<PAGE> 1
As filed with the Securities and Exchange Commission on April 13, 2000
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D. C. 20549
FORM 8 - K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of
Securities Exchange Act of 1934
Date of Report (Date of earliest event reported):
April 12, 2000
FIRST CHARTER CORPORATION
(Exact name of registrant as specified in its charter)
North Carolina 0-15829 56-1355866
(State or other (Commission (IRS Employer
jurisdiction of File Number) Identification No.)
incorporation)
22 Union Street North, Concord, North Carolina 28026-0228
(Addresses, including zip codes, of principal executive offices)
(704) 786-3300
(Registrant's telephone number, including area code)
<PAGE> 2
ITEM 5 OTHER EVENTS
On April 12, 2000, First Charter Corporation (the "Registrant")
announced separate financial results for First Charter Corporation and Carolina
First BancShares, Inc. for the three month period ended March 31, 2000. A copy
of the press release is included as Exhibit 99.1 to this Current Report on Form
8-K.
ITEM 7 FINANCIAL STATEMENTS AND EXHIBITS
(c) The following exhibits are filed herewith:
Exhibit No. Description
----------- -----------
99.1 News release disseminated on April 12, 2000
by First Charter Corporation.
<PAGE> 3
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934,
the registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
FIRST CHARTER CORPORATION
By: /s/ Lawrence M. Kimbrough
--------------------------------------
Lawrence M. Kimbrough
President and Chief Executive Officer
Dated: April 13, 2000
<PAGE> 4
EXHIBIT INDEX
Exhibit No. Description Sequential Page
- ---------- ----------- ---------------
No.
---
99.1 News Release disseminated on April 12, 2000
by First Charter Corporation.
<PAGE> 1
Exhibit 99.1
NEWS RELEASE DATED 4-12-2000
For Additional Information,
Contact Robert O. Bratton,
Chief Financial Officer
(704) 721-4473
or
David E. Keul, Controller
(704) 721-4482
FOR IMMEDIATE RELEASE
April 12, 2000
FIRST QUARTER EARNINGS ANNOUNCED FOR
FIRST CHARTER AND CAROLINA FIRST BANCSHARES
Concord, North Carolina - First quarter earnings were announced separately today
for First Charter Corporation and Carolina First BancShares, Inc. Through March
31, 2000 the companies operated independently. On April 4, 2000, the acquisition
of Carolina First BancShares by First Charter was consummated (see discussion
below under CORPORATE PROFILE).
FIRST CHARTER RESULTS
First Charter Corporation (NASDAQ: FCTR) reported today that first quarter 2000
earnings totaled $6.3 million, or $0.36 per diluted share. These results
represent a 9.1% increase over the $0.33 in diluted net income per share in the
first quarter of 1999.
"We are very pleased with our first quarter results," commented Lawrence M.
Kimbrough, President and Chief Executive Officer. "Strong growth in noninterest
income and the improvement in our margin allowed us to increase earnings while
repositioning our loan portfolio and significantly investing in human
resources."
INCOME STATEMENT
Net interest income for the first quarter of 2000 increased to $17.7 million, up
from $17.2 million for the same quarter of 1999. This increase was driven
primarily by continued commercial loan growth and improvement in the net
interest margin.
Noninterest income for the first quarter of 2000 totaled $4.6 million, an
increase of 20.8% as compared to $3.8 million for the same period in 1999. This
increase was primarily the result of increased service charge fee income and
revenue growth from First Charter Insurance Services.
Noninterest expense for the first quarter of 2000 totaled $12.0 million compared
to $10.9 million for the same period in 1999. This increase was driven by
strategic investments in technology and personnel, and the increased occupancy
and equipment costs resulting from the continued growth of First Charter.
