1
Exhibit 99.1
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NEWS RELEASE DATED 01-16-2001
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
- ---------------------
January 16, 2001
FIRST CHARTER ANNOUNCES
FOURTH QUARTER EARNINGS UP 15%
Concord, North Carolina - First Charter Corporation (NASDAQ: FCTR) reported
today that fourth quarter 2000 core operating earnings increased 15% to $9.1
million, or $0.29 per diluted share, compared to fourth quarter 1999. Core
operating earnings for the year ended December 31, 2000 amounted to $36.6
million, or $1.16 per diluted share. In comparison, fourth quarter 1999 core
operating earnings were $7.9 million, or $0.25 per diluted share, while core
operating earnings for the year ended December 31, 1999 amounted to $33.0
million, or $1.04 per diluted share.
Within the attached selected financial information schedules, tables have been
provided that outline the non-core operating items for the three months ended
December 31, 2000 and 1999, as well as, the years ended December 31, 2000 and
1999. Including these non-core items, fourth quarter 2000 net income amounted to
$9.1 million, or $0.29 per diluted share, compared to the fourth quarter 1999
net income of $7.9 million, or $0.25 per diluted share. Additionally, including
the non-core items, net income for the year ended December 31, 2000 amounted to
$24.8 million, or $0.79 per diluted share, while the year ended December 31,
1999 net income amounted to $35.3 million, or $1.11 per diluted share. The
decrease in net income for the year was primarily due to the recognition of
$16.3 million ($12.3 million after-tax or $0.35 per diluted share) of merger and
restructuring charges during 2000.
Lawrence M. Kimbrough, President and Chief Executive Officer commented that
"Despite the pressures of a slowing economy, First Charter increased fourth
quarter 2000 core earnings by 15% compared to the same period in 1999. Our
earnings growth is fueled by the dedication of our staff to anticipating the
banking, investment and insurance needs of clients, delivering exceptional
service and establishing close ties to the communities we are privileged to
serve."
NET INTEREST INCOME
Net interest income for the fourth quarter of 2000 amounted to $27.1 million
compared to $27.0 million for the same period in 1999. Net interest income for
the year ended December 31, 2000
2
totaled $107.9 compared to $104.0 million for the same period in 1999, an
increase of 3.8%. The increase for the year was driven primarily by loan growth
and offset by continued increases in the cost of funding. Continuing compression
of the net interest margin was experienced during the fourth quarter of 2000,
with the net interest margin decreasing from 4.19% for the quarter ended
September 30, 2000 to 4.17% for the quarter ended December 31, 2000.
NONINTEREST INCOME
Core operating noninterest income for the fourth quarter of 2000 totaled $6.8
million compared to $6.3 million for the same period in 1999. Core operating
noninterest income for the year ended December 31, 2000 totaled $28.8 million
compared to $25.2 million for the same period in 1999, an increase of 14.3%.
These increases were driven primarily by increases in service charge income on
deposit accounts as well as continued growth of First Charter Insurance
Services.
Including the non-core operating items outlined in the attached selected
financial information schedules, fourth quarter 2000 noninterest income totaled
$7.8 million compared to $6.2 million for the same period in 1999. Additionally,
including the non-core items, noninterest income for the year ended December 31,
2000 totaled $30.6 million, while the year ended December 31, 1999 noninterest
income totaled $28.8 million.
NONINTEREST EXPENSE
Core operating noninterest expense for the fourth quarter of 2000 totaled $18.5
million compared to $20.3 million for the same period in 1999, a decrease of
8.8%. This decrease was primarily the result of synergies realized as a result
of the Carolina First BancShares merger. Core operating noninterest expense for
the year ended December 31, 2000 totaled $75.5 million compared to $76.0 million
for the same period in 1999.
Including the non-core operating items outlined in the attached selected
financial information schedules, fourth quarter 2000 noninterest expense totaled
$19.5 million compared to $20.3 million for the same period in 1999.
Additionally, including the non-core items, noninterest expense for the year
ended December 31, 2000 totaled $92.7 million, while the year ended December 31,
1999 noninterest expense totaled $76.0 million.
