First Charter Reports Significant Increase in Net Income for Fourth Quarter and 2004.CHARLOTTE, N.C. -- First Charter Corp. (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 ): Long-Term Long-term Three or more years. In the context of accounting, more than 1 year. long-term 1. Of or relating to a gain or loss in the value of a security that has been held over a specific length of time. Compare short-term. Growth Initiatives Help Drive Improved Performance Fourth Quarter 2004 compared to Fourth Quarter 2003 --Earnings per 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. share increased to $0.38 compared to a net loss of $0.02. --Total revenues increased 11 percent to $47.1 million. --Strong loan growth helped fuel a 10 percent increase in interest income. --Improved asset quality trends resulted in a $1.8 million decrease in the provision for loan losses. --Noninterest expense decreased $13.7 million due to prepayment Prepayment 1. The payment of a debt obligation prior to its due date. 2. The excess payment over a scheduled debt repayment amount. Notes: 1. Examples include deferred expenses such as rent and early loan repayments. 2. costs associated with refinancing Refinancing An extension and/or increase in amount of existing debt. fixed term advances in 2003 that did not recur in 2004. --Quarterly Customer Satisfaction Survey score, a key element in our Community Banking strategy, was 83 percent "Very Satisfied" and is significantly higher than the national average of 58 percent. First Charter Corporation (NASDAQ: FCTR) today reported significantly improved fourth quarter earnings, continuing the strong financial performance achieved throughout 2004. "We began this year with an effective, long-term strategy to leverage our community banking model and achieve improved financial performance," said 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
Fourth quarter earnings increased to $11.6 million or $0.38 per diluted share compared to a net loss of $0.5 million, or $0.02 per diluted share, for the same period in 2003. Earnings for the fourth quarter of 2003 were impacted by $11.7 million of costs associated with the refinancing of fixed term advances. Total revenues in the fourth quarter of 2004, comprised of net interest income and noninterest income, increased $4.7 million or 11 percent, driven by strong loan growth, higher fee income and an increase in interest rates. Asset quality remained stable, with 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. at 0.73 percent of loans plus other real estate owned Real Estate Owned Property owned by a lender - usually a bank - after an unsuccessful sale at a foreclosure auction. This is common because most of the properties up for sale at these auctions are worth less than the total amount owed to the bank: the minimum bid in most and 30 day past due loans at 0.51 percent of loans. "For the fourth quarter and the full year, First Charter grew total revenue, loans, interest income and earnings per share - all while we continued to improve asset quality and to maintain exceptional levels of customer satisfaction," commented Mr. Kimbrough. "This improved performance helped First Charter provide a total return (including dividends) of nearly 38 percent to shareholders in 2004." Earnings for 2004 totaled $42.4 million, or $1.40 per diluted share, compared to earnings of $14.1 million, or $0.47 per diluted share, for 2003. Earnings for 2003 were impacted by a higher provision for loan losses primarily attributable attributable emanating from or pertaining to attribute. attributable proportion see attributable risk (below). attributable risk to the sale of $60.9 million of nonaccruing and accruing higher risk loans and by $19.1 million of costs associated with the refinancing of fixed term advances. In 2004, net interest income increased 14 percent primarily due to the following: strong loan growth; slower prepayment speeds Prepayment speed Also called speed, the estimated rate at which mortgagors pay off their loans ahead of schedule, critical in assessing the value of mortgage pass-through securities. in the securities-available-for-sale portfolio; the refinancing of fixed term advances during 2003 and certain asset-liability management transactions entered into during 2004.
Financial Highlights
(Dollars in thousands
except per share data)
For The For The
Three Months Ended 12 Months Ended
Dec. 31, Dec. 31,
Earnings 2004 2003 2004 2003
--------------------------------------------------------------------
Total revenues $47,112 $42,459 $183,906 $171,735
Net income 11,559 (490) 42,442 14,146
Diluted earnings per share 0.38 (0.02) 1.40 0.47
Financial Ratios
----------------------------
Return on average assets 1.04 % (0.05)% 0.98 % 0.35%
Return on average equity 14.73 (0.64) 14.05 4.50
Efficiency-taxable
equivalent ratio (1) 58.57 97.41 60.55 77.45
Asset Quality Ratios (2)
----------------------------
Past due loans over 30 days
as a percentage of loans 0.51 1.04 0.51 1.04
Allowance for loan losses as
a percentage of loans 1.10 1.14 1.10 1.14
Allowance for loan losses as
a percentage of
nonaccrual loans 192.35 171.75 192.35 171.75
Net charge-offs as a
percentage of average loans-
annualized (3) 0.30 0.35 0.28 0.39
Balance Sheet Dec. 31, Dec. 31, Increase (Decrease)
(Dollars in thousands) 2004 2003 Amount Percentage
----------------------------------------------------------------------
Loans, net $2,412,529 $2,227,030 $185,499 8.33%
Total assets 4,431,605 4,206,693 224,912 5.35
Total deposits 2,609,846 2,427,897 181,949 7.49
Other borrowings 1,449,736 1,432,200 17,536 1.22
Shareholders' equity 314,687 299,439 15,248 5.09
(1) Noninterest expense divided by the sum of taxable equivalent
net interest income plus noninterest income less gain on sale of
securities.
(2) Ratios exclude loans held for sale.
(3) Excludes the reduction in the allowance for loan losses
related to the sales of nonperforming and higher risk loans.
