COLUMBIA, S.C., July 22 /PRNewswire-FirstCall/ -- First Citizens
Bancorporation, Inc. (OTC Bulletin Board: FCBN) (herein referred to as
"Bancorporation") reports consolidated net income for the quarter ended
June 30, 2005 of $11.20 million.
Net income. Net income for the quarter ended June 30, 2005 was
$11.20 million compared to $8.08 million for the quarter ended June 30, 2004.
The increase in net income was primarily driven by an increase in net interest
income of $4.69 million. During the quarter, net interest income after
provision for loan losses increased by $6.57 million, partially offset by a
decrease in noninterest income of $1.36 million and an increase in noninterest
expense of $217 thousand.
Condensed Balance Sheet. Total assets increased from $4.53 billion as of
December 31, 2004 to $4.99 billion as of June 30, 2005. Total deposits as of
June 30, 2005 were $4.13 billion compared to $3.85 billion as of December 31,
2004. Gross loans as of June 30, 2005 were $3.31 billion compared to $3.12
billion as of December 31, 2004. On May 1, 2005, First Citizens Bank and
Trust Company, Inc. ("First Citizens Bank") completed its acquisition of
People's Community Capital Corporation ("PCCC"). As a result of the PCCC
acquisition, total loans of $81.43 million, deposits of $106.84 million, and
goodwill of $23.43 million were recorded.
Long-term debt increased from $125.36 million as of December 31, 2004 to
$205.87 million as of June 30, 2005. The increase primarily related to the
issuance and sale on April 5, 2005 of $75 million principal amount of
subordinated notes due April 1, 2015. The remainder of the increase related
to long-term debt acquired in the PCCC acquisition.
Other assets increased from $119.66 million as of December 31, 2004 to
$268.79 million as of June 30, 2005. The increase primarily related to the
funding by First Citizens Bank of a trust account on June 30, 2005 in the
amount of $108.66 million to pay shareholders in connection with the
acquisition of Summit Financial Corporation. The acquisition became effective
on July 1, 2005.
Net interest income. During the second quarter of 2005, net interest
income increased by $4.69 million to $42.28 million or by 12.47%, from
$37.60 million for the quarter ended June 30, 2004. The increase in net
interest income was primarily due to earning asset growth. Average earning
assets grew by 11.60% from $4.06 billion as of June 30, 2004 compared to $4.53
billion as of June 30, 2005, an increase of $471 million. The most
significant component of earning asset growth was in loans.
Provision for loan losses. For the comparable quarters, provision for
loan losses decreased by $1.88 million. The decline was due to a decline in
net charge-offs from $1.71 million for the quarter ended June 30, 2004 to
$836 thousand for the quarter ended June 30, 2005 and a continuing decline in
the net charge-off ratio.
Noninterest income and expense. For the comparable quarters, noninterest
income decreased $1.36 million or by 8.66%. The most significant components
of the change in noninterest income were a $1.35 million decrease in mortgage
income and a $662 thousand decrease in the gain on sale of investment
securities, partially offset by an increase of $413 thousand in service
charges on deposits.
The decrease in mortgage income was primarily related to a $1.52 million
increase in amortization expense on mortgage serving rights. The increase in
amortization expense was primarily related to the recording of impairment
during the quarter ended June 30, 2005 totaling $307 thousand compared to
recapture of impairment of $1.22 million recorded during the quarter ended
June 30, 2004.
Noninterest expense increased $217 thousand or by .57% over the comparable
quarter in 2004. The most significant components of the change in noninterest
expense were a $720 thousand increase in salaries and employee benefits, a
$359 thousand increase in net occupancy expense and a $249 thousand increase
in furniture and equipment expense, partially offset by decreases of $1.12
million in other noninterest expense and a net $292 thousand in amortization
expense. The increase in salary expense is primarily due to increases in
salaries related to the PCCC acquisition and increases in employee benefits
costs. The increase in net occupancy and furniture and equipment expense
relates primarily to an increase in depreciation expense of $529 thousand.
Other noninterest expense declined primarily due to $1.02 million in branding
campaign expenses incurred in the second quarter of 2004 which were not
incurred in 2005. The net decrease in amortization expense is primarily due
to the run off of core deposit intangible on prior acquisitions.
Net income for the six months ended June 30, 2005. For the six months
ended June 30, 2005, consolidated net income was $21.16 million compared to
$16.40 million for the six months ended June 30, 2004. Net income increased
for the six months ended June 30, 2005, due to an $8.80 million increase in
net interest income after provision for loan losses, and a $132 thousand
increase in noninterest income, partially offset by a $1.27 million increase
in noninterest expense. Net interest income after provision for loan losses
was $79.79 million for the six months ended June 30, 2005, an increase of
$8.80 million over the same period in 2004. Net interest income after
provision for loan losses and noninterest expense increased for the same
reasons explained above for the quarter ended June 30, 2005. The more
significant changes in noninterest income consisted of a $725 thousand
increase in the gain on sale of fixed assets, a $219 thousand increase in
bankcard fees, partially offset by a decrease in the gain on sale of
investment securities of $911 thousand.
