Exhibit 99.1
NEWS RELEASE DATED 01-15-2002
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
January 15, 2002
FIRST CHARTER ANNOUNCES
2001 AND FOURTH QUARTER EARNINGS
Charlotte, North Carolina - First Charter Corporation (NASDAQ: FCTR) reported
today year ended December 31, 2001 net income of $35.3 million, or $1.12 per
diluted share, compared to net income of $24.8 million, or $0.79 per diluted
share during the year ended December 31, 2000. The results for the year ended
December 31, 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. Net income for
the fourth quarter 2001 was $8.2 million, or $0.26 per diluted share, compared
to $9.1 million, or $0.29 per diluted share in the fourth quarter 2000.
"Despite the economic upheavals of 2001, our employees continued to deliver the
exceptional service quality that is the cornerstone of our competitive
advantage," commented President and Chief Executive Officer Lawrence M.
Kimbrough. "Throughout the fourth quarter, we continued the prudent management
of our balance sheet in the face of a weakening economy. I am pleased with our
steady growth in the fundamental areas of core deposits, consumer loans and
non-interest income."
Net Interest Income
Net interest income for the fourth quarter of 2001 decreased to $26.8 million
compared to $27.1 million for the same period in 2000. Net interest income for
the year ended December 31, 2001 decreased to $105.8 million as compared to
$107.8 million for the same period in 2000. The decrease for the year and
quarter ended December 31, 2001 was the result of reduced loan demand due to the
slowing economy as well as the year long decline in interest rates totaling 475
basis points. The net interest margin has decreased to 3.62% in the fourth
quarter of 2001, from 3.68% for the quarter ended September 30, 2001 and 4.17%
for the quarter ended December 31, 2000.
Noninterest Income
Noninterest income for the fourth quarter of 2001 increased 44% to $11.2 million
compared to $7.8 million for the same period in 2000. Noninterest income for the
year ended December 31, 2001 increased 26% to $38.8 million compared to $30.7
million for the same period in 2000. The increases in noninterest income were
primarily driven by the active management of our securities portfolio, service
charge income on deposit accounts, mortgage loan fees, trading gains, brokerage
revenues and the continued growth of First Charter Insurance Services. Premiums
earned on written covered call options on fixed income securities comprises the
majority of our trading gains.
Noninterest Expense
Noninterest expense for the fourth quarter of 2001 totaled $24.8 million
compared to $19.5 million for the same period in 2000. Noninterest expense for
the year ended December 31, 2001 totaled $87.6 million, compared to $92.7
million for the same period in 2000. The year to date decrease was 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. The major factors affecting noninterest expense for the fourth
quarter and the year 2001 were the increase in occupancy and equipment
associated with the move into the First Charter Center, expenses related to the
implementation of a new computer operating system and the full year impact of
four financial centers acquired late in the fourth quarter of 2000.
Balance Sheet
Total assets at December 31, 2001 amounted to $3.33 billion as compared to $2.93
billion at December 31, 2000. Net loans at December 31, 2001 amounted to $1.93
billion, compared to $2.13 billion at December 31, 2000. This decrease from the
prior year was due primarily to the securitization of $167.0 million of
residential mortgage loans which occurred in February 2001 and are now
classified as mortgage backed securities in our securities available for sale
portfolio.
The securities available for sale portfolio increased to $1.08 billion at
December 31, 2001, compared to $441.0 million at December 31, 2000. The increase
in securities available for sale reflects the purchase of additional securities,
as well as the mortgage loan securitization.
Total deposits at December 31, 2001 amounted to $2.16 billion, compared to $2.00
billion at December 31, 2000. Shareholders' equity at December 31, 2001 was
$309.3 million, which represented a book value per share of $10.06 and an
equity-to-asset ratio of 9.28%. Based on the $16.91 closing price of First
Charter Corporation common stock at December 31, 2001, the Corporation had a
market capitalization of $519.9 million.
Asset Quality
The provision for loan losses for the three months ended December 31, 2001
amounted to $1.2 million, compared to $2.1 million for the same period in 2000.
The provision for loan losses for the year ended December 31, 2001 amounted to
$4.5 million, compared to $7.6 million for the same period in 2000. The
decreases in the provision for the three months and year ended December 31, 2001
as compared to the same periods in 2000 were due to lower loan volume during
2001, the effect of which was partially offset by higher net charge-offs. During
the third and fourth quarters of 2000, the Company had higher provisions for
loan losses due to increases in nonaccrual loans. As adjusted to remove the
effects of the February 2001 loan securitization and the sale of $45.3 million
in lower-yielding loans in May 2000, gross loans increased $9.7 million during
the year ended December 31, 2001 as compared to an increase of $234.9 million
during the year ended December 31, 2000.
