EXHIBIT 99 (A)
BANK OF GRANITE CORPORATION
NEWS
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FOR RELEASE: APRIL 8, 2002
BANK OF GRANITE FIRST QUARTER PER SHARE EARNINGS EXCEED
EXPECTATIONS--EQUALING THOSE OF FIRST QUARTER OF 2001
A continued strong performance by its Mortgage Company enabled earnings
per share of Bank of Granite Corporation's first quarter to equal those of last
year's first quarter despite a rather slow economy in its market area.
Quarterly per share earnings were 35(cent) for both 2002 and 2001.
These per share earnings exceeded the expectations of both the Company and its
analysts. The Company's share repurchase program helped the per share earnings
meet those of the same quarter of the previous year. Net income for the first
quarter, ending March 31, 2002 was $3,782,339 vs. $3,848,106 for the first
quarter of 2001.
John A. Forlines, Jr., Chairman and Chief Executive Officer, indicated
that the positive first quarter results, hopefully, have set the stage for
improved results in subsequent quarters of 2002. "We expect the economy in our
area to improve slowly later in the year," he said. He complimented GLL &
Associates, the Company's mortgage subsidiary, on another excellent quarter,
which favorably impacted the Company's overall earnings. He also thanked the
entire Bank of Granite family for "their hard work in making these earnings
possible."
Consolidated average balance sheet data revealed total assets of
$707,769,417 and total loans of $511,313,043, both reaching new highs for the
bank. Key management ratios continued to be outstanding, far exceeding the
Company's peers and the industry generally. For the quarter, the Company earned
2.17% on average assets and the return on equity was 12.25%. The capital to
asset ratio of 17.71% indicates that Bank of Granite remains one of the
strongest, best capitalized banks in the country. The efficiency ratio was an
outstanding 41.33%. Forlines said he expects 2002 to mark the 49th consecutive
year of increased dividends to its shareholders, believed to be a record for any
banking organization in America.
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 an estimated 5,200 shareholders, with
10,911,411 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 $23.00, a 16.3%
increase over its closing price of $19.97 on December 31, 2001.
Bank of Granite Corporation's Annual Shareholder's Meeting will be held
at 10:30 AM at the Holiday Inn in Hickory, N.C. on Monday, April 22, 2002.
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Please see "Financial Data" tables, which are attached.
For further information, contact Kirby A. Tyndall, Senior Vice President and
Chief Financial Officer at Voice (828) 496-2026, Fax (828) 496-2010 or
Internet email: ktyndall@bankofgranite.com
Bank of Granite Corporation,
PO Box 128, Granite Falls, NC 28630 www.bankofgranite.com
5
Three Months Ended
BANK OF GRANITE CORPORATION March 31,
Selected Financial Data ------------------------------------------
($ in thousands except per share data) 2002 2001 % change
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Consolidated earnings summary:
Interest income, taxable equivalent $ 11,909 $ 14,542 -18.1%
Interest expense 2,898 5,544 -47.7%
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Net interest income, taxable equivalent 9,011 8,998 0.1%
Taxable equivalent adjustment 463 446 3.8%
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Net interest income 8,548 8,552 0.0%
Loan loss provision 791 700 13.0%
Noninterest income 2,650 2,447 8.3%
Noninterest expense 4,820 4,501 7.1%
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Income before income taxes 5,587 5,798 -3.6%
Income taxes 1,805 1,950 -7.4%
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Net income $ 3,782 $ 3,848 -1.7%
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Earnings per share - Basic $ 0.35 $ 0.35 0.0%
Earnings per share - Diluted 0.35 0.35 0.0%
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Average shares - Basic 10,954 11,142 -1.7%
Average shares - Diluted 10,955 11,146 -1.7%
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Consolidated balance sheet data at March 31:
Total assets $ 706,673 $ 702,689 0.6%
Total deposits 519,997 546,828 -4.9%
Loans (gross) 514,436 473,157 8.7%
Shareholders' equity 125,157 121,352 3.1%
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Consolidated average balance sheet data:
Total assets $ 707,769 $ 672,380 5.3%
Total deposits 512,443 523,528 -2.1%
Loans (gross) 511,313 462,659 10.5%
Shareholders' equity 125,175 120,132 4.2%
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Consolidated performance ratios:
Return on average assets* 2.17% 2.32%
Return on average equity* 12.25% 12.99%
Efficiency ratio 41.33% 39.33%
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Consolidated asset quality data and ratios:
Nonaccruing loans $ 3,253 $ 1,571 107.1%
Accruing loans 90 days past due 890 2,771 -67.9%
Nonperforming loans 4,143 4,342 -4.6%
Foreclosed properties 312 134 132.8%
Nonperforming assets 4,455 4,476 -0.5%
Allowance for loan losses 7,144 6,919 3.3%
Loans charged off 301 230 30.9%
Recoveries of loans charged off 228 97 135.1%
Net loan charge-offs (recoveries) 73 133 -45.1%
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Net charge-offs to average loans* 0.06% 0.12%
