EX-99.1 2 v041101_ex99-1.htm
 
For Immediate Release   
Contact:
    Barbara Thompson
April 24, 2006        First Citizens Bank
         (919) 716-2716
 
FIRST CITIZENS REPORTS EARNINGS FOR FIRST QUARTER 2006
 
RALEIGH, N.C. - First Citizens BancShares Inc. (Nasdaq: FCNCA) reports earnings for the quarter ending March 31, 2006, of $28.7 million compared to $25.0 million for the corresponding period of 2005, an increase of 14.6 percent, according to Lewis R. Holding, chairman of the board. The significant increase resulted from improved net interest income and noninterest income, partially offset by higher noninterest expense and provision for loan losses.
 
Per share income for the first quarter 2006 totaled $2.75 compared to $2.40 for the same period a year ago. First Citizens’ current quarter results generated an annualized return on average assets of 0.79 percent and an annualized return on average equity of 9.75 percent, compared to respective returns of 0.76 percent and 9.26 percent for the same period of 2005.
 
First quarter net interest income increased $12.2 million or 11.5 percent from the same period of 2005, due to healthy growth in interest-earning assets and an improved net yield on interest-earning assets. Average loans outstanding increased $348.0 million or 3.7 percent since the first quarter of 2005. Average investment securities increased $824.4 million or 39.8 percent in the first quarter of 2006, when compared to the same period of 2005. The taxable-equivalent yield on interest-earning assets increased from 5.04 percent during the first quarter of 2005 to 5.87 percent during the first quarter of 2006, an 83 basis point increase. The higher asset yields resulted from recent growth among fixed-rate loans and investment securities and continued repricing of variable rate loans to current market rates.
 
Average interest-bearing liabilities increased by $1.2 billion or 12.0 percent during the first quarter of 2006 due to strong growth in deposits. The rate on total interest-bearing liabilities increased from 1.79 percent during the first quarter of 2005 to 2.71 percent during the same period of 2006, a 92 basis point increase. The taxable-equivalent net yield increased 5 basis points to 3.65 percent.
 
The provision for credit losses equaled $6.7 million during the first quarter of 2006, an increase of $1.4 million or 26.5 percent from the same period of 2005. The higher provision for credit losses resulted principally from higher net charge-offs. Net charge-offs in the first quarter of 2006 totaled $5.4 million compared to $3.5 million during the first quarter of 2005, a $1.9 million increase. Annualized net charge-offs were adversely impacted in the first quarter of 2006 by losses sustained on a single relationship. Net charge-offs for the first quarter of 2006 represented 0.22 percent of average loans compared to 0.15 percent for the same period of 2005.
 
Noninterest income was $65.7 million during the first quarter of 2006, a $4.5 million or 7.4 percent increase over 2005. The increase reflected the improvements in cardholder and merchant services income, trust and asset management fees and commission income.
 
Noninterest expense was $131.7 million during the first quarter of 2006, an increase of $10.4 million or 8.5 percent. Salaries and wages increased $4.8 million or 9.3 percent over the same period of 2005, the result of additional staff, merit and incentive compensation. Cardholder processing expenses increased $1.6 million or 21.5 percent as compared to the same period of 2005 due to volume growth. Occupancy expense increased $1.4 million or 12.6 percent primarily due to IronStone Bank’s franchise expansion. Employee benefits expense increased $1.4 million or 11.4 percent due to higher health care costs.
 
As of March 31, 2006, First Citizens had total assets of $15.1 billion. Two of BancShares' major subsidiaries are First Citizens Bank with 339 branches in North Carolina, Virginia, West Virginia, Maryland and Tennessee, and IronStone Bank with 54 branches in Florida, Georgia, Texas, New Mexico, Colorado, Arizona, California, Oregon and Washington. For more information, visit First Citizens’ web site at firstcitizens.com.
 
