First Charter Earns $10.0 Million, or $0.32 Per Share, In the Second Quarter.Business Editors First Charter Corporation (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on : FCTR FCTR First Charter Corporation (stock symbol) FCTR Federal Cash Transactions Report FCTR Forced Call Termination Rate ) reported today second quarter earnings of $10.0 million, or $0.32 per share (diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. ), an increase in earnings from $8.9 million, or $0.28 per share (diluted), a year ago. For the first half of 2002, First Charter reported earnings of $18.6 million, or $0.60 per share (diluted) compared to $17.7 million, or $0.56 per share (diluted) for the same period in 2001. Earnings for the three and six months ended June June: see month. 30, 2002 included a $1.0 million ($0.7 million, or $0.02 diluted earnings per share diluted earnings per share An earnings measure calculated by dividing net income less preferred stock dividends for a period by the average number of shares of common stock that would be outstanding if all convertible securities were converted into shares of , after-tax af·ter-tax also af·ter·tax adj. Relating to or being that which remains after payment, especially of income taxes: after-tax profits. ) gain recognized on the sale of excess bank property. "First Charter is pleased with our results for the second quarter of 2002," commented President and Chief Executive Officer Lawrence Lawrence. 1 City (1990 pop. 26,763), Marion co., central Ind., a residential suburb of Indianapolis, on the West Fork of the White River. It has light manufacturing. 2 City (1990 pop. 65,608), seat of Douglas co., NE Kans. M. Kimbrough Kimbrough may refer to: People
Net Interest Income Second Quarter Net interest income increased to $28.6 million compared to $26.3 million for the same period in 2001. Net interest income increased primarily due to an increase in average earning assets Earning Assets Any income-earning asset owned by a company. Notes: These assets are generally interest-bearing accounts, bonds, and securities available for sale. See also: Asset, Asset Valuation, Earnings, Net Interest Margin , which was partially offset by a decrease in the net interest margin. The net interest margin decreased to 3.61% in the second quarter of 2002 from 3.73% for the same period in 2001. This decrease was driven by the 475 basis point reduction in the prime rate during 2001 that significantly reduced the net interest margin due to the asset sensitive nature of the balance sheet. Year-to-Date Year-to-date (YTD) The period beginning at the start of the calendar year up to the current date. Net interest income increased $4.4 million to $56.2 million compared to the first half of 2001. Net interest income increased primarily due to an increase in average earning assets, which was partially offset by a decrease in the net interest margin. The net interest margin for the six months ended June 30, 2002 decreased to 3.63% from 3.81% for the same period in 2001. As noted above, the asset sensitive nature of the balance sheet has led to this decrease. Noninterest Income Second Quarter Noninterest income increased 33% to $11.7 million compared to the same period in 2001. The increase includes a $1.0 million gain on sale of excess bank property. Removing the effect of this gain, noninterest income increased 21% to $10.7 million. The primary drivers of this increase were growth in service charges on deposit accounts, gains from the restructuring restructuring - The transformation from one representation form to another at the same relative abstraction level, while preserving the subject system's external behaviour (functionality and semantics). of the securities available for sale investment portfolio, growth in First Charter Insurance Services, and increased trading gains. Premiums earned on written covered call options covered call option A call option sold short by an investor owning the underlying stock. If the option is later exercised against the short seller of the option, the seller is covered by the stock that is owned. Compare naked option. on fixed income securities comprised the majority of the trading gains. Decreased mortgage fee income offset a portion of these increases. During 2002, mortgage loans have been retained by the bank instead of selling these loans into the secondary market. By placing these mortgage loans on the balance sheet, the mortgage fee income is recognized over the life of the loan versus at the time of sale as in prior periods. In order to further reduce interest rate risk, during the second quarter of 2002, restructuring of the securities available for sale investment portfolio resulted in gains of $0.2 million. In addition, the equity securities portfolio was further reduced resulting in gains of $0.4 million. Year-to-Date Noninterest income increased 31% to $22.6 million compared to the same period in 2001. Excluding the $1.0 million gain on sale of excess bank property, noninterest income increased 25% to $21.6 million. The primary drivers of this increase were higher service charges on deposit accounts, gains from the restructuring of the securities available for sale investment portfolio (as described below), trading gains, brokerage BROKERAGE, contracts. The trade or occupation of a broker; the commissions paid to a broker for his services. income, and First Charter Insurance Services income. Net losses from equity method investments and decreased mortgage fee income offset a portion of these increases. During 2002, we restructured a portion of the securities available for sale investment portfolio to reduce interest rate risk. We sold approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. $248.8 million of longer maturities and replaced them with securities having shorter