Service Quality Each quarter, through an independent third party, First Charter completes over 1,500 telephone surveys among the customers who have used at least one of our branches in the past 90 days. The respondents In the context of marketing research, a representative sample drawn from a larger population of people from whom information is collected and used to develop or confirm marketing strategy. are asked a battery of questions about their satisfaction with the service provided by our branch employees during their most recent visit. In the survey completed in December December: see month. 2004, 83 percent of the customers reported that they were "Very Satisfied" with the service they received. The national average for customer satisfaction with banks, as reported in the American American, river, 30 mi (48 km) long, rising in N central Calif. in the Sierra Nevada and flowing SW into the Sacramento River at Sacramento. The discovery of gold at Sutter's Mill (see Sutter, John Augustus) along the river in 1848 led to the California gold rush of Banker/Gallup 2004 Consumer Survey, is 58 percent "Very Satisfied". "Delivering exceptional service to our customers is at the heart of our Community Banking Model and drives our success in attracting and retaining customers," commented Bob James Bob James can refer to different people:
Net Interest Income/Margin Fourth Quarter Net interest income increased $2.8 million, or 10 percent, to $31.8 million compared to the fourth quarter of 2003. The increase was due to a $5.5 million increase in interest income primarily resulting from strong loan growth and an increase in interest rates. The increase in interest income was partially offset by a $2.7 million increase in interest expense due to an increase in interest rates and higher levels of deposits and other borrowings. The increase in rates was mitigated mit·i·gate v. mit·i·gat·ed, mit·i·gat·ing, mit·i·gates v.tr. To moderate (a quality or condition) in force or intensity; alleviate. See Synonyms at relieve. v.intr. To become milder. by the refinancing of $81 million of fixed-term advances in the fourth quarter of 2003 and by certain asset-liability management transactions entered into during 2004. The net interest margin increased to 3.14 percent in the fourth quarter of 2004 from 3.10 percent for the same period in 2003 as more interest 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 repriced upward than did interest bearing liabilities. Full Year Net interest income increased $15.2 million, or 14 percent, to $123.0 million compared to the same period in 2003. The increase was primarily driven by an $8.6 million increase in interest income due mainly to strong loan growth, increases in the securities-available-for-sale portfolio and a decrease in prepayment speeds in the securities-available-for-sale portfolio. In addition, interest expense decreased $6.2 million. This decrease was primarily due to the following: a shift in funding sources from higher-cost retail CDs to lower-cost transaction based accounts; the repricing Repricing To change the price of an asset. In derivatives, it sometimes refers to the exchange of options of with different strike prices. repricing of retail CDs at lower rates in 2003 and 2004; the refinancing of $131 million of fixed-term advances in 2003 and certain asset-liability management transactions entered into during 2004. These decreases were partially offset by an increase in interest rates. The net interest margin for 2004 increased to 3.13 percent from 3.00 percent for the same period in 2003 due to the asset sensitive nature of the balance sheet. The yield on earning assets and cost of interest paying liabilities declined as the combined impact of loan and deposit repricing from historically low levels in 2003 and first half of 2004 was greater than the impact of increasing rates in the second half of 2004. Noninterest Income Fourth Quarter Noninterest income increased $1.8 million, or 14 percent, to $15.3 million compared to the fourth quarter of 2003. The increase was primarily due to the following: $1.1 million increase in service charges; $0.8 million increase in other noninterest income due to growth in ATM, debit card debit card, card that allows the cost of goods or services that are purchased to be deducted directly from the purchaser's checking account. They can also be used at automated teller machines for withdrawing cash from the user's checking account. and other miscellaneous fees and a $0.7 million increase in insurance service income primarily due to increases in contingency contingency n. an event that might not occur. income. These increases were partially offset by a $0.2 million decrease in brokerage BROKERAGE, contracts. The trade or occupation of a broker; the commissions paid to a broker for his services. income, and a $0.2 million decrease in gains on sale of securities. Full Year Noninterest income decreased $3.0 million, or 5 percent, to $60.9 million compared to the same period in 2003. A number of factors contributed to the decrease. Gains on the sale of securities totaling $2.4 million were recognized in 2004, compared to gains of $10.3 million in 2003, representing a decrease of $7.9 million. In 2003, additional gains of $2.3 million from the sale of the First Charter credit card portfolio and $1.8 million of trading gains were recognized. In addition, 2004 mortgage loan fees decreased $1.2 million as 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 volume declined and the bank retained a larger portion of mortgage loans. These decreases in noninterest income were partially offset by the following: $3.4 million increase in service charges; $2.1 million increase in financial management income primarily due to the acquisition of a third party benefits administrator in the third quarter of 2003; $2.2 million increase in other noninterest income due to growth in ATM, debit card and other miscellaneous fees and a $1.9 million increase in insurance services income primarily due to an increase in contingency income and the successful integration of two insurance agencies acquired in 2003 and one insurance agency acquired in the fourth quarter of 2004. Noninterest Expense Fourth Quarter Noninterest expense decreased $13.7 million, or 33 percent, to $27.7 million compared to the fourth quarter of 2003. The decrease was due to $11.7 million of prepayment costs associated with refinancing $81 million in fixed term advances in 2003 that did not recur in 2004. In addition, professional service fees decreased $1.2 million and salaries and employee benefits decreased $1.0 million primarily due to lower medical and dental dental /den·tal/ (den´t'l) pertaining to a tooth or teeth. den·tal adj. 1. Of, relating to, or for the teeth. 