Nonaccrual loans have decreased to $23.8 million from $26.5 million at September
30, 2001. The decrease is primarily attributable to the transfer of one large
commercial relationship from nonaccrual status to other real estate as such loan
was foreclosed on during the fourth quarter of 2001 as well as one commercial
relationship which was repaid. During the fourth quarter of 2001, other real
estate increased to $8.0 million from $3.1 million at September 30, 2001 due to
the large commercial relationship noted above. Total nonperforming assets and
loans 90 days or more past due and still accruing at December 31, 2001 increased
to $32.0 million as compared to $30.0 million at December 31, 2000. As a
percentage of total assets, nonperforming assets have decreased to 0.96% at
December 31, 2001 compared to 1.01% at December 31, 2000.
Year to date net loan charge-offs as a percentage of average gross loans
increased to 0.33% as compared to 0.20% for the year ended December 31, 2000.
The year to date increase in net loan charge-offs was attributable to $2.5
million of charge-offs associated with two large commercial relationships which
were written down during the fourth quarter of 2001. At December 31, 2001 the
allowance for loan losses as a percentage of gross loans was equal to the
December 31, 2000 level of 1.32% and decreased from the September 30, 2001 level
of 1.42%. The decrease in this ratio during the fourth quarter was attributable
to the aforementioned charge-offs which were previously provided for in the
allowance for loan losses. During the first quarter of 2001, this ratio was also
affected by the mortgage loan securitization which reduced loan balances and
resulted in the removal of the allowance for loan losses associated with these
loans. Management continues to monitor the adequacy of the allowance for loan
losses and considers the allowance to be adequate as of December 31, 2001.
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 December 31, 2001,
First Charter repurchased and retired all shares authorized.
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 first quarter of 2002 on Wednesday, January 16, 2002
at 1:00 p.m. The following table outlines access information for the conference
call and audio replay:
US/Canada Participants International Participants
- ---------------------------------------------------------------------------------------------------------
Live Conference Call 877-560-4952 706-679-7347
ID # 2460356 ID # 2460356
- ---------------------------------------------------------------------------------------------------------
Internet Live and Replay www.FirstCharter.com www.FirstCharter.com
"Shareholder Information" section "Shareholder Information" section
- ---------------------------------------------------------------------------------------------------------
Audio Replay 800-642-1687 706-645-9291
ID # 2460356 ID # 2460356
Corporate Profile
First Charter Corporation is a regional financial services company with assets
of $3.33 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 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 with respect to the
financial conditions and results of operations of First Charter Corporation.
These forward looking statements involve certain risks and uncertainties.
Factors that may cause actual results to differ materially from those
contemplated by such forward looking statements include, among others, the
following possibilities: (1) projected business increases in connection with the
implementation of our business plan are lower than expected; (2) competitive
pressure among financial services companies increases significantly; (3) costs
or difficulties related to the integration of acquisitions or expenses in
general are greater than expected; (4) general economic conditions, in the
markets in which the company does business, are less favorable than expected;
(5) changes in the interest rate environment reduce interest margins and affect
funding sources; (6) changes in market rates and prices may adversely affect the
value of financial products; (7) legislation or regulatory requirements or
changes adversely affect the businesses in which the company is engaged; and (8)
decisions to change the business mix of the company. For further information and
other factors which could affect the accuracy of forward looking statements,
please see First Charter's reports filed with the SEC pursuant to the Securities
Exchange Act of 1934 which are available at the SEC's website (www.sec.gov) or
at First Charter's website (www.FirstCharter.com). Readers are cautioned not to
place undue reliance on these forward looking statements, which reflect
management's judgments only as of the date hereof. The company undertakes no
obligation to publicly revise those forward looking statements to reflect events
and circumstances that arise after the date hereof.
