Exhibit 99 (a)
Bank of Granite Corporation
News
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For Release: January 14, 2002
BANK OF GRANITE CORPORATION REPORTS LOWER EARNINGS FOR 2001
-- 4TH QUARTER EARNINGS BEST FOR ANY 2001 QUARTER
Bank of Granite Corporation (NASDAQ: GRAN) has reported its earnings for
the fourth quarter of 2001 and also for the full year, both periods ending on
December 31, 2001.
Net income for the fourth quarter totaled $3,918,127 compared with
$4,091,254 for the fourth quarter of 2000 - a decline of 4.2%. On a per share
basis, this translates to 35(cent) vs 37(cent) for the fourth quarter of 2000 -
a decline of 5.4%. From an earnings standpoint, the fourth quarter was the best
quarter of 2001.
For the full year, ending on December 31, 2001, net income totaled
$13,808,555 vs $15,574,583 for 2000 - a decline of 11.3%. On a per share basis,
earnings were $1.24 vs $1.38 for 2000 - a decline of 10.1%.
John A. Forlines, Jr., Chairman and Chief Executive Officer, said these
earnings were satisfactory in view of the many problems associated with the
recessionary environment in the bank's market area. He said earnings met
analysts projections and were in line with the Company's expectations. "The big
problem throughout 2001," he said, "was the eleven short-term interest rate
reductions by the Federal Reserve Bank which negatively impacted earnings in the
short run." Forlines said that, barring unexpected developments, earnings should
rebound in 2002, based on the improving trend in the third and fourth quarters
of 2001.
Forlines thanked the entire Bank of Granite family for their hard work
during a very difficult period for the Company and the economy. He gave special
praise to GLL & Associates, the Company's mortgage bank subsidiary, whose
earnings were up an incredible 261% compared with the prior year.
At year-end, assets totaled $715,389,907 while deposits totaled
$522,782,719. Gross loans reached a record $510,410,948, an increase of 13.3%
for the year.
Key management ratios continued outstanding. For the 16th consecutive year,
the Company earned 2% or more on average assets, believed to be a record for any
banking company in the United States. The return on equity was 11.29% and the
efficiency ratio was a strong 40.96%. Dividends per share paid in 2001 showed an
increase of 9.5%.
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, 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 10,987,085
shares of common stock outstanding on December 31, 2001. The stock is traded
electronically on the National Nasdaq Stock Market under the symbol "GRAN" and
the closing price at the end of the year was $19.77 per share. Additional
information about Bank of Granite is available on its website at
www.bankofgranite.com.
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For further information, contact Kirby A. Tyndall, Senior Vice President and
Chief Financial Officer at Voice (828) 496-2026, Fax (828) 496-2116 or Internet
email: ktyndall@bankofgranite.com
Bank of Granite Corporation, PO Box 128, Granite Falls, NC 28630
www.bankofgranite.com
Bank of Granite Corporation, Form 8-K, January 14, 2002, page 5 of 7
Bank of Granite Corporation
Selected Financial Data
Three Months Ended Twelve Months Ended
December 31, December 31,
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($ in thousands except per share data) 2001 2000 % change 2001 2000 % change
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Consolidated earnings summary:
Interest income, taxable equivalent $ 12,442 $ 15,059 -17.4% $ 54,086 $ 57,076 -5.2%
Interest expense 3,687 5,439 -32.2% 19,444 19,172 1.4%
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Net interest income, taxable equivalent 8,755 9,620 -9.0% 34,642 37,904 -8.6%
Taxable equivalent adjustment 468 453 3.3% 1,801 1,807 -0.3%
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Net interest income 8,287 9,167 -9.6% 32,841 36,097 -9.0%