2. Of, relating to, or intended for dentistry. expenses and decreased commission-based compensation. Full Year Noninterest expense decreased $15.8 million, or 12 percent, to $111.0 million compared to the same period in 2003. The decrease was due to $19.1 million of prepayment costs associated with refinancing $131 million in fixed term advances in 2003 that did not recur in 2004. In addition, professional service fees decreased $2.0 million. These decreases were partially offset by a $3.7 million increase in salaries and employee benefits due to additional personnel, including the acquisition of a third party benefits administrator and three insurance agencies, increased incentive compensation and employee benefit accruals Accruals Accounts on a balance sheet that represent liabilities and non-cash-based assets used in accrual-based accounting. These accounts include, among many others, accounts payable, accounts receivable, goodwill, future tax liability and future interest expense. resulting from an increase in 2004 earnings. Efficiency Ratio The efficiency ratio decreased to 60.5 percent in 2004 compared to 77.5 percent for 2003. The calculation of the efficiency ratio excludes gains on sale of securities of $2.4 million in 2004 and $10.3 million in 2003. Income Tax Expense Fourth Quarter Total income tax expense for the fourth quarter of 2004 was $6.1 million for an effective tax rate of 34.4 percent compared to an income tax benefit of $2.0 million for the fourth quarter of 2003. Full Year The income tax expense for 2004 amounted to $22.0 million for an effective tax rate of 34.2 percent compared to $3.3 million for an effective tax rate of 18.9 percent for 2003. The increase in the effective tax rate for 2004 was due to an increase in taxable income Under the federal tax law, gross income reduced by adjustments and allowable deductions. It is the income against which tax rates are applied to compute an individual or entity's tax liability. The essence of taxable income is the accrual of some gain, profit, or benefit to a taxpayer. relative to nontaxable adj. 1. Not subject to taxation; - of goods imported into a country or sold at retail outlets; as, most laws imposing sales taxes make food nontaxable s>. Opposite of taxable nt>. Adj. 1. adjustments and an increase in accrued ac·crue v. ac·crued, ac·cru·ing, ac·crues v.intr. 1. To come to one as a gain, addition, or increment: interest accruing in my savings account. 2. taxes resulting from a proposed tax assessment received in the third quarter of 2004. First Charter is appealing this assessment. Loans Held for Sale Loans held for sale consist primarily of 15 and 30 year residential mortgage loans that First Charter intends to sell as whole loans. Loans held for sale increased to $5.3 million at December 31, 2004 as compared to $5.1 million at December 31, 2003. During 2004, $40.7 million of residential mortgage loans were securitized securitized Of, related to, or being debt securities that are secured with assets. For example, mortgage purchase bonds are secured by mortgages that have been purchased with the bond issue's proceeds. , moved to securities-available-for-sale and subsequently sold. Loans Gross loans increased $186.9 million, or 8 percent, to $2.44 billion at December 31, 2004 as compared to $2.25 billion at December 31, 2003. The growth in loans was due to a $74.1 million increase in home equity loans, a $66.9 million increase in mortgage loans, a $52.1 million increase in commercial real estate loans and a $19.7 million increase in consumer loans. These increases were partially offset by a $26.0 million decrease in construction loans. Securities The securities-available-for-sale portfolio increased $50.8 million, or 3 percent, to $1.65 billion at December 31, 2004 as compared to December 31, 2003. The increase in the securities-available-for-sale portfolio was primarily due to the purchase of agency securities funded by the proceeds from the sale of the securitized residential mortgage loans mentioned previously. The securities-available-for-sale portfolio also was impacted by an increase in the pre-tax pre-tax adj → anterior al impuesto pre-tax adj → avant impôt(s) pre-tax adj → al lordo d'imposta unrealized net losses in the portfolio due to a rise in short and intermediate-term Intermediate-term Typically one-ten years. intermediate-term Of or relating to an investment with an expected holding period somewhere between short-term and long-term. interest rates. Pre-tax unrealized net losses on securities-available-for-sale were $8.0 million at December 31, 2004 compared to pre-tax unrealized net gains of $10.1 million at December 31, 2003. Deposits First Charter's CHecking Account Marketing Program (CHAMP) continues to attract new customers and deposits. During 2004, 38,607 new checking accounts were opened. This program is designed to develop new customer relationships, shift our funding mix towards lower-cost funding sources and generate additional fee income opportunities. Mr. James James, person in the Bible James, in the Gospel of St. Luke, kinsman of St. Jude. The original does not specify the relationship. James, rivers, United States James. commented, "The ongoing success of the CHAMP program, with its focus on core deposit account relationship growth, supports our Community Banking Model. CHAMP has delivered annual new checking account openings well above the industry average. We believe we can maintain similar levels of checking account growth in 2005, which will strengthen our unique position in the marketplace." Total deposits increased $181.9 million, or 7 percent, to $2.61 billion at December 31, 2004 compared to $2.43 billion at December 31, 2003. The increase in deposits was due to a $95.3 million increase in CDs resulting primarily from a promotional campaign launched in November November: see month. . In addition, low-cost interest checking, savings and noninterest bearing deposits increased $78.9 million and money market accounts increased $7.8 million. 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. Shareholders' equity at December 31, 2004 increased to $314.7 million, or 5 percent, compared to $299.4 million at December 31, 2003. The 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. unrealized loss Unrealized Loss A loss that results from holding onto an asset rather than cashing it in and officially taking the loss. Notes: Let's say you own a stock that is down 50%, but you haven't sold it to realize the loss yet. This is said to be an unrealized loss. on securities-available-for-sale was $4.9 million at December 31, 2004 compared to an after-tax unrealized gain Unrealized Gain A profit that results from holding on to an asset rather than cashing it in and using the funds. Notes: Let's say you own a stock that has doubled, but you haven't sold it yet. This is said to be an unrealized gain. of $6.2 million at December 31, 2003. The change was due to an increase in short and intermediate-term interest rates. At December 31, 2004, the book value per share was $10.47. Based on the $26.17 closing price of First Charter Corporation common stock at December 31, 2004, First Charter 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 $786.5 million. Asset Quality As a result of First Charter's continued focus on asset quality and the initiatives taken in 2003 and 2004, asset quality remains strong. "Asset quality is a priority for First Charter," said Mr. Kimbrough, "and will continue to be an area of focus as we grow our business in 2005."