BALANCE SHEET
Total assets at December 31, 2000 amounted to $2.93 billion, compared to $2.68
billion at December 31, 1999. Net loans at December 31, 2000 amounted to $2.13
billion, compared to $1.94 billion at December 31, 1999. This increase from
prior periods was due primarily to commercial loan growth and was offset by the
sale of $45.3 million in lower-yielding mortgage loans during the second quarter
of 2000.
Total deposits at December 31, 2000 amounted to $2.00 billion, compared to $1.82
billion at December 31, 1999. Shareholders' equity at December 31, 2000 was
$309.3 million, which represents a book value per share of $9.79 and an
equity-to-assets percentage of 10.55%. Based on the $14.8750 closing price of
First Charter Corporation common stock at December 31, 2000, the Corporation had
a market capitalization of $470.1 million.
ASSET QUALITY
The provision for loan losses for the three months and twelve months ended
December 31, 2000 amounted to $2.1 million and $7.6 million, respectively. This
is compared to provision for loan
3
losses of $1.2 million and $5.0 million for the same periods in 1999. The
increase in the provision over prior year levels was due to: (i) loan growth
primarily in the commercial portfolio; (ii) increases in net charge-offs; and
(iii) increases in nonperforming assets.
The total of nonperforming assets and loans 90 days or more past due and still
accruing at December 31, 2000 increased to $30.0 million compared to $16.3
million at December 31, 1999. As a percentage of total assets, nonperforming
assets have increased to 1.01% at December 31, 2000 compared to 0.47% at
December 31, 1999. Net loan charge-offs as a percentage of average gross loans
increased to 0.20% for the year ended December 31, 2000 as compared to 0.10% for
the year ended December 31, 1999. These increases were primarily due to the
effect of higher interest rates and slower economic growth on some customers. At
December 31, 2000 the allowance for loan losses as a percentage of gross loans
was 1.32% compared to 1.27% at December 31, 1999.
CONFERENCE CALL
First Charter executive management will be available via telephone to discuss
the issues related to the contents of this press release as well as an analyst
presentation to present growth and earnings estimates for 2001 on Thursday,
January 18, 2001 at 1:00 p.m. In order to participate in this conference call,
dial 1-888-404-8794 and use the conference code 7047214460. Additionally, the
Investment Community may listen to the conference call via the internet by
visiting our web site www.FirstCharter.com and following the link provided under
our "Shareholder Information" section. Replays of this conference call will be
made available for 14 days following the conference call.
(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
$2.93 billion that operates 54 financial centers and 91 ATMs located in 16
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 by visiting 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.
FORWARD-LOOKING STATEMENTS
This news release contains forward-looking statements. Such statements are
subject to certain factors that may cause the company's results to vary from
those expected. These factors include changing economic and financial market
conditions, competition, ability to execute our business plan, items already
mentioned in this press release, and other factors described in our 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
4
hereof. The company undertakes no obligation to publicly revise these
forward-looking statements to reflect events and circumstances that arise after
the date hereof.