maturities. In addition, the equity securities portfolio was reduced in order to focus First Charter's efforts on other activities that could result in greater returns. These restructurings resulted in gains aggregating approximately $0.8 million. In addition, gains on sales of callable Callable Applies mainly to convertible securities. Redeemable by the issuer before the scheduled maturity under specific conditions and at a stated price, which usually begins at a premium to par and declines annually. securities amounted to $1.2 million for the first half of 2002. As part of the active management of the securities available for sale portfolio, callable securities which appear to be on the verge On the Verge (or The Geography of Yearning) is a play written by Eric Overmyer. It makes extensive use of esoteric language and pop culture references from the late nineteenth century to 1955. of being called are sold in order to realize their gain in value. Net losses from equity method investments of $2.9 million offset a portion of the increase in noninterest income. First Charter's equity method investments represent investments in venture capital limited partnerships. First Charter recognizes gains or losses from equity method investments based upon changes in its share of the fair market value of the limited partnerships' investments as reported by such limited partnerships. Due to the nature of these investments, further volatility Volatility 1. A statistical measure of the tendency of a market or security to rise or fall sharply within a period of time. 2. A variable in option pricing formulas that denotes the extent to which the return of the underlying asset will fluctuate between now and the may occur. Noninterest Expense Second Quarter Noninterest expense totaled $24.3 million compared to $20.9 million for the same period in 2001. The major contributors to this increase for the second quarter relate to the implementation of a new computer operating system operating system (OS) Software that controls the operation of a computer, directs the input and output of data, keeps track of files, and controls the processing of computer programs. beginning in late 2001 and the costs associated with additional personnel. Additionally, as revenues increased in certain noninterest income categories, incentive compensation based on that revenue increased as well. The efficiency ratio increased to 61.18% compared to 59.05% for the second quarter of 2001. Year-to-Date Noninterest expense totaled $48.9 million compared to $40.9 million a year ago. The major contributing factors to this increase include expenses associated with the implementation of a new computer operating system beginning in late 2001, increased occupancy Gaining or having physical possession of real property subject to, or in the absence of, legal right or title. In a fire insurance policy, for example, the term occupancy and equipment depreciation expense associated with putting the First Charter Center into service in April of 2001, the costs associated with additional personnel, and incentive compensation on noninterest income. The efficiency ratio increased to 65.23% compared to 58.97% for the first six months of 2001. A significant portion of the increase in the efficiency ratio relates to the $2.9 million net losses from equity method investments recognized during the first quarter of 2002. Excluding the net losses from equity method investments, the efficiency ratio for the first half of 2002 was 62.77%. Income Tax Expense Total income tax expense for the second quarter of 2002 amounted to $3.8 million compared to $4.2 million for the same period in 2001. Income tax expense for the first half of 2002 amounted to $7.0 million compared to $8.4 million for the first half of 2001. In the normal course of business, First Charter evaluates and implements tax-planning strategies. As a result of these strategies, the effective tax rate for the second quarter of 2002 and the first half of 2002 decreased to 27.3% compared to 32.3% for the second quarter of 2001 and 32.1% for the first half of 2001. Balance Sheet Total assets at June 30, 2002 amounted to $3.49 billion as compared to $3.33 billion at December December: see month. 31, 2001 and $3.14 billion at June 30, 2001. Net loans at June 30, 2002 amounted to $2.10 billion as compared to $1.93 billion at December 31, 2001 and $1.94 billion at June 30, 2001. The increase in net loans reflects increased loan demand experienced during the first half of 2002. The securities available for sale portfolio increased to $1.10 billion at June 30, 2002 as compared to $1.08 billion at December 31, 2001 and $0.94 billion at June 30, 2001. The increase over the same period in 2001 reflects net additions to the investment portfolio. Total deposits at June 30, 2002 amounted to $2.26 billion compared to $2.16 billion at December 31, 2001 and $2.12 billion at June 30, 2001. The increase in deposits reflects the continued efforts to broaden existing customer relationships and develop new ones. Shareholders' equity Shareholders' Equity A firms' total assets minus its total liabilities. Equivalently, it is share capital plus retained earnings minus treasury shares. Shareholders' equity is the amount by which a company is financed through common and preferred shares. at June 30, 2002 was $324.1 million, which represented a book value per share of $10.51 and an equity-to-asset ratio of 9.29%. Based on the $18.45 closing price of First Charter Corporation common stock at June 28, 2002, the last trading day Last Trading Day The final day that a futures or options contract may trade or be closed out before delivery of the underlying asset must occur. Notes: If the buying and selling parties do not arrange an alternate agreement, the physical commodity must be delivered