<PAGE> 2
BALANCE SHEET
Net loans at March 31, 2000 amounted to $1.48 billion, compared to $1.46 billion
and $1.41 billion at March 31, 1999 and December 31, 1999, respectively. The
reduction from March 31, 1999 to December 31, 1999 was due to the sale of $147.6
million of 30 year fixed rate mortgage loans in April 1999. Strong commercial
loan portfolio growth during 1999 offset the amount of mortgage loans sold. The
provision for loan losses for the quarter ended March 31, 2000 amounted to $1.1
million compared to $1.0 million for the same period in 1999. At March 31, 2000,
nonperforming assets were $9.3 million, compared to $8.2 million and $9.8
million at March 31, 1999 and December 31, 1999, respectively. Nonperforming
assets represent 0.47% of total assets at March 31, 2000 and 0.44% and 0.52% of
total assets at March 31, 1999 and December 31, 1999, respectively.
Total deposits at March 31, 2000 amounted to $1.18 billion, compared to $1.12
billion at March 31, 1999 and $1.15 billion at December 31, 1999. Shareholders'
equity at March 31, 2000 was $233.3 million, which represents a book value per
share of $13.18 and a period end equity-to-assets ratio of 11.89%. Based on the
$13.00 closing price of First Charter Corporation common stock at March 31,
2000, the Corporation had a market capitalization of $230.2 million.
(SELECTED FINANCIAL INFORMATION FOR FIRST CHARTER
CAN BE FOUND ON PAGES 4 AND 5.)
CAROLINA FIRST BANCSHARES RESULTS
Carolina First BancShares, Inc. (NASDAQ: CFBI) reported today that first quarter
2000 earnings totaled $2.2 million, or $0.36 per diluted share. These results
represent a 2.9% increase over the $0.35 in diluted earnings per share in the
first quarter of 1999. Net interest income for the first quarter of 2000
increased to $9.3 million, an increase of 17.7% over the $7.9 million for the
same quarter in 1999. This increase was the result of continued growth in loans.
Noninterest income totaled $2.0 million in both the first quarters of 2000 and
in 1999. Noninterest expense for the first quarter of 2000 was $7.3 million,
compared to $6.4 million for the first quarter of 1999.
Net loans at March 31, 2000 amounted to $546 million, compared to $477 million
and $534 million at March 31, 1999 and December 31, 1999, respectively. At March
31, 2000, nonperforming assets were $2.2 million, compared to $2.5 million at
March 31, 1999, a decrease of 11.3%. Nonperforming assets represented 0.28% of
total assets at March 31, 2000 and 0.34% of total assets at March 31, 1999.
(SELECTED FINANCIAL INFORMATION FOR CAROLINA FIRST BANCSHARES
CAN BE FOUND ON PAGES 6 AND 7.)
CORPORATE PROFILE
First Charter is a regional financial services company operating in six counties
throughout the greater Charlotte metropolitan area. First Charter provides
businesses and individuals with a broad range of financial services, including
banking, comprehensive financial planning, funds management, investments,
insurance, mortgages and a full array of employee benefit programs. Additional
information about First Charter can be found on our Website at
www.firstcharter.com. Common stock for First Charter Corporation is traded under
the symbol "FCTR" on the NASDAQ National Market.
<PAGE> 3
On April 4, 2000, Carolina First BancShares, Inc. was merged into First Charter
Corporation as outlined in the November 7, 1999 definitive merger agreement.
Under the terms of the agreement, each Carolina First shareholder received 2.267
shares of First Charter common stock for each share of Carolina First common
stock. The transaction is a tax-free exchange to the shareholders of Carolina
First and is being accounted for as a pooling-of-interests. Subject to certain
conditions, including the approval of applicable regulatory authorities, the
merger of the subsidiaries of the former Carolina First BancShares, Inc.,
Lincoln Bank of North Carolina, Cabarrus Bank of North Carolina and Community
Bank and Trust, into First Charter National Bank is expected to close no later
than the second quarter of 2000.
