1
Exhibit 99.1
NEWS RELEASE DATED 07-10-2001
For Additional Information,
Contact Robert O. Bratton,
Chief Financial Officer
(704) 688-4473
or
Jan H. Hollar,
Director of Finance
(704) 688-4467
FOR IMMEDIATE RELEASE
July 10, 2001
FIRST CHARTER ANNOUNCES
SECOND QUARTER EARNINGS
Charlotte, North Carolina - First Charter Corporation (NASDAQ: FCTR) reported
today that second quarter 2001 net income increased to $8.9 million, or $0.28
per diluted share, compared to a net loss of $2.8 million, or a $0.09 loss per
diluted share in the second quarter 2000. Net income for the six month period
ended June 30, 2001 amounted to $17.7 million, or $0.56 per diluted share,
compared to $5.8 million, or $0.18 per diluted share during the six month period
ended June 30, 2000. The results for the quarter and six month period ended June
30, 2000 include restructuring charges and merger-related expenses of $16.3
million pre-tax ($12.3 million, or $0.39 per diluted share after-tax) associated
with the Carolina First BancShares, Inc. acquisition.
"We are pleased to report earnings of $0.28 per diluted share for the second
quarter of 2001," commented President and Chief Executive Officer Lawrence M.
Kimbrough. "Our continued focus on non-traditional bank products has contributed
to a 13% increase in noninterest income year to date over 2000."
NET INTEREST INCOME
Net interest income for the second quarter of 2001 decreased 3% to $26.3
million, compared to $27.0 million for the same period in 2000. Net interest
income for the six months ended June 30, 2001 decreased 4% to $51.7 million,
compared to $54.1 million for the same period in 2000. These decreases were the
result of a variety of factors, including reduced loan demand and compressed net
interest margin resulting from the slowing economy; several large loan payoffs;
and our increased selectivity in seeking new opportunities in this economic
environment. The short term impact of the declining interest rate environment
has been negative to the net interest
2
margin as variable rate assets reprice faster than variable rate liabilities.
The net interest margin has decreased to 3.73% in the second quarter of 2001,
from 3.90% for the quarter ended March 31, 2001 and 4.17% for the quarter ended
December 31, 2000.
NONINTEREST INCOME
Noninterest income for the second quarter of 2001 increased 11% to $8.8 million
compared to $7.9 million for the same period in 2000. Noninterest income for the
six months ended June 30, 2001 increased 13% to $17.2 million compared to $15.2
million for the same period in 2000. These increases were driven primarily by
increases in service charge income on deposit accounts, mortgage loan fee
increases and continued growth of First Charter Insurance Services.
NONINTEREST EXPENSE
Noninterest expense for the second quarter of 2001 totaled $20.9 million
compared to $35.7 million for the same period in 2000. Noninterest expense for
the six months ended June 30, 2001 totaled $41.0 million, compared to $55.5
million for the same period in 2000. These decreases were attributable to the
restructuring charges and merger-related expenses of $16.3 million during the
quarter ended June 30, 2000, associated with the Carolina First BancShares, Inc.
acquisition, and a decrease in salaries and employee benefits expenses during
2001 due to synergies realized as part of the Carolina First BancShares, Inc.
acquisition. These decreases were partially offset during 2001 by the additional
operating costs associated with the four financial centers acquired during the
fourth quarter of 2000 and an increase in occupancy and equipment expense as a
result of the move into the new First Charter Center.
BALANCE SHEET
Total assets at June 30, 2001 amounted to $3.14 billion, compared to $2.93
billion at December 31, 2000 and $2.79 billion at June 30, 2000. Net loans at
June 30, 2001 amounted to $1.94 billion, compared to $2.13 billion at December
31, 2000 and $2.06 billion at June 30, 2000. This decrease from prior periods
was due primarily to the securitization of $167.0 million of mortgage loans in
February 2001. The securitized mortgage loans are now classified as mortgage
backed securities in our securities available for sale portfolio. The securities
available for sale portfolio increased to $940.0 million at June 30, 2001,
compared to $441.0 million at December 31, 2000, and $500.3 million at June 30,
2000. The increase in securities available for sale was due to the mortgage loan
securitization, as well as purchases of additional securities available for
sale.
