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Exhibit 99(a)
BANK OF GRANITE CORPORATION
NEWS
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FOR RELEASE: APRIL 9, 2001
FIRST QUARTER EARNINGS PER SHARE UP 9.4%
AT BANK OF GRANITE
Buoyed by strong earnings from its Mortgage Company, Bank of Granite
Corporation (NASDAQ: GRAN) reported substantially increased first quarter
earnings.
For the quarter, ending March 31, 2001, the Company earned $3,848,106,
or 35(cent) per share, compared to $3,661,476, or 32(cent) per share in the
first quarter of 2000. John A. Forlines, Jr., Chairman and Chief Executive
Officer, said "first quarter earnings were gratifying, but we are seeing
considerable signs of a slower economy in the immediate future". He complimented
GLL & Associates, the Company's mortgage loan subsidiary, on their positive
effect on overall earnings and said he was cautiously optimistic about the
remainder of the year.
At the end of the first quarter, new records were set in assets,
deposits, and loans. Assets were up 9.4% and totaled $702,688,562, the first
time ever that assets have exceeded $700 million. Deposits grew 10.9%, for a
total of $546,827,506 and loans reached $473,156,573, an increase of 16.6%
compared with the first quarter of 2000.
Key management ratios were once again outstanding, far exceeding the
Company's peers and the banking industry generally. For the quarter, the Company
earned 2.32% on average assets and the return on average equity was 12.99%. The
capital to asset ratio of 17.27% indicates that Bank of Granite remains one of
the strongest, best capitalized banks in the country. The efficiency ratio was
an outstanding 39.32%. Forlines said he expects 2001 to mark the 48th
consecutive year of increased dividends to its shareholders. This is believed to
be a record for any banking organization in America.
Forlines, as always, thanked the "dedicated, hard working
professionals", the employees who made these earnings possible.
Bank of Granite Corporation is the parent of Bank of Granite, which
operates fourteen full service offices in Caldwell, Catawba, and Burke Counties,
and GLL & Associates, a mortgage banking company headquartered in Winston-Salem,
N. C. Bank of Granite Corporation has over 5,300 shareholders, with 11,106,816
shares of common stock outstanding at the end of the first quarter. Closing
price of its stock at the end of the first quarter was $21.19, a 6.3% increase
over its closing price of $19.94 at the end of the first quarter in 2000.
Bank of Granite Corporation's Annual Shareholder's meeting will be held
at 10:30 AM at the Holiday Inn, in Hickory, N. C. on Monday, April 23, 2001.
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Please see "Financial Data" tables, which are attached.
For further information, contact Kirby A. Tyndall, Senior Vice President and
Chief Financial Officer at Voice (828) 496-2026, Fax (828) 496-2116 or
Internet: ktyndall@bankofgranite.com.
Bank of Granite Corporation, PO Box 128, Granite Falls, N. C. 28630
www.bankofgranite.com More
Bank of Granite Corporation, Form 8-K, April 9, 2001, page 5 of 7
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BANK OF GRANITE CORPORATION
Selected Financial Data
Three Months Ended
March 31,
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($ in thousands except per share data) 2001 2000 % change
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Consolidated earnings summary:
Interest income, taxable equivalent $ 14,542 $ 13,241 9.8%
Interest expense 5,544 4,211 31.7%
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Net interest income, taxable equivalent 8,998 9,030 -0.4%
Taxable equivalent adjustment 446 461 -3.3%
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Net interest income 8,552 8,569 -0.2%
Loan loss provision 700 645 8.5%
Noninterest income 2,447 1,660 47.4%
Noninterest expense 4,501 4,110 9.5%
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Income before income taxes 5,798 5,474 5.9%
Income taxes 1,950 1,813 7.6%
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Net income $ 3,848 $ 3,661 5.1%
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Earnings per share - Basic $ 0.35 $ 0.32 9.4%
Earnings per share - Diluted 0.35 0.32 9.4%
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Average shares - Basic 11,142 11,419 -2.4%
Average shares - Diluted 11,146 11,428 -2.5%
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Consolidated balance sheet data at March 31:
Total assets $702,689 $ 642,590 9.4%
Total deposits 546,828 493,285 10.9%
Loans (gross) 473,157 405,856 16.6%
Shareholders' equity 121,352 114,611 5.9%
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Consolidated average balance sheet data:
Total assets $672,380 $ 618,509 8.7%
Total deposits 523,528 478,364 9.4%
Loans (gross) 462,659 396,621 16.7%
Shareholders' equity 120,132 114,156 5.2%
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Consolidated performance ratios:
Return on average assets 2.32% 2.38%
Return on average equity 12.99% 12.90%
Efficiency ratio 39.33% 38.45%
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Consolidated asset quality data and ratios:
Nonaccruing loans $ 1,571 $ 1,083 45.1%
Accruing loans 90 days past due 2,771 1,147 141.6%
Nonperforming loans $ 4,342 $ 2,230 94.7%
Foreclosed properties 134 196 -31.6%
Nonperforming assets 4,476 2,426 84.5%
Allowance for loan losses 6,919 5,200 33.1%
Loans charged off 230 269 -14.5%
Recoveries of loans charged off 97 77 26.0%
Net loan charge-offs (recoveries) 133 192 -30.7%