Asset Quality Ratios
12/31/04 9/30/04 6/30/04 3/31/04 12/31/03
-----------------------------------------
Past Due
-------------------------------
Past due loans over 30 days as
a percentage of loans 0.51% 0.61% 0.47% 0.64% 1.04%
Nonaccrual Loans
-------------------------------
Nonaccrual loans as a
percentage of loans 0.57% 0.59% 0.53% 0.52% 0.66%
Nonperforming Assets
-------------------------------
Nonperforming assets as a
percentage of loans and
other real estate owned 0.73% 0.79% 0.79% 0.79% 0.96%
Charge-offs
-------------------------------
Net charge-offs as a percentage
of average loans-annualized 0.30% 0.13% 0.29% 0.41% 0.35%
Allowance for Loan Losses
-------------------------------
Allowance for loan losses as a
percentage of loans 1.10% 1.11% 1.11% 1.13% 1.14%
Allowance for loan losses as a
percentage of nonaccrual loans 192% 189% 208% 217% 172%
Provision for Loan Losses Fourth Quarter The provision for loan losses decreased to $1.8 million for the three months ended December 31, 2004 compared to $3.6 million for the same year ago period. The decrease in the provision for loan losses was due to improved asset quality trends resulting in lower net charge-offs. Full Year The provision for loan losses for the year ended December 31, 2004 amounted to $8.4 million compared to $27.5 million for the same year ago period. The decrease in the provision for loan losses was primarily attributable to the previously mentioned $60.9 million sale of nonaccruing and accruing higher risk loans, a $2.4 million increase in the provision related to certain residential rental RENTAL. A roll or list of the rents of an estate containing the description of the lands let, the names of the tenants, and other particulars connected with such estate. This is the same as rent roll, from which it is said to be corrupted. property loans identified in the second quarter of 2003 and improved asset quality trends resulting in lower net charge-offs. Net Charge-Offs Fourth Quarter Net charge-offs for the three months ended December 31, 2004 amounted to $1.8 million, or 0.30 percent of average loans, compared to $1.9 million, or 0.35 percent of average loans for the same 2003 period. Full Year Net charge-offs for the year ended December 31, 2004 amounted to $6.6 million, or 0.28 percent of average loans, compared to $8.3 million, or 0.39 percent of average loans for the same 2003 period. Net charge-offs benefited from a $0.6 million commercial loan recovery during the second quarter of 2004 and a third quarter 2004 recovery of $0.4 million from the sale of previously charged-off loans. Nonperforming Assets Nonaccrual loans at December 31, 2004 decreased to $14.0 million compared to $14.9 million at December 31, 2003. The decrease includes the sale of $2.1 million of nonaccrual mortgage loans in the first quarter of 2004. Other real estate owned decreased to $3.8 million at December 31, 2004 from $6.8 million at December 31, 2003. Allowance for Loan Losses The allowance for loan losses as a percentage of total loans decreased to 1.10 percent at December 31, 2004 compared to 1.14 percent at December 31, 2003. The allowance for loan losses decreased primarily due to improved asset quality trends, as well as a change in the mix of the loan portfolio towards 1-4 family mortgages and home equity lines of credit. This type of secured lending generally carries lower credit risk and thus requires lower allocations in our allowance model. 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. Management believes First Charter is adequately reserved based on its assessment of its credit risk profile. Conference Call and 2005 Outlook The First Charter executive management team will be available via telephone conference to discuss the contents of this press release, present growth and earnings estimates, as well as strategic plans for 2005 on Friday Friday: see Sabbath; week. Friday young Indian rescued by Crusoe and kept as servant and companion. [Br. Lit.: Robinson Crusoe] See : Servant , January January: see month. 14, 2005 at 9:00 a.m. The following table outlines access information for the conference call and internet/audio replay:
US/Canada Participants International
Participants
----------------------------------------------------------------------
Live Conference Call 800-379-3953 706-679-5254
ID # 3191544 ID # 3191544
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Internet Live and www.FirstCharter.com www.FirstCharter.com
Replay "Investor Relations" "Investor Relations"
section section
SHOW # 205089 SHOW # 205089
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Audio Replay 800-642-1687 706-645-9291
ID # 3191544 ID # 3191544
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 $4.4 billion and is the holding company for First Charter Bank. First Charter operates 53 financial centers, seven insurance offices and 99 ATMs located in 18 counties throughout the piedmont Piedmont, region, Italy Piedmont (pēd`mŏnt), Ital. Piemonte, region (1991 pop. 4,302,565), 9,807 sq mi (25,400 sq km), NW Italy, bordering on France in the west and on Switzerland in the north. and 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 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 results in connection with the implementation of our business plan and strategic initiatives 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 Corporation 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 Repayment The act of paying back a debt. Notes: Everyone has to repay their debts eventually. See also: Debt, Defeasance, Loan 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 thereto there·to adv. 1. To that, this, or it. 2. Archaic In addition to that; furthermore. thereto Adverb Formal 1. to that or it 2. adversely affect the businesses in which the Corporation is engaged; (9) regulatory reg·u·late tr.v. reg·u·lat·ed, reg·u·lat·ing, reg·u·lates 1. To control or direct according to rule, principle, or law. 2. compliance cost increases are greater than expected; and (10) the passage of future tax legislation, or any negative regulatory, administrative or judicial position, may adversely impact the Corporation. 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 Corporation 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.