5
FIRST CHARTER CORPORATION AND SUBSIDIARIES (NASDAQ: FCTR)
QUARTERLY EARNINGS RELEASE
For the Three Months Ended Increase (Decrease)
-----------------------------------------------------
(Dollars in thousands, except per share data) 12/31/2000 12/31/1999 Amount Percentage
- ----------------------------------------------------------------------------------------------------------
INCOME STATEMENT
Interest income - taxable equivalent $ 56,995 $ 50,728 $ 6,267 12.4%
Interest expense 29,451 23,226 6,225 26.8
-----------------------------------------------------
Net interest income - taxable equivalent 27,544 27,502 42 0.2
Less: Taxable equivalent adjustment 471 505 (34) (6.7)
-----------------------------------------------------
Net interest income 27,073 26,997 76 0.3
Provision for loan losses 2,075 1,235 840 68.0
-----------------------------------------------------
Net interest income after provision
for loan losses 24,998 25,762 (764) (3.0)
Noninterest income 7,791 6,191 1,600 25.8
Noninterest expense 19,469 20,262 (793) (3.9)
-----------------------------------------------------
Income before income taxes 13,320 11,691 1,629 13.9
Income taxes 4,223 3,827 396 10.3
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NET INCOME $ 9,097 $ 7,864 $ 1,233 15.7%
=====================================================
- ----------------------------------------------------------------------------------------------------------
EARNINGS PER SHARE DATA
Basic $ 0.29 $0.25 $ 0.04 16.0%
Diluted 0.29 0.25 0.04 16.0
Weighted average shares - basic 31,588,105 31,075,453
Weighted average shares - diluted 31,688,490 31,315,720
Dividends paid on common shares $ 0.18 $ 0.17 $ 0.01 5.9%
- ----------------------------------------------------------------------------------------------------------
PERFORMANCE RATIOS
Return on average assets 1.28% 1.19%
Return on average equity 11.87 10.98
- ----------------------------------------------------------------------------------------------------------
For the Three Months Ended Increase (Decrease)
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(Dollars in thousands, except per share data) 12/31/2000 12/31/1999 Amount Percentage
- ----------------------------------------------------------------------------------------------------------
CORE OPERATING EARNINGS
Interest income - taxable equivalent $ 56,995 $ 50,728 $ 6,267 12.4%
Interest expense 29,451 23,226 6,225 26.8
-----------------------------------------------------
Net interest income - taxable equivalent 27,544 27,502 42 0.2
Less: Taxable equivalent adjustment 471 505 (34) (6.7)
-----------------------------------------------------
Net interest income 27,073 26,997 76 0.3
Provision for loan losses 2,075 1,235 840 68.0
-----------------------------------------------------
Net interest income after provision
for loan losses 24,998 25,762 (764) (3.0)
Noninterest income 6,792 6,257 535 8.6
Noninterest expense 18,469 20,262 (1,793) (8.8)
-----------------------------------------------------
Income before income taxes 13,321 11,757 1,564 13.3
Income taxes 4,224 3,850 374 9.7
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Core operating income 9,097 7,907 1,190 15.0
Other non-core items, net of tax -- (43) 43 (100.0)
-----------------------------------------------------
NET INCOME $ 9,097 $ 7,864 $ 1,233 15.7%
=====================================================
- ----------------------------------------------------------------------------------------------------------
CORE OPERATING EARNINGS PER SHARE DATA
Basic $ 0.29 $ 0.25 $ 0.04 16.0%
Diluted 0.29 0.25 0.04 16.0
Weighted average shares - basic 31,588,105 31,075,453
Weighted average shares - diluted 31,688,490 31,315,720
Dividends paid on common shares $ 0.18 $ 0.17 $ 0.01 5.9%
- ----------------------------------------------------------------------------------------------------------
CORE OPERATING PERFORMANCE RATIOS
Return on average assets 1.28% 1.20%
Return on average equity 11.87 11.04
Efficiency - taxable equivalent (*) 56.56 60.21
- ----------------------------------------------------------------------------------------------------------
For the Three Months Ended
------------------------------
SCHEDULE OF OTHER NON-CORE ITEMS 12/31/2000 12/31/1999
------------------------------
Noninterest income
Fixed income portfolio restructuring loss (1,059) -
Equity investment write down (231) (66)
Equity investment income 28 -
Gain on sale of properties 2,261 -
Charitable trust (1,000) -
----------------------------
Total other items $ (1) $ (66)
============================
Other non-core items, net of tax $ -- $ (43)
============================
- ----------------------------------------------------------------------------------------------------------
Notes: Applicable ratios are annualized.
* - Core operating noninterest expense less foreclosed property
expense divided by the sum of taxable equivalent net interest
income plus core operating noninterest income less core gain on
sale of securities.
