASDAQ: GRAN) reported earnings of $4.0 million for the quarter ended March 31, 2007, a decrease of 9.1% from the $4.4 million reported for the first quarter of 2006. On a diluted earnings per share basis, the Company earned $0.25 per share in the first quarter of 2007 compared to $0.28 per share in the first quarter of 2006, a decrease of 10.7%. Earnings per share for 2006 have been adjusted to reflect the five-for-four stock split distributed in September of 2006. The earnings decrease for the first quarter resulted from higher provisions for loan losses of approximately $682,000, before taxes, to increase estimated reserves related to nonperforming loans in the Company’s Catawba Valley market area and from the charge-off of approximately $307,000, before taxes, of interest income on loans that were charged off or moved into nonaccruing status during the first quarter.

     The earnings decrease also resulted in less favorable key performance ratios. The annualized return on average assets (ROA) was 1.36% in the first quarter of 2007 compared to 1.62% in the first quarter of 2006, while the annualized return on average equity (ROE) was 10.99% compared to 12.84% for the same periods. The Company’s efficiency ratio for the first quarter was 49.54% in 2007 compared to 49.07% in 2006.

     The Company ended the first quarter of 2007 with total assets of $1.22 billion, total loans of $0.93 billion, and total deposits of $0.97 billion. Total assets grew 5.6%, loans grew 8.8%, and deposits grew 6.1% from the first quarter of 2006. Total assets, total loans, and total deposits were all at record levels as of March 31, 2007.

     Charles Snipes, Chairman and CEO, said, “While many banks our size would have been pleased to report this level of quarterly earnings, we are disappointed in these results.” Snipes expressed his appreciation to the Company’s employees for their hard work during a difficult quarter.

     Bank of Granite Corporation’s common stock trades on the NASDAQ Global Select Market^SM under the symbol “GRAN.” Bank of Granite Corporation is the parent company of Bank of Granite and Granite Mortgage. Bank of Granite operates twenty-two full-service banking offices in eight North Carolina counties—Burke, Caldwell, Catawba, Forsyth, Iredell, Mecklenburg, Watauga, and Wilkes. Granite Mortgage, a mortgage banking company headquartered in Winston-Salem, originates home mortgages in these counties as well as in Cumberland, Guilford, and Rowan counties.

* * * * *

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

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

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Bank of Granite Corporation	Three Months Ended
Selected Financial Data	March 31,
(in thousands except per share data)	2007			2006			% change
Consolidated earnings summary:
Interest income, taxable equivalent	$	22,635		$	20,007			13.1	%
Interest expense		8,960			6,622			33.9	%
Net interest income, taxable equivalent		13,675			13,385			2.9	%
Taxable equivalent adjustment		232			269			-13.8	%
Net interest income		13,443			13,116			3.2	%
Loan loss provision		1,917			1,235			55.2	%
Noninterest income		3,151			3,001			5.0	%
Noninterest expense		8,336			8,040			4.9	%
Income before income taxes		6,341			6,842			-7.3	%
Income taxes		2,297			2,395			-4.1	%
Net income	$	4,044		$	4,447			-9.1	%
Earnings per share — Basic*	$	0.25		$	0.28			-10.7	%
Earnings per share — Diluted*		0.25			0.28			-10.7	%
Average shares — Basic*		16,018			16,098			-0.5	%
Average shares — Diluted*		16,074			16,153			-0.5	%
Consolidated balance sheet data at March 31:
Total assets	$	1,215,633		$	1,150,800			5.6	%
Total deposits		974,754			919,019			6.1	%
Loans (gross)		932,186			856,471			8.8	%
Stockholders’ equity		148,248			138,840			6.8	%
Consolidated average balance sheet data:
Total assets	$	1,202,007		$	1,113,990			7.9	%
Total deposits		960,524			886,464			8.4	%
Loans (gross)		927,001			847,371			9.4	%
Stockholders’ equity		149,277			140,415			6.3	%
Consolidated performance ratios:
Return on average assets**		1.36	%		1.62	%
Return on average equity**		10.99	%		12.84	%
Efficiency ratio		49.54	%		49.07	%
Consolidated asset quality data and ratios:
Nonaccruing loans	$	13,087		$	6,627			97.5	%
Accruing loans 90 days past due		1,615			3,616			-55.3	%
Nonperforming loans		14,702			10,243			43.5	%
Foreclosed properties		1,453			1,223			18.8	%
Nonperforming assets		16,155			11,466			40.9	%
Allowance for loan losses		16,672			15,119			10.3	%
Loans charged off		1,134			173			555.5	%
Recoveries of loans charged off		101			133			-24.1	%
Net loan charge-offs (recoveries)		1,033			40			n/m
Net charge-offs to average loans**		0.45	%		0.02	%
Nonperforming loans to total assets		1.21	%		0.89	%
Allowance coverage of nonperforming loans		113.40	%		147.60	%
Allowance for loan losses to gross loans		1.79	%		1.77	%
Allowance for loan losses to net loans		1.82	%		1.80	%
Subsidiary earnings summary:
Bank of Granite
Net interest income	$	12,944		$	12,585			3.6	%
Loan loss provision		1,905			1,223			55.8	%
Noninterest income		2,256			2,092			7.8	%
Noninterest expense		6,771			6,389			7.5	%
Income taxes		2,225			2,377			-6.4	%
Net income		4,299			4,688			-8.3	%
Granite Mortgage
Net interest income	$	748		$	707			5.8	%
Loan loss provision		12			12			0.0	%
Noninterest income		895			909			-1.5	%
Noninterest expense		1,451			1,560			-7.0	%
Income taxes		72			18			300.0	%
Net income		108			26			315.4	%

*   Periods prior to September 2006 have been adjusted to reflect the 5-for-4 stock split distributed in September 2006.	More
** Annualized based on number of days in the period.

