-----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, BKY4ly7gsFtXCXdAMbVZVgWsq8PNrsiohujWEtDxmdxJLWgKC7+HPMEsdPnD3AhM 135qJ4W/znWRhmNTefb3Gg== 0000798941-03-000003.txt : 20030729 0000798941-03-000003.hdr.sgml : 20030729 20030729142314 ACCESSION NUMBER: 0000798941-03-000003 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 20030630 ITEM INFORMATION: Regulation FD Disclosure FILED AS OF DATE: 20030729 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: 03808246 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 jun03_8k.txt JUNE 30, 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): July 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 July 28, 2003 Item 9. Regulation FD Disclosure (Being furnished under both Item 9 and Item 12). On July 28, 2003, Registrant announced its results of operations for the quarter ended June 30, 2003. A copy of Registrant's press release issued this date 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: July 28, 2003 By: /S/Kenneth A. Black --------------------------- Kenneth A.Black Vice President For Immediate Release Contact: Barbara Thompson July 28, 2003 First Citizens Bank (919) 716-2716 FIRST CITIZENS REPORTS EARNINGS FOR SECOND QUARTER 2003 RALEIGH, N.C. - First Citizens BancShares Inc. (Nasdaq: FCNCA) reports earnings for the quarter ending June 30, 2003, of $20.8 million compared to $24.8 million for the corresponding period of 2002, a reduction of 16.2 percent, according to Lewis R. Holding, chairman of the board. First Citizens' earnings were negatively impacted by the current extreme interest rate environment. The historically low market rates adversely influenced the yields on the high levels of short-term, interest-sensitive liquidity maintained by First Citizens, resulting in lower levels of net interest income. Per share income for the second quarter 2003 totaled $1.98 compared to $2.37 for the same period a year ago. First Citizens' results generated an annualized return on average assets of 0.68 percent for the second quarter of 2003, compared to 0.85 percent for the same period of 2002. The annualized return on average equity was 8.41 percent during the current quarter, compared to 10.86 percent for the same period of 2002. During the second quarter, a reduction in net interest income and higher noninterest expenses more than offset the favorable impact of higher noninterest income and lower provision for loan losses. During the second quarter of 2003, net interest income decreased $7.1 million or 7.3 percent from the same period of 2002. The reduction in net interest income resulted from the unfavorable net impact of lower interest rates on interest-earning assets and interest-bearing liabilities. The taxable-equivalent yield on interest-earning assets fell 104 basis points to 4.77 percent during the second quarter of 2003 when compared to the same period of 2002, while the rate on total interest-bearing liabilities fell 70 basis points to 1.73 percent. The taxable-equivalent net yield on interest-earning assets fell from 3.71 percent for the second quarter of 2002 to 3.31 percent for the second quarter of 2003. Total interest-earning assets increased $398.6 million or 3.8 percent during the second quarter of 2003 when compared to the same period of 2002. Noninterest expense increased $10.3 million or 9.7 percent during the second quarter of 2003. Salary expense increased $4.7 million or 10.5 percent during 2003, due primarily to the continued expansion of Atlantic States Bank's franchise and higher incentive-based compensation within the mortgage operation. Employee benefit expense increased $2.2 million or 22.3 percent due to higher pension expense and health insurance costs. Occupancy expense increased $1.3 million or 13.7 percent during the second quarter due to higher facility costs, while equipment expense increased $1.2 million or 10.5 percent, the result of technology investments. Noninterest income increased $11.7 million or 21.1 percent during the second quarter. The second quarter of 2003 includes a $5.7 million nonrecurring gain on the sale of branches and $1.1 million in securities gains. Mortgage income increased $2.4 million from the second quarter of 2002 due primarily to heavy refinance activity. Cardholder and merchant services income increased $1.7 million or 13.4 percent due to favorable volume growth. The provision for loan losses declined $630,000 or 8.1 percent from the second quarter of 2002 to the same period of 2003 due to lower net charge-offs. Net charge-offs were $5.2 million during the second quarter of 2003, compared to $6.0 million during the same period of 2002. For the six-month period ending June 30, 2003, net income was $39.1 million, or $3.73 per share, compared to $49.6 million, or $4.73 per share earned during the same period of 2002. Annualized net income for 2003 represents 0.65 percent of average assets compared to 0.85 percent for 2002. The annualized return on average equity was 8.02 percent for the first six months of 2003, compared to 11.05 percent for the same period of 2002. Year-to-date net interest income for 2003 decreased $15.2 million or 7.8 percent from the same period of 2002. During 2003, the unfavorable impact of lower interest rates more than offset the benefit of growth among interest-earning assets. The taxable-equivalent net yield on interest-earning assets fell from 3.76 percent to 3.34 percent during 2003. Noninterest income increased $13.8 million or 12.6 percent during the first six months of 2003, the result of improved cardholder and merchant services income and mortgage income. Noninterest income also included a $5.7 million nonrecurring gain on the sale of branch offices. Noninterest expense increased $14.6 million or 6.9 percent during the first six months of 2003, the result of higher personnel expenses as well as higher equipment and occupancy costs. For the six-month period ending June 30, the provision for loan losses was $12.8 million and $13.8 million for 2003 and 2002, respectively. The reduction in the provision for loan losses resulted from lower levels of net charge-offs. Net charge-offs were $9.9 million and $10.4 million during the respective six-month periods, a reduction of $512,000 or 4.9 percent during 2003. As of June 30, 2003, First Citizens had