Total deposits at June 30, 2001 amounted to $2.12 billion, compared to $2.00
billion at December 31, 2000 and $1.87 billion at June 30, 2000. Shareholders'
equity at June 30, 2001 was $324.1 million, which represented a book value per
share of $10.22 and an equity-to-assets percentage of 10.33%. Based on the
$18.75 closing price of First Charter Corporation common stock at June 30, 2001,
the Corporation had a market capitalization of $594.8 million.
ASSET QUALITY
The provision for loan losses for the three months ended June 30, 2001 amounted
to $1.2 million, compared to $1.4 million for the same period in 2000. The
provision for loan losses for the six month period ended June 30, 2001 amounted
to $1.9 million, compared to $3.3 million for the same period in 2000. The
decrease in the provision for the six months ended June 30, 2001 as compared to
the same period in 2000 was due to lower loan volume, as loans decreased $20.7
million from December 31, 2000 to June 30, 2001, as adjusted to remove the
effect of the securitization of $167 million of mortgage loans in February 2001.
3
Total nonperforming assets and loans 90 days or more past due and still accruing
at June 30, 2001 increased to $32.3 million as compared to $30.0 million at
December 31, 2000 and $18.5 million at June 30, 2000. As a percentage of total
assets, nonperforming assets have remained relatively constant at 1.02% at June
30, 2001 compared to 1.01% at December 31, 2000 but have increased from 0.57% at
June 30, 2000. Net loan charge-offs as a percentage of average gross loans
decreased to 0.19% (annualized) as compared to 0.20% for the year ended December
31, 2000 but have increased from 0.15% (annualized) for the six months ended
June 30, 2000. At June 30, 2001 the allowance for loan losses as a percentage of
gross loans was 1.42% compared to 1.32% and 1.28% at December 31, 2000 and June
30, 2000, respectively. The increase in the allowance for loan losses as a
percentage of gross loans is primarily attributable to the mortgage loan
securitization which reclassified $167 million from the loan portfolio into the
securities available for sale portfolio and the removal of the related allowance
for loan losses associated with these loans. The securitized loans consisted of
residential mortgage loans that generally have a lower percentage of allocated
allowance for loan losses.
SHARE REPURCHASE PROGRAM
On April 27, 2001, First Charter Corporation announced the authorization to
repurchase up to 1 million shares of its common stock. As of June 30, 2001,
7,000 shares have been repurchased under this authorization.
CONFERENCE CALL
First Charter executive management will be available via telephone conference to
discuss the contents of this press release as well as to present growth and
earnings estimates for the third quarter of 2001 on Wednesday, July 11, 2001 at
1:00 p.m. During the conference call, First Charter executive management will be
presenting earnings estimates for the remainder of 2001. In order to participate
in this conference call, dial 1-888-404-8794 and use the conference code
7046884460. Additionally, the Investment Community may listen to the conference
call and obtain the presentation materials via the internet by visiting
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.
RECENT DEVELOPMENTS
On June 22, 2001, First Charter's banking subsidiary completed its conversion
from a national bank to First Charter Bank, a North Carolina state bank. That
change was completed after a cost benefit analysis of supervisory regulatory
charges and does not represent any disagreement with the Company's former
regulators. The bank will continue to operate its financial center network
franchise under the "First Charter" branded name.
4
CORPORATE PROFILE
First Charter Corporation is a regional financial services company with assets
of $3.14 billion and is the holding company for First Charter Bank. First
Charter operates 52 financial centers, five insurance offices and 99 ATMs
located in 17 counties throughout the western half of North Carolina. First
Charter provides businesses and individuals with a broad range of financial
services, including banking, 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 hereof. The company undertakes no obligation to
publicly revise these forward-looking statements to reflect events and
circumstances that arise after the date hereof.