Dividends declared. At its meeting held today, the Board of Directors of
Bancorporation declared a second quarter common stock dividend of $0.35 per
share for shareholders of record as of August 15, 2005, payable August 25,
2005.
Acquisition of Summit Financial Corporation. On July 1, 2005,
Bancorporation announced that First Citizens Bank completed its acquisition of
Summit Financial Corporation. Total assets of $351.69 million, total loans of
$255.42 million and total deposits of $267.62 million were acquired as a
result of the transaction.
First Citizens Bancorporation, Inc. is a three-bank financial holding
company headquartered in Columbia, South Carolina, with $4.99 billion in total
consolidated assets as of June 30, 2005. For more information, visit the First
Citizens web site at http://www.firstcitizensonline.com.
This discussion may contain statements that could be deemed forward-
looking statements within the meaning of Section 21E of the Securities
Exchange Act of 1934 and the Private Securities Litigation Reform Act, which
statements are inherently subject to risks and uncertainties. Forward-looking
statements are statements that include projections, predictions, expectations
or beliefs about future events or results, or otherwise are not statements of
historical fact. Such statements are often characterized by the use of the
qualifying words (and their derivatives) such as "expect," "believe,"
"estimate," "plan," "project," "anticipate," or other statements concerning
opinions or judgments of Bancorporation and its management about future
events. Factors that could influence the accuracy of such forward-looking
statements include, but are not limited to, the financial success or changing
strategies of Bancorporation's customers, competition, deposit attrition,
actions of government regulators, the level of market interest rates, general
economic conditions, and risks, uncertainties, and other factors described
from time to time in Bancorporation's periodic reports filed with the United
States Securities and Exchange Commission.
CONDENSED STATEMENTS OF INCOME
(thousands, except per share data; unaudited)
Quarter ended June 30, Six months ended June 30,
2005 2004 2005 2004
Interest income $60,381 $48,801 $115,338 $97,526
Interest expense 18,099 11,206 33,111 22,378
Net interest income 42,282 37,595 82,227 75,148
Provision for loan
losses 1,121 3,002 2,439 4,156
Net interest income
after provision for
loan losses 41,161 34,593 79,788 70,992
Noninterest income 14,370 15,732 28,871 28,739
Noninterest expense 38,034 37,817 75,605 74,339
Income before income
tax expense 17,497 12,508 33,054 25,392
Income tax expense 6,299 4,428 11,899 8,988
Net income $11,198 $8,080 $21,155 $16,404
Net income per share $12.41 $8.90 $23.44 $18.05
Cash dividends paid
per share $0.35 $0.35 $0.70 $0.70
Profitability information
(annualized):
Return on average
assets 0.91% 0.73% 0.88% 0.75%
Return on average
equity 11.67 9.27 11.22 9.47
Taxable-equivalent
net yield on average
interest-earning
assets 3.76 3.74 3.76 3.76
CONDENSED BALANCE SHEET
(thousands, except per share data; unaudited)
June 30, December 31,
2005 2004
Cash and due from banks $192,982 $162,620
Federal funds sold 118,222 111,554
Investment securities 978,841 904,419
Loans and leases, net 3,305,629 3,124,197
Allowance for loan losses (45,100) (43,623)
Premises and equipment, net 171,980 154,823
Other assets 268,792 119,661
Total assets $4,991,346 $4,533,651
Deposits $4,131,255 $3,848,373
Long-term debt 205,874 125,361
Other liabilities 265,199 190,461
Stockholders' equity 389,018 369,456
Total liabilities and stockholders' equity $4,991,346 $4,533,651
Book value per share $429.31 $407.54
SELECTED AVERAGE BALANCES
(thousands; unaudited)
Quarter ended June 30, Six months ended June 30,
2005 2004 2005 2004
Total assets $4,957,747 $4,439,195 $4,838,359 $4,420,910
Investment
securities 972,982 904,207 951,488 913,320
Loans and leases,
net 3,252,600 3,016,043 3,200,431 2,983,888
Interest-earning
assets 4,532,136 4,061,043 4,424,721 4,042,782
Deposits 4,114,019 3,789,739 4,053,502 3,792,192
Interest-bearing
liabilities 3,768,892 3,371,086 3,675,942 3,370,780
Stockholders'
equity 384,870 350,743 380,319 348,195
SOURCE First Citizens Bancorporation of South Carolina, Inc.
 back to top
Related links:
http://www.firstcitizensonline.com
CONTACT:
Craig L. Nix, Chief Financial Officer of
First Citizens Bank, +1-803-733-2659
|
