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Exhibit 99.1
News Release Dated 07-13-2000
For Additional Information,
Contact Robert O. Bratton,
Chief Financial Officer
(704) 721-4473
or
Jan H. Hollar,
Director of Finance
(704) 721-4467
FOR IMMEDIATE RELEASE
July 13, 2000
FIRST CHARTER ANNOUNCES
SECOND QUARTER EARNINGS
Concord, North Carolina - First Charter Corporation (NASDAQ: FCTR) reported
today that second quarter 2000 recurring net income increased 24.2% over the
second quarter 1999. Second quarter 2000 recurring net income amounted to $9.6
million, or $0.31 diluted net income per share, excluding $12.0 million in
after-tax nonrecurring charges primarily associated with the merger with
Carolina First BancShares, Inc. This is compared to recurring net income of $7.8
million, or $0.24 diluted net income per share for the second quarter 1999,
excluding a $1.1 million after-tax nonrecurring gain associated with the sale of
mortgage loans.
Lawrence M. Kimbrough, President and Chief Executive Officer commented that "The
strong increase in recurring net income is driven by the continued growth of our
commercial relationships and by increases in noninterest income resulting from
our ongoing efforts to meet the banking, investment and insurance needs of our
customers. At the core of our success is the First Charter tradition of
delivering exceptional customer service. Going forward, we will continue to
search for and invest in better ways to create extraordinary experiences for our
customers each and every day."
Recurring net income for the six month period ended June 30, 2000 amounted to
$18.1 million, or $0.58 diluted net income per share, excluding $12.0 million in
after-tax nonrecurring charges primarily associated with the merger with
Carolina First BancShares, Inc. This represents a 12.9% increase over the $16.0
million or $0.50 diluted recurring net income per share during the first six
months of 1999, excluding a $1.1 million after-tax nonrecurring gain associated
with the sale of mortgage loans.
Including the nonrecurring items noted above, the net loss for the second
quarter 2000 totaled $2.3 million or $0.08 diluted net loss per share, compared
to net income of $8.9 million or $0.28 diluted net income per share for second
quarter 1999. Additionally, including the nonrecurring items noted above, net
income for the six month period ended June 30, 2000 totaled $6.1 million
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or $0.20 diluted net income per share, compared to net income of $17.2 million
or $0.54 diluted net income per share for the prior year period.
(SELECTED FINANCIAL INFORMATION IS ATTACHED)
Corporate Profile
First Charter Corporation is the holding company for First Charter National
Bank. First Charter is a regional financial services company with assets of $2.8
billion that operates 50 financial centers and 85 ATMs located in 14 counties
throughout North Carolina. First Charter provides businesses and individuals
with a broad range of financial services, including banking, comprehensive
financial planning, funds management, investments, insurance, mortgages and a
full array of employee benefit programs. Additional information about First
Charter can be found at www.FirstCharter.com or by calling 1-800-601-8471.
Common stock for First Charter is traded under the symbol "FCTR" on The Nasdaq
National Market. The closing price of First Charter's stock on July 12, 2000 was
$15.875 per share.
The First Charter Corporation merger with Carolina First BancShares, Inc., the
holding company for Lincoln Bank of North Carolina, Cabarrus Bank of North
Carolina, and Community Bank and Trust, was completed during the second quarter
of 2000 and was accounted for as a pooling of interests. Accordingly, all
financial results for prior periods have been restated to combine the results of
Carolina First BancShares, Inc. with those of First Charter Corporation. Lincoln
Bank of North Carolina, Cabarrus Bank of North Carolina, and Community Bank and
Trust were merged into First Charter National Bank during the second quarter of
2000.
This news release contains forward-looking statements. Such statements are
subject to certain factors which may cause the company's results to vary from
those expected, including the risks set forth from time to time in the company's
filings with the Securities and Exchange Commission. Readers are cautioned not
to place undue reliance on these forward-looking statements, which reflect
management's judgment only as of the date hereof. The company undertakes no
obligation to publicly revise these forward-looking statements to reflect events
and circumstances that arise after the date hereof.
