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Exhibit 99 (a)
BANK OF GRANITE CORPORATION
NEWS
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FOR RELEASE: OCTOBER 10, 2000
BANK OF GRANITE REPORTS INCREASED EARNINGS FOR
THIRD QUARTER AND NINE MONTHS
Bank Of Granite Corporation announced increased earnings for the third
quarter and nine month periods, both ending September 30, 2000.
For the third quarter, net income was $3,734,423 compared with
$3,602,552 earned in the third quarter of 1999-an increase of 3.6%. Quarterly
per share income was 33(cent) vs 31(cent) for 1999's third quarter-an increase
of 6.5%.
For the nine month period, also ending September 30, 2000, earnings
were $11,483,329 compared with $10,895,936 for 1999-an increase of 5.4%. Per
share earnings for the nine month period were $1.01 vs $0.95 for the same period
in 1999-a 6.3% increase.
According to John A. Forlines, Jr., Chairman and Chief Executive
Officer, the current quarter's earnings were in line with Company expectations.
Helping net income was increased loan demand, which resulted in a 12.7% increase
in net interest income for the first three quarters of 2000.
Assets at the end of the third quarter reached $640,337,556, an
increase of 7% compared with 1999. Deposits totaled $496,068,478, a high for the
Company, and an 8.5% increase over 1999. Loans, totaling $436,513,944, also a
record high, increased 13.4% above the comparable period in 1999.
As usual, Mr. Forlines thanked members of the Bank of Granite family
for their hard work and dedication, which produced these earnings. He said the
Company was looking forward to a good fourth quarter and that it would appear
the Federal Reserve's series of interest rate increases has reached an end, at
least for the time being. This should produce a more stable economic
environment.
Again, the Company's critical key ratios continued to be outstanding.
Earnings on average assets for the nine month period were 2.43%, and the Company
earned 13.25% on average equity. The capital to asset ratio was 18.42%,
indicating that Bank of Granite remains one of the soundest, best capitalized
banks in the nation.
Bank of Granite Corporation is the parent company of Bank of Granite
and GLL & Associates, Inc. The bank operates fourteen full service banking
offices in Caldwell, Catawba, and Burke Counties-the "Unifour" area of North
Carolina. GLL, headquartered in Winston-Salem, originates home mortgages in the
Central and Southern Piedmont regions of North Carolina. Bank of Granite
Corporation has over 5,700 shareholders with 11,254,025 shares of common stock
outstanding as of September 30, 2000. The stock is traded on the NASDAQ Stock
Market(R) under the symbol of GRAN. The closing price at the end of the quarter
was $22.948 per share, reflecting a 6.7% increase year-to-date.
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Please see "Financial Data" tables, which are attached.
For further information, contact Kirby A. Tyndall, Senior Vice President and
Chief Financial Officer at (828) 496-2026, FAX (828) 496-2116 or Internet:
ktyndall@bankofgranite.com
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Bank of Granite Corporation, Form 8-K, October 10, 2000, page 5 of 7
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BANK OF GRANITE CORPORATION
Selected Financial Data
Three Months Ended Nine Months Ended
September 30, September 30,
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($ in thousands except per share data) 2000 1999(1) % change 2000 1999(1) % change
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Consolidated earnings summary:
Interest income, taxable equivalent $ 14,589 $ 12,558 16.2% $ 42,019 $ 37,074 13.3%
Interest expense 5,035 3,868 30.2% 13,733 11,744 16.9%