(SELECTED FINANCIAL INFORMATION IS ATTACHED)
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) 6/30/2001 6/30/2000 Amount Percentage
- ---------------------------------------------------------------------------------------------------------------------
INCOME STATEMENT
Interest income - taxable equivalent $ 55,870 $ 53,732 $ 2,138 4.0 %
Interest expense 29,043 26,199 2,844 10.9
--------------------------------------------------------
Net interest income - taxable equivalent 26,827 27,533 (706) (2.6)
Less: Taxable equivalent adjustment 479 490 (11) (2.2)
--------------------------------------------------------
Net interest income 26,348 27,043 (695) (2.6)
Provision for loan losses 1,190 1,370 (180) (13.1)
--------------------------------------------------------
Net interest income after provision for loan losses 25,158 25,673 (515) (2.0)
Noninterest income 8,814 7,914 900 11.4
Noninterest expense 20,878 35,670 (14,792) (41.5)
--------------------------------------------------------
Income before income taxes 13,094 (2,083) 15,177 728.6
Income taxes 4,223 681 3,542 520.1
--------------------------------------------------------
NET INCOME $ 8,871 $ (2,764) $ 11,635 420.9 %
--------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
EARNINGS PER SHARE DATA
Basic $ 0.28 $ (0.09) $ 0.37 411.1 %
Diluted 0.28 (0.09) 0.37 411.1
Weighted average shares - basic 31,719,241 31,402,488
Weighted average shares - diluted 31,906,705 31,584,528
Dividends paid on common shares $ 0.18 $ 0.17 $ 0.01 5.9 %
- ---------------------------------------------------------------------------------------------------------------------
PERFORMANCE RATIOS
Return on average assets 1.15 % (0.40)%
Return on average equity 11.12 (3.67)
Efficiency - taxable equivalent (*) 59.05 101.37
- ---------------------------------------------------------------------------------------------------------------------
For the Three Months Ended
-------------------------------
SCHEDULE OF OTHER ITEMS INCLUDED IN EARNINGS 6/30/2001 6/30/2000
-------------------------------
Noninterest income
Loss on sale of loans - (99)
Equity investment write down - (299)
Equity method income (loss) (102) 446
Noninterest expense
Restructuring charges and merger-related expenses - (16,250)
-----------------------------
Total other items $ (102) $ (16,202)
-----------------------------
Other items, net of tax $ (70) $ (12,253)
-----------------------------
- ---------------------------------------------------------------------------------------------------------------------
Notes: Applicable ratios are annualized.
* - Noninterest expense divided by the sum of taxable equivalent net
interest income plus noninterest income less gain on sale of
securities.
6
FIRST CHARTER CORPORATION AND SUBSIDIARIES (NASDAQ: FCTR)
QUARTERLY EARNINGS RELEASE
For the Six Months Ended Increase (Decrease)
--------------------------------------------------------
(Dollars in thousands, except per share data) 6/30/2001 6/30/2000 Amount Percentage
- -----------------------------------------------------------------------------------------------------------------------
INCOME STATEMENT
Interest income - taxable equivalent $ 110,437 $ 105,811 $ 4,626 4.4 %
Interest expense 57,734 50,798 6,936 13.7
--------------------------------------------------------
Net interest income - taxable equivalent 52,703 55,013 (2,310) (4.2)
Less: Taxable equivalent adjustment 976 931 45 4.8
--------------------------------------------------------
Net interest income 51,727 54,082 (2,355) (4.4)
Provision for loan losses 1,940 3,340 (1,400) (41.9)
--------------------------------------------------------