This news release contains forward-looking statements. Such statements are
subject to certain factors which may cause the company's results to vary from
those expected, including the risks set forth from time to time in the company's
filings with the Securities and Exchange Commission. Readers are cautioned not
to place undue reliance on these forward-looking statements, which reflect
management's judgment only as of the date hereof. The company undertakes no
obligation to publicly revise these forward-looking statements to reflect events
and circumstances that arise after the date hereof.
<PAGE> 4
FIRST CHARTER CORPORATION AND SUBSIDIARIES
(UNAUDITED)
<TABLE>
<CAPTION>
CONSOLIDATED BALANCE SHEETS
(DOLLARS IN THOUSANDS) MARCH 31, MARCH 31, DECEMBER 31,
2000 1999 CHANGE 1999 CHANGE
--------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
ASSETS:
Cash and due from banks ....................... $ 45,024 $ 47,514 (5.2)% $ 59,967 (24.9)%
Federal funds sold ............................ 624 -- -- 665 (6.2)
Interest earning bank deposits ................ 2,842 2,211 28.5 1,995 42.5
Securities available for sale ................. 341,405 322,695 5.8 342,136 (0.2)
Loans, net .................................... 1,479,718 1,459,090 1.4 1,408,953 5.0
Other assets .................................. 93,385 60,438 54.5 80,601 15.9
--------------------------------------------------------------------
Total assets ............................. $1,962,998 $1,891,948 3.8 $1,894,317 3.6
====================================================================
LIABILITIES AND SHAREHOLDERS' EQUITY:
Total deposits ................................ $1,181,395 $1,119,622 5.5% $1,149,512 2.8%
Other borrowings .............................. 522,348 496,762 5.2 491,976 6.2
Other liabilities ............................. 25,917 26,809 (3.3) 25,117 3.2
--------------------------------------------------------------------
TOTAL LIABILITIES ........................ 1,729,660 1,643,193 5.3 1,666,605 3.8
TOTAL SHAREHOLDERS' EQUITY ............... 233,338 248,755 (6.2) 227,712 2.5
--------------------------------------------------------------------
Total liabilities and shareholders' equity $1,962,998 $1,891,948 3.8 $1,894,317 3.6
====================================================================
</TABLE>
<TABLE>
<CAPTION>
CONSOLIDATED STATEMENTS OF INCOME THREE MONTHS ENDED MARCH 31,
------------------------------------------
(DOLLARS IN THOUSANDS) 2000 1999 CHANGE
------------------------------------------
<S> <C> <C> <C>
INTEREST AND FEES ON LOANS ............... $ 30,781 $ 28,795 3.3 %
INTEREST ON SECURITIES ................... 5,331 4,733 12.6
OTHER INTEREST INCOME .................... 48 239 (79.9)
------------------------------------------
TOTAL INTEREST INCOME ................. 36,160 34,767 4.0
------------------------------------------
INTEREST ON DEPOSITS ..................... 11,423 11,289 1.2
OTHER INTEREST EXPENSE ................... 7,044 6,248 12.7
------------------------------------------
TOTAL INTEREST EXPENSE ................ 18,467 17,537 5.3
------------------------------------------
NET INTEREST INCOME ................. 17,693 17,230 2.7
PROVISION FOR LOAN LOSSES ................ 1,075 975 10.3
------------------------------------------
NET INTEREST INCOME AFTER PROVISION . 16,618 16,255 2.2
------------------------------------------
TRUST INCOME ............................. 615 535 15.0
SERVICE CHARGES ON DEPOSIT ACCOUNTS ...... 1,512 1,038 45.7
GAIN ON SALE OF SECURITIES ............... 174 344 (49.4)
INSURANCE AND OTHER FEE INCOME ........... 1,579 1,390 13.6
OTHER NONINTEREST INCOME ................. 687 474 44.9
------------------------------------------
TOTAL NONINTEREST INCOME .............. 4,567 3,781 20.8