5
6
FIRST CHARTER CORPORATION AND SUBSIDIARIES (NASDAQ: FCTR)
QUARTERLY EARNINGS RELEASE
For the Year Ended Increase (Decrease)
---------------------------------------------------
(Dollars in thousands, except per share data) 12/31/2000 12/31/1999 Amount Percentage
- --------------------------------------------------------------------------------------------------------
INCOME STATEMENT
Interest income - taxable equivalent $ 218,122 $ 196,082 $ 22,041 11.2%
Interest expense 108,314 90,299 18,015 20.0
---------------------------------------------------
Net interest income - taxable equivalent 109,808 105,783 4,026 3.8
Less: Taxable equivalent adjustment 1,878 1,811 67 3.7
---------------------------------------------------
Net interest income 107,930 103,972 3,958 3.8
Provision for loan losses 7,615 5,005 2,610 52.1
---------------------------------------------------
Net interest income after provision
for loan losses 100,315 98,967 1,348 1.4
Noninterest income 30,565 28,795 1,770 6.1
Noninterest expense 92,727 75,991 16,736 22.0
---------------------------------------------------
Income before income taxes 38,153 51,771 (13,618) (26.3)
Income taxes 13,312 16,480 (3,168) (19.2)
---------------------------------------------------
NET INCOME $ 24,841 $ 35,291 $(10,450) (29.6)%
===================================================
- --------------------------------------------------------------------------------------------------------
EARNINGS PER SHARE DATA
Basic $ 0.79 $ 1.12 $(0.33) (29.5)%
Diluted 0.79 1.11 (0.32) (28.8)
Weighted average shares - basic 31,435,342 31,504,746
Weighted average shares - diluted 31,580,328 31,772,060
Dividends paid on common shares $ 0.70 $ 0.68 $ 0.02 2.9%
- --------------------------------------------------------------------------------------------------------
PERFORMANCE RATIOS
Return on average assets 0.90% 1.37%
Return on average equity 8.29 12.08
- --------------------------------------------------------------------------------------------------------
For the Year Ended Increase (Decrease)
---------------------------------------------------
(Dollars in thousands, except per share data) 12/31/2000 12/31/1999 Amount Percentage
- --------------------------------------------------------------------------------------------------------
CORE OPERATING EARNINGS
Interest income - taxable equivalent $ 218,122 $ 196,082 $ 22,041 11.2%
Interest expense 108,314 90,299 18,015 20.0
---------------------------------------------------
Net interest income - taxable equivalent 109,808 105,783 4,026 3.8
Less: Taxable equivalent adjustment 1,878 1,811 67 3.7
---------------------------------------------------
Net interest income 107,930 103,972 3,958 3.8
Provision for loan losses 7,615 5,005 2,610 52.1
---------------------------------------------------
Net interest income after provision
for loan losses 100,315 98,967 1,348 1.4
Noninterest income 28,810 25,214 3,596 14.3
Noninterest expense 75,477 75,991 (514) (0.7)
---------------------------------------------------
Income before income taxes 53,648 48,190 5,458 11.3
Income taxes 17,037 15,227 1,810 11.9
---------------------------------------------------
Core operating income 36,611 32,963 3,648 11.1
Other non-core items, net of tax (11,770) 2,328 (14,098) (605.6)
---------------------------------------------------
Net income $ 24,841 $ 35,291 $(10,450) (29.6)%
===================================================
- --------------------------------------------------------------------------------------------------------
CORE OPERATING EARNINGS PER SHARE DATA
Basic $ 1.16 $1.05 $ 0.11 10.5%
Diluted 1.16 1.04 0.12 11.5
Weighted average shares - basic 31,435,342 31,504,746
Weighted average shares - diluted 31,580,328 31,772,060
Dividends paid on common shares $ 0.70 $0.68 $ 0.02 2.9%
- --------------------------------------------------------------------------------------------------------
CORE OPERATING PERFORMANCE RATIOS
Return on average assets 1.32% 1.28%
Return on average equity 12.21 11.28
Efficiency - taxable equivalent (*) 55.44 58.45
- --------------------------------------------------------------------------------------------------------
For the Year Ended
----------------------------
SCHEDULE OF OTHER NON-CORE ITEMS 12/31/2000 12/31/1999
----------------------------
Noninterest income
Gain (loss) on sale of loans $ (99) $ 1,757
Fixed income portfolio restructuring loss (3,913) --
Equity investment write down (1,601) (66)
Equity investment income 4,580 138
Gain on sale of property 2,788 1,752
Noninterest expense
Charitable trust (1,000) --
Merger and restructuring charges (16,250) --
---------------------------
Total other items $ (15,495) $ 3,581
===========================
Other non-core items, net of tax $ (11,770) $ 2,328
===========================
- --------------------------------------------------------------------------------------------------------
Notes: Applicable ratios are annualized.