(Selected financial information is attached)
First Charter Corporation and Subsidiaries (NASDAQ: FCTR)
Quarterly Earnings Release
For the Three Months Ended Increase (Decrease)
-----------------------------------------------------
(Dollars in thousands, except per share data) 12/31/2001 12/31/2000 Amount Percentage
- -----------------------------------------------------------------------------------------------------------------
INCOME STATEMENT
Interest income - taxable equivalent $ 51,628 $ 56,995 $ (5,367) (9.4)%
Interest expense 24,352 29,451 (5,099) (17.3)
-----------------------------------------------------
Net interest income - taxable equivalent 27,276 27,544 (268) (1.0)
Less: Taxable equivalent adjustment 462 471 (9) (1.9)
-----------------------------------------------------
Net interest income 26,814 27,073 (259) (1.0)
Provision for loan losses 1,200 2,075 (875) (42.2)
-----------------------------------------------------
Net interest income after provision for loan losses 25,614 24,998 616 2.5
Noninterest income 11,183 7,791 3,392 43.5
Noninterest expense 24,766 19,469 5,297 27.2
-----------------------------------------------------
Income before income taxes 12,031 13,320 (1,289) 9.7
Income taxes 3,881 4,223 (342) (8.1)
-----------------------------------------------------
Net income $ 8,150 $ 9,097 $ (947) 10.4 %
-----------------------------------------------------
- -----------------------------------------------------------------------------------------------------------------
EARNINGS PER SHARE DATA
Basic $ 0.26 $ 0.29 $ (0.03) (10.3)%
Diluted 0.26 0.29 (0.03) (10.3)
Weighted average shares - basic 31,197,190 31,588,105
Weighted average shares - diluted 31,364,373 31,688,490
Dividends paid on common shares $ 0.18 $ 0.18 $ - - %
- -----------------------------------------------------------------------------------------------------------------
PERFORMANCE RATIOS
Return on average assets 1.00 % 1.28 %
Return on average equity 9.88 11.87
Efficiency - taxable equivalent (*) 66.16 53.16
- -----------------------------------------------------------------------------------------------------------------
For the Three Months Ended
--------------------------
SCHEDULE OF OTHER ITEMS INCLUDED IN EARNINGS 12/31/2001 12/31/2000
--------------------------
Noninterest income
Fixed income portfolio restructuring losses - (1,059)
Equity investment write down - (231)
Equity method income (loss) (524) 28
Gain on sale of properties 287 2,261
Noninterest expense
Charitable trust - (1,000)
Amortization of intangibles (466) (515)
--------------------------
Total other items $ (703) $ (516)
--------------------------
Other items, net of tax $ (479) $ (352)
--------------------------
- ---------------------------------------------------------------------------------------------------------------------
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.
5
First Charter Corporation and Subsidiaries (NASDAQ: FCTR)
Quarterly Earnings Release
For the Year Ended Increase (Decrease)
-----------------------------------------------------
(Dollars in thousands, except per share data) 12/31/2001 12/31/2000 Amount Percentage
- -----------------------------------------------------------------------------------------------------------------
INCOME STATEMENT
Interest income - taxable equivalent $ 217,180 $ 218,021 $ (841) (0.4)%
Interest expense 109,912 108,314 1,598 1.5
-----------------------------------------------------
Net interest income - taxable equivalent 107,268 109,707 (2,439) (2.2)
Less: Taxable equivalent adjustment 1,904 1,878 26 1.4
-----------------------------------------------------
Net interest income 105,364 107,829 (2,465) (2.3)
Provision for loan losses 4,465 7,615 (3,150) (41.4)
-----------------------------------------------------
Net interest income after provision for loan losses 100,899 100,214 685 0.7
Noninterest income 38,773 30,666 8,107 26.4
Noninterest expense 87,579 92,727 (5,148) (5.6)
-----------------------------------------------------
Income before income taxes 52,093 38,153 13,940 36.5
Income taxes 16,768 13,312 3,456 26.0
-----------------------------------------------------
Net income $ 35,325 $ 24,841 $ 10,484 42.2 %
-----------------------------------------------------
- -----------------------------------------------------------------------------------------------------------------
EARNINGS PER SHARE DATA
Basic $ 1.12 $ 0.79 $ 0.33 41.8 %
Diluted 1.12 0.79 0.33 41.8
Weighted average shares - basic 31,480,109 31,435,342
Weighted average shares - diluted 31,660,985 31,580,328
Dividends paid on common shares $ 0.72 $ 0.70 $ 0.02 2.9 %
- -----------------------------------------------------------------------------------------------------------------
PERFORMANCE RATIOS
Return on average assets 1.14 % 0.90 %
Return on average equity 11.03 8.29
Efficiency - taxable equivalent (*) 60.97 64.09
- -----------------------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------------
