-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, C9xKFF0uTRHZ/XNJHQ7jYvSeVNGkcfG0OHuBKvAwtGHnTXqA7WcfQoAL/QD00+u4 aDoguPX68A91/I5sQhP3qQ== 0000798941-03-000001.txt : 20030429 0000798941-03-000001.hdr.sgml : 20030429 20030429111053 ACCESSION NUMBER: 0000798941-03-000001 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 20030331 ITEM INFORMATION: Financial statements and exhibits ITEM INFORMATION: Regulation FD Disclosure FILED AS OF DATE: 20030429 FILER: COMPANY DATA: COMPANY CONFORMED NAME: FIRST CITIZENS BANCSHARES INC /DE/ CENTRAL INDEX KEY: 0000798941 STANDARD INDUSTRIAL CLASSIFICATION: STATE COMMERCIAL BANKS [6022] IRS NUMBER: 561528994 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-16715 FILM NUMBER: 03668213 BUSINESS ADDRESS: STREET 1: 239 FAYETTEVILLE STREET MALL CITY: RALEIGH STATE: NC ZIP: 27601 BUSINESS PHONE: 9197557000 MAIL ADDRESS: STREET 1: PO BOX 27131 STREET 2: CTWO7 CITY: RALEIGH STATE: NC ZIP: 27611-7131 8-K 1 mar03_8k.txt MARCH 2003 FORM 8-K SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 8-K PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934 Date of Report (Date of earliest event reported): April 28,2003 First Citizens BancShares, Inc. ------------------------------- (Exact name of registrant as specified in its charter) Delaware 0-16471 56-1528994 - ----------------------------------------------------------------------------- (State or other jurisdiction (Commission (IRS Employer Identification of incorporation) File Number) Number) 3128 Smoketree Court; Raleigh, North Carolina 27604 - ----------------------------------------------------------------------------- (Addreess of principal exectuive offices) (Zip Code) Registrant's phone number including area code: 919-716-7000 ------------------------------ Item 7. Financial Statements and Exhibits. (c) Exhibits. The following exhibit is being filed with this Report: Exhibit No. Exhibit Description - ----------- ------------------- 99 Copy of press release dated April 28, 2003 Item 9. Regulation FD Disclosure (Being furnished under both Item 9 and Item 12). At Registrant's annual meeting of shareholders held on April 28, 2003, Registrant announced its results of operations for the quarter ended March 31, 2003. A copy of Registrant's press release issued following the annual meeting is attached as Exhibit 99 to this Report and is incorporated by reference into this Report. Disclosures About Forward Looking Statements The discussions included in this Report and its exhibits may contain forward looking statements within the meaning of the Private Securities Litigation Act of 1995, including Section 21E of the Securities Exchange Act of 1934 and Section 27A of the Securities Act of 1933. Such statements involve known and unknown risks, uncertainties and other factors that may cause actual results to differ materially. For the purposes of these discussions, any statements that are not statements of historical fact may be deemed to be forward looking statements. Such statements are often characterized by the use of qualifying words such as "expects," "anticipates," "believes," "estimates," "plans," "projects," or other statements concerning opinions or judgments of the Registrant and its management about future events. The accuracy of such forward looking statements could be affected by such factors as, including but not limited to, the financial success or changing conditions or strategies of the Registrant's customers or vendors, fluctuations in interest rates, actions of government regulators, the availability of capital and personnel or general economic conditions. SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, Registrant has duly caused this Report to be signed on its behalf by the undersigned thereunto duly authorized. First Citizens BancShares, Inc. ------------------------------- (Registrant) Date: April 28, 2003 By: /S/ Kenneth A. Black --------------------------- Kenneth A. Black Vice President For Immediate Release Contact: Barbara Thompson April 28, 2003 First Citizens Bank (919) 716-2716 FIRST CITIZENS REPORTS EARNINGS FOR FIRST QUARTER 2003 RALEIGH, N.C. - First Citizens BancShares Inc. (Nasdaq: