FORM 10-Q
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
QUARTERLY REPORT UNDER SECTION 13 OR 15(D)
OF THE SECURITIES EXCHANGE ACT OF 1934
| For the quarter ended March 31, 2004 | Commission File Number 0-11172 |
FIRST CITIZENS BANCORPORATION, INC.
(Exact name of registrant as specified in its charter)
| South Carolina | 57-0738665 | |
| (State or other jurisdiction of incorporation or organization) |
(IRS Employer Identification No.) | |
| 1225 Lady Street Columbia, South Carolina |
29201 | |
| (Address of principal executive offices) | (Zip Code) | |
Registrant’s telephone number, including area code (803) 733-3456
First Citizens Bancorporation of South Carolina, Inc.
(Former name, former address and former fiscal year, if changed since last report.)
Indicate by check mark whether the Registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the Registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. YES x NO ¨
Indicate by check mark whether the Registrant is an accelerated filer (as defined in Rule 12b-2 of the Act). YES x NO ¨
Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date.
| Class |
Outstanding at April 30, 2004 | |
| Voting Common Stock, $5.00 Par Value | 867,800 Shares | |
| Non-Voting Common Stock, $5.00 Par Value | 36,409 Shares |
PART1-FINANCIAL INFORMATION
Item 1. Financial Statements
FIRST CITIZENS BANCORPORATION INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CONDITION-UNAUDITED (Dollars in thousands, except per values)
| MARCH 31, 2004 |
DECEMBER 31, 2003 |
MARCH 31, 2003 |
||||||||||
| ASSETS |
||||||||||||
| Cash and due from banks |
$ | 146,275 | $ | 179,951 | $ | 153,078 | ||||||
| Federal funds sold |
148,712 | 41,379 | 236,324 | |||||||||
| Total cash and cash equivalents |
294,987 | 221,330 | 389,402 | |||||||||
| Investment securities: |
||||||||||||
| Held-to-maturity, at amortized cost (fair value March 31, 2004-$17,418 December 31, 2003-$20,064; and March 31, 2003-$30,732) |
17,116 | 19,766 | 30,046 | |||||||||
| Available-for-sale, at fair value |
907,346 | 902,463 | 883,161 | |||||||||
| Total investment securities |
924,462 | 922,229 | 913,207 | |||||||||
| Gross loans |
2,973,943 | 2,939,989 | 2,413,447 | |||||||||
| Less: Allowance for loan losses |
(50,892 | ) | (51,268 | ) | (43,304 | ) | ||||||
| Net loans |
2,923,051 | 2,888,721 | 2,370,143 | |||||||||
| Premises and equipment, net |
140,968 | 134,756 | 111,990 | |||||||||
| Interest receivable |
17,081 | 16,429 | 17,071 | |||||||||
| Goodwill |
24,548 | 24,525 | 4,490 | |||||||||
| Intangible assets |
42,808 | 45,876 | 39,022 | |||||||||
| Other assets |
44,201 | 47,594 | 39,608 | |||||||||
| Total assets |
$ | 4,412,106 | $ | 4,301,460 | $ | 3,884,933 | ||||||
| LIABILITIES AND STOCKHOLDERS’ EQUITY |
||||||||||||
| Liabilities: |
||||||||||||
| Deposits: |
||||||||||||
| Demand |
$ | 695,837 | $ | 651,332 | $ | 621,313 | ||||||
| Time and savings |
3,114,580 | 3,062,890 | 2,724,317 | |||||||||
| Total deposits |
3,810,417 | 3,714,222 | 3,345,630 | |||||||||
| Short-term borrowings and securities sold under agreements to repurchase |
153,033 | 148,864 | 146,558 | |||||||||
| Long-term debt |
73,814 | 73,814 | 52,139 | |||||||||
| Other liabilities |
26,491 | 24,977 | 29,987 | |||||||||
| Total liabilities |
4,063,755 | 3,961,877 | 3,574,314 | |||||||||
| Commitments and contingencies |
— | — | — | |||||||||
| Stockholders’ equity: |
||||||||||||
| Preferred stock |
3,111 | 3,111 | 3,173 | |||||||||
| Non-voting common stock - $5.00 par value, authorized 1,000,000; issued and outstanding March 31, 2004, December 31, 2003 and March 31, 2003 - 36,409 |
182 | 182 | 182 | |||||||||
| Voting common stock - $5.00 par value, authorized 2,000,000; issued and outstanding March 31, 2004 - 867,800; December 31, 2003 - 869,072; and March 31, 2003 - 872,857 |
4,339 | 4,345 | 4,364 | |||||||||
| Surplus |
65,081 | 65,081 | 65,081 | |||||||||
| Undivided profits |
254,955 | 247,647 | 220,217 | |||||||||