First Charter Corporation and Subsidiaries (NASDAQ:FCTR)
Quarterly Earnings Release
(Dollars in thousands,
except per share data)
As of/For the Increase
Twelve Months Ended (Decrease)
12/31/04 12/31/03 Amount Percentage
----------------------------------------------------------------------
BALANCE SHEET
ASSETS:
Cash and due from banks $ 90,238 $ 88,564 $ 1,674 1.9 %
Federal funds sold 1,589 1,311 278 21.2
Interest earning bank
deposits 6,184 23,631 (17,447) (73.8)
Securities available for
sale 1,652,732 1,601,900 50,832 3.2
Loans held for sale 5,326 5,137 189 3.7
Loans
Commercial Real Estate 776,474 724,340 52,134 7.2
Commercial Non Real Estate 212,031 212,010 21 0.0
Construction 332,264 358,217 (25,953) (7.2)
Mortgage 347,606 280,748 66,858 23.8
Consumer 304,151 284,448 19,703 6.9
Home equity 467,166 393,041 74,125 18.9
-------------------------------------
Total loans 2,439,692 2,252,804 186,888 8.3
Less: Unearned income (291) (167) (124) 74.3
Allowance for loan
losses (26,872) (25,607) (1,265) 4.9
-------------------------------------
Loans, net 2,412,529 2,227,030 185,499 8.3
-------------------------------------
Other assets 263,007 259,120 3,887 1.5
-------------------------------------
Total assets $4,431,605 $4,206,693 $224,912 5.3 %
-------------------------------------
LIABILITIES AND SHAREHOLDERS' EQUITY:
Deposits
Noninterest-bearing
deposits $ 377,793 $ 326,679 $ 51,114 15.6 %
Interest checking and
savings 468,292 440,496 27,796 6.3
Money market deposits 478,314 470,551 7,763 1.6
Time deposits 1,285,447 1,190,171 95,276 8.0
-------------------------------------
Total deposits 2,609,846 2,427,897 181,949 7.5
Other borrowings 1,449,736 1,432,200 17,536 1.2
Other liabilities 57,336 47,157 10,179 21.6
-------------------------------------
Total liabilities 4,116,918 3,907,254 209,664 5.4
-------------------------------------
Total shareholders' equity 314,687 299,439 15,248 5.1
-------------------------------------
Total liabilities and
shareholders' equity $4,431,605 $4,206,693 $224,912 5.3 %
-------------------------------------
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SELECTED AVERAGE BALANCES
Loans and loans held for
sale $2,363,107 $2,152,748 $210,359 9.8 %
Securities 1,623,101 1,464,704 158,397 10.8
Interest earning assets 4,004,678 3,662,460 342,218 9.3
Assets 4,322,727 4,009,511 313,216 7.8
Deposits 2,544,865 2,485,711 59,154 2.4
Interest bearing
liabilities 3,610,950 3,310,485 300,465 9.1
Shareholders' equity 302,101 314,562 (12,461) (4.0)
---------------------------------------------------------------------
As of/For the Quarter Ended
----------------------------
12/31/2004 9/30/2004 6/30/2004
-------------------------------------
MISCELLANEOUS INFORMATION
Common stock prices (daily close)
High $ 28.11 $ 24.50 $ 21.89
Low 25.00 20.86 20.05
End of period 26.17 24.17 21.79
Book Value 10.47 10.35 9.53
Market
Capitalization 786,519,880 720,988,635 648,666,205
Weighted average
shares - basic 29,973,996 29,810,917 29,763,619
Weighted average
shares - diluted 30,605,826 30,231,191 30,067,462
End of period
shares outstanding 30,054,256 29,829,898 29,768,986
----------------------------------------------------------------------
As of/For the Quarter Ended
---------------------------
3/31/2004 12/31/2003
---------------------------------
MISCELLANEOUS INFORMATION
Common stock prices (daily close)
High $ 21.68 $ 21.20
Low 19.52 19.27
End of period 21.14 19.55
Book Value 10.38 10.08
Market
Capitalization 628,876,525 581,029,187
Weighted average
shares - basic 29,738,553 29,685,088
Weighted average
shares - diluted 30,029,056 29,685,088
End of period
shares outstanding 29,748,180 29,720,163
-----------------------------------------------------------------
First Charter Corporation and Subsidiaries
Quarterly Earnings Release
(Dollars in thousands, As of/For the Quarter Ended
except per share data) 12/31/2004 9/30/2004 6/30/2004
----------------------------------------------------------------------
BALANCE SHEET
ASSETS:
Cash and due from banks $ 90,238 $ 98,000 $ 94,749
Federal funds sold 1,589 2,080 1,960
Interest earning bank
deposits 6,184 9,259 19,513
Securities available for
sale 1,652,732 1,630,655 1,604,585
Loans held for sale 5,326 5,468 26,768
Loans
Commercial Real Estate 776,474 788,539 768,637
Commercial Non Real
Estate 212,031 210,214 208,587
Construction 332,264 345,178 332,031
Mortgage 347,606 331,249 315,005
Consumer 304,151 290,569 276,236
Home equity 467,166 459,527 447,739
---------------------------------------
Total loans 2,439,692 2,425,276 2,348,235
Less: Unearned income (291) (301) (197)
Allowance for
loan losses (26,872) (26,859) (26,052)
---------------------------------------
Loans, net 2,412,529 2,398,116 2,321,986
---------------------------------------
Other assets 263,007 265,466 269,652
---------------------------------------
Total assets $ 4,431,605 $ 4,409,044 $4,339,213
---------------------------------------
LIABILITIES AND SHAREHOLDERS' EQUITY:
Deposits
Noninterest-bearing
deposits $ 377,793 $ 368,156 $ 368,738
Interest checking and
savings 468,292 448,799 450,950
Money market deposits 478,314 544,663 563,523
Time deposits 1,285,447 1,195,444 1,211,554
---------------------------------------
Total deposits 2,609,846 2,557,062 2,594,765
Other borrowings 1,449,736 1,482,340 1,410,481
Other liabilities 57,336 60,991 50,186
---------------------------------------
Total liabilities 4,116,918 4,100,393 4,055,432
---------------------------------------
Total shareholders' equity 314,687 308,651 283,781
---------------------------------------
Total liabilities and
shareholders' equity $ 4,431,605 $ 4,409,044 $4,339,213
---------------------------------------