Nonperforming loans to total assets 0.59% 0.62%
Allowance coverage of nonperforming loans 172.44% 159.35%
Allowance for loan losses to gross loans 1.39% 1.46%
Allowance for loan losses to net loans 1.41% 1.48%
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Subsidiary earnings summary:
Bank of Net interest income $ 7,722 $ 8,030 -3.8%
Granite Loan loss provision 761 670 13.6%
Noninterest income 1,951 1,777 9.8%
Noninterest expense 3,647 3,545 2.9%
Income taxes 1,636 1,852 -11.7%
Net income 3,629 3,740 -3.0%
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GLL & Net interest income $ 790 $ 529 49.3%
Associates Loan loss provision 30 30 0.0%
(mortgage Noninterest income 796 670 18.8%
bank) Noninterest expense 1,166 954 22.2%
Income taxes 168 98 71.4%
Net income 252 147 71.4%
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More
* annualized based on number of days in the period
6
Quarters Ended
BANK OF GRANITE CORPORATION ------------------------------------------------------------------
Supplemental Quarterly Financial Data MAR 31, Dec 31, Sep 30, Jun 30, Mar 31,
($ in thousands except per share data) 2002 2001 2001 2001 2001
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Consolidated earnings summary:
Interest income, taxable equivalent $ 11,909 $ 12,442 $ 13,170 $ 13,932 $ 14,542
Interest expense 2,898 3,687 4,779 5,433 5,544
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Net interest income, taxable equivalent 9,011 8,755 8,391 8,499 8,998
Taxable equivalent adjustment 463 468 455 433 446
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Net interest income 8,548 8,287 7,936 8,066 8,552
Loan loss provision 791 708 798 2,011 700
Noninterest income 2,650 2,874 2,490 2,330 2,447
Noninterest expense 4,820 4,639 4,642 4,561 4,501
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Income before income taxes 5,587 5,814 4,986 3,824 5,798
Income taxes 1,805 1,896 1,574 1,193 1,950
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Net income $ 3,782 $ 3,918 $ 3,412 $ 2,631 $ 3,848
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Earnings per share - Basic $ 0.35 $ 0.35 $ 0.31 $ 0.24 $ 0.35
Earnings per share - Diluted 0.35 0.35 0.31 0.24 0.35
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Average shares - Basic 10,954 11,038 11,098 11,116 11,142
Average shares - Diluted 10,955 11,039 11,100 11,117 11,146
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Consolidated ending balance sheet data:
Total assets $706,673 $715,390 $717,129 $700,704 $702,689
Total deposits 519,997 522,783 532,624 537,184 546,828
Loans (gross) 514,436 510,411 483,416 485,038 473,157
Shareholders' equity 125,157 124,781 124,331 122,928 121,352
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Consolidated average balance sheet data:
Total assets $707,769 $699,433 $693,358 $699,709 $672,380
Total deposits 512,443 524,830 530,467 537,287 523,528
Loans (gross) 511,313 493,563 482,005 480,700 462,659
Shareholders' equity 125,175 124,317 123,014 121,914 120,132
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Consolidated performance ratios:
Return on average assets* 2.17% 2.22% 1.95% 1.51% 2.32%
Return on average equity* 12.25% 12.50% 11.00% 8.66% 12.99%
Efficiency ratio 41.33% 39.89% 42.66% 42.12% 39.33%
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Consolidated asset quality data and ratios:
Nonaccruing loans $ 3,253 $ 2,944 $ 3,647 $ 2,594 $ 1,571
Accruing loans 90 days past due 890 1,769 3,459 2,400 2,771
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Nonperforming loans 4,143 4,713 7,106 4,994 4,342
Foreclosed properties 312 323 304 287 134
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Nonperforming assets 4,455 5,036 7,410 5,281 4,476
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Allowance for loan losses 7,144 6,426 6,630 8,452 6,919
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Loans charged off 301 993 2,711 567 230
Recoveries of loans charged off 228 82 90 89 97
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Net loan charge-offs (recoveries) 73 911 2,621 478 133
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Annualized net charge-offs to average loans* 0.06% 0.73% 2.16% 0.40% 0.12%
Nonperforming loans to total assets 0.59% 0.66% 0.99% 0.71% 0.62%
Allowance coverage of nonperforming loans 172.44% 136.35% 93.30% 169.24% 159.35%
Allowance for loan losses to gross loans 1.39% 1.26% 1.37% 1.74% 1.46%
Allowance for loan losses to net loans 1.41% 1.28% 1.39% 1.77% 1.48%
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Subsidiary earnings summary:
Bank of Net interest income $ 7,722 $ 7,477 $ 7,235 $ 7,369 $ 8,030
Granite Loan loss provision 761 678 768 1,981 670
Noninterest income 1,951 1,938 1,684 1,655 1,777
Noninterest expense 3,647 3,380 3,470 3,377 3,545
Income taxes 1,636 1,691 1,416 1,066 1,852
Net income 3,629 3,666 3,265 2,600 3,740
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GLL & Net interest income $ 790 $ 826 $ 749 $ 741 $ 529
Associates Loan loss provision 30 30 30 30 30
(mortgage Noninterest income 796 936 806 711 670
bank) Noninterest expense 1,166 1,249 1,160 1,137 954
Income taxes 168 205 158 126 98
Net income 252 308 237 189 147
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* annualized based on number of days in the period
7