from during the quarter, the Corporation had a market capitalization Market Capitalization A measure of a public company's size. Market capitalization is the total dollar value of all outstanding shares. It's calculated by multiplying the number of shares times the current market price. This term is often referred to as market cap. of $568.8 million. Asset Quality Provision for Loan Losses The provision for loan losses for the three months ended June 30, 2002 amounted to $2.2 million compared to $1.2 million for the same period in 2001. The provision for loan losses for the six months ended June 30, 2002 amounted to $4.3 million compared to $1.9 million a year ago. These increases in the provision for loan losses were due to increased net charge-offs, specifically in connection with commercial loans as a result of soft economic conditions, higher levels of nonaccrual loans, and increased net loan growth during 2002. Net Charge-Offs Net charge-offs for the three months ended June 30, 2002 increased to $1.6 million from $1.2 million for the same period in 2001. Net charge-offs for the six months ended June 30, 2002 increased to $3.0 million from $1.9 million a year ago. These increases in net charge-offs were due to increases in commercial loan charge-offs during the first half of 2002. First Charter continues to monitor the asset quality of the loan portfolio. Charge-offs are recorded when the financial condition of the borrower BORROWER, contracts. He to whom a thing is lent at his request. 2. The contract of loan confers rights, and imposes duties on the borrower' 1. In general, he has the right to use the thing borrowed, during the time and for the purpose intended between the and the likelihood of repayment Repayment The act of paying back a debt. Notes: Everyone has to repay their debts eventually. See also: Debt, Defeasance, Loan warrant such action. Net loan charge-offs as a percentage of average gross loans decreased to 0.31% for the annualized annualized Of or relating to a variable that has been mathematically converted to a yearly rate. Inflation and interest rates are generally annualized since it is on this basis that these two variables are ordinarily stated and compared. three months ended June 30, 2002 compared to 0.33% for the year ended December 31, 2001 and increased from 0.24% for the annualized three months ended June 30, 2001. Nonperforming Assets Nonperforming asset An asset that is not effectively producing income, such as an overdue loan. nonperforming asset An asset that produces no income. Nonaccrual loans at June 30, 2002 increased to $30.7 million from $23.8 million at December 31, 2001 and $28.6 million at June 30, 2001. The increase in nonaccrual loans during the first half of 2002 was primarily due to the addition of several large real estate loans to nonaccrual status. During the first six months of 2002, other real estate, received through loan foreclosure foreclosure Legal proceeding by which a borrower's rights to a mortgaged property may be extinguished if the borrower fails to live up to the obligations agreed to in the loan contract. , increased to $8.4 million from $8.0 million at December 31, 2001 and $3.5 million at June 30, 2001. The increase in other real estate over the same period in 2001 was primarily due to the foreclosure on one large commercial property during the fourth quarter of 2001. Total nonperforming assets and loans 90 days or more past due and still accruing increased to $39.0 million at June 30, 2002 compared to $32.0 million at December 31, 2001 and $32.3 million at June 30, 2001. As a percentage of total assets, nonperforming assets increased to 1.12% at June 30, 2002 compared to 0.96% at December 31, 2001 and 1.02% at June 30, 2001. Allowance for Loan Losses The allowance for loan losses as a percentage of total loans decreased to 1.28% at June 30, 2002 compared to 1.32% at December 31, 2001 and 1.42% at June 30, 2001. First Charter monitors the adequacy of the allowance for loan losses to cover inherent losses in the loan portfolio through the use of a loan loss migration model. Although First Charter has experienced an increase in nonaccrual loans and net charge-offs during 2002, the loan loss migration model supports the current level of allowance for loan losses as a percentage of total loans. The decrease in the allowance for loan losses as a percentage of total loans at June 30, 2002 when compared to December 31, 2001, is primarily due to an increase in 1-4 family mortgages and home equity lines of credit. Growth in 1-4 family mortgages and home equity lines of credit account for 70% and 68% of the loan growth for the three and six months ended June 30, 2002, respectively. This type of secured lending generally requires lower allowance percentages in the allowance model. Share Repurchase Share Repurchase A program by which a company buys back its own shares from the marketplace, reducing the number of outstanding shares. This is usually an indication that the company's management thinks the shares are undervalued. Program On January January: see month. 24, 2002, First Charter Corporation announced the authorization The right or permission to use a system resource; the process of granting access. See access control. to repurchase re·pur·chase tr.v. re·pur·chased, re·pur·chas·ing, re·pur·chas·es To buy (something) again. n. The act of buying something that one previously sold or owned. Noun 1. up to 1.5 million shares of its common stock. As of June 30, 2002, no 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 2002 on Wednesday Wednesday: see week. , July July: see month. 10, 2002 at 1:00 p.m. The following table outlines access information for the conference call and audio replay:
US/Canada International
Participants Participants
----------------------------------------------------------------------
