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 quarterly period ended SEPTEMBER 30, 1994 Commission File Number
0-11172
FIRST CITIZENS BANCORPORATION OF SOUTH CAROLINA, INC.
(Exact name of registrant as specified in its charter)
STATE OF SOUTH CAROLINA 57-0738665
(State or other jurisdiction of (IRS Employer Identification No.)
incorporation or organization)
1230 MAIN STREET
COLUMBIA, SOUTH CAROLINA 29201
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code (803) 733-3456
NO CHANGE
(Former name or former address,
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 the number of shares outstanding of each of the issuer's classes of
common stock, as of the latest practicable date.
Class Outstanding at October 31, 1994
COMMON STOCK, $5.00 PAR VALUE 892,813 SHARES
NON-VOTING COMMON STOCK, $5.00 PAR VALUE 50,720 SHARES
PAGE 2
PART I - FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
CONSOLIDATED BALANCE SHEET - UNAUDITED (dollars in thousands)
September 30, September 30,
1994 December 31, 1993
(Unaudited) 1993 (Unaudited)
ASSETS
Cash and due from banks:
Noninterest-bearing $79,439 $96,442 $82,440
Interest-bearing 14,200 14,950 15,200
Total cash and due from banks 93,639 111,392 97,640
Investment securities:
Held-to-maturity 471,540 467,977 491,807
Available-for-sale 11,002 0 0
Total securities 482,542 467,977 491,807
Federal funds sold 0 0 0
Gross loans and discounts
Real estate - construction 13,468 18,952 18,477
Real estate - mortgage 555,265 509,314 478,746
Installment 263,188 253,874 244,403
Commercial, financial and agricultural 88,192 98,863 94,499
Less: Unearned interest 0 0 (1)
Less: Reserve for loans losses (18,880) (18,061) (17,098)
Net loans and discounts 901,233 862,942 819,026
Premises and equipment 40,573 36,853 37,644
Other real estate owned 544 410 1,373
Interest income accrued, not collected 9,781 10,651 10,232
Intangible assets 16,464 14,584 15,368
Other assets 13,834 14,169 11,987
TOTAL ASSETS $1,558,610 $1,518,978 $1,485,077
LIABILITIES AND STOCKHOLDERS'
EQUITY
Deposits:
Demand $211,121 $208,606 $200,404
Time 399,486 478,246 387,389
Savings 776,034 649,514 718,001
Total deposits 1,386,641 1,336,366 1,305,794
Federal funds purchased 9,600 8,000 21,500
Securities sold under repurchase
agreements 36,623 63,206 47,656
Subordinated notes and term loan 13,650 14,400 14,650
Other liabilities 16,017 12,769 13,990
TOTAL LIABILITIES 1,462,531 1,434,741 1,403,590
Stockholders' Equity:
Preferred stock 3,282 3,282 3,282
Non-voting common stock - $5.00
par value, authorized 1,000,000;
issued and outstanding September 30,
1994 - 50,720, December 31, 1993 and
September 30, 1993 - 52,720 254 264 264
Voting common stock - $5.00 par
value, authorized 2,000,000;
issued and outstanding September
30, 1994, December 31, 1993 and
September 30, 1993 - 892,813 4,464 4,464 4,464
Surplus 55,000 55,000 55,000
Undivided profits 28,477 21,227 18,477
Unrealized gains 4,602 0 0
TOTAL STOCKHOLDERS' EQUITY 96,079 84,237 81,487
TOTAL LIABILITIES AND
STOCKHOLDERS' EQUITY $1,558,610 $1,518,978 $1,485,077
PAGE 3
CONSOLIDATED STATEMENT OF INCOME - UNAUDITED (dollars in thousands)
Quarter Ended Nine Months Ended
September 30, September 30,
% %
1994 1993 Change 1994 1993 Change
Interest income and fees:
Loans $19,376 $18,449 5.02% $56,035 $55,324 1.29%
United States Government
obligations 5,059 5,510 -8.19% 14,844 17,403 -14.70%
Tax exempt securities 579 635 -8.82% 1,805 1,519 18.83%
Other securities and
federal funds sold 283 309 -8.41% 1,018 1,069 -4.77%
25,297 24,903 1.58% 73,702 75,315 -2.14%
Interest expense:
Deposits 9,818 8,654 13.45% 27,097 27,179 -0.30%
Short-term borrowings 591 383 54.31% 1,659 1,150 44.26%
Long-term borrowings 231 270 -14.44% 711 813 -12.55%
10,640 9,307 14.32% 29,467 29,142 1.12%
Net interest income 14,657 15,596 -6.02% 44,235 46,173 -4.20%
Provision for loan losses 485 428 13.32% 1,643 1,884 -12.79%
Net interest income after
provision for loan losses 14,172 15,168 -6.57% 42,592 44,289 -3.83%
