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 26, 2004
First Citizens BancShares, Inc.
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(Exact name of registrant as specified in its charter)
Delaware 0-16471 56-1528994
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(State or other jurisdiction (Commission (IRS Employer Identification
of incorporation) File Number) Number)
3128 Smoketree Court; Raleigh, North Carolina 27604
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(Addreess of principal exectuive offices) (Zip Code)
Registrant's phone number including area code: 919-716-7000
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Item 7. Financial Statements and Exhibits.
(c) Exhibits. The following exhibit is being filed with this Report:
Exhibit No. Exhibit Description
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99 Copy of press release dated April 26, 2004
Item 9. Regulation FD Disclosure (Being furnished under both Item 9 and
Item 12).
On April 26, 2004, Registrant announced its results of operations
for the quarter ended March 31, 2004. 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.
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(Registrant)
Date: April 26, 2004 By: /S/Kenneth A. Black
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Kenneth A.Black
Vice President
Exhibit 99
4/26/2004
For Immediate Release Contact: Barbara Thompson
April 26, 2004 First Citizens Bank
(919) 716-2716
FIRST CITIZENS REPORTS EARNINGS FOR FIRST QUARTER 2004
RALEIGH, N.C. - First Citizens BancShares Inc. (Nasdaq: FCNCA) reports earnings
for the quarter ending March 31, 2004, of $17.3 million compared to $18.3
million for the corresponding period of 2003, a decrease of 5.3 percent,
according to Lewis R. Holding, chairman of the board.
Per share income for the first quarter 2004 totaled $1.66 compared to $1.75 for
the same period a year ago. First Citizens' current quarter results generated an
annualized return on average assets of 0.56 percent and an annualized return on
average equity of 6.72 percent, compared to respective returns of 0.62 percent
and 7.61 percent for the same period of 2003.
The decline in net income for the first quarter resulted from higher noninterest
expense and provision for loan losses, partially offset by increases in net
interest and noninterest income. Noninterest expense was $118.9 million during
the first quarter of 2004, an increase of $8.0 million or 7.2 percent. The
continued growth and expansion of the IronStone Bank branch network
significantly impacted the rate of increase in noninterest expenses. Salary
expense increased $2.9 million or 6.1 percent over the same period of 2003,
while occupancy expense grew $1.1 million or 10.7 percent over 2003. Other
expenses increased $2.1 million or 7.3 percent as compared to the same period of
2003, due primarily to higher cardholder processing costs.
Net interest income increased $3.6 million or 4.0 percent from the same period
of 2003, due to strong growth in loan demand throughout First Citizens' markets.
Gross loans increased $290.4 million or 3.5 percent during the first quarter of
2004 and $912.5 million or 11.8 percent since March 31, 2003. Average
interest-earning assets increased $397.7 million or 3.7 percent from the first
quarter of 2003 to the first quarter of 2004.
The taxable-equivalent yield on interest earning assets fell from 4.95 percent
during the first quarter of 2003 to 4.47 percent during the first quarter of
2004, a 48 basis point reduction. The lower asset yields resulted from continued
repricing of loans to current market rates. Offsetting the yield reduction, the
rate on total interest-bearing liabilities fell from 1.86 percent during the
first quarter of 2003 to 1.36 percent during the same period of 2004, a 50 basis
point reduction. The taxable-equivalent net yield stabilized during the past two
quarters due to renewed loan growth. Noninterest income was $61.5 million during
the first quarter of 2004, a $5.5 million or 9.8 percent increase over the same
period of 2003. The 2004 increase includes a $2.8 million increase in gains on
securities transactions. Cardholder and merchant services income increased $1.7
million or 14.1 percent during 2004. Growth was also noted in service-charge and
trust income.