Live Conference Call 888-482-0024 617-801-9702
ID # 492922 ID # 492922
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Internet Live and Replay www.FirstCharter.com www.FirstCharter.com
"Investor Relations" "Investor Relations"
section section
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Audio Replay 888-286-8010 617-801-6888
ID # 48366 ID # 48366
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Corporate Profile First Charter Corporation is a regional financial services The examples and perspective in this article or section may not represent a worldwide view of the subject. Please [ improve this article] or discuss the issue on the talk page. company with assets of $3.49 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 North Carolina, state in the SE United States. It is bordered by the Atlantic Ocean (E), South Carolina and Georgia (S), Tennessee (W), and Virginia (N). Facts and Figures Area, 52,586 sq mi (136,198 sq km). Pop. . First Charter also operates one mortgage origination Origination The process through which a mortgage lender creates a mortgage secured by some amount of the mortgagor's real property. Notes: Also known as loan origination, everyone must go through the origination process when securing a mortgage for a piece of real office in Virginia Virginia, state, United States Virginia, state of the south-central United States. It is bordered by the Atlantic Ocean (E), North Carolina and Tennessee (S), Kentucky and West Virginia (W), and Maryland and the District of Columbia (N and NE). . First Charter provides businesses and individuals with a broad range of financial services, including banking, financial planning Financial planning Evaluating the investing and financing options available to a firm. Planning includes attempting to make optimal decisions, projecting the consequences of these decisions for the firm in the form of a financial plan, and then comparing future performance against , 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. First Charter's common stock 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 fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. than expected; (5) risks inherent in making loans, including repayment risks and risks associated with collateral collateral (kəlăt`ərəl), something of value given or pledged as security for payment of a loan. Collateral consists usually of financial instruments, such as stocks, bonds, and negotiable paper, rather than physical goods, although 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 Regulatory requirements are part of the process of drug discovery and drug development. Regulatory requirements describe what is necessary for a new drug to be approved for marketing in any particular country. or changes 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 See .gov and GovNet. (networking) gov - The top-level domain for US government bodies. ) 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 here·of adv. Of this. hereof Adverb Formal or law of or concerning this Adv. 1. hereof - of or concerning this; "the twigs hereof are physic" . The company undertakes no obligation to publicly revise those forward looking statements to reflect events and circumstances CIRCUMSTANCES, evidence. The particulars which accompany a fact. 2. The facts proved are either possible or impossible, ordinary and probable, or extraordinary and improbable, recent or ancient; they may have happened near us, or afar off; they are public or that arise after the date hereof. (Selected financial information is attached)
First Charter Corporation and Subsidiaries (NASDAQ: FCTR)
Quarterly Earnings Release
(Dollars in thousands, For the Three
except per share data) Months Ended Increase(Decrease)
6/30/2002 6/30/2001 Amount Percentage
---------------------------------------------------------------------
INCOME STATEMENT
Interest income - taxable
equivalent $ 49,877 $ 55,870 $(5,993) (10.7)%
Interest expense 20,825 29,043 (8,218) (28.3)
---------------------------------
Net interest income -
taxable equivalent 29,052 26,827 2,225 8.3
Less: Taxable equivalent
adjustment 444 479 (35) (7.3)
--------------------------------
Net interest income 28,608 26,348 2,260 8.6
Provision for loan
losses 2,240 1,190 1,050 88.2
--------------------------------
Net interest income
after provision for
loan losses 26,368 25,158 1,210 4.8
Noninterest income 11,694 8,814 2,880 32.7
Noninterest expense 24,322 20,878 3,444 16.5
---------------------------------
Income before income taxes 13,740 13,094 646 4.9
Income taxes 3,751 4,223 (472) (11.2)
---------------------------------
Net income $ 9,989 $ 8,871 $ 1,118 12.6%
---------------------------------
---------------------------------------------------------------------
EARNINGS PER SHARE DATA
Basic $ 0.32 $ 0.28 $ 0.04 14.3%
Diluted 0.32 0.28 0.04 14.3
Weighted average shares
- basic 30,829,356 31,719,241
Weighted average shares -
diluted 31,098,379 31,906,705
Dividends paid on common
shares $ 0.18 $ 0.18 $ - -%
----------------------------------------------------------------------
PERFORMANCE RATIOS
Return on average assets 1.15% 1.15%
Return on average equity 12.43 11.12
Efficiency - taxable equivalent/a 61.18 59.05
---------------------------------------------------------------------
For the Three Months Ended
SCHEDULE OF OTHER ITEMS INCLUDED 06/30/2002 06/30/2001
IN EARNINGS
Noninterest income
Equity portfolio restructuring gain $ 436 $ -
Bond portfolio restructuring gains 195 -
Equity method income (loss) 23 (102)
Gain on sale of properties 1,013 -
Noninterest expense
Amortization of intangibles (328) (447)
=====================
Total other items $ 1,339 $ (549)
=====================
Other items, net of tax $ 974 $ (374)
=====================
Notes: Applicable ratios are annualized.