Noninterest income:
Service charges on deposit
accounts 2,649 2,633 0.61% 7,740 7,745 -0.06%
Fees for other customer
services 1,206 1,201 0.42% 3,463 3,615 -4.20%
Investment securities
transactions 0 0 0.00% 0 44 -100.00%
Other 842 759 10.94% 2,605 2,440 6.76%
4,697 4,593 2.26% 13,808 13,844 -0.26%
Noninterest expense:
Salaries and employee
benefits 7,004 6,789 3.17% 20,767 19,990 3.89%
Net occupancy expense of
premises 586 651 -9.98% 1,695 1,877 -9.70%
Furniture and equipment
expense 427 552 -22.64% 1,203 1,436 -16.23%
Depreciation expense 1,083 1,394 -22.31% 3,197 3,359 -4.82%
Amortization of
intangibles 1,165 920 26.63% 3,053 2,689 13.54%
Other 4,955 4,459 11.12% 15,231 13,331 14.25%
15,220 14,765 3.08% 45,146 42,682 5.77%
Income before income taxes
and cumulative effect
of a change in accounting
principle 3,649 4,996 -26.96% 11,254 15,451 -27.16%
Applicable income taxes 1,204 1,662 -27.56% 3,736 5,461 -31.59%
Income before cumulative
effect of a change in
accounting principle 2,445 3,334 -26.66% 7,518 9,990 -24.74%
Cumulative effect on prior
years (to December 31, 1992)
of changing to a different
method of accounting for
income taxes 0 0 0.00% 0 221 -100.00%
Net Income $2,445 $3,334 -26.66% $7,518 $10,211 -26.37%
Per share amounts:
Earnings per common
share:
Income before cumulative
effect of a change
in accounting principle $2.55 $3.48 -26.72% $7.82 $10.43 -25.02%
Cumulative effect on
prior years (to December
31, 1992) of changing to
a different method of
accounting for income
taxes 0.00 0.00 0.00% 0.00 0.23 -100.00%
Net income $2.55 $3.48 -26.72% $7.82 $10.66 -26.64%
Weighted average common
shares outstanding 944,598 945,533 -0.10% 945,225 945,533 -0.03%
PAGE 4
CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY (Dollars in thousands)
Non- Un- Total
Pre- Voting Voting Un- realized Stock-
ferred Common Common divided Gains holders
Stock Stock Stock Surplus Profits (Losses) Equity
Balance at December
31, 1992 $3,300 $264 $4,464 $40,000 $23,388 $71,416
Net income 10,211 10,211
Preferred stock
dividends (129) (129)
Transfer to surplus 15,000 (15,000) 0
Reacquired preferred
stock (18) 7 (11)
Balance at September
30, 1993 3,282 264 4,464 55,000 18,477 81,487
Net income 2,793 2,793
Preferred stock
dividends (43) (43)
Balance at December
31, 1993 3,282 264 4,464 55,000 21,227 84,237
Net income 7,518 7,518
Preferred stock
dividends (128) (128)
Reacquired non-voting
common stock (10) (140) (150)
Unrealized gains,
net of taxes 4,602 4,602
Balance at September
30, 1994 $3,282 $254 $4,464 $55,000 $28,477 $4,602 $96,079
PAGE 5
CONSOLIDATED STATEMENT OF CASH FLOWS - UNAUDITED (dollars in thousands)
Nine Months Ended
September 30,
1994 1993
Cash Flows From Operating Activities:
Net income $7,518 $10,211
Adjustments to reconcile net income to net cash
provided by operating activities:
Provision for loan losses 1,643 1,884
Depreciation and amortization 6,250 6,048
Amortization/accretion of investment
securities 39 1,251
Deferred income tax benefit 2,813 198
Gains on investment securities 0 (44)
Gains on sales of premises and equipment (97) (9)
Decrease in interest income accrued,
not collected 870 1,234
Increase (decrease) in accrued interest payable 132 (1,855)
Obligations of loans held for resale (29,353) (50,440)
Proceeds from sales of loans held for resale 32,137 49,153
Gains on sales of loans held for resale (210) (375)
Decrease (increase) in other assets (2,478) 2,339
Increase in other liabilities 1,606 371
Other operating activities (768) (716)
Net Cash Provided By Operating Activities 20,102 19,250
Cash Flows From Investing Activities:
Net increase in loans (42,718) (29,632)
Proceeds from maturities of investment securities 253,031 132,081
Purchases of investment securities (260,517) (165,045)
Proceeds from sales of premises and equipment 375 161
Purchases of premises and equipment (7,223) (5,517)
Net increase in other real estate owned (134) (1,057)
Increase in intangible assets (4,933) (583)