FCNCA) reports earnings for the quarter ending March 31, 2003, of $18.3 million compared to $24.8 million for the corresponding period of 2002, a decrease of 26.3 percent, according to Lewis R. Holding, chairman of the board. Per share income for the first quarter 2003 totaled $1.75 compared to $2.37 for the same period a year ago. First Citizens' current quarter results generated an annualized return on average assets of 0.62 percent and an annualized return on average equity of 7.61 percent, compared to respective returns of 0.86 percent and 11.25 percent for the same period of 2002. The decline in net income for the first quarter was the result of reductions in net interest income and higher noninterest expenses. Net interest income decreased $8.1 million or 8.3 percent from the same period of 2002. The adverse impact of declining interest rates on the high levels of short-term, interest-sensitive liquidity more than offset the favorable impact of balance sheet growth. First Citizens consistently maintains a balance sheet structure that emphasizes liquidity. The taxable-equivalent yield on interest earning assets fell from 6.12 percent during the first quarter of 2002 to 4.95 percent during the first quarter of 2003, a 117 basis point reduction. Loan yields fell from 6.99 percent to 6.02 percent, while the taxable-equivalent yield on investment securities fell from 4.52 percent to 2.60 percent. The lower asset yields resulted from interest rate reductions triggered by the Federal Reserve Bank's reductions in key interest rates. While the rate adjustments also led to lower rates on interest-bearing liabilities, the decrease in interest expense was less than the decrease in interest income. The rate on total interest-bearing liabilities fell from 2.64 percent during the first quarter of 2002 to 1.86 percent during the same period of 2003, a reduction of 78 basis points. As a result of the unfavorable impact of low market interest rates, the net yield on interest-earning assets fell from 3.81 percent during the first quarter of 2002 to 3.37 percent during 2003. Noninterest expense was $111.3 million during the first quarter of 2003, an increase of $4.4 million or 4.1 percent. Salary expense increased $1.5 million or 3.1 percent over the same period of 2002. Employee benefits expense increased $942,000 or 8.9 percent over 2002, the continued result of higher pension costs. Equipment expense increased $1.4 million or 12.9 percent over the same period of 2002 due to higher software related costs. Noninterest income was $56.4 million during the first quarter of 2003, a $2.2 million or 4.0 percent increase over the same period of 2002. Cardholder and merchant services income increased $1.4 million or 12.5 percent during 2003. Income from investment securities sales declined $1.3 million, primarily due to impairment losses recognized during 2003 on available-for-sale securities. Service charge income remained constant, while trust income declined from during 2002. The provision for loan losses was $5.6 million during the first quarter of 2003, a reduction of $417,000 or 7.0 percent over the same period of 2002. The reduction in the provision for loan losses resulted from slightly lower loss estimates. Net charge-offs during the first quarter of 2003 totaled $4.7 million compared to $4.4 million during the first quarter of 2002. Net charge-offs in both periods represent 0.25 percent of average loans. As of March 31, 2003, First Citizens had total assets of $12.39 billion. Two of BancShares' major subsidiaries are First Citizens Bank with 337 branches in North Carolina, Virginia and West Virginia, and Atlantic States Bank with 39 branches in Georgia and Florida. Atlantic States' western division, IronStone Bank, has branches in Texas and Arizona with plans to open this year in California. For more information, visit First Citizens' web site at firstcitizens.com. ### This news release may contain forward-looking statements. A discussion of factors that could cause First Citizens' actual results to differ materially from those expressed in such forward-looking statements is included in First Citizens' filings with the SEC.