----------------------------------------------------------------------
SELECTED AVERAGE BALANCES
Loans and loans held for
sale $ 2,444,827 $ 2,393,362 $2,339,435
Securities 1,637,050 1,627,156 1,637,918
Interest earning assets 4,101,708 4,035,259 3,995,390
Assets 4,426,604 4,343,207 4,316,360
Deposits 2,614,161 2,586,524 2,547,909
Interest bearing
liabilities 3,666,565 3,625,679 3,610,337
Shareholders' equity 312,122 296,539 296,699
----------------------------------------------------------------------
(Dollars in thousands, As of/For the Quarter Ended
except per share data) 3/31/2004 12/31/2003
----------------------------------------------------------------------
BALANCE SHEET
ASSETS:
Cash and due from banks $ 75,040 $ 88,564
Federal funds sold 1,723 1,311
Interest earning bank
deposits 17,951 23,631
Securities available for sale 1,622,967 1,601,900
Loans held for sale 17,969 5,137
Loans
Commercial Real Estate 749,355 724,340
Commercial Non Real Estate 210,010 212,010
Construction 346,109 358,217
Mortgage 288,505 280,748
Consumer 271,686 284,448
Home equity 414,410 393,041
----------------------------------
Total loans 2,280,075 2,252,804
Less: Unearned income (209) (167)
Allowance for loan losses (25,736) (25,607)
----------------------------------
Loans, net 2,254,130 2,227,030
----------------------------------
Other assets 258,081 259,120
----------------------------------
Total assets $4,247,861 $4,206,693
----------------------------------
LIABILITIES AND SHAREHOLDERS' EQUITY:
Deposits
Noninterest-bearing deposits $ 353,133 $ 326,679
Interest checking and savings 454,024 440,496
Money market deposits 506,504 470,551
Time deposits 1,193,781 1,190,171
----------------------------------
Total deposits 2,507,442 2,427,897
Other borrowings 1,377,374 1,432,200
Other liabilities 54,308 47,157
----------------------------------
Total liabilities 3,939,124 3,907,254
----------------------------------
Total shareholders' equity 308,737 299,439
----------------------------------
Total liabilities and
shareholders' equity $4,247,861 $4,206,693
----------------------------------
----------------------------------------------------------------------
SELECTED AVERAGE BALANCES
Loans and loans held for sale $2,273,575 $2,188,643
Securities 1,590,083 1,585,679
Interest earning assets 3,884,954 3,792,383
Assets 4,210,401 4,158,189
Deposits 2,436,673 2,496,810
Interest bearing
liabilities 3,535,305 3,431,144
Shareholders' equity 303,722 304,097
----------------------------------------------------------------------
First Charter Corporation and Subsidiaries (NASDAQ:FCTR)
Quarterly Earnings Release
(Dollars in thousands, For The Increase
except per share data) Three Months Ended (Decrease)
--------------------------------------------
12/31/2004 12/31/2003 Amount Percentage
----------------------------------------------------------------------
INCOME STATEMENT
Interest income - taxable
equivalent $ 50,523 $ 45,063 $ 5,460 12.1 %
Interest expense 18,275 15,570 2,705 17.4
-------------------------------------------
Net interest income -
taxable equivalent 32,248 29,493 2,755 9.3
Less: taxable equivalent
adjustment 438 513 (75) (14.6)
-------------------------------------------
Net interest income 31,810 28,980 2,830 9.8
Provision for loan losses 1,825 3,575 (1,750) (49.0)
-------------------------------------------
Net interest income after
provision for loan losses 29,985 25,405 4,580 18.0
Noninterest income 15,302 13,479 1,823 13.5
Noninterest expense 27,677 41,365 (13,688) (33.1)
-------------------------------------------
Income before income
taxes 17,610 (2,481) 20,091 (809.8)
Income tax expense 6,051 (1,991) 8,042 (403.9)
-------------------------------------------
Net income $ 11,559 $ (490) $ 12,049 (2,459.0)%
-------------------------------------------
----------------------------------------------------------------------
EARNINGS PER SHARE DATA
Basic $ 0.39 $ (0.02) $ 0.41 (2,050.0)%
Diluted 0.38 (0.02) 0.40 (2,000.0)
Weighted average shares -
basic 29,973,996 29,685,088
Weighted average shares -
diluted 30,605,826 29,685,088
Dividends paid on common
shares $ 0.190 $ 0.185 $ 0.005 5.3 %
---------------------------------------------------------------------
PERFORMANCE RATIOS
Return on average assets 1.04 % (0.05)%
Return on average equity 14.73 (0.64)
Efficiency - taxable
equivalent/a 58.57 97.41
---------------------------------------------------------------------
For the Three Months Ended
------------------------------
SCHEDULE OF SELECTED ITEMS 12/31/2004 12/31/2003
INCLUDED IN EARNINGS ------------------------------
Noninterest income
Gain on sale of securities $ 296 $ 505
Gain on sale of deposits and
loans - -
Gain on sale of credit card loans - -
Recovery on sale of overdraft
deposit accounts 222 -
Equity method investment loss (49) 13
Trading gains 52 47
Gain on sale of properties - -
Noninterest expense
Prepayment costs on borrowings - (11,723)
Reserve for contingent liability - -
---------------------------------------------------------------------
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
For the Increase
(Dollars in Thousands, 12 Months Ended (Decrease)
except per share data) 12/31/2004 12/31/2003 Amount Percentage
----------------------------------------------------------------------
INCOME STATEMENT
Interest income - taxable
equivalent $ 189,131 $ 180,533 $ 8,598 4.8 %
Interest expense 64,293 70,490 (6,197) (8.8)
---------------------------------------
Net interest income - taxable
equivalent 124,838 110,043 14,795 13.4
Less: taxable equivalent
adjustment 1,828 2,241 (413)(18.4)
---------------------------------------
Net interest income 123,010 107,802 15,208 14.1