/a: Noninterest expense divided by the sum of taxable equivalent
net interest income plus noninterest income less gain on sale of
securities.
First Charter Corporation and Subsidiaries (NASDAQ: FCTR)
Quarterly Earnings Release
(Dollars in thousands, For the Six
except per share data) Months Ended Increase(Decrease)
6/30/2002 6/30/2001 Amount Percentage
----------------------------------------------------------------------
INCOME STATEMENT
Interest income - taxable
equivalent $99,372 $110,437 $(11,065) (10.0)%
Interest expense 42,315 57,734 (15,419) (26.7)
---------------------------------
Net interest income - taxable
equivalent 57,057 52,703 4,354 8.3
Less: Taxable equivalent
adjustment 899 976 (77) (7.9)
---------------------------------
Net interest income 56,158 51,727 4,431 8.6
Provision for loan losses 4,345 1,940 2,405 124.0
---------------------------------
Net interest income after
provision for loan losses 51,813 49,787 2,026 4.1
Noninterest income 22,622 17,234 5,388 31.3
Noninterest expense 48,878 40,921 7,957 19.4
---------------------------------
Income before income taxes 25,557 26,100 (543) (2.1)
Income taxes 6,977 8,385 (1,408) (16.8)
---------------------------------
Net income $ 18,580 $ 17,715 $ 865 4.9%
---------------------------------
----------------------------------------------------------------------
EARNINGS PER SHARE DATA
Basic $ 0.60 $ 0.56 $ 0.04 $7.1
Diluted 0.60 0.56 0.04 7.1
Weighted average shares
- basic 30,814,127 31,708,003
Weighted average shares -
diluted 31,046,469 31,870,134
Dividends paid on common
shares $ 0.36 $ 0.36 $ - - %
----------------------------------------------------------------------
PERFORMANCE RATIOS
Return on average assets 1.09% 1.19%
Return on average equity 11.63 11.29
Efficiency - taxable equivalent/a 65.23 58.97
----------------------------------------------------------------------
For the Six Months Ended
SCHEDULE OF OTHER ITEMS INCLUDED 06/30/2002 06/30/2001
IN EARNINGS
Noninterest income
Equity portfolio restructuring gains $ 1,270 $ -
Bond portfolio restructuring gains 2,265 -
Equity investment write down (20) (144)
Equity method income (loss) (2,936) 9
Gain on sale of properties 1,013 -
Noninterest expense
Amortization of intangibles (667) (937)
---------------------
Total other items $ 925 $(1,072)
---------------------
Other items, net of tax $ 672 $ (729)
---------------------
----------------------------------------------------------------------
Notes: Applicable ratios are annualized.
/a: Noninterest expense divided by the sum of taxable equivalent
net interest income plus noninterest income less gain on sale of
securities.
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) 06/30/2002 06/30/2001 Amount Percentage
----------------------------------------------------------------------
BALANCE SHEET
ASSETS:
Cash and due from banks $ 93,287 $ 75,696 $ 17,591 23.2%
Federal funds sold 948 902 46 5.1
Interest earning bank
deposits 16,513 4,439 12,074 272.0
Securities available for
sale 1,104,995 938,951 166,044 17.7
Loans
Commercial 1,130,425 1,089,482 40,943 3.8
Real estate 574,761 572,004 2,757 0.5
Home equity 270,282 200,537 69,745 34.8
Installment 150,351 107,864 42,487 39.4
-----------------------------------------
Total loans 2,125,819 1,969,887 155,932 7.9
Less: Unearned income (254) (222) (32) 14.4
Allowance for loan losses (27,213) (28,049) 836 (3.0)
-----------------------------------------
Loans, net 2,098,352 1,941,616 156,736 8.1
-----------------------------------------
Other assets 176,160 177,385 (1,225) (0.7)
-----------------------------------------
Total assets $3,490,255 $3,138,989 $351,266 11.2%
-----------------------------------------
LIABILITIES AND SHAREHOLDERS' EQUITY:
Deposits
Noninterest-bearing
deposits $ 282,324 $ 257,443 $ 24,881 9.7%
Interest checking and
savings 390,270 369,995 20,275 5.5
Money market deposits 295,243 262,903 32,340 12.3
Time deposits 1,295,122 1,228,686 66,436 5.4
-----------------------------------------
Total deposits 2,262,959 2,119,027 143,932 6.8
Other borrowings 847,752 643,483 204,269 31.7
Other liabilities 55,493 52,375 3,118 6.0
-----------------------------------------
Total liabilities 3,166,204 2,814,885 351,319 12.5
-----------------------------------------
Total shareholders'
equity 324,051 324,104 (53) (0.0)
-----------------------------------------