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FIRST CHARTER CORPORATION AND SUBSIDIARIES
(UNAUDITED)
CONSOLIDATED BALANCE SHEETS
(DOLLARS IN THOUSANDS) JUNE 30, DECEMBER 31, JUNE 30,
ASSETS: 2000 1999 CHANGE 1999 CHANGE
-----------------------------------------------------------------
Cash and due from banks $ 71,355 $ 94,065 (24.1)% $ 65,677 8.6
Federal funds sold 1,658 665 149.3 1,175 41.1
Interest earning bank deposits 8,196 1,995 310.8 5,215 57.2
Securities available for sale 500,310 523,517 (4.4) 534,567 (6.4)
Loans, net 2,062,674 1,942,871 6.2 1,848,488 11.6
Other assets 141,931 114,335 24.1 96,848 46.6
------------------------------------------------------------------
Total assets $2,786,124 $2,677,448 4.1 $2,551,970 9.2
==================================================================
LIABILITIES AND SHAREHOLDERS' EQUITY:
Total deposits $1,870,958 $1,816,491 3.0% $1,796,366 4.2
Other borrowings 584,144 542,021 7.8 430,313 35.7
Other liabilities 42,221 28,694 47.1 33,005 27.9
------------------------------------------------------------------
Total liabilities 2,497,323 2,387,206 4.6 2,259,684 10.5
Total shareholders' equity 288,801 290,242 (0.5) 292,286 (1.2)
------------------------------------------------------------------
Total liabilities and shareholders' equity $2,786,124 $2,677,448 4.1 $2,551,970 9.2
==================================================================
CONSOLIDATED STATEMENTS OF INCOME THREE MONTHS ENDED JUNE 30, SIX MONTHS ENDED JUNE 30,
----------------------------------- -------------------------------------
(DOLLARS IN THOUSANDS) 2000 1999 CHANGE 2000 1999 CHANGE
----------------------------------- -------------------------------------
Interest and fees on loans $45,167 $39,643 13.9 % $ 88,570 $80,200 10.4 %
Interest on securities 8,009 7,590 5.5 16,117 14,976 7.6
Other interest income 167 139 20.1 294 620 (52.6)
----------------------------------- ------------------------------------
Total interest income 53,343 47,372 12.6 104,981 95,796 9.6
----------------------------------- ------------------------------------
Interest on deposits 17,413 16,475 5.7 34,265 33,332 2.8
Other interest expense 8,786 5,345 64.4 16,533 11,741 40.8
----------------------------------- ------------------------------------
Total interest expense 26,199 21,820 20.1 50,798 45,073 12.7
----------------------------------- ------------------------------------
Net interest income 27,144 25,552 6.2 54,183 50,723 6.8
Provision for loan losses 1,370 1,597 (14.2) 3,340 2,955 13.0
----------------------------------- ------------------------------------
Net interest income after provision 25,774 23,955 7.6 50,843 47,768 6.4
----------------------------------- ------------------------------------
Trust income 698 627 11.3 1,378 1,221 12.9
Service charges on deposit accounts 3,091 2,142 44.3 5,642 4,131 36.6
Gain on sale of securities 260 274 (5.1) 412 658 (37.4)
Gain (loss) on sale of loans (99) 1,757 (105.6) (99) 1,757 (105.6)
Insurance and other fee income 1,619 1,558 3.9 3,490 3,232 8.0
Other noninterest income 1,615 1,040 55.3 2,947 2,135 38.0
----------------------------------- ------------------------------------
Total noninterest income 7,184 7,398 (2.9) 13,770 13,134 4.8
----------------------------------- ------------------------------------
Salaries and employee benefits 10,053 8,922 12.7 20,235 17,869 13.2
Occupancy and equipment 3,133 2,984 5.0 6,146 5,605 9.7
Restructuring merger related expense 15,675 -- -- 15,675 -- --
Other noninterest expense 5,754 6,516 (11.7) 11,802 12,269 (3.8)
----------------------------------- ------------------------------------
Total noninterest expense 34,615 18,422 87.9 53,858 35,743 50.7
----------------------------------- ------------------------------------
Income (loss) before income taxes (1,657) 12,931 (112.8) 10,755 25,159 (57.3)
Income taxes 681 4,019 (83.1) 4,625 7,975 (42.0)
----------------------------------- ------------------------------------
Net income (loss) $(2,338) $ 8,912 (126.2) $ 6,130 $17,184 (64.3)
=================================== ====================================
Net interest income, taxable equivalent $27,634 $25,894 6.7 % $ 55,114 $51,574 6.9 %
=================================== ====================================
SHARE INFORMATION THREE MONTHS ENDED JUNE 30, SIX MONTHS ENDED JUNE 30,
------------------------------------------ ----------------------------------------
2000 1999 CHANGE 2000 1999 CHANGE
------------------------------------------ ----------------------------------------