Provision for loan losses 8,425 27,518 (19,093)(69.4)
---------------------------------------
Net interest income after
provision for loan losses 114,585 80,284 34,301 42.7
Noninterest income 60,896 63,933 (3,037) (4.8)
Noninterest expense 111,017 126,785 (15,768)(12.4)
---------------------------------------
Income before income taxes 64,464 17,432 47,032 269.8
Income taxes 22,022 3,286 18,736 570.2
---------------------------------------
Net income $ 42,442 $ 14,146 $ 28,296 200.0 %
---------------------------------------
----------------------------------------------------------------------
EARNINGS PER SHARE DATA
Basic $ 1.42 $ 0.47 $ 0.95 202.1 %
Diluted 1.40 0.47 0.93 197.9
Weighted average shares -
basic 29,859,683 29,789,969
Weighted average shares -
diluted 30,277,063 30,001,412
Dividends paid on common
shares $ 0.75 $ 0.74 $ 0.01 1.4 %
---------------------------------------------------------------------
PERFORMANCE RATIOS
Return on average assets 0.98 % 0.35 %
Return on average equity 14.05 4.50
Efficiency - taxable
equivalent/a 60.55 77.45
---------------------------------------------------------------------
For the Twelve Months Ended
SCHEDULE OF SELECTED ITEMS INCLUDED ------------------------------
IN EARNINGS 12/31/2004 12/31/2003
------------------------------
Noninterest income
Gain on sale of securities $2,383 $10,287
Gain on sale of deposits and loans 339 -
Gain on sale of credit card loans - 2,262
Recovery on sale of overdraft deposit
accounts 222 -
Equity method investment loss (349) (285)
Trading gains 163 1,801
Gain on sale of properties 777 382
Noninterest expense
Prepayment costs on borrowings - (19,089)
----------------------------------------------------------------------
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) 12/31/2004 9/30/2004 6/30/2004
----------------------------------------------------------------------
INCOME STATEMENT
Interest income -
taxable equivalent
Interest and fees on loans $ 34,426 $ 31,406 $ 29,373
Interest on securities 16,010 16,046 15,960
Other interest income 87 44 42
----------------------------------------
Total interest
income - taxable
equivalent 50,523 47,496 45,375
----------------------------------------
Interest expense
Interest on deposits 9,690 8,916 8,619
Other interest expense 8,585 7,371 6,255
----------------------------------------
Total interest expense 18,275 16,287 14,874
----------------------------------------
Net interest income
- taxable equivalent 32,248 31,209 30,501
Less: Taxable equivalent
adjustment 438 414 469
----------------------------------------
Net interest income 31,810 30,795 30,032
Provision for loan losses 1,825 1,600 2,000
----------------------------------------
Net interest income
after provision for
loan losses 29,985 29,195 28,032
----------------------------------------
Noninterest income
Service charges on deposit
accounts 6,832 6,781 6,346
Financial management
income 1,199 1,602 1,545
Gain on sale of securities 296 1,267 494
Gain on sale of deposits
and loans - 339 -
(Loss) income from equity
method investments (49) - (76)
Mortgage loan fees 359 365 596
Brokerage services income 628 612 902
Insurance services income 3,140 2,464 2,634
Trading gains (losses) 52 7 (5)
Bank owned life insurance 856 860 847
Gain on sale of properties - - -
Other noninterest income 1,989 1,742 1,607
----------------------------------------
Total noninterest income 15,302 16,039 14,890
----------------------------------------
Noninterest expense
Salaries and employee
benefits 14,323 14,779 14,368
Occupancy and equipment 4,495 4,115 4,379
Data processing 1,221 945 1,006
Marketing 966 1,141 1,126
Postage and supplies 1,178 1,204 1,306
Professional services 2,237 2,264 2,361
Telephone 501 496 507
Amortization of intangibles 135 111 96
Prepayment costs on borrowings - - -
Other noninterest expense 2,621 2,292 2,536
----------------------------------------
Total noninterest expense 27,677 27,347 27,685
----------------------------------------
Income (loss) before taxes 17,610 17,887 15,237
Income tax expense (benefit) 6,051 6,499 4,982
----------------------------------------
Net income (loss) $ 11,559 $ 11,388 $ 10,255
----------------------------------------
----------------------------------------------------------------------
EARNINGS (LOSS) PER SHARE DATA
Basic $ 0.39 $ 0.38 $ 0.34
Diluted 0.38 0.38 0.34
Dividends paid on common
shares 0.190 0.190 0.185
----------------------------------------------------------------------
PERFORMANCE RATIOS
Return on average assets 1.04% 1.04% 0.96%
Return on average equity 14.73 15.28 13.90
Efficiency - taxable
equivalent /a 58.57 59.47 61.66
Noninterest income as a
percentage of total income 32.48 34.25 33.15
Equity as a percentage
of total assets 7.10 7.00 6.54
Average earning assets
as a percentage of average
assets 92.66 92.91 92.56
Average loans as a percentage
of average deposits 93.52 92.53 91.82
----------------------------------------------------------------------
As of/For the Quarter Ended
----------------------------------------
SCHEDULE OF SELECTED ITEMS
INCLUDED IN EARNINGS 12/31/2004 9/30/2004 6/30/2004
----------------------------------------
Noninterest income
Gain on sale of securities $ 296 $ 1,267 $ 494
Gain on sale of deposits
and loans - 339 -
Gain on sale of credit
card loans - - -
Recovery on sale of overdraft
deposit accounts 222 - -
Equity method investment
(loss) income (49) - (76)
Trading gains (losses) 52 7 (5)
Gain on sale of properties - - -
Noninterest expense
Prepayment costs on borrowings - - -
----------------------------------------------------------------------
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.