Total liabilities and
shareholders' equity $3,490,255 $3,138,989 $351,266 11.2%
-----------------------------------------
----------------------------------------------------------------------
SELECTED AVERAGE BALANCES
Loans $2,032,162 $2,005,554 $ 26,608 1.3%
Securities 1,116,197 763,425 352,772 46.2
Interest earning assets 3,157,038 2,779,599 377,439 13.6
Assets 3,435,191 2,992,241 442,950 14.8
Deposits 2,207,434 2,017,243 190,191 9.4
Interest bearing
liabilities 2,807,945 2,385,932 422,013 17.7
Shareholders' equity 322,214 316,544 5,670 1.8
----------------------------------------------------------------------
As of/For the Quarter Ended
06/30/2002 03/31/2002 12/31/2001 09/30/2001 06/30/2001
----------------------------------------------------------
MISCELLANEOUS INFORMATION
Common stock prices
(daily close)
High $20.5700 $19.4500 $18.4900 $18.4500 $18.7500
Low 17.3000 16.7500 15.8500 15.4600 15.1250
End of period 18.4500 18.6700 16.9100 16.3500 18.7500
Book Value 10.51 9.86 10.06 10.49 10.22
Market
Capital-
ization 568,811,563 575,138,200 519,856,216 510,503,408 594,775,763
Weighted
average
shares -
basic 30,829,356 30,798,728 31,197,190 31,314,550 31,719,241
Weighted
average
shares -
diluted 31,098,379 30,993,981 31,364,373 31,545,721 31,906,705
End of period
shares
outstanding 30,829,895 30,805,474 30,742,532 31,223,450 31,721,374
------------------------------------------------------------------------
First Charter Corporation and Subsidiaries (NASDAQ: FCTR)
Quarterly Earnings Release
As of / For the Quarter Ended
--------------------------------------
(Dollars in thousands, 06/30 03/31 12/31 09/30 06/30
except per share data) 2002 2002 2001 2001 2001
----------------------------------------------------------------------
INCOME STATEMENT
Interest income - taxable
equivalent
Interest and fees on
loans $33,600 $32,920 35,735 $39,155 $40,609
Interest on securities 16,239 16,543 15,764 15,898 15,165
Other interest income 38 32 129 62 96
-------------------------------------------
Total interest income -
taxable equivalent 49,877 49,495 51,628 55,115 55,870
-------------------------------------------
Interest expense
Interest on deposits 12,694 13,749 16,781 19,704 20,638
Other interest expense 8,131 7,741 7,571 8,122 8,405
-------------------------------------------
Total interest expense 20,825 21,490 24,352 27,826 29,043
-------------------------------------------
Net interest income -
taxable equivalent 29,052 28,005 27,276 27,289 26,827
Less: Taxable equivalent
adjustment 444 455 462 466 479
-------------------------------------------
Net interest income 28,608 27,550 26,814 26,823 26,348
Provision for loan losses 2,240 2,105 1,200 1,325 1,190
-------------------------------------------
Net interest income after
provision for loan
losses 26,368 25,445 25,614 25,498 25,158
-------------------------------------------
Noninterest income
Service charges on deposit
accounts 4,781 4,665 4,255 3,689 3,568
Financial management
income 679 668 339 569 640
Gain on sale of securities 989 3,763 1,026 824 282
Income (loss) from equity
method investments 23 (2,959) (524) 73 (102)
Mortgage loan fees 409 407 723 662 749
Brokerage services income 420 637 356 476 520
Insurance services income 2,114 2,231 1,866 1,959 1,865
Trading gains 322 420 1,530 829 233
Other noninterest income 1,957 1,096 1,612 1,275 1,059
-------------------------------------------
Total noninterest income 11,694 10,928 11,183 10,356 8,814
-------------------------------------------
Noninterest expense
Salaries and employee
benefits 13,208 12,897 12,501 11,206 10,659
Occupancy and equipment 4,184 4,241 3,804 3,434 3,799
Data processing 828 622 615 601 494
Marketing 634 640 575 593 552
Postage and supplies 1,078 1,189 1,155 1,340 1,136
Professional services 1,719 1,662 2,531 1,614 1,418
Telephone 568 546 448 576 553
Amortization of intangibles 328 339 466 472 447
Other noninterest expense 1,775 2,420 2,671 2,056 1,820
-------------------------------------------
Total noninterest expense 24,322 24,556 24,766 21,892 20,878
-------------------------------------------
Income before taxes 13,740 11,817 12,031 13,962 13,094
Income taxes 3,751 3,226 3,881 4,502 4,223
-------------------------------------------
Net income $ 9,989 $ 8,591 8,150 $ 9,460 $ 8,871
-------------------------------------------