total assets of $12.39 billion. First Citizens Bank has 341 branches in North Carolina, Virginia and West Virginia. Atlantic States Bank and its western division IronStone Bank have xx branches in Georgia, Florida, Texas, Arizona and California. For more information, visit the 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 June 30 Six Months Ended June 30 (thousands, except share data; unaudited) 2003 2002 2003 2002 - ---------------------------------------------------------------------------------------------------------- Interest income $ 129,173 $ 151,771 $ 260,247 $ 307,919 Interest expense 39,505 55,042 81,663 114,179 - ------------------------------------------------------------------------------------------------------------- Net interest income 89,668 96,729 178,584 193,740 Provision for loan losses 7,192 7,822 12,755 13,802 - ------------------------------------------------------------------------------------------------------------- Net interest income after provision for loan losses 82,476 88,907 165,829 179,938 Noninterest income 66,948 55,369 123,335 109,584 Noninterest expense 115,975 105,815 227,257 212,721 - ------------------------------------------------------------------------------------------------------------- Income before income taxes 33,449 38,461 61,907 76,801 Income taxes 12,677 13,659 22,841 27,175 ============================================================================================================= Net income $ 20,772 $ 24,802 $ 39,066 $ 49,626 ============================================================================================================= Taxable-equivalent net interest income $ 89,926 $ 97,074 $ 179,126 $ 194,456 ============================================================================================================= Net income per share $ 1.98 $ 2.37 $ 3.73 $ 4.73 Cash dividends per share 0.275 0.25 0.55 0.50 - ------------------------------------------------------------------------------------------------------------- Return on average assets 0.68 % 0.85 % 0.65 % 0.85 % Return on average equity 8.41 10.86 8.02 11.05 Taxable-equivalent net yield on interest-earning asset3.31 3.71 3.34 3.76 - -------------------------------------------------------------------------------------------------------------
CONDENSED BALANCE SHEETS June 30 December 31 June 30 (thousands, except share data; unaudited) 2003 2002 2002 - ------------------------------------------------------------------------------------------------------------- Cash and due from banks $ 810,546 $ 811,657 $ 814,540 Investment securities 2,475,821 2,539,236 2,464,779 Loans 7,857,220 7,620,263 7,434,662 Reserve for loan losses (115,382) (112,533) (110,472) Other assets 1,366,539 1,373,267 1,264,249 ============================================================================================================= Total assets $ 12,394,744 $ 12,231,890 $ 11,867,758 ============================================================================================================= Deposits $ 10,558,616 $ 10,439,620 $ 10,065,180 Other liabilities 836,339 824,979 872,403 Shareholders' equity 999,789 967,291 930,175 ============================================================================================================= Total liabilities and shareholders' equity $ 12,394,744 $ 12,231,890 $ 11,867,758 ============================================================================================================= Book value per share $ 95.80 $ 92.36 $ 88.77 Tangible book value per share 85.36 81.73 78.28 - -------------------------------------------------------------------------------------------------------------
SELECTED AVERAGE BALANCES Three Months Ended June 30 Six Months Ended June 30 (thousands, except shares outstanding; unaudited) 2003 2002 2003 2002 - ------------------------------------------------------------------------------------------------------------- - ------------------------------------------------------------------------------------------------------------- Total assets $ 12,203,618 $ 11,756,150 $ 12,129,579 $ 11,710,516 Investment securities 2,594,983 2,641,898 2,536,032 2,672,816 Loans 7,811,739 7,312,384 7,727,674 7,260,359 Interest-earning assets 10,890,420 10,491,811 10,816,203 10,423,042 Deposits 10,394,829 9,934,615 10,339,295 9,856,089 Interest-bearing liabilities 9,177,931 9,075,549 9,175,761 9,074,598 Shareholders' equity $ 991,047 $ 916,387 $ 982,879 $ 905,432 Shares outstanding 10,465,909 10,480,527 10,468,970 10,481,091 - -------------------------------------------------------------------------------------------------------------
ASSET QUALITY June 30 December 31 June 30 (thousands; unaudited) 2003 2002 2002 - ------------------------------------------------------------------------------------------------------------- Nonaccrual loans $ 17,438 $ 15,521 $ 17,397 Other real estate 8,147 7,330 10,563 ============================================================================================================= Total nonperforming assets $ 25,585 $ 22,851 $ 27,960 ============================================================================================================= Accruing loans 90 days or more past due $ 7,848 $ 9,566 $ 9,945 Net charge-offs (year-to-date) 9,906 21,104 10,417 Nonperforming assets to gross loans plus foreclosed real estate 0.33 % 0.30 % 0.38 % Reserve for loan losses to gross loans 1.47 1.48 1.49 Net charge-offs to average total loans (annualized, year-to-date) 0.26 0.29 0.29 - -------------------------------------------------------------------------------------------------------------
CAPITAL INFORMATION June 30 December 31 June 30 (dollars in thousands; unaudited) 2003 2002 2002 - ------------------------------------------------------------------------------------------------------------- Tier 1 capital $ 1,128,565 $ 1,096,537 $ 1,062,303 Total capital 1,240,801 1,204,142 1,168,606 Risk-weighted assets 8,424,376 8,123,321 8,024,193 Tier 1 capital ratio 13.40 % 13.50 % 13.24 Total capital ratio 14.73 14.82 14.56 Leverage capital ratio 9.33 9.17 9.12 - ---------------------------------------------------------------------------------------------------------- 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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