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Net charge-offs to average loans 0.12% 0.19%
Nonperforming loans to total assets 0.62% 0.35%
Allowance coverage of nonperforming loans 159.35% 233.18%
Allowance for loan losses to gross loans 1.46% 1.28%
Allowance for loan losses to net loans 1.48% 1.30%
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Subsidiary earnings summary:
Bank of Net interest income $ 8,030 $ 8,288 -3.1%
Granite Loan loss provision 670 645 3.9%
Noninterest income 1,777 1,263 40.7%
Noninterest expense 3,545 3,290 7.8%
Income taxes 1,852 1,831 1.1%
Net income 3,740 3,785 -1.2%
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GLL & Net interest income $ 529 $ 334 58.4%
Associates Loan loss provision 30 -- n/a
(mortgage Noninterest income 670 397 68.8%
bank) Noninterest expense 954 774 23.3%
Income taxes 98 (17) -676.5%
Net income (loss) 147 (26) -665.4%
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Bank of Granite Corporation, Form 8-K, April 9, 2001, page 6 of 7
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BANK OF GRANITE CORPORATION
Supplemental Quarterly Financial Data
($ in thousands except per share data)
Quarters Ended
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MAR 31, Dec 31, Sep 30, Jun 30, Mar 31,
2001 2000 2000 2000 2000
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Consolidated earnings summary:
Interest income, taxable equivalent $ 14,542 $ 15,059 $ 14,589 $ 14,189 $ 13,241
Interest expense 5,544 5,439 5,035 4,487 4,211
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Net interest income, taxable equivalent 8,998 9,620 9,554 9,702 9,030
Taxable equivalent adjustment 446 453 455 440 461
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Net interest income 8,552 9,167 9,099 9,262 8,569
Loan loss provision 700 955 1,505 788 645
Noninterest income 2,447 2,189 2,136 2,049 1,660
Noninterest expense 4,501 4,206 4,189 4,277 4,110
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Income before income taxes 5,798 6,195 5,541 6,246 5,474
Income taxes 1,950 2,104 1,807 2,159 1,813
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Net income $ 3,848 $ 4,091 $ 3,734 $ 4,087 $ 3,661
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Earnings per share - Basic $ 0.35 $ 0.37 $ 0.33 $ 0.36 $ 0.32
Earnings per share - Diluted 0.35 0.37 0.33 0.36 0.32
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Average shares - Basic 11,142 11,175 11,288 11,351 11,419
Average shares - Diluted 11,146 11,182 11,302 11,361 11,428
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Consolidated ending balance sheet data:
Total assets $702,689 $661,623 $640,338 $636,725 $642,590
Total deposits 546,828 517,282 496,068 490,018 493,285
Loans (gross) 473,157 450,398 436,514 422,631 405,856
Shareholders' equity 121,352 119,315 117,919 116,132 114,611
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Consolidated average balance sheet data:
Total assets $672,380 $651,405 $636,428 $631,454 $618,509
Total deposits 523,528 508,899 493,619 487,007 478,364
Loans (gross) 462,659 444,409 428,585 415,396 396,621
Shareholders' equity 120,132 117,916 117,146 115,445 114,156
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Consolidated performance ratios:
Return on average assets 2.32% 2.53% 2.36% 2.60% 2.38%
Return on average equity 12.99% 13.95% 12.82% 14.24% 12.90%
Efficiency ratio 39.33% 35.62% 35.83% 36.40% 38.45%
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Consolidated asset quality data and ratios:
Nonaccruing loans $ 1,571 $ 1,502 $ 1,543 $ 1,154 $ 1,083
Accruing loans 90 days past due 2,771 1,983 1,486 541 1,147
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Nonperforming loans 4,342 3,485 3,029 1,695 2,230
Foreclosed properties 134 134 83 136 196
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Nonperforming assets 4,476 3,619 3,112 1,831 2,426
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Allowance for loan losses 6,919 6,352 6,004 5,721 5,200
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Loans charged off 230 672 1,351 313 269
Recoveries of loans charged off 97 65 129 46 77
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Net loan charge-offs (recoveries) 133 607 1,222 267 192
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Annualized net charge-offs to average loans 0.12% 0.55% 1.15% 0.26% 0.19%
Nonperforming loans to total assets 0.62% 0.53% 0.47% 0.27% 0.35%
Allowance coverage of nonperforming loans 159.35% 182.27% 198.22% 337.52% 233.18%
Allowance for loan losses to gross loans 1.46% 1.41% 1.38% 1.35% 1.28%
Allowance for loan losses to net loans 1.48% 1.43% 1.39% 1.37% 1.30%
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Subsidiary earnings summary:
Bank of Net interest income $ 8,030 $ 8,776 $ 8,754 $ 8,900 $ 8,288
Granite Loan loss provision* 670 925 1,475 778 645
Noninterest income* 1,777 1,657 1,569 1,556 1,263
Noninterest expense* 3,545 3,414 3,329 3,351 3,290
Income taxes 1,852 2,028 1,759 2,098 1,831
Net income 3,740 4,066 3,760 4,229 3,785
*Includes effects of new Bounce program:
Loss provision 65 80 118 133 --
Noninterest income 401 480 512 456 --
Noninterest expense 17 17 14 11 --
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GLL & Net interest income $ 529 $ 438 $ 401 $ 445 $ 334
Associates Loan loss provision 30 30 30 10 --
(mortgage Noninterest income 670 531 566 567 397
bank) Noninterest expense 954 784 849 859 774
Income taxes 98 76 48 61 (17)
Net income (loss) 147 109 70 92 (26)
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Bank of Granite Corporation, Form 8-K, April 9, 2001, page 7 of 7