For the Year Ended
--------------------------
SCHEDULE OF OTHER ITEMS INCLUDED IN EARNINGS 12/31/2001 12/31/2000
--------------------------
Noninterest income
Loss on sale of loans $ - $ (99)
Fixed income portfolio restructuring losses - (3,913)
Equity investment write down (144) (1,601)
Equity method income (loss) (442) 4,580
Gain on sale of properties 416 2,788
Noninterest expense
Charitable trust - (1,000)
Restructuring charges and merger-related expenses - (16,250)
Amortization of intangibles (1,875) (1,196)
--------------------------
Total other items (2,045) (16,691)
--------------------------
Other items, net of tax (1,391) (12,587)
--------------------------
- -----------------------------------------------------------------------------------------------------------------
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
<Table>
<Caption>
As of / For the Year Ended Increase (Decrease)
-----------------------------------------------------------
(Dollars in thousands, except per share data) 12/31/2001 12/31/2000 Amount Percentage
- -----------------------------------------------------------------------------------------------------------------
BALANCE SHEET
ASSETS:
Cash and due from banks $ 134,084 $ 71,196 $ 62,888 88.3 %
Federal funds sold 1,161 1,015 146 14.4
Interest earning bank deposits 6,220 122,461 (116,241) (94.9)
Securities available for sale 1,077,365 441,031 636,334 144.3
Loans
Commercial 1,099,353 1,126,569 (27,216) (2.4)
Real estate 500,943 743,010 (242,067) (32.6)
Home equity 228,169 179,028 49,141 27.4
Installment 126,621 109,015 17,606 16.2
-----------------------------------------------------------
Total loans 1,955,086 2,157,622 (202,536) (9.4)
Less: Unearned income (191) (215) 24 (11.2)
Allowance for loan losses (25,843) (28,447) 2,604 (9.2)
-----------------------------------------------------------
Loans, net 1,929,052 2,128,960 (199,908) (9.4)
-----------------------------------------------------------
Other assets 184,855 167,536 17,319 10.3
-----------------------------------------------------------
Total assets $ 3,332,737 $ 2,932,199 $ 400,538 13.7 %
===========================================================
LIABILITIES AND SHAREHOLDERS' EQUITY:
Deposits
Noninterest-bearing deposits $ 276,699 $ 242,983 $ 33,716 13.9 %
Interest checking and savings 378,341 377,057 1,284 0.3
Money market deposits 286,653 244,343 42,310 17.3
Time deposits 1,221,252 1,133,851 87,401 7.7
-----------------------------------------------------------
Total deposits 2,162,945 1,998,234 164,711 8.2
Other borrowings 808,512 570,024 238,488 41.8
Other liabilities 51,939 54,654 (2,715) (5.0)
-----------------------------------------------------------
Total liabilities 3,023,396 2,622,912 400,484 15.3
-----------------------------------------------------------
Total shareholders' equity 309,341 309,287 54 0.0
-----------------------------------------------------------
Total liabilities and shareholders' equity $ 3,332,737 $ 2,932,199 $ 400,538 13.7 %
===========================================================
- -----------------------------------------------------------------------------------------------------------------
SELECTED AVERAGE BALANCES
Loans $ 1,990,406 $ 2,074,971 $ (84,565) (4.1)%
Securities 877,376 495,612 381,764 77.0
Interest earning assets 2,881,295 2,576,853 304,442 11.8
Assets 3,104,952 2,763,920 341,032 12.3
Deposits 2,085,669 1,877,426 208,243 11.1
Interest bearing liabilities 2,486,616 2,190,767 295,849 13.5
Shareholders' equity 320,215 299,745 20,470 6.8
- -----------------------------------------------------------------------------------------------------------------
As of / For the Quarter Ended
----------------------------------------------------------------------------
12/31/2001 9/30/2001 6/30/2001 3/31/2001 12/31/2000
----------------------------------------------------------------------------
MISCELLANEOUS INFORMATION
Common stock prices (daily close)
High $ 18.4900 $ 18.4500 $ 18.7500 $ 16.0000 $ 15.7500
Low 15.8500 15.4600 15.1250 13.4380 13.0000
End of period 16.9100 16.3500 18.7500 15.5625 14.8750
Book Value 10.06 10.49 10.22 10.06 9.79
Market Capitalization 519,856,216 510,503,408 594,775,763 493,491,824 470,068,787
Weighted average shares - basic 31,197,190 31,314,550 31,719,241 31,696,764 31,588,105
Weighted average shares - diluted 31,364,373 31,545,721 31,906,705 31,833,564 31,688,490
End of period shares outstanding 30,742,532 31,223,450 31,721,374 31,710,318 31,601,263
- -----------------------------------------------------------------------------------------------------------------
7
First Charter Corporation and Subsidiaries NASDAQ: (FCTR)
Quarterly Earnings Release
As of / For the Quarter Ended
---------------------------------------------------------------
(Dollars in thousands, except per share data) 12/31/2001 9/30/2001 6/30/2001 3/31/2001 12/31/2000