Basic income (loss) per share:
Net income (loss) $ (0.08) $ 0.28 (128.6)% $ 0.20 $ 0.54 (63.0)%
Average common equivalent shares 31,119,789 31,437,082 (1.0) 31,041,095 31,615,245 (1.8)
Diluted income (loss) per share:
Net income (loss) $ (0.08) $ 0.28 (128.6) $ 0.20 $ 0.54 (63.0)
Average common equivalent shares 31,301,829 31,726,228 (1.3) 31,209,513 31,888,421 (2.1)
Shares outstanding at period end 31,126,570 31,024,242 0.3 31,126,570 31,024,242 0.3
Cash dividends declared $ 0.17 $ 0.17 -- $ 0.34 $ 0.34 --
Book value $ 9.28 $ 9.42 (1.5) $ 9.28 $ 9.42 (1.5)
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FIRST CHARTER CORPORATION AND SUBSIDIARIES
(UNAUDITED)
CONSOLIDATED STATEMENTS OF INCOME EXCLUDING NONRECURRING ITEMS
- ---------------------------------------------------------------------------------------------------------------------------------
THREE MONTHS ENDED JUNE 30, SIX MONTHS ENDED JUNE 30,
------------------------------------- --------------------------------------
(DOLLARS IN THOUSANDS) 2000 1999 CHANGE 2000 1999 CHANGE
------------------------------------- --------------------------------------
Interest and fees on loans $ 45,167 $39,643 13.9 % $ 88,570 $80,200 10.4 %
Interest on securities 8,009 7,590 5.5 16,117 14,976 7.6
Other interest income 167 139 20.1 294 620 (52.6)
------------------------------------- --------------------------------------
Total interest income 53,343 47,372 12.6 104,981 95,796 9.6
------------------------------------- --------------------------------------
Interest on deposits 17,413 16,475 5.7 34,265 33,332 2.8
Other interest expense 8,786 5,345 64.4 16,533 11,741 40.8
------------------------------------- --------------------------------------
Total interest expense 26,199 21,820 20.1 50,798 45,073 12.7
------------------------------------- --------------------------------------
Net interest income 27,144 25,552 6.2 54,183 50,723 6.8
Provision for loan losses 1,370 1,597 (14.2) 3,340 2,955 13.0
------------------------------------- --------------------------------------
Net interest income after provision 25,774 23,955 7.6 50,843 47,768 6.4
------------------------------------- --------------------------------------
Trust income 698 627 11.3 1,378 1,221 12.9
Service charges on deposit accounts 3,091 2,142 44.3 5,642 4,131 36.6
Gain on sale of securities 260 274 (5.1) 412 658 (37.4)
Insurance and other fee income 1,619 1,558 3.9 3,490 3,232 8.0
Other noninterest income 1,615 1,040 55.3 2,947 2,135 38.0
------------------------------------- --------------------------------------
Total noninterest income 7,283 5,641 29.1 13,869 11,377 21.9
------------------------------------- --------------------------------------
Salaries and employee benefits 10,053 8,922 12.7 20,235 17,869 13.2
Occupancy and equipment 3,133 2,984 5.0 6,146 5,605 9.7
Other noninterest expense 5,754 6,516 (11.7) 11,802 12,269 (3.8)
------------------------------------- --------------------------------------
Total noninterest expense 18,940 18,422 2.8 38,183 35,743 6.8
------------------------------------- --------------------------------------
Income before income taxes 14,117 11,174 26.3 26,529 23,402 13.4
Income taxes 4,470 3,404 31.3 8,414 7,360 14.3
------------------------------------- --------------------------------------
Net income excluding nonrecurring items $ 9,647 $ 7,770 24.2 $ 18,115 $16,042 12.9
Nonrecurring items (after-tax) (11,985) 1,142 (1,149.5) (11,985) 1,142 (1,149.5)
------------------------------------- --------------------------------------
Net income (loss) $ (2,338) $ 8,912 (126.2)% $ 6,130 $17,184 (64.3)%
===================================== ======================================
SHARE INFORMATION AND SELECTED OPERATING RATIOS EXCLUDING NONRECURRING ITEMS
- -------------------------------------------------------------------------------------------------------------------------------
THREE MONTHS ENDED JUNE 30, SIX MONTHS ENDED JUNE 30,
--------------------------------------- -------------------------------------
2000 1999 CHANGE 2000 1999 CHANGE
--------------------------------------- -------------------------------------
Basic income per share:
Net income $ 0.31 $ 0.25 24.0 % $ 0.58 $ 0.51 13.7 %
Average common equivalent shares 31,119,789 31,437,082 (1.0) 31,041,095 31,615,245 (1.8)
Diluted income per share:
Net income $ 0.31 $ 0.24 29.2 $ 0.58 $ 0.50 16.0
Average common equivalent shares 31,301,829 31,726,228 (1.3) 31,209,513 31,888,421 (2.1)
Return on average assets 1.40% 1.23% 17 BP 1.33% 1.26% 7 BP