 
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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 share data; unaudited)
          
2006
   
2005
 
Interest income
        
$
190,001
  
$
148,245
  
Interest expense
          
72,183
   
42,578
 
Net interest income
          
117,818
   
105,667
 
Provision for credit losses
          
6,737
   
5,326
 
Net interest income after provision for credit losses
          
111,081
   
100,341
 
Noninterest income
          
65,749
   
61,223
 
Noninterest expense
          
131,712
   
121,345
 
Income before income taxes
          
45,118
   
40,219
 
Income taxes
          
16,461
   
15,222
 
Net income
        
$
28,657
  
$
24,997
  
Taxable-equivalent net interest income
        
$
118,226
  
$
106,014
  
Net income per share
        
$
2.75
  
$
2.40
  
Cash dividends per share
          
0.275
   
0.275
 
Profitability Information (annualized)
                    
Return on average assets
          
0.79
%
  
0.76
%
Return on average equity
          
9.75
   
9.26
 
Taxable-equivalent net yield on interest-earning assets
         
3.65
   
3.60
 
CONDENSED BALANCE SHEETS
  
 
    
March 31
    
December 31
    
March 31
  
(thousands, except share data; unaudited)
    
2006
    
2005
    
2005
  
Cash and due from banks
  
$
805,757
  
$
777,928
  
$
599,358
  
Investment securities
    
2,896,962
   
2,929,516
   
2,187,374
 
Loans and leases
    
9,810,088
   
9,642,994
   
9,404,742
 
Allowance for loan and lease losses
    
(130,222
)
  
(128,847
)
  
(125,710
)
Other assets
    
1,712,625
   
1,417,801
   
1,526,911
 
Total assets
  
$
15,095,210
  
$
14,639,392
  
$
13,592,675
  
Deposits
  
$
12,512,557
  
$
12,173,858
  
$
11,629,382
  
Other liabilities
    
1,379,287
   
1,284,475
   
860,725
 
Shareholders' equity
    
1,203,366
   
1,181,059
   
1,102,568
 
Total liabilities and shareholders' equity
  
$
15,095,210
  
$
14,639,392
  
$
13,592,675
  
Book value per share
  
$
115.33
  
$
113.19
  
$
105.67
  
Tangible book value per share
    
104.55
   
102.35
   
94.66
 
SELECTED AVERAGE BALANCES
  
Three Months Ended March 31     
 
(thousands, except shares outstanding; unaudited)
          
2006
    
2005
  
Total assets
        
$
14,694,936
  
$
13,309,802
  
Investment securities
          
2,896,711
   
2,072,316
 
Loans and leases
          
9,705,443
   
9,357,480
 
Interest-earning assets
          
13,129,313
   
11,929,086
 
Deposits
          
12,192,664
   
11,379,079
 
Interest-bearing liabilities
          
10,794,420
   
9,640,417
 
Shareholders' equity
        
$
1,191,820
  
$
1,094,213
  
Shares outstanding
          
10,434,453
   
10,434,453
 
ASSET QUALITY
  
 
    
March 31
    
December 31
    
March 31
  
(dollars in thousands; unaudited)
    
2006
    
2005
    
2005
  
Nonaccrual loans and leases
  
$
15,844
  
$
18,969
  
$
15,344
  
Other real estate
    
5,573
   
6,753
   
7,533
 
Total nonperforming assets
  
$
21,417
  
$
25,722
  
$
22,877
  
Accruing loans and leases 90 days or more past due
  
$
6,729
  
$
9,180
  
$
7,480
  
Nonperforming assets to gross loans plus other real estate
    
0.22
%
  
0.27
%
  
0.24
%
Allowance for credit losses to total loans and leases
    
1.40
   
1.41
   
1.41
 
Net charge-offs to average loans and leases (annualized)
    
0.22
   
0.28
   
0.15
 
CAPITAL INFORMATION
  
 
    
March 31
    
December 31
    
March 31
  
(dollars in thousands; unaudited)
    
2006
    
2005
    
2005
  
Tier 1 capital
  
$
1,346,526
  
$
1,320,152
  
$
1,239,068
  
Total capital
    
1,616,974
   
1,588,141
   
1,375,558
 
Risk-weighted assets
    
10,756,869
   
10,510,254
   
10,197,287
 
Tier 1 capital ratio
    
12.52
%
  
12.56
%
  
12.15
%
Total capital ratio
    
15.03
   
15.11
   
13.49
 
Leverage capital ratio
    
9.23
   
9.17
   
9.39