- ----------------------------------------------------------------------------------------------------------------------------
INCOME STATEMENT
Interest income - taxable equivalent
Interest and fees on loans $ 35,735 $ 39,155 $ 40,609 $ 43,931 $ 48,622
Interest on securities 15,765 15,898 15,165 10,449 8,260
Other interest income 129 62 96 187 114
---------------------------------------------------------------
Total interest income - taxable equivalent 51,628 55,115 55,870 54,567 56,995
---------------------------------------------------------------
Interest expense
Interest on deposits 16,781 19,704 20,638 21,129 21,537
Other interest expense 7,571 8,122 8,405 7,562 7,914
---------------------------------------------------------------
Total interest expense 24,352 27,826 29,043 28,691 29,451
---------------------------------------------------------------
Net interest income - taxable equivalent 27,276 27,289 26,827 25,876 27,544
Less: Taxable equivalent adjustment 462 466 479 497 471
---------------------------------------------------------------
Net interest income 26,814 26,823 26,348 25,379 27,073
Provision for loan losses 1,200 1,325 1,190 750 2,075
---------------------------------------------------------------
Net interest income after provision for loan losses 25,614 25,498 25,158 24,629 24,998
---------------------------------------------------------------
Noninterest income
Service charges on deposit accounts 4,082 3,465 3,383 2,918 2,835
Financial management income 339 569 640 775 609
Gain (loss) on sale of securities 1,026 824 282 267 (1,290)
Income (loss) from equity method investees (524) 73 (102) 111 28
Mortgage loan fees 723 662 749 509 348
Brokerage services income 356 476 520 394 421
Insurance services income 1,866 1,959 1,865 1,991 1,613
Trading gains (losses) 1,530 829 233 - -
Other noninterest income 1,785 1,499 1,244 1,455 3,227
---------------------------------------------------------------
Total noninterest income 11,183 10,356 8,814 8,420 7,791
---------------------------------------------------------------
Noninterest expense
Salaries and employee benefits 12,501 11,206 10,659 10,353 10,361
Occupancy and equipment 3,804 3,434 3,799 3,570 3,191
Data processing 795 806 759 596 287
Marketing 575 593 552 643 1,504
Postage and supplies 1,155 1,340 1,136 1,189 1,033
Professional services 2,531 1,614 1,418 1,164 940
Telephone 327 431 347 291 361
Amortization of intangibles 466 472 447 490 515
Other noninterest expense 2,612 1,996 1,761 1,747 1,277
---------------------------------------------------------------
Total noninterest expense 24,766 21,892 20,878 20,043 19,469
---------------------------------------------------------------
Income before taxes 12,031 13,962 13,094 13,006 13,320
Income taxes 3,881 4,502 4,223 4,162 4,223
---------------------------------------------------------------
Net income $ 8,150 $ 9,460 $ 8,871 $ 8,844 $ 9,097
---------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------------------------
EARNINGS PER SHARE DATA
Basic $ 0.26 $ 0.30 $ 0.28 $ 0.28 $ 0.29
Diluted 0.26 0.30 0.28 0.28 0.29
Dividends paid on common shares 0.18 0.18 0.18 0.18 0.18
- ----------------------------------------------------------------------------------------------------------------------------
PERFORMANCE RATIOS
Return on average assets 1.00 % 1.18 % 1.15 % 1.24 % 1.28 %
Return on average equity 9.88 11.72 11.12 11.46 11.87
Efficiency - taxable equivalent (*) 66.16 59.45 59.05 58.90 53.16
Noninterest income as a percentage of total income 29.43 27.85 25.07 24.91 22.35
Equity as a percentage of total assets 9.28 9.78 10.33 10.35 10.55
Average earning assets as a percentage of average assets 92.56 92.86 93.00 92.78 93.00
Average loans as a percentage of average deposits 91.15 92.38 95.50 103.56 108.89
- ----------------------------------------------------------------------------------------------------------------------------
As of / For the Quarter Ended
---------------------------------------------------------------
SCHEDULE OF OTHER ITEMS INCLUDED IN EARNINGS 12/31/2001 9/30/2001 6/30/2001 3/31/2001 12/31/2000
---------------------------------------------------------------
Noninterest income
Fixed income portfolio restructuring losses - - - - (1,059)
Equity investment write down - - - (144) (231)
Equity method income (loss) (524) 73 (102) 111 28
Gain on sale of properties 287 129 - - 2,261
Noninterest expense
Charitable trust - - - - (1,000)
Amortization of intangibles (466) (472) (447) (490) (515)
---------------------------------------------------------------
Total other items $ (703) $ (270) $ (549) $ (523) $ (516)
---------------------------------------------------------------
Other items, net of tax $ (479) $ (183) $ (374) $ (355) $ (352)
---------------------------------------------------------------
---------------------------------------------------------------------------------------------------------------------------
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.