Net Cash Used In Investing Activities (62,119) (69,592)
Cash Flows From Financing Activities:
Net increase in deposits 50,275 22,669
(Decrease) increase in federal funds purchased
and securities sold under agreements to repurchase (24,983) 23,754
Payments on term loan (750) (750)
Cash dividends paid (128) (129)
Reacquired preferred stock 0 (11)
Reacquired common stock (150) 0
Net Cash Provided By Financing Activities 24,264 45,533
Decrease in cash and due from banks (17,753) (4,809)
Cash and due from banks at beginning of year 111,392 102,449
Cash and due from banks at September 30 $93,639 $97,640
Supplemental disclosures of cash flow information:
Interest paid $29,335 $30,997
Income taxes paid $2,428 $5,311
Unrealized appreciation in securities available-for-sale:
Securities available-for-sale $7,079 -
Shareholders' equity $4,602 -
Deferred taxes $2,477 -
PAGE 6
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
The foregoing financial statements are unaudited; however, in the opinion of
Management, all adjustments (comprising all normal recurring accruals)
necessary for a fair presentation of financial statements have been included.
A summary of Bancorporation's significant accounting policies is set forth in
Note 1 to the Consolidated Financial Statements in Bancorporation's Annual
Report on Form 10-K for 1993. The significant accounting policies used during
the current quarter are unchanged from those disclosed in the 1993 Annual
Report.
INCOME TAXES:
Effective January 1, 1993, Bancorporation adopted Statement of Financial
Accounting Standards No. 109 (SFAS 109), "Accounting for Income Taxes." The
adoption of SFAS 109 changes Bancorporation's method of accounting for income
taxes from the deferred method (APB 11) to an asset and liability approach.
Previously Bancorporation deferred the past tax effects of timing, differences
between financial reporting and taxable income. The asset and liability
approach requires the recognition of deferred tax liabilities and assets for
the expected future tax consequences of temporary differences between the
carrying amounts and the tax bases of other assets and liabilities. Further,
SFAS 109 requires a valuation allowance be provided against deferred tax
assets unless management considers it more likely than not that such assets
will be realized. Based on current facts and circumstances, management
believes that deferred tax assets are reasonably assured of realization
and, accordingly, does not believe that a valuation allowance is necessary.
The cumulative effect to Bancorporation's results of operations from the
implementation of the new accounting standard was $221,000.
Deferred tax assets and liabilities recorded pursuant to SFAS 109 are composed
of the following at:
SEPTEMBER 30, SEPTEMBER 30,
1994 1993
Provision for loan losses in excess
of amount deductible for taxes $6,437 $5,813
Other, net 739 676
Gross deferred tax asset 7,176 6,489
Book depreciation over tax 565 503
Interest income, accretion of bond
discount and expenses recognized
for books not taxed until realized 336 167
Deferred income and expense items
recognized in differing accounting periods 455 340
Pension plan 753 590
Unrealized gains on available-for-sale
securities 2,477
Other 194 350
Gross deferred tax liability 4,780 1,950
Net deferred tax asset $ 2,396 $ 4,539
INVESTMENT SECURITIES:
Bancorporation adopted Statement of Financial Accounting Standards No. 115
(SFAS 115), "Accounting for Certain Investments in Debt and Equity
Securities." Management has reviewed the investment securities portfolio
and classified all securities, except equity securities, as held-to-maturity
and carried at amortized cost since Bancorporation has both the positive
intent and ability to hold these securities to maturity. Equity securities,
as required by SFAS 115, are classified as available-for-sale and carried at
estimated fair value with unrealized gains and losses included in
stockholders' equity on an after-tax basis.
