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Exhibit 99 (a)
BANK OF GRANITE CORPORATION
NEWS
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FOR RELEASE: JANUARY 8, 2001
BANK OF GRANITE REPORTS RECORD EARNINGS FOR FOURTH
QUARTER AND FOR 2000-THE BEST EARNINGS IN BANK'S HISTORY
Bank of Granite Corporation (Nasdaq: GRAN) reported the best earnings
in the history of the bank-both for the fourth quarter and for the full year of
2000. Never before, since its founding in 1906, has the bank earned over $15
million in any one year.
Net income for the fourth quarter of 2000 totaled $4,091,254 compared
with $3,840,856 for the fourth quarter of 1999, an increase of 6.5%. On a per
share basis this translates to 37(cent) per share vs 33(cent). For the full
year, ending on December 31, 2000, net income totaLED $15,574,583 compared with
$14,736,792 for 1999-an increase of 5.7%. On a diluted per share basis, this is
$1.38 vs $1.28 for 1999.
John A. Forlines, Jr., Chairman and Chief Executive Officer, expressed
much satisfaction in these earnings, saying they were "exceptional" and were
accomplished in a volatile monetary environment and at the beginning of a
decline in economic activity. These earnings, he said, "beat our internal
expectations" and met analysts' estimates. As always, he thanked the entire Bank
of Granite family for their hard work and dedication in accomplishing these
favorable results.
Once again, key management ratios were very strong, exceeding the
bank's peers and the banking industry generally. For the full year of 2000, the
Company earned a 2.45% return on average assets. The return on average equity
was 13.41% and the capital to assets ratio was 18.03%, indicating that Bank of
Granite continues to be one of the strongest, best capitalized banks in the
United States. The efficiency ratio was 36.52% and improved over last year's
39.04%, which was one of the very best ratios of any bank in 1999.
Assets of $661,622,812 were up 8.3% for the year and were a new high
for the bank. Deposits of $517,281,500 were up 9.7% and loans totaled
$450,398,252, a 15.4% increase. Deposits and loans were also at new highs for
the bank.
Bank of Granite Corporation is the parent of Bank of Granite and GLL &
Associates, Inc. Bank of Granite operates fourteen full service banking offices
in Caldwell, Catawba, and Burke counties of North Carolina, including two
grocery store offices, and a total of fifteen ATMs. GLL & Associates, Inc. is a
mortgage bank specializing in government guaranteed mortgages with offices in
the Central and Southern Piedmont and Catawba Valley regions of North Carolina.
Bank of Granite Corporation's stock is held by over 5,000 shareholders and there
were 11,152,949 shares of common stock outstanding on December 31, 2000. The
stock is traded on the NASDAQ National Market(R) and the closing price at the
end of the year was $23.25, an increase of 8.1% for the year.
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Please see "Financial Data" tables, which are attached.
For further information, contact Kirby A. Tyndall, Senior Vice President and
Chief Financial Officer at Voice (828) 496-2026, Fax (828) 496-2116 or
Internet: ktyndall@bankofgranite.com.