Net interest income after provision for loan losses 49,787 50,742 (955) (1.9)
Noninterest income 17,234 15,189 2,045 13.5
Noninterest expense 40,921 55,501 (14,580) (26.3)
--------------------------------------------------------
Income before income taxes 26,100 10,430 15,670 150.2
Income taxes 8,385 4,625 3,760 81.3
--------------------------------------------------------
NET INCOME $ 17,715 $ 5,805 $ 11,910 205.2 %
--------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------------------
EARNINGS PER SHARE DATA
Basic $ 0.56 $ 0.19 $ 0.37 194.7 %
Diluted 0.56 0.18 0.38 211.1
Weighted average shares - basic 31,708,003 31,323,794
Weighted average shares - diluted 31,870,134 31,492,212
Dividends paid on common shares $ 0.36 $ 0.34 $ 0.02 5.9 %
- -----------------------------------------------------------------------------------------------------------------------
PERFORMANCE RATIOS
Return on average assets 1.19 % 0.43 %
Return on average equity 11.29 3.91
Efficiency - taxable equivalent (*) 58.97 79.53
- -----------------------------------------------------------------------------------------------------------------------
For the Six Months Ended
-------------------------------
SCHEDULE OF OTHER ITEMS INCLUDED IN EARNINGS 6/30/2001 6/30/2000
-------------------------------
Noninterest income
Loss on sale of loans $ - $ (99)
Equity investment write down (144) (799)
Equity method income 9 446
Noninterest expense
Restructuring charges and merger-related expenses - (16,250)
------------------------------
Total other items (135) (16,702)
------------------------------
Other items, net of tax (92) (12,595)
------------------------------
- -----------------------------------------------------------------------------------------------------------------------
Notes: Applicable ratios are annualized.
* - Noninterest expense divided by the sum of taxable equivalent net
interest income plus noninterest income less gain on sale of
securities.
7
FIRST CHARTER CORPORATION AND SUBSIDIARIES (NASDAQ: FCTR)
QUARTERLY EARNINGS RELEASE
As of/For the Six Months Ended Increase (Decrease)
---------------------------------------------------------------
(Dollars in thousands, except per share data) 6/30/2001 6/30/2000 Amount Percentage
- ----------------------------------------------------------------------------------------------------------------------
BALANCE SHEET
ASSETS:
Cash and due from banks $ 75,696 $ 72,299 $ 3,397 4.7 %
Federal funds sold 902 1,658 (756) (45.6)
Interest earning bank deposits 4,439 8,196 (3,757) (45.8)
Securities available for sale 939,993 500,310 439,683 87.9
Loans
Commercial 1,089,482 1,097,377 (7,895) (0.7)
Residential real estate 572,004 722,512 (150,508) (20.8)
Home equity 200,537 159,909 40,628 25.4
Installment 107,864 109,728 (1,864) (1.7)
---------------------------------------------------------------
Total loans 1,969,887 2,089,526 (119,639) (5.7)
Less: Unearned income (222) (152) (70) 46.1
Allowance for loan losses (28,049) (26,700) (1,349) 5.1
---------------------------------------------------------------
Loans, net 1,941,616 2,062,674 (121,058) (5.9)
---------------------------------------------------------------
Other assets 176,343 143,289 33,054 23.1
---------------------------------------------------------------
Total assets $ 3,138,989 $ 2,788,426 $ 350,563 12.6 %
---------------------------------------------------------------
LIABILITIES AND SHAREHOLDERS' EQUITY:
Deposits
Noninterest-bearing deposits $ 257,443 $ 252,595 $ 4,848 1.9 %
Interest checking and savings 369,995 396,147 (26,152) (6.6)
Money market deposits 262,903 229,594 33,309 14.5
Time deposits 1,228,686 992,622 236,064 23.8
---------------------------------------------------------------
