NEWS FIRST
RELEASE CHARTER
P.O. Box 228 CORPORATION
Concord, NC 28026-0228
(704)786-3300 * FAX (704)788-0445
FOR IMMEDIATE RELEASE For Information Call:
Concord, North Carolina David E. Keul
April 13, 1998 (704) 786-3300
FIRST CHARTER CORPORATION
POSTS RECORD EARNINGS
FOR FIRST QUARTER
First Charter Corporation posted record earnings for the three
month period ended March 31, 1998. Net income was $3,010,656 for
the quarter, up 12.1% over the $2,686,099 reported for the
comparable period in 1997. Diluted earnings per share for the
quarter increased to $0.32, a 10.3% increase over the $0.29
reported for the first quarter of 1997.
On an annualized basis, these results represent a return on
average assets of 1.62% and a return on average equity of 15.20%.
The comparable figures for first quarter 1997 were 1.63% and
14.82%, respectively.
Total assets at March 31, 1998 were $775,783,232. Total
shareholders' equity was $81,173,399, representing a book value
per share of $8.70 and an equity/asset ratio of 10.46%. From
December 31, 1997, gross loans rose 4.7% to $548,919,896, and
deposits increased 2.3% to $635,834,184.
First Charter Corporation is headquartered in Concord, North
Carolina, and is the holding company for First Charter National
Bank and Bank of Union. The results detailed above are
unaudited.
The common stock of First Charter Corporation is traded on The
Nasdaq Stock Market as a National Market Security under the
symbol "FCTR". For information, contact: Dean Witter Reynolds,
Inc. (Larry Biggers, 1-800-786-0006), Interstate/Johnson Lane
Corporation (Connie Bailey, 1-800-929-0747), J.C. Bradford Co.
(Carl Cline, 1-800-222-1082), Legg Mason Wood Walker Incorporated
(A. Paul Newton, 1-800-628-5770), and Wheat First Union (Robert
Phillips, 1-800-289-2671).
First Charter Corporation and Subsidiaries
SELECTED AVERAGE BALANCES For the Three Months
(UNAUDITED) Ended
----------- ------------
March 31, March 31,
1998 1997
----------- ------------
(Dollars in thousands)
Interest earnings assets........... $698,578 $623,902
Interest bearing liabilities....... 583,247 508,220
Average asserts.................... 752,333 667,217
Average equity..................... 80,335 73,523
ALLOWANCE FOR LOANS LOSSES
March 31, December 31, March 31,
(Dollars in thousands) 1998 1997 1997
---------- ------------- ----------
(Unaudited) (Unaudited)
---------- ------------- ----------
Beginning balance (January 1)... $8,004 $6,528 $6,528
Add:
Provision charged to operations. 710 2,702 409
---------- ------------- ----------
8,714 9,230 6,937
---------- ------------ ----------
Less:
Loan charge-offs................ 767 1,626 344
Less loan recoveries............ 141 400 68
---------- ------------ ----------
Net loan charge-offs.......... 626 1,226 276
---------- ------------ ----------
Ending balance................... $8,088 $8,004 $6,661
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ASSET QUALITY RATIOS
March 31, December 31, March 31,
1998 1997 1997
---------- ------------- -----------
(Unaudited) (Unaudited)
---------- ------------- ------------
Nonaccruals to gross loans,
excluding loans held for
sale.......................... 0.36% 0.40% 0.35%
Net charge-offs to average loans
(YTD annualized).............. 0.47% 0.25% 0.24%
Allowance for loan losses to gross
loans, excluding loans held for
sale.......................... 1.50% 1.53% 1.42%
SIGNIFICANT OPERATING RATIOS
March 31, December 31, March 31,
1998 1997 1997
---------- -------------- ------------
(Unaudited) (Unaudited)
---------- -------------- ------------
Gross loans to total deposits.... 86.33% 84.34% 83.60%
Return on average assets -
(YTD annualized)............... 1.62% 1.20% 1.63%
Return on average equity -
(YTD annualized)............... 15.20% 11.04% 14.82%
First Charter Corporation and Subsidiaries
CONSOLIDATED BALANCE SHEETS
March 31, December 31, March 31,
(Dollars in thousands) 1998 1997 1997
---------- ------------ ----------
(Unaudited) (Unaudited)
---------- ------------ ----------
ASSETS:
Cash and due from banks......... $32,963 $33,077 $22,109
Federal funds sold.............. - - 4,880
Interest bearing bank deposits.. 7,870 7,975 216
Securities available for sale... 167,260 177,031 144,786
Investment securities........... - - 14,703
Loans, net...................... 540,628 515,799 463,086
Other assets.................... 27,062 27,812 25,319
---------- ------------ ---------
Total assets............... $775,783 $761,694 $675,099
========== ============ =========
LIABILITIES AND SHAREHOLDERS'
EQUITY:
Total deposits.................. $635,834 $621,354 $562,154
Other borrowings................ 53,017 53,279 35,083
Other liabilities............... 5,759 9,257 4,985
--------- ----------- ----------
Total liabilities.......... 694,610 683,890 602,222
Total shareholders' equity. 81,173 77,804 72,877
-------- ---------- ----------
Total liabilities and share-
holders' equity $775,783 $761,694 $675,099
======== ========== ==========
CONSOLIDATED STATEMENTS OF INCOME For the Three Months
(UNAUDITED) Ended
-------------------------
March 31, March 31,
1998 1997
-------------------------
(Dollars in thousands, except per
share data)
Total interest income.............. $14,930 $12,990
Total interest expense............. 6,441 5,808
-------------------------
Net interest income............... 8,489 7,182
Provision for loan losses.......... 710 409
-------------------------
Net interest income after provision
for loan losses................. 7,779 6,773
Total noninterest income........... 2,566 2,214
Total noninterest expense.......... 6,089 5,137
-------------------------
Income before income taxes........ 4,256 3,850
Income taxes....................... 1,245 1,164
-------------------------
Net income........................ $3,011 $2,686
=========================
Basic income per share data:
Net income........................ $0.32 $0.29
=========================
Average common equivalent shares.. 9,310,298 9,205,381
Diluted income per share:
Net income........................ $0.32 $0.29
=========================
Average common equivalent shares.. 9,460,050 9,272,252
Cash dividends declared............. $0.14 $0.125
=========================
Book value.......................... $8.70 $7.92
============ ==========