------------------------------------------
SALARIES AND EMPLOYEE BENEFITS ........... 6,570 5,720 14.9
Occupancy and equipment .................. 2,046 1,729 18.3
Other noninterest expense ................ 3,356 3,451 (2.8)
------------------------------------------
Total noninterest expense ............. 11,972 10,900 9.8
------------------------------------------
Income before income taxes .......... 9,213 9,136 0.8
INCOME TAXES .......................... 2,921 2,963 (1.4)
------------------------------------------
NET INCOME ............................... $ 6,292 $ 6,173 (1.4)
==========================================
NET INTEREST INCOME, TAXABLE EQUIVALENT $ 18,372 $ 18,003 2.0
==========================================
</TABLE>
<TABLE>
<CAPTION>
SHARE INFORMATION THREE MONTHS ENDED MARCH 31,
------------------------------------------
2000 1999 CHANGE
------------------------------------------
<S> <C> <C> <C>
BASIC INCOME PER SHARE:
NET INCOME .......................... $ 0.36 $ 0.33 9.1 %
AVERAGE COMMON EQUIVALENT SHARES .... 17,687,753 18,488,751 (4.3)
DILUTED INCOME PER SHARE:
NET INCOME .......................... $ 0.36 $ 0.33 9.1
AVERAGE COMMON EQUIVALENT SHARES .... 17,706,150 18,532,657 (4.5)
SHARES OUTSTANDING AT PERIOD END ......... 17,704,811 18,556,335 (4.6)
CASH DIVIDENDS DECLARED .................. $ 0.17 $ 0.17 --
BOOK VALUE ............................... $ 13.18 $ 13.41 (1.7)
</TABLE>
4
<PAGE> 5
FIRST CHARTER CORPORATION AND SUBSIDIARIES
(Unaudited)
<TABLE>
<CAPTION>
LOAN PORTFOLIO MARCH 31, MARCH 31,
(DOLLARS IN THOUSANDS) 2000 1999 CHANGE
--------------------------------------------------
<S> <C> <C> <C>
Commercial ................................... $ 712,213 $ 548,842 29.8%
Real estate .................................. 641,211 806,457 (20.5)
Home equity .................................. 98,896 71,422 38.5
Installment .................................. 45,676 48,911 (6.6)
--------------------------------------------------
Total ..................................... $1,497,996 $1,475,632 1.5
==================================================
</TABLE>
<TABLE>
<CAPTION>
NONPERFORMING ASSETS MARCH 31, MARCH 31,
(DOLLARS IN THOUSANDS) 2000 1999 CHANGE
--------------------------------------------------
<S> <C> <C> <C>
Nonaccrual loans ............................. $ 7,394 $ 5,456 35.5%
Restructured loans ........................... -- 543 (100.0)
Other real estate ............................ 1,894 2,246 (15.7)
--------------------------------------------------
Total non-performing assets ............... $ 9,288 $ 8,245 12.7
==================================================
</TABLE>
<TABLE>
<CAPTION>
ALLOWANCE FOR LOAN LOSSES THREE MONTHS ENDED MARCH 31,
--------------------------------------------------
(DOLLARS IN THOUSANDS) 2000 1999 CHANGE
--------------------------------------------------
<S> <C> <C> <C> <C>
Beginning balance (January 1) ................ $ 17,339 $ 15,554 11.5%
Provision charged to operations .............. 1,075 975 10.3
Charge-offs .................................. (406) (316) 28.5
Recoveries ................................... 106 181 (41.4)
--------------------------------------------------
Net loan charge-offs ...................... (300) (135) 122.2
--------------------------------------------------
Ending balance ......................... $ 18,114 $ 16,394 10.5
==================================================
</TABLE>
<TABLE>
<CAPTION>
SELECTED AVERAGE BALANCES THREE MONTHS ENDED MARCH 31,
--------------------------------------------------
(DOLLARS IN THOUSANDS) 2000 1999 CHANGE
--------------------------------------------------
<S> <C> <C> <C>
Loans ........................................ $1,456,163 $1,439,739 1.1%
Securities ................................... 337,741 325,615 3.7