Total deposits 2,119,027 1,870,958 248,069 13.3
Other borrowings 643,483 584,144 59,339 10.2
Other liabilities 52,375 44,609 7,766 17.4
---------------------------------------------------------------
Total liabilities 2,814,885 2,499,711 315,174 12.6
---------------------------------------------------------------
Total shareholders' equity 324,104 288,715 35,389 12.3
---------------------------------------------------------------
Total liabilities and shareholders' equity $ 3,138,989 $ 2,788,426 $ 350,563 12.6 %
---------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------------------
SELECTED AVERAGE BALANCES
Loans $ 2,005,554 $ 2,033,409 $ (27,855) (1.4)%
Securities 763,425 508,239 255,186 50.2
Interest earning assets 2,779,599 2,550,763 228,836 9.0
Assets 2,992,241 2,729,018 263,223 9.6
Deposits 2,017,243 1,836,881 180,362 9.8
Interest bearing liabilities 2,385,932 2,168,069 217,863 10.0
Shareholders' equity 316,544 298,684 17,860 6.0
- ----------------------------------------------------------------------------------------------------------------------
As of/For the Quarter Ended
-------------------------------------------------------------------------------
6/30/2001 3/31/2001 12/31/2000 9/30/2000 6/30/2000
-------------------------------------------------------------------------------
MISCELLANEOUS INFORMATION
Common stock prices (daily close)
High $ 18.7500 $ 16.0000 $ 15.7500 $ 16.8750 $ 17.5000
Low 15.1250 13.4380 13.0000 13.6250 12.5000
End of period 18.7500 15.5625 14.8750 14.4375 15.7500
Book Value 10.22 10.06 9.79 9.49 9.19
Market Capitalization 594,775,763 493,491,824 470,068,787 455,079,197 494,695,987
Weighted average shares - basic 31,719,241 31,696,764 31,588,105 31,503,251 31,402,488
Weighted average shares - diluted 31,906,705 31,833,564 31,688,490 31,646,483 31,584,528
End of period shares outstanding 31,721,374 31,710,318 31,601,263 31,520,637 31,409,269
- ----------------------------------------------------------------------------------------------------------------------
8
FIRST CHARTER CORPORATION AND SUBSIDIARIES (NASDAQ: FCTR)
QUARTERLY EARNINGS RELEASE
As of / For the Quarter Ended
--------------------------------------------------------------
(Dollars in thousands, except per share data) 6/30/2001 3/31/2001 12/31/2000 9/30/2000 6/30/2000
- ----------------------------------------------------------------------------------------------------------------------
INCOME STATEMENT
INTEREST INCOME - TAXABLE EQUIVALENT
Interest and fees on loans $ 40,609 $ 43,931 $ 48,520 $ 47,215 $ 45,176
Interest on securities 15,165 10,449 8,260 8,036 8,389
Other interest income 96 187 216 (36) 167
--------------------------------------------------------------
Total interest income - taxable equivalent 55,870 54,567 56,995 55,215 53,732
--------------------------------------------------------------
INTEREST EXPENSE
Interest on deposits 20,638 21,129 21,537 19,461 17,413
Other interest expense 8,405 7,562 7,914 8,604 8,786
--------------------------------------------------------------
Total interest expense 29,043 28,691 29,451 28,065 26,199
--------------------------------------------------------------
Net interest income - taxable equivalent 26,827 25,876 27,544 27,150 27,533
Less: Taxable equivalent adjustment 479 497 471 476 490
--------------------------------------------------------------
NET INTEREST INCOME 26,348 25,379 27,073 26,674 27,043
Provision for loan losses 1,190 750 2,075 2,200 1,370
--------------------------------------------------------------
NET INTEREST INCOME AFTER PROVISION FOR
LOAN LOSSES 25,158 24,629 24,998 24,474 25,673
--------------------------------------------------------------