| Accumulated other comprehensive income, net of deferred taxes of $11,137 at March 31, 2004; $10,348 at December 31, 2003; and $9,478 at March 31, 2003 |
20,683 | 19,217 | 17,602 | |||||||||
| Total stockholders’ equity |
348,351 | 339,583 | 310,619 | |||||||||
| Total liabilities and stockholders’ equity |
$ | 4,412,106 | $ | 4,301,460 | $ | 3,884,933 | ||||||
See accompanying Notes to the Consolidated Financial Statements
Page 2
FIRST CITIZENS BANCORPORATION INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CONDITION-UNAUDITED
-(Dollars in thousands, except per values)
| FOR THE QUARTER ENDED | ||||||
| 2004 |
2003 | |||||
| Interest income: |
||||||
| Interest and fees on loans |
$ | 43,049 | $ | 40,163 | ||
| Interest on investment securities: |
||||||
| Taxable |
5,199 | 6,985 | ||||
| Non-taxable |
118 | 143 | ||||
| Federal funds sold |
359 | 626 | ||||
| Total interest income |
48,725 | 47,917 | ||||
| Interest expense: |
||||||
| Interest on deposits |
9,372 | 11,193 | ||||
| Interest on short-term borrowings |
308 | 360 | ||||
| Interest on long-term debt |
1,492 | 1,079 | ||||
| Total interest expense |
11,172 | 12,632 | ||||
| Net interest income |
37,553 | 35,285 | ||||
| Provision for loan losses |
1,154 | 938 | ||||
| Net interest income after provision for loan losses |
36,399 | 34,347 | ||||
| Noninterest income: |
||||||
| Service charges on deposits |
8,687 | 7,941 | ||||
| Commissions and fees from fiduciary activities |
768 | 810 | ||||
| Fees for other customer services |
434 | 376 | ||||
| Mortgage income |
323 | 1,609 | ||||
| Bankcard discount and fees |
1,470 | 1,413 | ||||
| Insurance premiums |
456 | 468 | ||||
| Gain on sale of investment securities |
282 | — | ||||
| Other |
588 | 530 | ||||
| Total noninterest income |
13,008 | 13,147 | ||||
| Noninterest expense: |
||||||
| Salaries and employee benefits |
18,311 | 16,760 | ||||
| Net occupancy expense |
2,994 | 2,604 | ||||
| Furniture and equipment expense |
1,975 | 1,577 | ||||
| Bankcard processing fees |
1,650 | 1,511 | ||||
| Data processing fees |
3,119 | 2,721 | ||||
| Amortization expense |
2,265 | 1,827 | ||||
| Other |
6,207 | 5,024 | ||||
| Total noninterest expense |
36,521 | 32,024 | ||||
| Income before income tax expense |
12,886 | 15,470 | ||||
| Income tax expense |
4,562 | 5,507 | ||||
| Net income |
$ | 8,324 | $ | 9,963 | ||
| Net income per common share - basic and diluted |
$ | 9.16 | $ | 10.91 | ||
| Weighted average common shares outstanding-basic and diluted |
904,700 | 909,599 | ||||
| Cash dividends paid per common share |
$ | 0.35 | $ | 0.25 | ||
See accompanying Notes to the Consolidated Financial Statements.
Page 3
FIRST CITIZENS BANCORPORATION, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY AND ACCUMULATED OTHER COMPREHENSIVE INCOME – UNAUDITED
(Dollars in thousands)
| PREFERRED STOCK |
NON- VOTING |
VOTING COMMON STOCK |
SURPLUS |
UNDIVIDED PROFITS |
ACCUMULATED OTHER COMPREHENSIVE INCOME/(LOSS) |
TOTAL STOCKHOLDERS’ EQUITY |
||||||||||||||||||||
| Balance at December 31, 2002 |
$ | 3,173 | $ | 182 | $ | 4,374 | $ | 65,081 | $ | 211,264 | $ | 19,510 | $ | 303,584 | ||||||||||||
| Comprehensive income: |
||||||||||||||||||||||||||
| Net income |
9,963 | 9,963 | ||||||||||||||||||||||||
| Change in unrealized gains (losses) on investment securities available-for-sale, net of benefit of $1,027 |
(1,908 | ) | (1,908 | ) | ||||||||||||||||||||||
| Total comprehensive income |
8,055 | |||||||||||||||||||||||||
| Reacquired voting common stock |
(10 | ) | (751 | ) | (761 | ) | ||||||||||||||||||||
| Common stock dividends |
(218 | ) | (218 | ) | ||||||||||||||||||||||
| Preferred stock dividends |
(41 | ) | (41 | ) | ||||||||||||||||||||||
| Balance at March 31, 2003 |
3,173 | 182 | 4,364 | 65,081 | 220,217 | 17,602 | 310,619 | |||||||||||||||||||
| Comprehensive income: |
||||||||||||||||||||||||||
| Net income |
29,920 | 29,920 | ||||||||||||||||||||||||
| Change in unrealized gains (losses) on investment securities available-for-sale, net of tax of $868 |
1,615 | 1,615 | ||||||||||||||||||||||||