Loan loss provision 708 955 -25.9% 4,217 3,894 8.3%
Noninterest income 2,874 2,189 31.3% 10,140 8,034 26.2%
Noninterest expense 4,639 4,206 10.3% 18,342 16,777 9.3%
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Income before income taxes 5,814 6,195 -6.2% 20,422 23,460 -12.9%
Income taxes 1,896 2,104 -9.9% 6,613 7,885 -16.1%
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Net income $ 3,918 $ 4,091 -4.2% $ 13,809 $ 15,575 -11.3%
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Earnings per share - Basic $ 0.35 $ 0.37 -5.4% $ 1.24 $ 1.38 -10.1%
Earnings per share - Diluted 0.35 0.37 -5.4% 1.24 1.38 -10.1%
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Average shares - Basic 11,038 11,175 -1.2% 11,099 11,308 -1.8%
Average shares - Diluted 11,039 11,182 -1.3% 11,100 11,318 -1.9%
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Consolidated balance sheet data at December 31:
Total assets $ 715,390 $ 661,623 8.1%
Total deposits 522,783 517,282 1.1%
Loans (gross) 510,411 450,398 13.3%
Shareholders' equity 124,781 119,315 4.6%
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Consolidated average balance sheet data:
Total assets $ 699,433 $ 651,405 7.4% $ 691,220 $ 634,449 8.9%
Total deposits 524,830 508,899 3.1% 529,028 491,972 7.5%
Loans (gross) 493,563 444,409 11.1% 479,732 421,253 13.9%
Shareholders' equity 124,317 117,916 5.4% 122,344 116,166 5.3%
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Consolidated performance ratios:
Return on average assets* 2.22% 2.50% 2.00% 2.45%
Return on average equity* 12.50% 13.80% 11.29% 13.41%
Efficiency ratio 39.89% 35.62% 40.96% 36.52%
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Consolidated asset quality data and ratios:
Nonaccruing loans $ 2,944 $ 1,502 96.0%
Accruing loans 90 days past due 1,769 1,983 -10.8%
Nonperforming loans 4,713 3,485 35.2%
Foreclosed properties 323 134 141.0%
Nonperforming assets 5,036 3,619 39.2%
Allowance for loan losses 6,426 6,352 1.2%
Loans charged off 4,495 2,606 72.5%
Recoveries of loans charged off 359 317 13.2%
Net loan charge-offs (recoveries) 4,136 2,289 80.7%
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Net charge-offs to average loans* 0.86% 0.54%
Nonperforming loans to total assets 0.66% 0.53%
Allowance coverage of nonperforming loans 136.35% 182.27%
Allowance for loan losses to gross loans 1.26% 1.41%
Allowance for loan losses to net loans 1.28% 1.43%
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Subsidiary earnings summary:
Bank of Net interest income $ 7,477 $ 8,776 -14.8% $ 30,112 $ 34,719 -13.3%
Granite Loan loss provision 678 925 -26.7% 4,097 3,824 7.1%
Noninterest income 1,938 1,657 17.0% 7,053 6,045 16.7%
Noninterest expense 3,380 3,414 -1.0% 13,772 13,384 2.9%
Income taxes 1,691 2,028 -16.6% 6,025 7,716 -21.9%
Net income 3,666 4,066 -9.8% 13,271 15,840 -16.2%
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GLL & Net interest income $ 826 $ 438 88.6% $ 2,845 $ 1,618 75.8%
Associates Loan loss provision 30 30 0.0% 120 70 71.4%
(mortgage Noninterest income 936 531 76.3% 3,122 2,061 51.5%
bank) Noninterest expense 1,249 784 59.3% 4,498 3,267 37.7%
Income taxes 205 76 169.7% 588 168 250.0%
Net income 308 109 182.6% 881 244 261.1%
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* annualized based on number of days in the period More
Bank of Granite Corporation, Form 8-K, January 14, 2002, page 6 of 7
Bank of Granite Corporation
Supplemental Quarterly Financial Data
Quarters Ended
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Dec 31, Sep 30, Jun 30, Mar 31, Dec 31,
($ in thousands except per share data) 2001 2001 2001 2001 2000
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Consolidated earnings summary:
Interest income, taxable equivalent $ 12,442 $ 13,170 $ 13,932 $ 14,542 $ 15,059
Interest expense 3,687 4,779 5,433 5,544 5,439
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Net interest income, taxable equivalent 8,755 8,391 8,499 8,998 9,620