8
First Charter Corporation and Subsidiaries (NASDAQ: FCTR)
Quarterly Earnings Release
As of / For the Quarter Ended
-------------------------------------------------------------------
(Dollars in thousands, except per share data) 12/31/2001 9/30/2001 6/30/2001 3/31/2001 12/31/2000
- ------------------------------------------------------------------------------------------------------------------------
BALANCE SHEET
ASSETS:
Cash and due from banks $ 134,084 $ 79,288 $ 75,696 $ 67,770 $ 71,196
Federal funds sold 1,161 - 902 1,233 1,015
Interest earning bank deposits 6,220 3,194 4,439 6,298 122,461
Securities available for sale 1,077,365 1,134,374 939,993 876,421 441,031
Loans
Commercial 1,099,353 1,137,570 1,089,482 1,112,121 1,126,569
Real estate 500,943 511,357 572,004 579,869 743,010
Home equity 228,169 212,763 200,537 188,016 179,028
Installment 126,621 125,707 107,864 106,760 109,015
-------------------------------------------------------------------
Total loans 1,955,086 1,987,397 1,969,887 1,986,766 2,157,622
Less: Unearned income (191) (227) (222) (281) (215)
Allowance for loan losses (25,843) (28,221) (28,049) (28,049) (28,447)
-------------------------------------------------------------------
Loans, net 1,929,052 1,958,949 1,941,616 1,958,436 2,128,960
-------------------------------------------------------------------
Other assets
184,855 173,065 176,343 171,105 167,536
-------------------------------------------------------------------
Total assets $ 3,332,737 $3,348,870 $3,138,989 $3,081,263 $2,932,199
-------------------------------------------------------------------
LIABILITIES AND SHAREHOLDERS' EQUITY:
Deposits
Noninterest-bearing deposits $ 276,699 $ 262,331 $ 257,443 $ 248,212 $ 242,983
Interest checking and savings 378,341 370,120 369,995 369,718 377,057
Money market deposits 286,653 274,697 262,903 251,547 244,343
Time deposits 1,221,252 1,256,651 1,228,686 1,142,610 1,133,851
-------------------------------------------------------------------------
Total deposits 2,162,945 2,163,799 2,119,027 2,012,087 1,998,234
Other borrowings 808,512 806,141 643,483 696,134 570,024
Other liabilities 51,939 51,357 52,375 54,063 54,654
-------------------------------------------------------------------------
Total liabilities 3,023,396 3,021,297 2,814,885 2,762,284 2,622,912
-------------------------------------------------------------------------
Total shareholders' equity 309,341 327,573 324,104 318,979 309,287
-------------------------------------------------------------------------
Total liabilities and shareholders' equity $ 3,332,737 $3,348,870 $3,138,989 $3,081,263 $2,932,199
-------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------
SELECTED AVERAGE BALANCES
Loans $ 1,977,638 $1,973,373 $1,968,304 $2,043,217 $2,133,452
Securities 1,001,763 977,176 904,758 620,522 484,098
Interest earning assets 3,005,225 2,957,440 2,881,629 2,676,436 2,628,331
Assets 3,246,863 3,184,788 3,098,598 2,884,703 2,826,068
Deposits 2,169,743 2,136,217 2,060,997 1,973,002 1,959,300
Interest bearing liabilities 2,605,572 2,565,744 2,484,604 2,286,163 2,233,820
Shareholders' equity 327,410 320,242 319,968 313,081 304,770
- -----------------------------------------------------------------------------------------------------------------------------
9
First Charter Corporation and Subsidiaries NASDAQ: (FCTR)
Quarterly Earnings Release
As of / For the Quarter Ended
-------------------------------------------------------------------
(Dollars in thousands, except per share data) 12/31/2001 9/30/2001 6/30/2001 3/31/2001 12/31/2000
- ---------------------------------------------------------------------------------------------------------------------------
ASSET QUALITY ANALYSIS
Allowance for Loan Losses
Beginning balance $ 28,221 $ 28,049 $ 28,049 $ 28,447 $ 27,861