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Net interest income, tax. equivalent 9,554 8,690 9.9% 28,286 25,330 11.7%
Taxable equivalent adjustment 455 458 -0.7% 1,356 1,431 -5.2%
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Net interest income 9,099 8,232 10.5% 26,930 23,899 12.7%
Loan loss provision (2) 1,505 616 144.3% 2,938 1,097 167.8%
Noninterest income 2,136 1,877 13.8% 5,844 6,331 -7.7%
Noninterest expense 4,189 4,120 1.7% 12,573 12,867 -2.3%
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Income before income taxes 5,541 5,373 3.1% 17,263 16,266 6.1%
Income taxes 1,807 1,770 2.1% 5,780 5,370 7.6%
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Net income $ 3,734 $ 3,603 3.6% $ 11,483 $ 10,896 5.4%
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Earnings per share - Basic $ 0.33 $ 0.31 6.5% $ 1.01 $ 0.95 6.3%
Earnings per share - Diluted 0.33 0.31 6.5% 1.01 0.95 6.3%
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Average shares - Basic 11,288 11,480 -1.7% 11,353 11,483 -1.1%
Average shares - Diluted 11,302 11,496 -1.7% 11,364 11,506 -1.2%
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Consolidated balance sheet data at September 30:
Total assets $ 640,338 $ 598,579 7.0%
Total deposits 496,068 457,128 8.5%
Loans (gross) 436,514 385,057 13.4%
Shareholders' equity 117,919 111,970 5.3%
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Consolidated average balance sheet data:
Total assets $ 636,428 $ 598,252 6.4% $ 628,797 $ 595,290 5.6%
Total deposits 493,619 457,914 7.8% 486,330 454,604 7.0%
Loans (gross) 428,585 381,610 12.3% 413,534 379,675 8.9%
Shareholders' equity 117,146 110,825 5.7% 115,582 108,822 6.2%
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Consolidated performance ratios:
Return on average assets 2.35% 2.41% 2.43% 2.44%
Return on average equity 12.75% 13.00% 13.25% 13.35%
Efficiency ratio 35.83% 38.99% 36.84% 40.64%
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Consolidated asset quality data and ratios:
Nonaccruing loans $ 1,543 $ 1,531 0.8%
Accruing loans 90 days past due 1,486 926 60.5%
Nonperforming loans $ 3,029 $ 2,457 23.3%
Foreclosed properties 83 129 -35.7%
Nonperforming assets 3,112 2,586 20.3%
Allowance for loan losses 6,004 4,988 20.4%
Loans charged off (2) 1,933 863 124.0%
Recoveries of loans charged off 252 136 85.3%
Net loan charge-offs (recoveries) (2) 1,681 727 131.2%
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Net charge-offs to average loans (2) 0.54% 0.26%
Nonperforming loans to total assets 0.47% 0.41%
Allowance coverage of nonperforming loans 198.22% 203.01%
Allowance for loan losses to gross loans 1.38% 1.30%
Allowance for loan losses to net loans 1.39% 1.31%
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Subsidiary earnings summary:
Bank of Net interest income $ 8,754 $ 7,761 12.8% $ 25,943 $ 22,190 16.9%
Granite Loan loss provision (2) 1,475 616 139.4% 2,898 1,097 164.2%
Noninterest income 1,569 1,221 28.5% 4,388 3,748 17.1%
Noninterest expense 3,329 3,101 7.4% 9,971 9,269 7.6%
Income taxes 1,759 1,672 5.2% 5,688 4,955 14.8%
Net income 3,760 3,593 4.6% 11,774 10,617 10.9%
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GLL & Net interest income $ 401 $ 547 -26.7% $ 1,180 $ 1,873 -37.0%
Associates Loan loss provision 30 - n/a 40 - n/a
(mortgage Noninterest income 566 656 -13.7% 1,530 2,583 -40.8%
bank) Noninterest expense 849 991 -14.3% 2,483 3,450 -28.0%
Income taxes 48 98 -51.0% 92 415 -77.8%
Net income 70 114 -38.6% 135 591 -77.2%
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(1) Certain amounts in 1999 have been reclassified to conform with
classifications in 2000.
(2) Includes provision for and charge-off of a $922,000 deficiency on loans to
one borrower in September 2000.