Taxable equivalent adjustment 468 455 433 446 453
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Net interest income 8,287 7,936 8,066 8,552 9,167
Loan loss provision 708 798 2,011 700 955
Noninterest income 2,874 2,490 2,330 2,447 2,189
Noninterest expense 4,639 4,642 4,561 4,501 4,206
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Income before income taxes 5,814 4,986 3,824 5,798 6,195
Income taxes 1,896 1,574 1,193 1,950 2,104
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Net income $ 3,918 $ 3,412 $ 2,631 $ 3,848 $ 4,091
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Earnings per share - Basic $ 0.35 $ 0.31 $ 0.24 $ 0.35 $ 0.37
Earnings per share - Diluted 0.35 0.31 0.24 0.35 0.37
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Average shares - Basic 11,038 11,098 11,116 11,142 11,175
Average shares - Diluted 11,039 11,100 11,117 11,146 11,182
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Consolidated ending balance sheet data:
Total assets $ 715,390 $ 717,129 $ 700,704 $ 702,689 $ 661,623
Total deposits 522,783 532,624 537,184 546,828 517,282
Loans (gross) 510,411 483,416 485,038 473,157 450,398
Shareholders' equity 124,781 124,331 122,928 121,352 119,315
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Consolidated average balance sheet data:
Total assets $ 699,433 $ 693,358 $ 699,709 $ 672,380 $ 651,405
Total deposits 524,830 530,467 537,287 523,528 508,899
Loans (gross) 493,563 482,005 480,700 462,659 444,409
Shareholders' equity 124,317 123,014 121,914 120,132 117,916
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Consolidated performance ratios:
Return on average assets* 2.22% 1.95% 1.51% 2.32% 2.50%
Return on average equity* 12.50% 11.00% 8.66% 12.99% 13.80%
Efficiency ratio 39.89% 42.66% 42.12% 39.33% 35.62%
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Consolidated asset quality data and ratios:
Nonaccruing loans $ 2,944 $ 3,647 $ 2,594 $ 1,571 $ 1,502
Accruing loans 90 days past due 1,769 3,459 2,400 2,771 1,983
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Nonperforming loans 4,713 7,106 4,994 4,342 3,485
Foreclosed properties 323 304 287 134 134
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Nonperforming assets 5,036 7,410 5,281 4,476 3,619
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Allowance for loan losses 6,426 6,630 8,452 6,919 6,352
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Loans charged off 987 2,711 567 230 672
Recoveries of loans charged off 82 90 89 97 65
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Net loan charge-offs (recoveries) 905 2,621 478 133 607
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Annualized net charge-offs to average loans* 0.73% 2.16% 0.40% 0.12% 0.54%
Nonperforming loans to total assets 0.66% 0.99% 0.71% 0.62% 0.53%
Allowance coverage of nonperforming loans 136.35% 93.30% 169.24% 159.35% 182.27%
Allowance for loan losses to gross loans 1.26% 1.37% 1.74% 1.46% 1.41%
Allowance for loan losses to net loans 1.28% 1.39% 1.77% 1.48% 1.43%
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Subsidiary earnings summary:
Bank of Net interest income $ 7,477 $ 7,235 $ 7,369 $ 8,030 $ 8,776
Granite Loan loss provision 678 768 1,981 670 925
Noninterest income 1,938 1,684 1,655 1,777 1,657
Noninterest expense 3,380 3,470 3,377 3,545 3,414
Income taxes 1,691 1,416 1,066 1,852 2,028
Net income 3,666 3,265 2,600 3,740 4,066
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GLL & Net interest income $ 826 $ 749 $ 741 $ 529 $ 438
Associates Loan loss provision 30 30 30 30 30
(mortgage Noninterest income 936 806 711 670 531
bank) Noninterest expense 1,249 1,160 1,137 954 784
Income taxes 205 158 126 98 76
Net income 308 237 189 147 109
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* annualized based on number of days in the period
Bank of Granite Corporation, Form 8-K, January 14, 2002, page 7 of 7