PAGE 7
PART I - FINANCIAL INFORMATION
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS
SUMMARY:
First Citizens Bancorporation reported net income of $2,445,000 for the third
quarter of 1994, a 26.66% decrease from the $3,334,000 for the third quarter a
year ago. Net income for the nine months ended September 30, 1994 was
$7,518,000, a 26.37% decrease from the $10,211,000 reported for the same
period in 1993. The downturn in earnings is attributable to the decline in
net interest margin and interest spreads, along with increased cost of
operations.
Average loans net of unearned interest for the quarter ended September 30,
1994 increased $83,845,000 or 10.09% when compared to the same period in 1993,
with a yield of 8.42% for the third quarter of 1994. Average taxable and
non-taxable investment securities for the third quarter of 1994 increased by
$19,563,000 or 4.07% from the third quarter of 1993, with a taxable equivalent
yield of 4.80% for the third quarter of 1994. Average loans net of unearned
interest for the nine months ended September 30, 1994 increased $72,079,000 or
8.75% from the same period in 1993, with a yield of 8.40% for the nine months
ended September 30, 1994. Average taxable and non-taxable investment
securities for the nine months ended September 30, 1994 increased by
$20,512,000 or 4.34% from the same period in 1993, with a taxable equivalent
yield of 4.81% for the first nine months of 1994.
Noninterest income increased by $104,000 or 2.26% and decreased slightly by
$36,000 or .26%, respectively, for the quarter and nine months ended September
30, 1994, as compared to the same periods in 1993. For the quarter and nine
months ended September 30, 1994, noninterest expense increased $455,000 or
3.08% and $2,464,000 or 5.77%, respectively, as compared to the same periods
in 1993. The increase in noninterest expense was primarily due to increased
automation services as a result of outsourcing the majority of data processing
and was offset by a decline in growth of salaries and benefits through staff
reductions and furniture and equipment expense.
Net income per common share for the quarter ended September 30, 1994 decreased
26.72% to $2.55, as compared to $3.48 for the third quarter of 1993. Net
income per common share for the nine months ended September 30, 1994 decreased
26.64% to $7.82, as compared to $10.66 for the same period in 1993.
Book value per common share as of September 30, 1994 increased 18.91% to
$98.35, as compared to $82.71 for the same period in 1993.
As illustrated in the following table, Tier 1 capital was 8.67% at September
30, 1994 as compared to 8.47% at September 30, 1993. Total risk based capital
was 10.81% at September 30, 1994 as compared to 10.97% at September 30, 1993.
The risk based capital ratios were calculated using the 1992 Final Rules as
defined by Federal regulators.
PAGE 8
SUMMARY (CONTINUED):
Components of Capital (dollars in thousands):
SEPTEMBER 30,
1994 1993
Stockholders' Equity:
Preferred stock $ 3,282 $ 3,282
Common stock 4,718 4,728
Surplus 55,000 55,000
Undivided profits 33,079 18,477
Total stockholders' equity 96,079 81,487
Reserve for possible loan losses 18,880 17,098
Total primary capital 114,959 98,585
Long-term debt qualifying as secondary capital 13,650 14,650
Total capital $128,609 $113,235
Tier I leverage ratio 5.04 4.75
Risk based capital ratio total 10.81 10.97
Tier I 8.67 8.47
Tier II 2.14 2.50
NET INTEREST INCOME:
Net interest income on a taxable equivalent basis was $15,017,000 for the
third quarter of 1994, a decrease of 6.10% from the $15,992,000 for the
comparable period in 1993. Net interest income on a taxable equivalent basis
was $45,438,000 for the nine months ended September 30, 1994, a decrease of
3.70% from the $47,186,000 for the comparable period in 1993.