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Bank of Granite Corporation, Form 8-K, October 10, 2000, page 6 of 7
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BANK OF GRANITE CORPORATION
Supplemental Quarterly Financial Data
Quarters Ended
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SEP 30, Jun 30, Mar 31, Dec 31, Sep 30,
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($ in thousands except per share data) 2000 2000 2000 1999(1) 1999(1)
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Consolidated earnings summary:
Interest income, taxable equivalent $ 14,589 $ 14,189 $ 13,241 $ 12,828 $ 12,558
Interest expense 5,035 4,487 4,211 4,008 3,868
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Net interest income, tax. equivalent 9,554 9,702 9,030 8,820 8,690
Taxable equivalent adjustment 455 440 461 466 458
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Net interest income 9,099 9,262 8,569 8,354 8,232
Loan loss provision (2) 1,505 788 645 766 616
Noninterest income 2,136 2,049 1,660 1,879 1,877
Noninterest expense 4,189 4,277 4,110 3,669 4,120
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Income before income taxes 5,541 6,246 5,474 5,798 5,373
Income taxes 1,807 2,159 1,813 1,957 1,770
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Net income $ 3,734 $ 4,087 $ 3,661 $ 3,841 $ 3,603
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Earnings per share - Basic $ 0.33 $ 0.36 $ 0.32 $ 0.34 $ 0.31
Earnings per share - Diluted 0.33 0.36 0.32 0.33 0.31
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Average shares - Basic 11,288 11,351 11,419 11,462 11,480
Average shares - Diluted 11,302 11,361 11,428 11,478 11,496
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Consolidated ending balance sheet data:
Total assets $ 640,338 $ 636,725 $ 642,590 $ 610,727 $ 598,579
Total deposits 496,068 490,018 493,285 471,659 457,128
Loans (gross) 436,514 422,631 405,856 390,189 385,057
Shareholders' equity 117,919 116,132 114,611 113,451 111,970
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Consolidated average balance sheet data:
Total assets $ 636,428 $ 631,454 $ 618,509 $ 608,320 $ 598,252
Total deposits 493,619 487,007 478,364 469,608 457,914
Loans (gross) 428,585 415,396 396,621 383,748 381,610
Shareholders' equity 117,146 115,445 114,156 112,821 110,825
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Consolidated performance ratios:
Return on average assets 2.35% 2.59% 2.37% 2.53% 2.41%
Return on average equity 12.75% 14.16% 12.83% 13.62% 13.00%
Efficiency ratio 35.83% 36.40% 38.45% 34.29% 38.99%
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Consolidated asset quality data and ratios:
Nonaccruing loans $ 1,543 $ 1,154 $ 1,083 $ 1,079 $ 1,531
Accruing loans 90 days past due 1,486 541 1,147 981 926
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Nonperforming loans 3,029 1,695 2,230 2,060 2,457
Foreclosed properties 83 136 196 54 129
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Nonperforming assets 3,112 1,831 2,426 2,114 2,586
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Allowance for loan losses 6,004 5,721 5,200 4,747 4,988
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Loans charged off (2) 1,351 313 269 1,018 691
Recoveries of loans charged off 129 46 77 10 45
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Net loan charge-offs (recoveries) (2) 1,222 267 192 1,008 646
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Annualized net charge-offs to average loans (2) 1.14% 0.26% 0.19% 1.05% 0.68%
Nonperforming loans to total assets 0.47% 0.27% 0.35% 0.34% 0.41%
Allowance coverage of nonperforming loans 198.22% 337.52% 233.18% 230.44% 203.01%
Allowance for loan losses to gross loans 1.38% 1.35% 1.28% 1.22% 1.30%
Allowance for loan losses to net loans 1.39% 1.37% 1.30% 1.23% 1.31%
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Subsidiary earnings summary:
Bank of Net interest income $ 8,754 $ 8,900 $ 8,288 $ 8,017 $ 7,761
Granite Loan loss provision (2) * 1,475 778 645 766 616
Noninterest income * 1,569 1,556 1,263 1,356 1,221
Noninterest expense * 3,329 3,351 3,290 2,851 3,101
Income taxes 1,759 2,098 1,831 1,899 1,672
Net income 3,760 4,229 3,785 3,857 3,593
* Includes effects of new Bounce program:
Loss provision 118 133 - - -
Noninterest income 512 456 - - -
Noninterest expense 14 11 - - -
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GLL & Net interest income $ 401 $ 445 $ 334 $ 423 $ 547
Associates Loan loss provision 30 10 - - -
(mortgage Noninterest income 566 567 397 508 656
bank) Noninterest expense 849 859 774 784 991
Income taxes 48 61 (17) 59 98
Net income (loss) 70 92 (26) 88 114
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(1) Certain amounts in 1999 have been reclassified to conform with
classifications in 2000.
(2) Includes provision for and charge-off of a $922,000 deficiency on loans to
one borrower in September 2000.
Bank of Granite Corporation, Form 8-K, October 10, 2000, page 7 of 7