Total interest earning assets ................ 1,797,090 1,780,508 0.9
Assets ....................................... 1,907,985 1,887,789 1.1
Deposits ..................................... 1,160,452 1,109,657 4.6
Total borrowings ............................. 503,884 443,470 13.6
Total interest bearing liabilities ........... 1,519,225 1,440,160 5.5
Shareholders' equity ......................... 232,373 242,652 (4.2)
</TABLE>
<TABLE>
<CAPTION>
SELECTED YIELD/COST RATES THREE MONTHS ENDED MARCH 31,
--------------------------------------------------
2000 1999 CHANGE
--------------------------------------------------
<S> <C> <C> <C>
Yield on loans (FTE) ......................... 8.53% 8.43% 10 BP
Yield on securities (FTE) .................... 7.02 6.68 34
Yield on interest earning assets (FTE) ....... 8.24 8.10 14
Cost of interest bearing deposits ............ 4.52 4.59 (7)
Cost of borrowings ........................... 5.62 5.73 (11)
Cost of interest bearing liabilities ......... 4.89 4.94 (5)
Interest rate spread ......................... 3.35 3.16 19
Net interest margin* ......................... 4.11 4.10 1
</TABLE>
<TABLE>
<CAPTION>
SIGNIFICANT FINANCIAL/OPERATING RATIOS THREE MONTHS ENDED MARCH 31,
--------------------------------------------------
2000 1999 CHANGE
--------------------------------------------------
<S> <C> <C>
Return on average assets ..................... 1.33% 1.33% -- BP
Return on average equity ..................... 10.89 10.32 57
Efficiency ratio** ........................... 52.37 50.91 146
Allowance for loan losses to gross loans ..... 1.21 1.11 10
Nonperforming assets to assets ............... 0.47 0.44 3
Allowance for loan losses to
nonperforming loans ...................... 244.98 273.28 (2,830)
Interest bearing liabilities to earning assets 92.45 89.78 267
Equity to assets ............................. 11.89 13.15 (126)
Gross loans to deposits ...................... 126.80 131.80 (500)
Earning assets to total assets ............... 93.88 95.16 (128)
======================================================================================================
</TABLE>
BP Change is measured in basis points
FTE Fully taxable equivalent
* Net interest income, on a fully-taxable equivalent basis, as a percentage of
average earning assets.
** Noninterest expense less foreclosed property expense divided by the sum of
taxable equivalent net interest income plus noninterest income.
5
<PAGE> 6
CAROLINA FIRST BANCSHARES, INC. AND SUBSIDIARIES
(Unaudited)
<TABLE>
<CAPTION>
CONSOLIDATED BALANCE SHEETS
(DOLLARS IN THOUSANDS) MARCH 31, MARCH 31, DECEMBER 31,
2000 1999 CHANGE 1999 CHANGE
--------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Cash and due from banks ..................... $ 38,829 $ 27,983 38.8% $ 33,659 15.4%
Federal funds sold .......................... -- 12,235 (100.0) -- --
Interest earning bank deposits .............. 443 804 (44.9) 439 0.9
Investment securities ....................... 35,324 37,105 (4.8) 36,083 (2.1)
Securities available for sale ............... 140,956 156,907 (10.2) 151,079 (6.7)
Loans, net .................................. 545,918 476,658 14.5 533,877 2.3
Other assets ................................ 30,187 31,230 (3.3) 30,962 (2.5)
--------------------------------------------------------------
Total assets ............................. $791,657 $742,922 6.6% $786,099 0.7
==============================================================
LIABILITIES AND SHAREHOLDERS' EQUITY:
Total deposits .............................. $674,784 $661,677 2.0% $666,980 1.2%
Other borrowings ............................ 45,188 12,975 248.3 50,045 (9.7)
Other liabilities ........................... 4,217 5,107 (17.4) 3,103 35.9
--------------------------------------------------------------