The provision for loan losses was $7.8 million during the first quarter of 2004,
an increase of $2.3 million or 41.1 percent over the same period of 2003. The
higher provision for loan losses resulted from reserves established due to
growth in the loan portfolio and higher net charge-offs. Net charge-offs during
the first quarter of 2004 totaled $5.2 million compared to $4.7 million during
the first quarter of 2003. Net charge-offs in both periods represent 0.25
percent of average loans. As of March 31, 2004, First Citizens had total assets
of $12.71 billion. Two of BancShares' major subsidiaries are First Citizens Bank
with 337 branches in North Carolina, Virginia and West Virginia, and IronStone
Bank with 45 branches in Florida, Georgia, 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 March 31
(thousands, except share data; unaudited) 2004 2003
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Interest income $ 123,694 $ 131,074
Interest expense 31,227 42,158
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Net interest income 92,467 88,916
Provision for loan losses 7,847 5,563
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Net interest income after provision for loan losses 84,620 83,353
Noninterest income 61,543 56,049
Noninterest expense 118,896 110,944
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Income before income taxes 27,267 28,458
Income taxes 9,936 10,164
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Net income $ 17,331 $ 18,294
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Taxable-equivalent net interest income $ 92,758 $ 89,200
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Net income per share $ 1.66 $ 1.75
Cash dividends per share 0.275 0.275
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Profitability Information (annualized)
Return on average assets 0.56 % 0.62 %
Return on average equity 6.72 7.61
Taxable-equivalent net yield on interest-earning assets 3.35 3.37
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CONDENSED BALANCE SHEETS
March 31 December 31 March 31
(thousands, except share data; unaudited) 2004 2003 2003
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Cash and due from banks $ 639,658 $ 790,168 $ 753,578
Investment securities 2,150,738 2,469,447 2,362,130
Loans 8,616,987 8,326,598 7,704,492
Reserve for loan losses (121,957) (119,357) (113,382)
Other assets 1,421,529 1,093,052 1,681,923
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Total assets $12,706,955 $12,559,908 $12,388,741
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Deposits $10,795,536 $10,711,332 $10,594,380
Other liabilities 864,336 819,271 810,726
Shareholders' equity 1,047,083 1,029,305 983,635
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Total liabilities and shareholders' equity $12,706,955 $12,559,908 $12,388,741
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Book value per share $ 100.33 $ 98.63 $ 93.95
Tangible book value per share 89.25 87.56 83.39
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SELECTED AVERAGE BALANCES
Three Months Ended March 31
(thousands, except shares outstanding; unaudited) 2004 2003
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Total assets $12,508,227 $12,054,717
Investment securities 2,340,956 2,476,426
Loans 8,454,599 7,642,673
Interest-earning assets 11,138,812 10,741,160
Deposits 10,634,865 10,283,143
Interest-bearing liabilities 9,210,244 9,173,567
Shareholders' equity 1,037,260 974,900
Shares outstanding 10,436,345 10,472,065
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ASSET QUALITY
March 31 December 31 March 31
(dollars in thousands; unaudited) 2004 2003 2003
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Nonaccrual loans $ 13,969 $ 18,190 $ 16,988
Other real estate 6,202 5,949 8,155
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Total nonperforming assets $ 20,171 $ 24,139 $ 25,143
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Accruing loans 90 days or more past due $ 16,220 $ 11,492 $ 7,349
Nonperforming assets to gross loans plus other real estate 0.23% 0.29% 0.33%
Reserve for loan losses to gross loans 1.42 1.43 1.47
Net charge-offs to average total loans (annualized) 0.25 0.23 0.25
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CAPITAL INFORMATION
March 31 December 31 March 31
(dollars in thousands; unaudited) 2004 2003 2003
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Tier 1 capital $ 1,167,526 $ 1,152,309 $ 1,112,607
Total capital 1,292,265 1,273,657 1,222,490
Risk-weighted assets 9,257,813 8,951,402 8,275,456
Tier 1 capital ratio 12.61% 12.87% 13.44%
Total capital ratio 13.96 14.23 14.77
Leverage capital ratio 9.42 9.34 9.30
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