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Bank of Granite Corporation, Form 8-K, January 8, 2001, page 5 of 7
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BANK OF GRANITE CORPORATION
Three Months Ended Twelve Months Ended
Selected Financial Data December 31, December 31,
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($ in thousands except per share data) 2000 1999(1) % change 2000(2) 1999(1) % change
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Consolidated earnings summary:
Interest income, taxable equivalent $ 15,059 $ 12,828 17.4% $ 57,076 $ 49,902 14.4%
Interest expense 5,439 4,008 35.7% 19,172 15,752 21.7%
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Net interest income, taxable equivalent 9,620 8,820 9.1% 37,904 34,150 11.0%
Taxable equivalent adjustment 453 466 -2.8% 1,807 1,897 -4.7%
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Net interest income 9,167 8,354 9.7% 36,097 32,253 11.9%
Loan loss provision (2) 955 766 24.7% 3,894 1,863 109.0%
Noninterest income 2,189 1,879 16.5% 8,034 8,210 -2.1%
Noninterest expense 4,206 3,669 14.6% 16,777 16,536 1.5%
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Income before income taxes 6,195 5,798 6.8% 23,460 22,064 6.3%
Income taxes 2,104 1,957 7.5% 7,885 7,327 7.6%
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Net income $ 4,091 $ 3,841 6.5% $ 15,575 $ 14,737 5.7%
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Earnings per share - Basic $ 0.37 $ 0.34 8.8% $ 1.38 $ 1.28 7.8%
Earnings per share - Diluted 0.37 0.33 12.1% 1.38 1.28 7.8%
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Average shares - Basic 11,175 11,462 -2.5% 11,308 11,478 -1.5%
Average shares - Diluted 11,182 11,478 -2.6% 11,318 11,500 -1.6%
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Consolidated balance sheet data at December 31:
Total assets $ 661,623 $ 610,727 8.3%
Total deposits 517,282 471,659 9.7%
Loans (gross) 450,398 390,189 15.4%
Shareholders' equity 119,315 113,451 5.2%
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Consolidated average balance sheet data:
Total assets $ 651,405 $ 608,320 7.1% $ 634,449 $ 598,548 6.0%
Total deposits 508,899 469,608 8.4% 491,972 458,355 7.3%
Loans (gross) 444,409 383,748 15.8% 421,253 380,693 10.7%
Shareholders' equity 117,916 112,821 4.5% 116,166 109,822 5.8%
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Consolidated performance ratios:
Return on average assets 2.50% 2.51% 2.45% 2.46%
Return on average equity 13.80% 13.51% 13.41% 13.42%
Efficiency ratio 35.62% 34.29% 36.52% 39.04%
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Consolidated asset quality data and ratios:
Nonaccruing loans $ 1,502 $ 1,079 39.2%
Accruing loans 90 days past due 1,983 981 102.1%
Nonperforming loans $ 3,485 $ 2,060 69.2%
Foreclosed properties 134 54 148.1%
Nonperforming assets 3,619 2,114 71.2%
Allowance for loan losses 6,352 4,747 33.8%
Loans charged off (2) 2,606 1,881 38.5%
Recoveries of loans charged off 317 146 117.1%
Net loan charge-offs (recoveries) (2) 2,289 1,735 31.9%
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Net charge-offs to average loans (2) 0.54% 0.46%
Nonperforming loans to total assets 0.53% 0.34%
Allowance coverage of nonperforming loans 182.27% 230.44%
Allowance for loan losses to gross loans 1.41% 1.22%
Allowance for loan losses to net loans 1.43% 1.23%
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Subsidiary earnings summary:
Bank of Net interest income $ 8,776 $ 8,017 9.5% $ 34,719 $ 30,207 14.9%
Granite Loan loss provision (2) 925 766 20.8% 3,824 1,863 105.3%
Noninterest income 1,657 1,356 22.2% 6,045 5,104 18.4%
Noninterest expense 3,414 2,851 19.7% 13,384 12,121 10.4%
Income taxes 2,028 1,899 6.8% 7,716 6,853 12.6%
Net income 4,066 3,857 5.4% 15,840 14,474 9.4%
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GLL & Net interest income $ 438 $ 423 3.5% $ 1,618 $ 2,297 -29.6%
Associates Loan loss provision 30 - n/a 70 - n/a
(mortgage Noninterest income 531 508 4.5% 2,061 3,091 -33.3%
bank) Noninterest expense 784 784 0.0% 3,267 4,235 -22.9%
Income taxes 76 59 28.8% 168 474 -64.6%
Net income 109 88 23.9% 244 679 -64.1%
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(1) Certain amounts in 1999 have been reclassified to conform with
classifications in 2000.
(2) Amounts for the twelve months ended December 31, 2000 included a loss
provision of $759,000 related to a $922,000 charge-off of a deficiency
on loans to one borrower in the third quarter.