* - Core operating noninterest expense less foreclosed property
expense divided by the sum of taxable equivalent net interest
income plus core operating noninterest income less core gain on
sale of securities.
6
7
FIRST CHARTER CORPORATION AND SUBSIDIARIES (NASDAQ: FCTR)
QUARTERLY EARNINGS RELEASE
As of/For the Year Ended Increase (Decrease)
---------------------------------------------------------------
(Dollars in thousands, except per share data) 12/31/2000 12/31/1999 Amount Percentage
- ---------------------------------------------------------------------------------------------------------------------
BALANCE SHEET
ASSETS:
Cash and due from banks $ 71,196 $ 94,568 $ (23,372) (24.7)%
Federal funds sold 1,015 665 350 52.6
Interest earning bank deposits 122,461 2,435 120,026 4,929.2
Securities held to maturity -- 36,082 (36,082) (100.0)
Securities available for sale 441,031 486,905 (45,874) (9.4)
Loans
Commercial 1,126,569 966,957 159,612 16.5
Residential real estate 743,010 754,708 (11,698) (1.6)
Home equity 179,028 136,569 42,459 31.1
Installment 109,015 109,801 (786) (0.7)
--------------------------------------------------------------
Total loans 2,157,622 1,968,035 189,587 9.6
Less: Unearned income (215) (203) (12) 5.9
Allowance for loan losses (28,447) (25,002) (3,445) 13.8
--------------------------------------------------------------
Loans, net 2,128,960 1,942,830 186,130 9.6
--------------------------------------------------------------
Other assets 167,536 116,243 51,293 44.1
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Total assets $ 2,932,199 $ 2,679,728 $ 252,471 9.4%
==============================================================
LIABILITIES AND SHAREHOLDERS' EQUITY:
Deposits
Noninterest-bearing deposits $ 242,983 $ 228,030 $ 14,953 6.6%
Interest checking and savings 377,057 444,481 (67,424) (15.2)
Money market deposits 244,343 235,728 8,615 3.7
Time deposits 1,133,851 908,252 225,599 24.8
--------------------------------------------------------------
Total deposits 1,998,234 1,816,491 181,743 10.0
Other borrowings 570,024 542,021 28,003 5.2
Other liabilities 54,654 30,948 23,706 76.6
--------------------------------------------------------------
Total liabilities 2,622,912 2,389,460 233,452 9.8
--------------------------------------------------------------
Total shareholders' equity 309,287 290,268 19,019 6.6
--------------------------------------------------------------
Total liabilities and shareholders' equity $ 2,932,199 $2,679,728 $ 252,471 9.4%
==============================================================
- ---------------------------------------------------------------------------------------------------------------------
SELECTED AVERAGE BALANCES
Loans $ 2,074,971 $ 1,878,509 $ 196,462 10.5%
Securities 495,612 525,078 (29,466) (5.6)
Interest earning assets 2,576,853 2,418,011 158,842 6.6
Assets 2,763,920 2,583,803 180,117 7.0
Deposits 1,877,426 1,795,921 81,505 4.5
Interest bearing liabilities 2,190,767 2,021,068 169,699 8.4
Shareholders' equity 299,745 292,183 7,562 2.6
- ---------------------------------------------------------------------------------------------------------------------
As of/For the Quarter Ended
------------------------------------------------------------------------------
12/31/2000 9/30/2000 6/30/2000 3/31/2000 12/31/1999
------------------------------------------------------------------------------
MISCELLANEOUS INFORMATION
Common stock prices (daily close)
High $ 15.7500 $ 16.8750 $ 17.5000 $ 14.6250 $ 19.6250
Low 13.0000 13.6250 12.5000 12.5000 14.0000
End of period 14.8750 14.4375 15.7500 13.0000 14.8750
Book Value 9.79 9.49 9.19 9.52 9.33
Market Capitalization 470,068,787 455,079,197 494,695,987 407,094,792 462,617,111
Weighted average shares - basic 31,588,105 31,503,251 31,402,488 31,245,099 31,075,453
Weighted average shares - diluted 31,688,490 31,646,483 31,584,528 31,399,895 31,315,720
End of period shares outstanding 31,601,263 31,520,637 31,409,269 31,314,984 31,100,310
- ---------------------------------------------------------------------------------------------------------------------
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8
FIRST CHARTER CORPORATION AND SUBSIDIARIES (NASDAQ: FCTR)
QUARTERLY EARNINGS RELEASE
As of/For the Quarter Ended
-------------------------------------------------------------------