Total liabilities ........................ 724,189 679,759 6.5 720,128 0.6
Total shareholders' equity ............... 67,468 63,163 6.8 65,971 2.3
--------------------------------------------------------------
Total liabilities and shareholders' equity $791,657 $742,922 6.6% $786,099 0.7
==============================================================
</TABLE>
<TABLE>
<CAPTION>
CONSOLIDATED STATEMENTS OF INCOME THREE MONTHS ENDED MARCH 31,
------------------------------------------
(DOLLARS IN THOUSANDS) 2000 1999 CHANGE
------------------------------------------
<S> <C> <C> <C>
Interest and fees on loans ............. $ 12,623 $ 10,762 17.3%
Interest and dividends on securities ... 2,776 2,644 5.0
Other interest income .................. 79 251 (68.5)
Total interest income ............... 15,478 13,657 13.3
------------------------------------------
Interest on deposits ................... 5,429 5,567 (2.5)
Other interest expense ................. 703 148 375.0
Total interest expense .............. 6,132 5,715 7.3
------------------------------------------
Net interest income ............... 9,346 7,942 17.7
Provision for loan losses .............. 895 383 133.7
------------------------------------------
Net interest income after provision 8,451 7,559 11.8
------------------------------------------
Service charges on deposit accounts .... 1,039 951 9.3
Gain (Loss) on sale of securities ...... (22) 40 (155.0)
Insurance and other fee income ......... 515 466 10.5
Other noninterest income ............... 487 497 (2.0)
------------------------------------------
Total noninterest income ............ 2,019 1,954 3.3
------------------------------------------
Salaries and benefits .................. 3,613 3,226 12.0
Occupancy and equipment ................ 868 891 (2.6)
Other noninterest expense .............. 2,791 2,302 21.2
------------------------------------------
Total noninterest expense ........... 7,272 6,419 13.3
------------------------------------------
Income before income taxes ........ 3,198 3,094 3.4
Income taxes ........................... 1,024 994 3.0
------------------------------------------
Net income ........................ $ 2,174 $ 2,100 3.4%
==========================================
Net interest income, taxable equivalent $ 9,401 $ 7,994 17.6
==========================================
</TABLE>
<TABLE>
<CAPTION>
SHARE INFORMATION THREE MONTHS ENDED MARCH 31,
------------------------------------------
2000 1999 CHANGE
------------------------------------------
<S> <C> <C> <C>
Basic income per share:
Net income .......................... $ 0.36 $ 0.35 2.9%
Average common equivalent shares .... 6,013,050 5,972,918 0.6
Diluted income per share:
Net income .......................... $ 0.36 $ 0.35 2.9
Average common equivalent shares .... 6,073,217 6,066,867 0.1
Shares outstanding at period end ....... 6,036,352 5,982,424 0.9
Cash dividends declared ................ $ 0.10 $ 0.09 11.1
Book value ............................. $ 11.18 $ 10.56 5.9
</TABLE>
6
<PAGE> 7
CAROLINA FIRST BANCSHARES, INC. AND SUBSIDIARIES
(Unaudited)
<TABLE>
<CAPTION>
LOAN PORTFOLIO MARCH 31, MARCH 31,
(DOLLARS IN THOUSANDS) 2000 1999 CHANGE
---------------------------------------------
<S> <C> <C> <C>
Commercial ................................... $ 317,340 $ 275,952 15.0%
Real estate .................................. 21,766 24,700 (11.9)
Home equity .................................. 49,349 36,088 36.7
Installment .................................. 165,328 147,009 12.5
---------------------------------------------
Total ..................................... $ 553,783 $ 483,749 14.5%
=============================================
</TABLE>
<TABLE>
<CAPTION>
NONPERFORMING ASSETS MARCH 31, MARCH 31,
(DOLLARS IN THOUSANDS) 2000 1999 CHANGE
