EXHIBIT 99.2
Slide Package
Slide 1 - Title
First Charter Corporation
Third Quarter Conference Call
October 30, 2002
Slide 2 - Forward-looking Statement
This presentation contains forward looking statements with respect to the
financial conditions and results of operations of First Charter Corporation,
including, without limitation, statements relating to the earnings outlook of
the company.
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) risks inherent in making loans, including repayment risks and risks
associated with collateral values, are greater than expected; (6) changes in the
interest rate environment reduce interest margins and affect funding sources;
(7) changes in market rates and prices may adversely affect the value of
financial products; (8) legislation or regulatory requirements or changes
thereto adversely affect the businesses in which the company is engaged; and (9)
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.
Slide 3 - Outline
- -Third Quarter 2002 Results
- -Earnings Guidance
- -Fourth Quarter 2002
- -Questions and Answers
Slide 4 - Third Quarter Results
[Graph of Diluted Earnings per Share]
Diluted Earnings per Share
3rd Quarter
2002 $0.33
2001 $0.30
Slide 5 - Year to Date Results
[Graph of Diluted Earnings per Share]
Diluted Earnings per Share
Year to Date
2002 $0.93
2001 $0.86
Slide 6 - Loan Portfolio
[Graph of Loan Portfolio]
(in millions) 3Q2001 4Q2001 1Q2001 2Q2002 3Q2002
Commercial 1,137 1,099 1,115 1,131 1,168
Real estate 511 501 537 575 625
Home equity 213 228 241 270 296
Installment 126 127 137 150 153
Total Loans 1,987 1,955 2,030 2,126 2,142
Slide 7 - Loan Portfolio
[Graph of Loan Portfolio percentage mix]
(in millions) 3Q2001 4Q2001 1Q2001 2Q2002 3Q2002
Commercial 57% 56% 55% 53% 52%
Real estate 26% 26% 26% 27% 28%
Home equity 11% 12% 12% 13% 13%
Installment 6% 6% 7% 7% 7%
Slide 8 - Fixed Income Investments
[Graph of Fixed Income Investments]
(in millions) 3Q2001 4Q2001 1Q2002 2Q2002 3Q2002
Municipal 89 88 86 83 84
Mortgage-backed 791 656 662 633 631
Agency 207 288 277 307 406
Treasury 0 0 39 40 41
Slide 9 - Deposits
[Graph of Deposits]
(in millions) 3Q2001 4Q2001 1Q2002 2Q2002 3Q2002
Time 1,257 1,221 1,270 1,296 1,305
Interest checking
And Savings 370 378 383 390 407
Money Market 275 287 299 295 299
Noninterest bearing 262 277 258 282 303
Slide 10 - Asset Quality
[Graph of OREO and Nonaccrual loans]
(in thousands) 3Q2001 4Q2001 1Q2002 2Q2002 3Q2002
Other real estate 3,067 8,049 7,208 8,367 9,675
Nonaccrual loans 26,502 23,824 27,558 30,656 24,418
Slide 11 - Asset Quality
[Graph of NAL to Total Loans and NPA to Total Assets]
3Q2001 4Q2001 1Q2002 2Q2002 3Q2002
NAL to Total Loans 1.33% 1.22% 1.36% 1.44% 1.09%
NPA to Total Assets 0.88% 0.96% 1.02% 1.12% 0.92%
Slide 12 - Quarterly Loan Growth
[Graph of quarterly loan growth by type]
(in millions) 3Q2001 4Q2001 1Q2002 2Q2002 3Q2002
Commercial 48 (38) 16 16 37
Real estate (61) (10) 36 38 50
Home equity 12 15 13 29 26
Installment 18 1 10 13 3
Slide 13 - Provision/Net Charge-offs