NONINTEREST INCOME
Service charges on deposit accounts 3,383 2,918 2,835 2,710 3,091
Financial management income 640 775 609 832 698
Gain (loss) on sale of securities 282 267 (1,290) (3,425) 260
Income (loss) from equity method investees (102) 111 28 4,106 446
Mortgage loan fees 749 509 450 198 101
Brokerage services income 520 394 421 380 366
Insurance services income 1,865 1,991 1,613 1,636 1,744
Other noninterest income 1,477 1,455 3,227 1,147 1,208
--------------------------------------------------------------
Total noninterest income 8,814 8,420 7,893 7,584 7,914
--------------------------------------------------------------
NONINTEREST EXPENSE
Salaries and employee benefits 10,659 10,353 10,361 9,521 10,433
Occupancy and equipment 3,799 3,570 3,191 2,898 3,171
Data processing 759 596 287 318 864
Marketing 552 643 1,504 715 684
Postage and supplies 1,136 1,189 1,033 1,251 1,174
Professional services 1,418 1,164 940 1,267 732
Telephone 347 291 361 396 336
Restructuring charges and merger-related expenses - - - - 16,250
Other noninterest expense 2,208 2,237 1,792 1,391 2,026
--------------------------------------------------------------
Total noninterest expense 20,878 20,043 19,469 17,757 35,670
--------------------------------------------------------------
Income (loss) before taxes 13,094 13,006 13,422 14,301 (2,083)
Income taxes 4,223 4,162 4,325 4,362 681
--------------------------------------------------------------
NET INCOME (LOSS) $ 8,871 $ 8,844 $ 9,097 $ 9,939 $ (2,764)
--------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------------------
EARNINGS (LOSS) PER SHARE DATA
Basic $ 0.28 $ 0.28 $ 0.29 $ 0.32 $ (0.09)
Diluted 0.28 0.28 0.29 0.31 (0.09)
Dividends paid on common shares 0.18 0.18 0.18 0.18 0.17
- ----------------------------------------------------------------------------------------------------------------------
PERFORMANCE RATIOS
Return on average assets 1.15 % 1.24 % 1.28 % 1.43 % (0.40) %
Return on average equity 11.12 11.46 11.87 13.31 (3.67)
Efficiency - taxable equivalent (*) 59.05 58.90 53.01 46.53 101.37
Noninterest income as a percentage of total income 25.07 24.91 22.57 22.14 22.64
Equity as a percentage of total assets 10.33 10.35 10.55 10.73 10.35
Average earning assets as a percentage of average
assets 93.00 92.78 93.00 92.99 93.04
Average loans as a percentage of average deposits 95.50 103.56 108.89 112.18 111.69
- ----------------------------------------------------------------------------------------------------------------------
As of / For the Quarter Ended
--------------------------------------------------------------
SCHEDULE OF OTHER ITEMS INCLUDED IN EARNINGS 6/30/2001 3/31/2001 12/31/2000 9/30/2000 6/30/2000
--------------------------------------------------------------
Noninterest income
Loss on sale of loans - - - - (99)
Fixed income portfolio restructuring losses - - (1,059) (2,854) -
Equity investment write down - (144) (231) (571) (299)
Equity method income (loss) (102) 111 28 4,106 446
Gain on sale of properties - - 2,261 527 -
Noninterest expense
Charitable trust - - (1,000) - -
Restructuring charges and merger-related expenses - - - - (16,250)
--------------------------------------------------------------
Total other items $ (102) $ (33) $ (1) $ 1,208 $(16,202)
--------------------------------------------------------------
Other items, net of tax $ (70) $ (22) $ - $ 825 $(12,253)
--------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------------------
Notes: Applicable ratios are annualized.
* - Noninterest expense divided by the sum of taxable equivalent net
interest income plus noninterest income less gain on sale of
securities.