As of/For the Quarter Ended
--------------------------------------
(Dollars in thousands, except
per share data) 3/31/2004 12/31/2003
----------------------------------------------------------------------
INCOME STATEMENT
Interest income - taxable equivalent
Interest and fees on loans $ 29,291 $ 29,282
Interest on securities 16,399 15,743
Other interest income 47 38
--------------------------------------
Total interest income -
taxable equivalent 45,737 45,063
--------------------------------------
Interest expense
Interest on deposits 8,125 8,449
Other interest expense 6,732 7,121
--------------------------------------
Total interest expense 14,857 15,570
--------------------------------------
Net interest income - taxable
equivalent 30,880 29,493
Less: Taxable equivalent
adjustment 507 513
--------------------------------------
Net interest income 30,373 28,980
Provision for loan losses 3,000 3,575
--------------------------------------
Net interest income after
provision for loan losses 27,373 25,405
--------------------------------------
Noninterest income
Service charges on deposit
accounts 5,605 5,768
Financial management income 1,502 1,239
Gain on sale of securities 326 505
Gain on sale of deposits and loans - -
(Loss) income from equity method
investments (224) 13
Mortgage loan fees 428 508
Brokerage services income 970 857
Insurance services income 3,031 2,415
Trading gains (losses) 109 47
Bank owned life insurance 850 983
Gain on sale of properties 777 -
Other noninterest income 1,291 1,144
--------------------------------------
Total noninterest income 14,665 13,479
--------------------------------------
Noninterest expense
Salaries and employee benefits 15,023 15,372
Occupancy and equipment 4,237 4,346
Data processing 862 792
Marketing 1,118 948
Postage and supplies 1,271 1,251
Professional services 2,712 3,422
Telephone 494 567
Amortization of intangibles 118 152
Prepayment costs on borrowings - 11,723
Other noninterest expense 2,473 2,792
--------------------------------------
Total noninterest expense 28,308 41,365
--------------------------------------
Income (loss) before taxes 13,730 (2,481)
Income tax expense (benefit) 4,490 (1,991)
--------------------------------------
Net income (loss) $ 9,240 $ (490)
--------------------------------------
----------------------------------------------------------------------
EARNINGS (LOSS) PER SHARE DATA
Basic $ 0.31 $ (0.02)
Diluted 0.31 (0.02)
Dividends paid on common shares 0.185 0.185
----------------------------------------------------------------------
PERFORMANCE RATIOS
Return on average assets 0.88% (0.05)%
Return on average equity 12.20 (0.64)
Efficiency - taxable equivalent /a 62.60 97.41
Noninterest income as a percentage
of total income 32.56 31.75
Equity as a percentage of total assets 7.27 7.12
Average earning assets as a percentage
of average assets 92.27 91.20
Average loans as a percentage
of average deposits 93.31 87.66
---------------------------------------------------------------------
As of/For the Quarter Ended
---------------------------------------
SCHEDULE OF SELECTED ITEMS
INCLUDED IN EARNINGS 3/31/2004 12/31/2003
---------------------------------------
Noninterest income
Gain on sale of securities $ 326 $ 505
Gain on sale of deposits and loans - -
Gain on sale of credit card loans - -
Recovery on sale of overdraft
deposit accounts - -
Equity method investment (loss) income (224) 13
Trading gains (losses) 109 47
Gain on sale of properties 777 -
Noninterest expense
Prepayment costs on borrowings - (11,723)
----------------------------------------------------------------------
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, Dec. 31 Sept. 30, June 30, Mar. 31, Dec. 31,
except per share data) 2004 2004 2004 2004 2003
----------------------------------------------------------------------
ASSET QUALITY ANALYSIS
Allowance for Loan Losses
Beginning balance $26,859 $26,052 $25,736 $25,607 $23,953
Provision for loan
losses 1,825 1,600 2,000 3,000 3,575
Allowance related to
loans sold - (35) - (549) -
Charge-offs (2,063) (1,432) (2,475) (2,582) (2,304)
Recoveries 251 674 791 260 383
--------------------------------------------
Net charge-offs (1,812) (758) (1,684) (2,322) (1,921)
--------------------------------------------
Ending balance $26,872 $26,859 $26,052 $25,736 $25,607
--------------------------------------------
Nonperforming Assets and Loans 90 days
or more past due accruing interest
Nonaccrual loans $13,970 $14,237 $12,533 $11,845 $14,910
Other real estate 3,844 4,962 6,159 6,199 6,836
--------------------------------------------
Total
nonperforming
assets 17,814 19,199 18,693 18,044 21,746
--------------------------------------------
Loans 90 days or more
past due accruing
interest - 56 - - 21
--------------------------------------------
Total $17,814 $19,255 $18,693 $18,044 $21,767
--------------------------------------------
Asset Quality Ratios/a
Nonaccrual loans as a
percentage of
total loans 0.57 % 0.59 % 0.53 % 0.52 % 0.66 %
Nonperforming assets
as a percentage of
total assets 0.40 0.44 0.43 0.42 0.52
Nonperforming assets
as a percentage of
total loans and
other real estate 0.73 0.79 0.79 0.79 0.96
Net charge-offs as a
percentage of
average loans
(annualized) 0.30 0.13 0.29 0.41 0.35
Allowance for loan
losses as a
percentage of
loans 1.10 1.11 1.11 1.13 1.14
Ratio of allowance
for loan losses to:
Net charge-offs
(annualized) 3.73 x 8.91 x 3.85 x 2.76 x 3.36 x
Nonaccrual loans 1.92 1.89 2.08 2.17 1.72
---------------------------------------------------------------------
As of/For the Increase
Twelve Months Ended (Decrease)
------------------------------------------
12/31/2004 12/31/2003 Amount Percentage
----------------------------------------------------------------------
Allowance for Loan Losses
Beginning balance $25,607 $ 27,204 $ (1,597) (5.9)%
Provision for loan losses 8,425 27,518 (19,093) (69.4)
Allowance related to loans
sold (584) (20,783) 20,199 (97.2)
Charge-offs (8,552) (9,456) (904) (9.6)
Recoveries 1,976 1,124 852 75.8
------------------------------------
Net charge-offs (6,576) (8,332) (1,756) (21.1)
------------------------------------
Ending balance $26,872 $ 25,607 $ 1,265 4.9 %
------------------------------------
Asset Quality Ratios/a
Net charge-offs as a
percentage of
average loans 0.28 % 0.39 %
Ratio of allowance for loan
losses to net charge-offs 4.10 x 3.07 x
---------------------------------------------------------------------
For the Quarter Ended
12/31/04 9/30/04 6/30/04 3/31/04 12/31/03
----------------------------------------------------------------------
ANNUALIZED INTEREST YIELDS/RATES/b
Interest income:
Yield on loans and
loans held for sale 5.60% 5.22% 5.05% 5.18% 5.31%
Yield on
securities 3.91 3.94 3.90 4.13 3.97
------------------------------------------
Yield on interest
earning assets 4.91 4.69 4.56 4.73 4.73
------------------------------------------
Interest expense:
Cost of interest
bearing deposits 1.73 1.60 1.59 1.55 1.59
Cost of borrowings 2.37 2.08 1.77 1.89 2.14
------------------------------------------
Cost of interest
bearing liabilities 1.98 1.79 1.66 1.69 1.80
------------------------------------------
Interest rate spread 2.93 2.90 2.90 3.04 2.93
------------------------------------------
Net yield on earning
assets 3.14 % 3.09 %3.06 %3.19 %3.10 %
------------------------------------------
---------------------------------------------------------------------
Notes:Applicable ratios are annualized.
/a: Excludes loans held for sale.
/b: Fully taxable equivalent yields.
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