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Bank of Granite Corporation	Quarters Ended
Supplemental Quarterly Financial Data	Mar 31,			Dec 31,			Sep 30,			Jun 30,			Mar 31,
(in thousands except per share data)	2007			2006			2006			2006			2006
Consolidated earnings summary:
Interest income, taxable equivalent	$	22,635		$	23,112		$	22,682		$	21,739		$	20,007
Interest expense		8,960			8,985			8,654			7,516			6,622
Net interest income, taxable equivalent		13,675			14,127			14,028			14,223			13,385
Taxable equivalent adjustment		232			238			237			254			269
Net interest income		13,443			13,889			13,791			13,969			13,116
Loan loss provision		1,917			1,877			1,387			1,915			1,235
Noninterest income		3,151			3,029			3,183			3,295			3,001
Noninterest expense		8,336			8,036			8,484			8,387			8,040
Income before income taxes		6,341			7,005			7,103			6,962			6,842
Income taxes		2,297			2,465			2,519			2,501			2,395
Net income	$	4,044		$	4,540		$	4,584		$	4,461		$	4,447
Earnings per share — Basic*	$	0.25		$	0.28		$	0.29		$	0.28		$	0.28
Earnings per share — Diluted*		0.25			0.28			0.29			0.28			0.28
Average shares — Basic*		16,018			16,022			16,018			16,058			16,098
Average shares — Diluted*		16,074			16,082			16,072			16,108			16,153
Consolidated ending balance sheet data:
Total assets	$	1,215,633		$	1,199,773		$	1,184,469		$	1,176,476		$	1,150,800
Total deposits		974,754			963,837			950,545			945,665			919,019
Loans (gross)		932,186			912,492			887,218			876,880			856,471
Stockholders’ equity		148,248			146,433			143,950			140,250			138,840
Consolidated average balance sheet data:
Total assets	$	1,202,007		$	1,189,096		$	1,174,604		$	1,144,210		$	1,113,990
Total deposits		960,524			953,876			942,102			913,170			886,464
Loans (gross)		927,001			898,878			874,654			869,153			847,371
Stockholders’ equity		149,277			147,417			143,991			142,161			140,415
Consolidated performance ratios:
Return on average assets**		1.36	%		1.51	%		1.55	%		1.56	%		1.62	%
Return on average equity**		10.99	%		12.22	%		12.63	%		12.59	%		12.84	%
Efficiency ratio		49.54	%		46.84	%		49.29	%		47.88	%		49.07	%
Consolidated asset quality data and ratios:
Nonaccruing loans	$	13,087		$	9,289		$	9,012		$	7,635		$	6,627
Accruing loans 90 days past due		1,615			5,074			4,319			3,603			3,616
Nonperforming loans		14,702			14,363			13,331			11,238			10,243
Foreclosed properties		1,453			1,162			1,217			851			1,223
Nonperforming assets		16,155			15,525			14,548			12,089			11,466
Allowance for loan losses		16,672			15,787			14,921			13,912			15,119
Loans charged off		1,134			1,140			668			3,222			173
Recoveries of loans charged off		101			130			289			101			133
Net loan charge-offs (recoveries)		1,033			1,010			379			3,121			40
Net charge-offs to average loans**		0.45	%		0.45	%		0.17	%		1.44	%		0.02	%
Nonperforming loans to total assets		1.21	%		1.20	%		1.13	%		0.96	%		0.89	%
Allowance coverage of nonperforming loans		113.40	%		109.91	%		111.93	%		123.79	%		147.60	%
Allowance for loan losses to gross loans		1.79	%		1.73	%		1.68	%		1.59	%		1.77	%
Allowance for loan losses to net loans		1.82	%		1.76	%		1.71	%		1.61	%		1.80	%
Subsidiary earnings summary:
Bank of Granite
Net interest income	$	12,944		$	13,432		$	13,230		$	13,316		$	12,585
Loan loss provision		1,905			1,865			1,375			1,903			1,223
Noninterest income		2,256			2,178			2,058			2,087			2,092
Noninterest expense		6,771			6,446			6,709			6,489			6,389
Income taxes		2,225			2,418			2,407			2,411			2,377
Net income		4,299			4,881			4,797			4,600			4,688
Granite Mortgage
Net interest income	$	748		$	767		$	861		$	891		$	707
Loan loss provision		12			12			12			12			12
Noninterest income		895			851			1,125			1,090			909
Noninterest expense		1,451			1,488			1,694			1,743			1,560
Income taxes		72			47			112			90			18
Net income		108			71			168			136			26

*   Periods prior to September 2006 have been adjusted to reflect the 5-for-4 stock split distributed in September 2006.
** Annualized based on number of days in the period.

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