---------------------------------------------
<S> <C> <C> <C>
Nonaccrual loans ............................. $ 2,074 $ 2,331 (11.0)%
Other Real Estate ............................ 172 202 (14.9)
---------------------------------------------
Total nonperforming assets ................ $ 2,246 $ 2,533 (11.3)%
=============================================
</TABLE>
<TABLE>
<CAPTION>
ALLOWANCE FOR LOAN LOSSES THREE MONTHS ENDED MARCH 31,
---------------------------------------------
(DOLLARS IN THOUSANDS) 2000 1999 CHANGE
---------------------------------------------
<S> <C> <C> <C> <C>
Beginning balance (January 1) ................ $ 7,663 $ 6,724 14.0%
Provision charged to operations .............. 895 383 133.7
Charge-offs .................................. (869) (84) 934.5
Recoveries ................................... 176 68 158.8
---------------------------------------------
Net loan charge-offs ...................... (693) (16) 4,231.3
---------------------------------------------
Ending balance ........................ $ 7,865 $ 7,091 10.9%
=============================================
</TABLE>
<TABLE>
<CAPTION>
SELECTED AVERAGE BALANCES THREE MONTHS ENDED MARCH 31,
---------------------------------------------
(DOLLARS IN THOUSANDS) 2000 1999 CHANGE
---------------------------------------------
<S> <C> <C> <C>
Loans ........................................ $ 541,697 $ 473,198 14.5%
Securities ................................... 182,427 183,936 (0.8)
Total interest earning assets ................ 728,630 675,447 7.9
Assets ....................................... 781,766 731,915 6.8
Deposits ..................................... 555,269 562,475 (1.3)
Total borrowings ............................. 48,947 12,925 278.7
Total interest bearing liabilities ........... 604,216 575,400 5.0
Shareholders' equity ......................... 74,333 63,398 17.2
</TABLE>
<TABLE>
<CAPTION>
SELECTED YIELD/COST RATES THREE MONTHS ENDED MARCH 31,
---------------------------------------------
2000 1999 CHANGE
---------------------------------------------
<S> <C> <C> <C>
Yield on loans (FTE) ......................... 9.35% 9.12% 23 BP
Yield on securitites (FTE) ................... 6.21 5.87 34
Yield on interest earning assets (FTE) ....... 8.55 8.14 41
Cost of interest bearing deposits ............ 3.91 3.96 (5)
Cost of borrowings ........................... 5.76 4.59 117
Cost of interest bearing liabilities ......... 4.07 3.98 9
Interest rate spread ......................... 4.48 4.16 32
Net interest margin .......................... 5.17 4.75 42
</TABLE>
<TABLE>
<CAPTION>
SIGNIFICANT FINANCIAL/OPERATING RATIOS THREE MONTHS ENDED MARCH 31,
---------------------------------------------
2000 1999 CHANGE
---------------------------------------------
<S> <C> <C> <C>
Return on average assets ..................... 1.12% 1.15% (3) BP
Return on average equity ..................... 11.73 13.25 (152)
Efficiency ratio** ........................... 63.68 64.53 (85)
Allowance for loan losses to gross loans ..... 1.42 1.47 (5)
Nonperforming assets to total assets ......... 0.28 0.34 (6)
Allowance for loan losses to
nonperforming loans ...................... 379.22 304.20 7,502
Interest bearing liabilities to earning assets 85.17 85.67 (50)
Equity to assets ............................. 8.52 8.50 2
Gross loans to deposits ...................... 82.07 73.11 896
Earning assets to total assets ............... 92.28 91.34 94
====================================================================================================
</TABLE>
BP Change is measured in basis points
FTE Fully taxable equivalent
** Noninterest expense less foreclosed property expense divided by the sum
of taxable equivalent net interest income plus noninterest income.
7