9
FIRST CHARTER CORPORATION AND SUBSIDIARIES (NASDAQ: FCTR)
QUARTERLY EARNINGS RELEASE
As of / For the Quarter Ended
--------------------------------------------------------------------------
(Dollars in thousands, except per share data) 6/30/2001 3/31/2001 12/31/2000 9/30/2000 6/30/2000
- ------------------------------------------------------------------------------------------------------------------------
BALANCE SHEET
ASSETS:
Cash and due from banks $ 75,696 $ 67,770 $ 71,196 $ 72,876 $ 72,299
Federal funds sold 902 1,233 1,015 1,020 1,658
Interest earning bank deposits 4,439 6,298 122,461 5,461 8,196
Securities available for sale 939,993 876,421 441,031 474,077 500,310
Loans
Commercial 1,089,482 1,112,121 1,126,569 1,094,170 1,097,377
Residential real estate 572,004 579,869 743,010 741,479 722,512
Home equity 200,537 188,016 179,028 169,622 159,909
Installment 107,864 106,760 109,015 106,157 109,728
--------------------------------------------------------------------------
Total loans 1,969,887 1,986,766 2,157,622 2,111,428 2,089,526
Less: Unearned income (222) (281) (215) (284) (152)
Allowance for loan losses (28,049) (28,049) (28,447) (27,861) (26,700)
--------------------------------------------------------------------------
Loans, net 1,941,616 1,958,436 2,128,960 2,083,283 2,062,674
--------------------------------------------------------------------------
Other assets 176,343 171,105 167,536 151,238 143,289
--------------------------------------------------------------------------
Total assets $ 3,138,989 $ 3,081,263 $ 2,932,199 $ 2,787,955 $ 2,788,426
--------------------------------------------------------------------------
LIABILITIES AND SHAREHOLDERS' EQUITY:
Deposits
Noninterest-bearing deposits $ 257,443 $ 248,212 $ 242,983 $ 279,765 $ 252,595
Interest checking and savings 369,995 369,718 377,057 357,739 396,147
Money market deposits 262,903 251,547 244,343 223,508 229,594
Time deposits 1,228,686 1,142,610 1,133,851 1,061,428 992,622
--------------------------------------------------------------------------
Total deposits 2,119,027 2,012,087 1,998,234 1,922,440 1,870,958
Other borrowings 643,483 696,134 570,024 519,762 584,144
Other liabilities 52,375 54,063 54,654 46,703 44,609
--------------------------------------------------------------------------
Total liabilities 2,814,885 2,762,284 2,622,912 2,488,905 2,499,711
--------------------------------------------------------------------------
Total shareholders' equity 324,104 318,979 309,287 299,050 288,715
--------------------------------------------------------------------------
Total liabilities and shareholders' equity$ 3,138,989 $ 3,081,263 $ 2,932,199 $ 2,787,955 $ 2,788,426
--------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------
SELECTED AVERAGE BALANCES
Loans $ 1,968,304 $ 2,043,217 $ 2,133,452 $ 2,099,692 $ 2,068,958
Securities 904,758 620,522 484,098 475,630 502,977
Interest earning assets 2,881,629 2,676,436 2,628,331 2,578,374 2,582,473
Assets 3,098,598 2,884,703 2,826,068 2,772,859 2,775,567
Deposits 2,060,997 1,973,002 1,959,300 1,871,707 1,852,470
Interest bearing liabilities 2,484,604 2,286,163 2,233,820 2,192,605 2,196,884
Shareholders' equity 319,968 313,081 304,770 297,122 303,277
- ------------------------------------------------------------------------------------------------------------------------
10
FIRST CHARTER CORPORATION AND SUBSIDIARIES (NASDAQ: FCTR)
QUARTERLY EARNINGS RELEASE
As of / For the Quarter Ended
-----------------------------------------------------------------------
(Dollars in thousands, except per share data) 6/30/2001 3/31/2001 12/31/2000 9/30/2000 6/30/2000
- -----------------------------------------------------------------------------------------------------------------------------
ASSET QUALITY ANALYSIS
ALLOWANCE FOR LOAN LOSSES
Beginning balance $ 28,049 $ 28,447 $ 27,861 $ 26,700 $ 25,979
Provision for loan losses 1,190 750 2,075 2,200 1,370
Allowance related to loans sold and securitized - (417) - - (113)
Charge-offs (1,365) (950) (1,643) (1,440) (705)
Recoveries 175 219 154 401 169