(Dollars in thousands, except per share data) 12/31/2000 9/30/2000 6/30/2000 3/31/2000 12/31/1999
- -------------------------------------------------------------------------------------------------------------------------
CORE OPERATING EARNINGS
INTEREST INCOME - TAXABLE EQUIVALENT
Interest and fees on loans $ 48,622 $ 47,113 $ 45,277 $ 43,478 $ 42,196
Interest on securities 8,260 8,036 8,389 8,474 8,416
Other interest income 114 66 167 127 116
-------------------------------------------------------------------
Total interest income - taxable equivalent 56,995 55,215 53,833 52,079 50,728
-------------------------------------------------------------------
INTEREST EXPENSE
Interest on deposits 21,537 19,461 17,413 16,852 16,591
Other interest expense 7,914 8,604 8,786 7,747 6,635
-------------------------------------------------------------------
Total interest expense 29,451 28,065 26,199 24,599 23,226
-------------------------------------------------------------------
Net interest income - taxable equivalent 27,544 27,150 27,634 27,480 27,502
Less: Taxable equivalent adjustment 471 476 490 441 505
-------------------------------------------------------------------
NET INTEREST INCOME 27,073 26,674 27,144 27,039 26,997
Provision for loan losses (1) 2,075 2,200 1,370 1,970 1,235
-------------------------------------------------------------------
NET INTEREST INCOME AFTER PROVISION FOR
LOAN LOSSES 24,998 24,474 25,774 25,069 25,762
-------------------------------------------------------------------
NONINTEREST INCOME
Service charges on deposit accounts 2,835 2,710 3,091 2,551 2,702
Insurance and other fee income 2,511 2,412 2,248 2,560 1,967
Trust income 609 832 698 680 689
(Loss) gain on sale of securities -- -- 559 652 104
Other noninterest income 837 524 1,169 1,332 795
-------------------------------------------------------------------
Total noninterest income 6,792 6,478 7,765 7,775 6,257
-------------------------------------------------------------------
NONINTEREST EXPENSE
Salaries and employee benefits 10,361 9,521 10,433 10,628 10,599
Occupancy and equipment 3,191 2,898 3,171 3,082 2,877
Other noninterest expense 4,917 5,338 5,816 6,121 6,786
-------------------------------------------------------------------
Total noninterest expense 18,469 17,757 19,420 19,831 20,262
-------------------------------------------------------------------
Core operating earnings before taxes 13,321 13,195 14,119 13,013 11,757
Income taxes 4,224 4,081 4,630 4,102 3,850
-------------------------------------------------------------------
CORE OPERATING EARNINGS, NET $ 9,097 $ 9,114 $ 9,489 $ 8,911 $ 7,907
===================================================================
- -------------------------------------------------------------------------------------------------------------------------
CORE OPERATING EARNINGS PER SHARE DATA
Basic $ 0.29 $ 0.29 $ 0.30 $ 0.29 $ 0.25
Diluted 0.29 0.29 0.30 0.28 0.25
Dividends paid on common shares 0.18 0.18 0.17 0.17 0.17
- -------------------------------------------------------------------------------------------------------------------------
CORE OPERATING RATIOS
Return on average assets 1.28% 1.31% 1.38% 1.33% 1.20%
Return on average equity 11.87 12.20 12.58 12.17 11.04
Efficiency - taxable equivalent (*) 56.56 52.66 55.31 57.17 60.21
Noninterest income as a percentage of
total income 20.06 19.54 22.24 22.33 18.82
Equity as a percentage of total assets 10.55 10.73 10.35 10.82 10.83
Average earning assets as a percentage of
average total assets 93.00 92.99 93.04 93.82 94.11
Average loans as a percentage of average
deposits 108.89 112.18 111.69 109.69 105.90
- -------------------------------------------------------------------------------------------------------------------------
(1) During the third quarter of 2000, an incremental provision for loan losses
of $875,000 was categorized as a non-core item. This component of the provision
for loan losses was in direct response to the increase in nonperforming loans
and the overall decline in the economy, and was deemed at that time to be a one
time, nonrecurring event. Management recognized during the fourth quarter that
these factors instead were part of the normal trends of the Corporation's
operations, and therefore has included this amount in core operating earnings.