----------------------------------------------------------------------
EARNINGS PER SHARE DATA
Basic $ 0.32 $ 0.28 0.26 $ 0.30 $ 0.28
Diluted 0.32 0.28 0.26 0.30 0.28
Dividends paid on common
shares 0.18 0.18 0.18 0.18 0.18
----------------------------------------------------------------------
PERFORMANCE RATIOS
Return on average assets 1.15% 1.03% 1.00% 1.18% 1.15%
Return on average equity 12.43 10.82 9.88 11.72 11.12
Efficiency - taxable
equivalent/a 61.18 69.82 66.16 59.46 59.05
Noninterest income as a
percentage of total income 29.02 28.40 29.43 27.85 25.07
Equity as a percentage of
total assets 9.28 8.92 9.28 9.78 10.33
Average earning assets as a
percentage of average
assets 92.21 91.58 92.56 92.86 93.00
Average loans as a
percentage of average
deposits 93.26 90.82 91.15 92.38 95.50
As of / For the Quarter Ended
-------------------------------
SCHEDULE OF OTHER ITEMS 06/30 03/31 12/31 09/30 06/30
INCLUDED IN EARNINGS 2002 2002 2001 2001 2001
-------------------------------------------
Noninterest income
Equity portfolio
restructuring gains $ 436 $ 834 $ - $ - $ -
Bond portfolio
restructuring gains 195 2,070 - - -
Equity investment write
down - (20) - - -
Equity method income (loss) 23 (2,959) (524) 73 (102)
Gain on sale of
properties 1,013 - 287 129 -
Noninterest expense
Amortization of
intangibles (328) (339) (466) (472) (447)
-------------------------------------------
Total other items $1,339 $(414) $(703) $(270) $(549)
-------------------------------------------
Other items, net of tax $ 974 $ (301) $(479) $(183) $(374)
-------------------------------------------
Notes: Applicable ratios are annualized.
/a: Noninterest expense divided by the sum of taxable equivalent
net interest income plus noninterest income less gain on sale of
securities.
First Charter Corporation and Subsidiaries (NASDAQ: FCTR)
Quarterly Earnings Release
As of/For the Quarter Ended
(Dollars in thousands,
except per share data)
06/30/2002 03/31/2002 12/31/2001 09/30/2001 06/30/2001
----------------------------------------------------------
BALANCE SHEET
ASSETS:
Cash and due
from banks $93,287 $89,611 $134,084 $79,288 $75,696
Federal funds
sold 948 1,363 1,161 - 902
Interest
earning
bank
deposits 16,513 16,984 6,220 3,194 4,439
Securities
available
for sale 1,104,995 1,107,939 1,077,365 1,133,333 938,951
Loans
Commercial 1,130,425 1,114,469 1,099,353 1,137,570 1,089,482
Real estate 574,761 536,919 500,943 511,357 572,004
Home equity 270,282 241,078 228,169 212,763 200,537
Installment 150,351 137,271 126,621 125,707 107,864
--------------------------------------------------------
Total loans 2,125,819 2,029,737 1,955,086 1,987,397 1,969,887
Less:
Unearned
income (254) (277) (191) (227) (222)
Allowance
for loan
losses (27,213) (26,576) (25,843) (28,221) (28,049)
--------------------------------------------------------
Loans, net 2,098,352 2,002,884 1,929,052 1,958,949 1,941,616
---------------------------------------------------------
Other assets 176,160 186,839 185,896 174,106 177,385
---------------------------------------------------------
Total
assets $3,490,255 $3,405,620 $3,332,737 $3,348,870 $3,138,989
----------------------------------------------------------
LIABILITIES AND SHAREHOLDERS' EQUITY:
Deposits
Noninterest-
bearing
deposits $282,324 $257,864 $276,699 $262,331 $257,443
Interest
checking and
savings 390,270 383,145 378,341 370,120 369,995
Money market
deposits 295,243 298,574 286,653 274,697 262,903
Time
deposits 1,295,122 1,270,725 1,221,252 1,256,651 1,228,686
---------------------------------------------------------
Total
deposits 2,262,959 2,210,308 2,162,945 2,163,799 2,119,027
Other
borrowings 847,752 836,769 808,512 806,141 643,483
Other
liabilities 55,493 54,798 51,939 51,357 52,375
---------------------------------------------------------
Total
liabilities 3,166,204 3,101,875 3,023,396 3,021,297 2,814,885
---------------------------------------------------------
Total
shareholders'
equity 324,051 303,745 309,341 327,573 324,104
---------------------------------------------------------
Total
liabilities
and
shareholders'
equity $3,490,255 $3,405,620 $3,332,737 $3,348,870 $3,138,989
----------------------------------------------------------
----------------------------------------------------------------------
SELECTED AVERAGE BALANCES
Loans $2,080,227 $1,983,455 $1,977,638 $1,973,373 $1,968,304