-----------------------------------------------------------------------
Net charge-offs (1,190) (731) (1,489) (1,039) (536)
-----------------------------------------------------------------------
Ending balance $ 28,049 $ 28,049 $ 28,447 $ 27,861 $ 26,700
-----------------------------------------------------------------------
NONPERFORMING ASSETS AND LOANS 90 DAYS
OR MORE PAST DUE ACCRUING INTEREST
Nonaccrual loans $ 28,605 $ 28,384 $ 26,587 $ 26,281 $ 13,538
Other real estate 3,454 2,207 2,989 1,908 2,281
-----------------------------------------------------------------------
Total nonperforming assets 32,059 30,591 29,576 28,189 15,819
-----------------------------------------------------------------------
Loans 90 days or more past due accruing interest 199 154 430 716 2,645
-----------------------------------------------------------------------
TOTAL $ 32,258 $ 30,745 $ 30,006 $ 28,905 $ 18,464
-----------------------------------------------------------------------
ASSET QUALITY RATIOS
Nonaccrual loans as a percentage of
total loans 1.45 % 1.43 % 1.23 % 1.24 % 0.65 %
Nonperforming assets as a percentage of
total assets 1.02 0.99 1.01 1.01 0.57
Nonperforming assets as a percentage of
total loans and other real estate 1.62 1.54 1.37 1.33 0.76
Net charge-offs as a percentage of
average loans (annualized) 0.24 0.15 0.28 0.20 0.10
Allowance for loan losses as a
percentage of loans 1.42 1.41 1.32 1.32 1.28
Ratio of allowance for loan losses to:
Net charge-offs 5.88 X 9.46 x 4.80 x 6.74 x 12.39 x
Nonaccrual loans 0.98 0.99 1.07 1.06 1.97
- -----------------------------------------------------------------------------------------------------------------------------
As of / For the Six Months Ended Increase (Decrease)
-------------------------------------------------------
6/30/2001 6/30/2000 Amount Percentage
- -----------------------------------------------------------------------------------------------------------------------------
ALLOWANCE FOR LOAN LOSSES
Beginning balance $ 28,447 $ 25,002 $ 3,445 13.8 %
Provision for loan losses 1,940 3,340 (1,400) (41.9)
Allowance related to loans sold and securitized (417) (113) (304) 269.0
Charge-offs (2,315) (1,980) (335) 16.9
Recoveries 394 451 (57) (12.6)
-------------------------------------------------------
Net charge-offs (1,921) (1,529) (392) 25.6
-------------------------------------------------------
Ending balance $ 28,049 $ 26,700 $ 1,349 5.1 %
-------------------------------------------------------
ASSET QUALITY RATIOS
Net charge-offs as a percentage of
average loans (annualized) 0.19 % 0.15 %
Ratio of allowance for loan losses to
net charge-offs 7.24 X 8.64 x
- -----------------------------------------------------------------------------------------------------------------------------
For the Quarter Ended
-----------------------------------------------------------------------
6/30/2001 3/31/2001 12/31/2000 9/30/2000 6/30/2000
- -----------------------------------------------------------------------------------------------------------------------------
ANNUALIZED INTEREST YIELDS / RATES (*)
INTEREST INCOME:
Yield on loans 8.28 % 8.72 % 9.05 % 8.95 % 8.78 %
Yield on securities 6.70 6.74 6.79 6.72 6.71
-----------------------------------------------------------------------
Yield on interest earning assets 7.77 8.25 8.63 8.52 8.37
-----------------------------------------------------------------------
INTEREST EXPENSE:
Cost of interest bearing deposits 4.56 4.94 5.01 4.75 4.36
Cost of borrowings 5.03 5.57 6.03 6.08 6.00
-----------------------------------------------------------------------
Cost of interest bearing liabilities 4.69 5.09 5.24 5.09 4.80
-----------------------------------------------------------------------
Interest rate spread 3.08 3.16 3.39 3.43 3.57
-----------------------------------------------------------------------
Net yield on earning assets 3.73 % 3.90 % 4.17 % 4.19 % 4.29 %
-----------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------------------------
Notes: Applicable ratios are annualized.
* - Fully taxable equivalent yields.