Notes: Applicable ratios are annualized.
* - Core operating noninterest expense less foreclosed property
expense divided by the sum of taxable equivalent net interest
income plus core operating noninterest income less core gain on
sale of securities.
8
9
FIRST CHARTER CORPORATION AND SUBSIDIARIES (NASDAQ: FCTR)
QUARTERLY EARNINGS RELEASE
As of/For the Quarter Ended
-----------------------------------------------------------------------
(Dollars in thousands, except per share data) 12/31/2000 9/30/2000 6/30/2000 3/31/2000 12/31/1999
- ---------------------------------------------------------------------------------------------------------------------
BALANCE SHEET
ASSETS:
Cash and due from banks $ 71,196 $ 72,876 $ 72,299 $ 84,712 $ 94,568
Federal funds sold 1,015 1,020 1,658 624 665
Interest earning bank deposits 122,461 5,461 8,196 3,284 2,435
Securities held to maturity -- -- -- 35,324 36,082
Securities available for sale 441,031 474,077 500,310 476,017 486,905
Loans
Commercial 1,126,569 1,094,170 1,097,377 1,033,059 966,957
Residential real estate 743,010 741,479 722,512 759,502 754,708
Home equity 179,028 169,622 159,909 148,253 136,569
Installment 109,015 106,158 109,728 111,006 109,801
-------------------------------------------------------------------------
Total loans 2,157,622 2,111,428 2,089,526 2,051,820 1,968,035
Less: Unearned income (215) (284) (152) (164) (203)
Allowance for loan losses (28,447) (27,861) (26,700) (25,979) (25,002)
-------------------------------------------------------------------------
Loans, net 2,128,960 2,083,283 2,062,674 2,025,677 1,942,830
-------------------------------------------------------------------------
Other assets 167,536 151,238 143,289 128,540 116,243
-------------------------------------------------------------------------
Total assets $ 2,932,199 $ 2,787,955 $ 2,788,426 $ 2,754,178 $ 2,679,728
=========================================================================
LIABILITIES AND SHAREHOLDERS' EQUITY:
Deposits
Noninterest-bearing deposits $ 242,983 $ 279,765 $ 252,595 $ 239,645 $ 228,030
Interest checking and savings 377,057 357,739 396,147 439,575 444,481
Money market deposits 244,343 223,508 229,594 244,793 235,728
Time deposits 1,133,851 1,061,428 992,622 932,167 908,252
-------------------------------------------------------------------------
Total deposits 1,998,234 1,922,440 1,870,958 1,856,180 1,816,491
Other borrowings 570,024 519,762 584,144 567,536 542,021
Other liabilities 54,654 46,703 44,609 32,485 30,948
-------------------------------------------------------------------------
Total liabilities 2,622,912 2,488,905 2,499,711 2,456,201 2,389,460
-------------------------------------------------------------------------
Total shareholders' equity 309,287 299,050 288,715 297,977 290,268
-------------------------------------------------------------------------
Total liabilities and shareholders'
equity $ 2,932,199 $ 2,787,955 $ 2,788,426 $ 2,754,178 $ 2,679,728
=========================================================================
- ---------------------------------------------------------------------------------------------------------------------
SELECTED AVERAGE BALANCES
Loans $ 2,133,452 $ 2,099,692 $ 2,068,958 $ 1,997,860 $ 1,930,497
Securities 484,098 475,630 509,977 513,501 534,083
Interest earning assets 2,628,331 2,578,374 2,582,473 2,519,053 2,468,323
Assets 2,826,068 2,772,859 2,775,567 2,685,082 2,622,856
Deposits 1,959,300 1,871,707 1,852,470 1,821,291 1,822,969
Interest bearing liabilities 2,233,820 2,192,605 2,196,884 2,139,254 2,061,485
Shareholders' equity 304,770 297,122 303,277 294,442 284,145
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FIRST CHARTER CORPORATION AND SUBSIDIARIES (NASDAQ: FCTR)
QUARTERLY EARNINGS RELEASE
As of/For the Quarter Ended
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(Dollars in thousands, except per share data) 12/31/2000 9/30/2000 6/30/2000 3/31/2000 12/31/1999