Securities 1,130,552 1,101,683 1,001,763 977,176 904,758
Interest
earning
assets 3,219,754 3,093,516 3,005,225 2,957,440 2,881,629
Assets 3,491,715 3,377,791 3,246,863 3,184,788 3,098,598
Deposits 2,230,620 2,183,990 2,169,743 2,136,217 2,060,997
Interest
bearing
liabil-
ities 2,859,137 2,756,185 2,605,572 2,565,744 2,484,604
Shareholders'
equity 322,397 321,966 327,410 320,242 319,968
----------------------------------------------------------------------
First Charter Corporation and Subsidiaries (NASDAQ: FCTR)
Quarterly Earnings Release
As of / For the Quarter Ended
(Dollars in thousands, ------------------------------
except per share data) 6/30/02 3/31/02 12/31/01 9/30/01 6/30/01
-----------------------------------------------------------------------
ASSET QUALITY ANALYSIS
Allowance for Loan Losses
Beginning balance $26,576 $25,843 $28,221 $28,049 $28,049
Provision for loan losses 2,240 2,105 1,200 1,325 1,190
Charge-offs (1,778) (1,557) (3,719) (1,372) (1,365)
Recoveries 175 185 141 219 175
-----------------------------------------
Net charge-offs (1,603) (1,372) (3,578) (1,153) (1,190)
-----------------------------------------
Ending balance $27,213 $26,576 $25,843 $28,221 $28,049
-------------------------------------------
Nonperforming Assets and Loans 90 days
or more past due accruing interest
Nonaccrual loans $30,656 $27,558 $23,824 $26,502 $28,605
Other real estate 8,367 7,208 8,049 3,067 3,454
-----------------------------------------
Total nonperforming
assets 39,023 34,766 31,873 29,569 32,059
-----------------------------------------
Loans 90 days or more past due
accruing interest -- 38 152 114 199
-----------------------------------------
Total $39,023 $34,804 $32,025 $29,683 $32,258
-----------------------------------------
Asset Quality Ratios
Nonaccrual loans as a percentage of
total loans 1.44% 1.36% 1.22% 1.33% 1.45%
Nonperforming assets as a
percentage of total assets 1.12 1.02 0.96 0.88 1.02
Nonperforming assets as a
percentage of total loans and
other real estate 1.83 1.71 1.62 1.49 1.62
Net charge-offs as a percentage
of average loans (annualized) 0.31 0.28 0.72 0.23 0.24
Allowance for loan losses as a
percentage of loans 1.28 1.31 1.32 1.42 1.42
Ratio of allowance for loan
losses to:
Net charge-offs 4.23 x 4.78 x 1.82 x 6.17 x 5.88 x
Nonaccrual loans 0.89 0.96 1.08 1.06 0.98
----------------------------------------------------------------------
As of/For the Six Increase(Decrease)
Months Ended
------------------------------------------
6/30/02 6/30/01 Amount Percentage
Allowance for Loan Losses
Beginning balance $ 25,843 $ 28,447 $ (2,604) (9.2)%
Provision for loan losses 4,345 1,940 2,405 124.0
Allowance related to loans
sold and securitized -- (417) 417 (100.0)
Charge-offs (3,335) (2,315) (1,020) 44.1
Recoveries 360 394 (34) (8.6)
---------------------------------------
Net charge-offs (2,975) (1,921) (1,054) 54.9
---------------------------------------
Ending balance $ 27,213 $ 28,049 $ (836) (3.0)%
---------------------------------------
Asset Quality Ratios
Net charge-offs as a
percentage of average
loans (annualized) 0.30% 0.19%
Ratio of allowance for loan
losses to net charge-offs
(annualized) 4.54 x 7.24 x
----------------------------------------------------------------------
For the Quarter Ended
6/30/02 3/31/02 12/31/01 9/30/01 6/30/01
-----------------------------------------------------------------------
ANNUALIZED INTEREST YIELDS/RATES/b
Interest income:
Yield on loans 6.48% 6.73% 7.17% 7.87% 8.28%
Yield on securities 5.75 6.01 6.29 6.51 6.70
-----------------------------------------
Yield on interest earning
assets 6.21 6.46 6.83 7.41 7.77
-----------------------------------------
Interest expense:
Cost of interest bearing
deposits 2.58 2.89 3.50 4.15 4.56
Cost of borrowings 3.67 3.80 4.27 4.72 5.03
-----------------------------------------
Cost of interest bearing
liabilities 2.92 3.16 3.71 4.30 4.69
-----------------------------------------
Interest rate spread 3.29 3.30 3.12 3.11 3.08
-----------------------------------------
Net yield on earning assets 3.61% 3.64% 3.62% 3.68% 3.73%
-----------------------------------------
-----------------------------------------------------------------------
Notes: Applicable ratios are annualized.
/b: Fully taxable equivalent yields.
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