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Bank of Granite Corporation, Form 8-K, January 8, 2001, page 6 of 7
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BANK OF GRANITE CORPORATION
Quarters Ended
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Supplemental Quarterly Financial Data DEC 31, Sep 30, Jun 30, Mar 31, Dec 31,
($ in thousands except per share data) 2000 2000(2) 2000 2000 1999(1)
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Consolidated earnings summary:
Interest income, taxable equivalent $ 15,059 $ 14,589 $ 14,189 $ 13,241 $ 12,828
Interest expense 5,439 5,035 4,487 4,211 4,008
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Net interest income, taxable equivalent 9,620 9,554 9,702 9,030 8,820
Taxable equivalent adjustment 453 455 440 461 466
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Net interest income 9,167 9,099 9,262 8,569 8,354
Loan loss provision (2) 955 1,505 788 645 766
Noninterest income 2,189 2,136 2,049 1,660 1,879
Noninterest expense 4,206 4,189 4,277 4,110 3,669
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Income before income taxes 6,195 5,541 6,246 5,474 5,798
Income taxes 2,104 1,807 2,159 1,813 1,957
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Net income $ 4,091 $ 3,734 $ 4,087 $ 3,661 $ 3,841
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Earnings per share - Basic $ 0.37 $ 0.33 $ 0.36 $ 0.32 $ 0.34
Earnings per share - Diluted 0.37 0.33 0.36 0.32 0.33
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Average shares - Basic 11,175 11,288 11,351 11,419 11,462
Average shares - Diluted 11,182 11,302 11,361 11,428 11,478
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Consolidated ending balance sheet data:
Total assets $ 661,623 $ 640,338 $ 636,725 $ 642,590 $ 610,727
Total deposits 517,282 496,068 490,018 493,285 471,659
Loans (gross) 450,398 436,514 422,631 405,856 390,189
Shareholders' equity 119,315 117,919 116,132 114,611 113,451
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Consolidated average balance sheet data:
Total assets $ 651,405 $ 636,428 $ 631,454 $ 618,509 $ 608,320
Total deposits 508,899 493,619 487,007 478,364 469,608
Loans (gross) 444,409 428,585 415,396 396,621 383,748
Shareholders' equity 117,916 117,146 115,445 114,156 112,821
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Consolidated performance ratios:
Return on average assets 2.50% 2.33% 2.57% 2.35% 2.51%
Return on average equity 13.80% 12.68% 14.08% 12.76% 13.54%
Efficiency ratio 35.62% 35.83% 36.40% 38.45% 34.29%
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Consolidated asset quality data and ratios:
Nonaccruing loans $ 1,502 $ 1,543 $ 1,154 $ 1,083 $ 1,079
Accruing loans 90 days past due 1,983 1,486 541 1,147 981
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Nonperforming loans 3,485 3,029 1,695 2,230 2,060
Foreclosed properties 134 83 136 196 54
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Nonperforming assets 3,619 3,112 1,831 2,426 2,114
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Allowance for loan losses 6,352 6,004 5,721 5,200 4,747
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Loans charged off (2) 672 1,351 313 269 1,018
Recoveries of loans charged off 65 129 46 77 10
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Net loan charge-offs (recoveries) (2) 607 1,222 267 192 1,008
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Annualized net charge-offs to average loans (2) 0.54% 1.13% 0.26% 0.19% 1.04%
Nonperforming loans to total assets 0.53% 0.47% 0.27% 0.35% 0.34%
Allowance coverage of nonperforming loans 182.27% 198.22% 337.52% 233.18% 230.44%
Allowance for loan losses to gross loans 1.41% 1.38% 1.35% 1.28% 1.22%
Allowance for loan losses to net loans 1.43% 1.39% 1.37% 1.30% 1.23%
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Subsidiary earnings summary:
Bank of Net interest income $ 8,776 $ 8,754 $ 8,900 $ 8,288 $ 8,017
Granite Loan loss provision (2) * 925 1,475 778 645 766
Noninterest income * 1,657 1,569 1,556 1,263 1,356
Noninterest expense * 3,414 3,329 3,351 3,290 2,851
Income taxes 2,028 1,759 2,098 1,831 1,899
Net income 4,066 3,760 4,229 3,785 3,857
* Includes effects of new Bounce program:
Loss provision 80 118 133 - -
Noninterest income 480 512 456 - -
Noninterest expense 17 14 11 - -
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GLL & Net interest income $ 438 $ 401 $ 445 $ 334 $ 423
Associates Loan loss provision 30 30 10 - -
(mortgage Noninterest income 531 566 567 397 508
bank) Noninterest expense 784 849 859 774 784
Income taxes 76 48 61 (17) 59
Net income (loss) 109 70 92 (26) 88
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(1) Certain amounts in 1999 have been reclassified to conform with
classifications in 2000.
(2) The third quarter of 2000 included a loss provision of $759,000 related
to a $922,000 charge-off of a deficiency on loans to one borrower.
Bank of Granite Corporation, Form 8-K, January 8, 2001, page 7 of 7