CONDENSED STATEMENTS OF INCOME Three Months Ended March 31 (thousands, except per share data; unaudited) 2003 2002 - ------------------------------------------------------------------------------------------------------------------------- Interest income $131,074 $156,148 Interest expense 42,158 59,137 - ------------------------------------------------------------------------------------------------------------------------- Net interest income 88,916 97,011 Provision for loan losses 5,563 5,980 - ------------------------------------------------------------------------------------------------------------------------- Net interest income after provision for loan losses 83,353 91,031 Noninterest income 56,387 54,215 Noninterest expense 111,282 106,906 - ------------------------------------------------------------------------------------------------------------------------- Income before income taxes 28,458 38,340 Income taxes 10,164 13,516 - ------------------------------------------------------------------------------------------------------------------------- Net income $18,294 $24,824 ========================================================================================================================= Taxable-equivalent net interest income $89,200 $97,382 ========================================================================================================================= Net income per share $1.75 $2.37 Cash dividends per share 0.275 0.250 - ------------------------------------------------------------------------------------------------------------------------- Profitability Information (annualized) Return on average assets 0.62 % 0.86 % Return on average equity 7.61 11.25 Taxable-equivalent net yield on interest-earning assets 3.37 3.81 - -------------------------------------------------------------------------------------------------------------------------
CONDENSED BALANCE SHEETS March 31 December 31 March 31 (thousands, except per share data; unaudited) 2003 2002 2002 - ------------------------------------------------------------------------------------------------------------------------- Cash and due from banks $753,578 $811,657 $709,757 Investment securities 2,362,130 2,539,236 2,576,383 Loans 7,704,492 7,620,263 7,248,088 Reserve for loan losses (113,382) (112,533) (108,692) Other assets 1,681,923 1,373,267 1,322,442 - ------------------------------------------------------------------------------------------------------------------------- Total assets $12,388,741 $12,231,890 $11,747,978 ========================================================================================================================= Deposits $10,594,380 $10,439,620 $9,872,979 Other liabilities 810,726 824,979 967,092 Shareholders' equity 983,635 967,291 907,907 - ------------------------------------------------------------------------------------------------------------------------- Total liabilities and shareholders' equity $12,388,741 $12,231,890 $11,747,978 ========================================================================================================================= Book value per share $93.95 $92.36 $86.63 Tangible book value per share 83.39 81.73 76.07 - -------------------------------------------------------------------------------------------------------------------------
SELECTED AVERAGE BALANCES Three Months Ended March 31 (thousands, except shares outstanding; unaudited) 2003 2002 - ------------------------------------------------------------------------------------------------------------------------- Total assets $12,054,717 $11,664,376 Investment securities 2,476,426 2,704,077 Loans 7,642,673 7,207,757 Interest-earning assets 10,741,160 10,353,509 Deposits 10,283,143 9,776,690 Interest-bearing liabilities 9,173,567 9,073,637 Shareholders' equity 974,900 $894,689 Shares outstanding 10,472,065 10,481,661 - -------------------------------------------------------------------------------------------------------------------------
ASSET QUALITY March 31 December 31 March 31 (dollars in thousands; unaudited) 2003 2002 2002 - ------------------------------------------------------------------------------------------------------------------------- Nonaccrual loans $16,988 $15,521 $17,735 Other real estate 8,155 7,330 12,461 - ------------------------------------------------------------------------------------------------------------------------- Total nonperforming assets $25,143 $22,851 $30,196 ========================================================================================================================= Accruing loans 90 days or more past due $7,349 $9,566 $11,012 Nonperforming assets to gross loans plus other real estate 0.33 % % 0.30 0.42 % Reserve for loan losses to gross loans 1.47 1.48 1.50 Net charge-offs to average total loans (annualized) 0.25 0.29 0.25 - -------------------------------------------------------------------------------------------------------------------------
CAPITAL INFORMATION March 31 December 31 March 31 (dollars in thousands; unaudited) 2003 2002 2002 - ------------------------------------------------------------------------------------------------------------------------- Tier 1 capital $1,112,607 $1,096,537 $1,038,574 Total capital 1,222,490 1,204,142 1,142,933 Risk-weighted assets 8,275,456 8,123,321 7,868,529 Tier 1 capital ratio 13.44 % 13.50 % 13.20 % Total capital ratio 14.77 14.82 14.53 Leverage capital ratio 9.30 9.17 8.99 - ------------------------------------------------------------------------------------------------------------------------- 2002 data has been restated to reflect the adoption of Statement of Financial Accounting Standards No. 147, which was adopted during the fourth quarter of 2002 with a retroactive effective date of January 1, 2002.
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