Provision for loan losses 1,200 1,325 1,190 750 2,075
Allowance related to loans securitized - - - (417) -
Charge-offs (3,719) (1,372) (1,365) (950) (1,643)
Recoveries 141 219 175 219 154
-------------------------------------------------------------------
Net charge-offs (3,578) (1,153) (1,190) (731) (1,489)
-------------------------------------------------------------------
Ending balance $ 25,843 $ 28,221 $ 28,049 $ 28,049 $ 28,447
-------------------------------------------------------------------
Nonperforming Assets and Loans 90 days
or more past due accruing interest
Nonaccrual loans $ 23,824 $ 26,502 $ 28,605 $ 28,384 $ 26,587
Other real estate 8,049 3,067 3,454 2,207 2,989
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Total nonperforming assets 31,873 29,569 32,059 30,591 29,576
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Loans 90 days or more past due accruing
interest 152 114 199 154 430
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Total $ 32,025 $ 29,683 $ 32,258 $ 30,745 $ 30,006
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Asset Quality Ratios
Nonaccrual loans as a percentage of
total loans 1.22 % 1.33 % 1.45 % 1.43 % 1.23 %
Nonperforming assets as a percentage of
total assets 0.96 0.88 1.02 0.99 1.01
Nonperforming assets as a percentage of
total loans and other real estate 1.62 1.49 1.62 1.54 1.37
Net charge-offs as a percentage of
average loans (annualized) 0.72 0.23 0.24 0.15 0.28
Allowance for loan losses as a
Percentage of loans 1.32 1.42 1.42 1.41 1.32
Ratio of allowance for loan losses to:
Net charge-offs 1.82 x 6.17 x 5.88 x 9.46 x 4.80 x
Nonaccrual loans 1.08 1.06 0.98 0.99 1.07
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As of / For the Year Ended Increase (Decrease)
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12/31/2001 12/31/2000 Amount Percentage
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Allowance for Loan Losses
Beginning balance $ 28,447 $ 25,002 $ 3,445 13.8 %
Provision for loan losses 4,465 7,615 (3,150) (41.4)
Allowance related to loans sold and securitized (417) (113) (304) 269.0
Charge-offs (7,406) (5,063) (2,343) 46.3
Recoveries 754 1,006 (252) (25.0)
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Net charge-offs (6,652) (4,057) (2,595) 64.0
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Ending balance $ 25,843 $ 28,447 $ (2,604) (9.2)%
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Asset Quality Ratios
Net charge-offs as a percentage of
average loans 0.33 % 0.20 %
Ratio of allowance for loan losses to
net charge-offs 3.88 x 7.01 x
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For the Quarter Ended
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12/31/2001 9/30/2001 6/30/2001 3/31/2001 12/31/2000
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ANNUALIZED INTEREST YIELDS / RATES (*)
Interest income:
Yield on loans 7.17 % 7.87 % 8.28 % 8.72 % 9.07 %
Yield on securities 6.29 6.51 6.70 6.74 6.79
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Yield on interest earning assets 6.83 7.41 7.77 8.25 8.63
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Interest expense:
Cost of interest bearing deposits 3.50 4.15 4.56 4.94 5.01
Cost of borrowings 4.27 4.72 5.03 5.57 6.03
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Cost of interest bearing liabilities 3.71 4.30 4.69 5.09 5.24
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Interest rate spread 3.12 3.11 3.08 3.16 3.39
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Net yield on earning assets 3.62 % 3.68 % 3.73 % 3.90 % 4.17 %
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Notes: Applicable ratios are annualized.
* - Fully taxable equivalent yields.
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