The following table presents the components, of net interest income for the
quarter and nine months ended September 30, 1994 and 1993:
QUARTER ENDED NINE MONTHS ENDED
SEPTEMBER 30, SEPTEMBER 30,
1994 1993 1994 1993
Total interest income $25,297 $24,903 $73,702 $75,315
Total interest expense 10,640 9,307 29,467 29,142
Net interest income 14,657 15,596 44,235 46,173
Tax equivalent adjustment 360 396 1,203 1,013
Net interest income (taxable
equivalent basis) $15,017 $15,992 $45,438 $47,186
PAGE 9
NET INTEREST INCOME (CONTINUED):
Taxable Equivalent Rate/Volume Variance Analysis (Amounts in thousands):
Quarter Ended September 30,
Average Balance Interest Rev./Exp Yield
1994 1993 1994 1993 1994 1993
Interest-earning assets:
Loans, net of unearned
interest $914,831 $830,986 $19,425 $18,520 8.42% 8.84%
Taxable investment
securities 454,249 430,550 5,104 5,548 4.49% 5.15%
Non-taxable investment
securities 45,524 49,660 892 961 7.84% 7.74%
Federal funds sold 3,026 7,394 33 58 4.33% 3.11%
Other earning assets 14,246 18,131 203 212 5.65% 4.64%
Total interest
-earning assets 1,431,876 1,336,721 25,657 25,299 7.12% 7.52%
Noninterest-earning
assets:
Cash and due from banks 80,374 80,729
Premises and equipment 38,347 38,300
Other, less reserve
for loan losses 24,626 20,052
Total noninterest
-earning assets 143,347 139,081
TOTAL ASSETS $1,575,223 $1,475,802
Interest-bearing
liabilities:
Deposits $1,193,563 $1,112,111 9,818 8,654 3.26% 3.09%
Federal funds purchased
and securities sold
under agreements to
repurchase 51,121 51,517 592 383 4.59% 2.95%
Long-term debt 13,688 14,693 230 270 6.72% 7.35%
Total interest-bearing
liabilities 1,258,372 1,178,321 10,640 9,307 3.36% 3.13%
Noninterest-bearing
liabilities:
Demand deposits 206,793 202,777
Other liabilities 21,516 14,556
Total noninterest
-bearing liabilities 228,309 217,333
Stockholders' equity 88,542 80,148
TOTAL LIABILITIES AND
STOCKHOLDERS' EQUITY $1,575,223 $1,475,802 10,640 9,307
Net interest income $15,017 $15,992
Interest income to
interest-earning
assets 7.12% 7.52%
Interest expense to
interest-earning
assets 2.95% 2.76%
Net interest income
to interest-earning
assets 4.17% 4.76%
Quarter Ended September 30, 1994
Change Due To Net Increase
Rate Volume (Decrease)
Interest-earning assets:
Loans, net of unearned interest ($948) $1,853 $905
Taxable investment securities (749) 305 (444)
Non-taxable investment securities 11 (80) (69)
Federal funds sold 9 (34) (25)
Other earning assets 36 (45) (9)
Total interest-earning assets (1,641) 1,999 358
Interest-bearing liabilities:
Deposits 535 629 1,164
Federal funds purchased and securities
sold under agreements to repurchase 212 (3) 209
Long-term debt (22) (18) (40)
Total interest-bearing liabilities 725 608 1,333
Net interest income ($2,366) $1,391 ($975)
PAGE 10
NET INTEREST INCOME (CONTINUED):
Taxable Equivalent Rate/Volume Variance Analysis (Amounts in thousands):
Nine Months Ended September 30,
Average Balance Interest Rev./Exp. Yield
1994 1993 1994 1993 1994 1993
Interest-earning assets:
Loans, net of unearned
interest $895,438 $823,359 $56,266 $55,556 8.40% 9.02%
Taxable investment
securities 445,706 436,538 15,008 17,531 4.49% 5.35%
Non-taxable investment
securities 47,447 36,103 2,777 2,301 7.80% 8.50%
Federal funds sold 9,379 13,170 240 299 3.42% 3.04%
Other earning assets 14,499 15,382 614 641 5.66% 5.57%
Total interest-earning
assets 1,412,469 1,324,552 74,905 76,328 7.09% 7.70%
Noninterest-earning assets:
Cash and due from banks 77,813 78,479
Premises and equipment 37,092 37,992
Other, less reserve for
loan losses 22,836 23,600
Total noninterest-earning
assets 137,741 140,071
TOTAL ASSETS $1,550,210 $1,464,623
Interest-bearing
liabilities:
Deposits $1,163,139 $1,112,095 27,097 27,179 3.11% 3.27%
Federal funds purchased
and securities sold
under agreements to
repurchase 58,616 52,957 1,659 1,150 3.78% 2.90%
Long-term debt 13,935 14,943 711 813 6.80% 7.25%