Return on average equity 12.81% 10.46% 235 12.03% 10.76% 127
================================================
BP Change is measured in basis points
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FIRST CHARTER CORPORATION AND SUBSIDIARIES
(UNAUDITED)
AS OF / FOR THE QUARTER ENDED
----------------------------------------------------------------------------------
(DOLLARS IN THOUSANDS) 6/30/2000 3/31/2000 12/31/1999 9/30/1999 6/30/1999
- -----------------------------------------------------------------------------------------------------------------------
LOAN PORTFOLIO
Commercial $1,097,377 $1,033,059 $ 966,957 $ 916,927 $ 913,708
Real estate 722,512 759,502 754,708 758,108 745,520
Home equity 159,909 148,253 136,569 122,134 111,295
Installment 109,728 111,006 109,843 101,864 101,951
----------------------------------------------------------------------------------
Total $2,089,526 $2,051,820 $1,968,077 $1,899,033 $1,872,474
==================================================================================
NONPERFORMING ASSETS
Nonaccrual loans $ 13,538 $ 9,513 $ 10,353 $ 8,850 $ 7,820
Restructured loans -- -- 37 389 388
Other real estate 3,493 2,066 2,262 2,063 2,500
----------------------------------------------------------------------------------
Total $ 17,031 $ 11,579 $ 12,652 $ 11,302 $ 10,708
==================================================================================
ALLOWANCE FOR LOAN LOSSES
Beginning balance (January 1) $ 25,002 $ 25,002 $ 22,278 $ 22,278 $ 22,278
Provision charged to operations 3,340 1,970 5,005 3,770 2,955
Allowance related to loans sold (113) -- (369) (369) (369)
Charge-offs (1,980) (1,275) (2,772) (2,160) (1,555)
Recoveries 451 282 860 656 436
----------------------------------------------------------------------------------
Net loan charge-offs (1,529) (993) (1,912) (1,504) (1,119)
----------------------------------------------------------------------------------
Ending balance $ 26,700 $ 25,979 $ 25,002 $ 24,175 $ 23,745
==================================================================================
SELECTED AVERAGE BALANCES THREE MONTHS ENDED JUNE 30, SIX MONTHS ENDED JUNE 30,
------------------------------------- -------------------------------------
(DOLLARS IN THOUSANDS) 2000 1999 CHANGE 2000 1999 CHANGE
------------------------------------- -------------------------------------
Loans $2,068,958 $1,861,953 11.1 % $2,033,409 $1,887,272 7.7 %
Securities 509,977 522,831 (2.5) 511,739 514,465 (0.5)
Total interest earning assets 2,582,473 2,400,709 7.6 2,550,763 2,426,405 5.1
Assets 2,772,954 2,538,372 9.2 2,729,018 2,577,620 5.9
Deposits 1,852,470 1,579,181 17.3 1,799,376 1,569,188 14.7
Total interest bearing liabilities 2,196,884 1,989,202 10.4 2,160,163 2,002,251 7.9
Shareholders' equity 303,008 298,731 1.4 302,920 301,511 0.5
SELECTED YIELD/COST RATES THREE MONTHS ENDED JUNE 30, SIX MONTHS ENDED JUNE 30,
-------------------------- ------------------------
2000 1999 CHANGE 2000 1999 CHANGE
-------------------------- ------------------------
Yield on loans (FTE) 8.80% 8.54% 26 BP 8.78% 8.58% 20 BP
Yield on securities (FTE) 6.62 6.10 52 6.63 6.17 46
Yield on interest earning assets (FTE) 8.38 7.97 41 8.35 8.03 32
Cost of interest bearing deposits 4.36 4.18 18 4.34 4.28 6
Cost of borrowings 6.00 5.24 76 5.82 5.48 34
Cost of interest bearing liabilities 4.88 4.37 51 4.73 4.54 19
Interest rate spread 3.50 3.60 (10) 3.62 3.49 13
Net interest margin* 4.30 4.33 (3) 4.35 4.29 6
SIGNIFICANT FINANCIAL/OPERATING RATIOS AS OF / FOR SIX MONTHS ENDED JUNE 30,
------------------------------------
(INCLUDING NONRECURRING ITEMS) 2000 1999 CHANGE
------------------------------------
Return on average assets 0.45% 1.34% (89)BP
Return on average equity 4.07 11.49 (742)
Efficiency ratio** 56.93 55.86 107
Allowance for loan losses to gross loans 1.28 1.27 1
Nonperforming assets to assets 0.61 0.42 19
Reserves to nonperforming loans 197.22 289.29 (9,207)
Interest bearing liabilities to earning assets 94.44 92.27 217
Equity to assets 10.37 11.45 (108)
Gross loans to deposits 111.68 104.24 744
Earning assets to total assets 93.31 94.56 (125)
================================================
BP Change is measured in basis points
FTE Fully taxable equivalent
* Net interest income, on a fully-taxable equivalent basis, as a percentage
of average earning assets.
** Recurring noninterest expense less foreclosed property expense divided by
the sum of taxable equivalent net interest income plus recurring
noninterest income.
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