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ASSET QUALITY ANALYSIS
ALLOWANCE FOR LOAN LOSSES
Beginning balance $ 27,861 $ 26,700 $ 25,979 $ 25,002 $ 24,174
Provision for loan losses 2,075 2,200 1,370 1,970 1,235
Allowance related to loans sold -- -- (113) -- --
Charge-offs (1,643) (1,440) (705) (1,275) (612)
Recoveries 154 401 169 282 205
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Net charge-offs (1,489) (1,039) (536) (993) (407)
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Ending balance $ 28,447 $ 27,861 $ 26,700 $ 25,979 $ 25,002
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NONPERFORMING ASSETS AND LOANS 90 DAYS
OR MORE PAST DUE ACCRUING
Nonaccrual loans $26,587 $ 26,281 $ 13,538 $ 9,513 $ 10,353
Restructured loans -- -- -- -- 37
Other real estate 2,989 1,908 2,281 2,066 2,262
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Total nonperforming assets 29,576 28,189 15,819 11,579 12,652
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Loans 90 days or more past due
accruing interest 430 716 2,645 3,559 3,638
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TOTAL $ 30,006 $ 28,905 $ 18,464 $ 15,138 $ 16,290
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ASSET QUALITY RATIOS
Nonaccrual loans as a percentage of
total loans 1.23% 1.24% 0.65% 0.46% 0.53%
Nonperforming assets as a percentage of
total assets 1.01 1.01 0.57 0.42 0.47
Nonperforming assets as a percentage of
total loans and other real estate 1.37 1.33 0.76 0.56 0.64
Net charge-offs as a percentage of
average loans (annualized) 0.28 0.20 0.10 0.20 0.08
Allowance for loan losses as a
percentage of loans 1.32 1.32 1.28 1.27 1.27
Ratio of allowance for loan losses to:
Net charge-offs 4.80X 6.74x 12.39x 6.50x 15.48x
Nonaccrual loans 1.07 1.06 1.97 2.73 2.41
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As of/For the Year Ended Increase (Decrease)
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12/31/2000 12/31/1999 Amount Percentage
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ALLOWANCE FOR LOAN LOSSES
Beginning balance $ 25,002 $ 22,278 $ 2,724 12.2%
Provision for loan losses 7,615 5,005 2,610 52.1
Allowance related to loans sold (113) (369) 256 (69.4)
Charge-offs (5,063) (2,773) (2,290) 82.6
Recoveries 1,006 861 145 16.8
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Net charge-offs (4,057) (1,912) (2,145) 112.2
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Ending balance $ 28,447 $ 25,002 $ 3,445 13.8%
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ASSET QUALITY RATIOS
Net charge-offs as a percentage of
average loans 0.20% 0.10%
Ratio of allowance for loan losses to
net charge-offs 7.01X 13.08x
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For the Quarter Ended
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12/31/2000 9/30/2000 6/30/2000 3/31/2000 12/31/1999
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ANNUALIZED INTEREST YIELDS / RATES (*)
INTEREST INCOME:
Yield on loans 9.07% 8.93% 8.80% 8.75% 8.67%
Yield on securities 6.79 6.72 6.62 6.64 6.25
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Yield on interest earning assets 8.63 8.52 8.38 8.32 8.15
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INTEREST EXPENSE:
Cost of interest bearing deposits 5.01 4.75 4.36 4.27 4.17
Cost of borrowings 6.03 6.08 6.00 5.64 5.45
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Cost of interest bearing liabilities 5.24 5.09 4.80 4.62 4.47
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Interest rate spread 3.39 3.43 3.58 3.70 3.68
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Net yield on earning assets 4.17% 4.19% 4.30% 4.39% 4.42%
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Notes: Applicable ratios are annualized.
* - Fully taxable equivalent yields.
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