[Graph of Provision and Net Charge-offs]
(in thousands) 3Q2001 4Q2001 1Q2002 2Q2002 3Q2002
Provision 1,325 1,200 2,105 2,240 1,750
Net Charge-offs 1,153 3,578 1,372 1,603 1,230
Slide 14 - Allowance for Loan Losses
[Graph of Allowance Ratio and Quarterly Annualized Net Charge-offs]
3Q2001 4Q2001 1Q2002 2Q2002 3Q2002
Allowance Ratio 1.42% 1.32% 1.31% 1.28% 1.22%
Annualized Net Charge-offs 0.23% 0.72% 0.28% 0.31% 0.22%
Slide 15 - Net Interest Margin
[Graph of Net Interest Margin]
3Q2001 4Q2001 1Q2002 2Q2002 3Q2002
Prime Rate 6.00% 4.75% 4.75% 4.75% 4.75%
Yield on Interest
Earning Assets 7.41% 6.83% 6.46% 6.21% 6.03%
Cost of Interest
Bearing Liabilities 4.30% 3.71% 3.16% 2.92% 2.83%
Net Interest Margin 3.68% 3.62% 3.64% 3.61% 3.54%
Slide 16 - Net Interest Income
[Graph of Net Interest Income]
(in thousands)
3Q2001 4Q2001 1Q2002 2Q2002 3Q2002
Net Interest Income 26,823 26,814 27,550 28,608 28,965
Slide 17 - Noninterest Income
[Graph of Noninterest Income]
(in thousands)
3Q2001 4Q2001 1Q2002 2Q2002 3Q2002
Net Noninterest Income 10,356 11,183 10,928 11,694 8,730
Slide 18 - Noninterest Expense
[Graph of Noninterest Expense]
(in thousands)
3Q2001 4Q2001 1Q2002 2Q2002 3Q2002
Net Noninterest Expense 21,892 24,766 24,556 24,322 21,979
Slide 19 - Conference Call Outline
- -Third Quarter 2002 Results
- -Earnings Guidance
- -Fourth Quarter 2002
- -Questions and Answers
Slide 20 - Loan Growth Projection
[Graph of Gross Loan Growth]
Projected
(in millions) 3Q2001 4Q2001 1Q2002 2Q2002 3Q2002 4Q2002
Gross Loans 1,987 1,955 2,030 2,126 2,242 2,292
Slide 21 - Deposit Growth Projection
[Graph of Deposit Composition Growth]
Projected
(in millions) 3Q2001 4Q2001 1Q2002 2Q2002 3Q2002 4Q2002
Time 58% 57% 57% 58% 56% 56%
Interest check
And Savings 17% 17% 17% 17% 18% 17%
Money
Market 13% 13% 14% 13% 13% 13%
Noninterest-
Bearing 12% 13% 12% 12% 13% 14%
Slide 22 - Net Interest Margin Forecast
4th Quarter and Full Year 2002
Range
3.50% to 3.55%
Slide 23 - Asset Quality
- -Fourth Quarter 2002 Nonaccrual Loans and OREO
- -Flat to slightly higher
Slide 24 - Noninterest Income Forecast
- -Fourth Quarter to equal average of first three quarter of 2002
- -Fourth Quarter forecast excludes
- -Gain on sale of property
- -Write down on equity method investments
Slide 25 - Noninterest Expense Forecast
- - Fourth Quarter to equal average of first three quarter of 2002
Slide 26 - Effect of SFAS 147
2002 Quarter Diluted EPS as reported Diluted EPS Restated Change
First 0.28 0.28 -
Second 0.32 0.33 0.01
Third 0.33 0.34 0.01
Total 0.93 0.95 0.02
Slide 27 - Earnings per Share Forecast
EPS
4Q 2002 $0.35 to $0.37
YE2002 $1.30 to $1.32
Slide 28 - Fiscal Year 2003
- -Currently Finalizing our Goals for 2003
- -Earnings Guidance for 2003
- -Will be provided in January 2003
Slide 29 - Conference Call Outline
- -Third Quarter 2002 Results
- -Earnings Guidance
- -Fourth Quarter 2002
- -Questions and Answers
Slide 30 - Picture and Logo
"Expect More From Us" is a promise to our clients and to the communities we
serve that we will help them achieve their dreams.