Total interest-bearing
liabilities 1,235,690 1,179,995 29,467 29,142 3.19% 3.30%
Noninterest-bearing
liabilities:
Demand deposits 200,793 189,104
Other liabilities 16,545 15,027
Total noninterest-bearing
liabilities 217,338 204,131
Stockholders' equity 97,182 80,497
TOTAL LIABILITIES AND
STOCKHOLDERS' EQUITY $1,550,210 $1,464,623 29,467 29,142
Net interest income $45,438 $47,186
Interest income to
interest-earning assets 7.09% 7.70%
Interest expense to
interest-earning assets 2.79% 2.94%
Net interest income to
interest-earning assets 4.30% 4.76%
Nine Months Ended September 30, 1994
Change Due To Net Increase
Rate Volume (Decrease)
Interest-earning assets:
Loans, net of unearned interest ($4,167) $4,877 $710
Taxable investment securities (2,891) 368 (2,523)
Non-taxable investment securities (247) 723 476
Federal funds sold 27 (86) (59)
Other earning assets 10 (37) (27)
Total interest-earning assets (7,268) 5,845 (1,423)
Interest-bearing liabilities:
Deposits (1,333) 1,251 (82)
Federal funds purchased and securities
sold under agreements to repurchase 432 77 509
Long-term debt (47) (55) (102)
Total interest-bearing liabilities (948) 1,273 325
Net interest income ($6,320) $4,572 ($1,748)
PAGE 11
RESERVE FOR POSSIBLE LOAN LOSSES:
The reserve at September 30, 1994 was $18,880,000 or 2.05% of total loans as
compared to $17,098,000 or 2.05% of total loans at September 30, 1993.
For the quarter ended September 30, 1994, the provision for possible loan
losses was $485,000, an increase of 13.32% over the $428,000 for the same
period in 1993. For the nine months ended September 30, 1994, the provision
for possible loan losses was $1,643,000, a decrease of 12.79% over the
$1,884,000 for 1993.
Net charge-offs were $175,000 in the third quarter of 1994 which represented
a decrease of 30.56% when compared to the $252,000 reported for the comparable
period of 1993. For the nine months ended September 30, 1994, net charge-offs
were $824,000, a 40.07% decrease from the $1,375,000 for 1993.
Provision and reserve for loan losses (dollars in thousands):
QUARTER ENDED NINE MONTHS ENDED
SEPTEMBER 30, SEPTEMBER 30,
1994 1993 1994 1993
RESERVE FOR POSSIBLE LOAN LOSSES:
Balance at beginning of period $18,570 $16,923 $18,061 $16,589
Provision charged to expense 485 428 1,643 1,884
Charge-offs (438) (413) (1,435) (1,934)
Recoveries 263 160 611 559
Net charge-offs (175) (253) (824) (1,375)
Balance at end of period $18,880 $17,098 $18,880 $17,098
RATIOS (ANNUALIZED):
Net Charge-offs to:
Average loans .08 .12 .12 .22
Loans at end of period .08 .12 .12 .22
Reserve for possible loan losses 3.71 5.92 5.82 10.72
PAGE 12
NONINTEREST INCOME AND EXPENSE:
Total noninterest income for the quarter was $4,697,000, an increase of 2.26%
from the $4,593,000 earned for the third quarter of 1993. For the nine months
ended September 30, 1994, total noninterest income was $13,808,000, a decrease
of .26% from the $13,844,000 earned for the same period in 1993.
Total noninterest expense for the third quarter of 1994 was $15,220,000, an
increase of 3.08% when compared with $14,765,000 for the same period a year
ago. For the nine months ended September 30, 1994, total noninterest expense
was $45,146,000, an increase of 5.77% when compared with $42,682,000 for the
same period a year ago. The increase in automation services is due to
outsourcing the majority of data processing and was offset by a decline in
growth of salaries and benefits through staff reductions and furniture and
equipment expense.
The following table provides additional details of noninterest income and
expense:
Quarter Ended
September 30, Change
1994 1993 Amount Percent
Noninterest income:
Service charges on deposit
accounts $2,649 $2,633 $16 0.61%
Commissions, service charges
and fees 326 106 220 207.55%
Mortgage servicing 430 486 (56) -11.52%
Bankcard fees and discounts 506 468 38 8.12%
All other 786 900 (114) -12.67%
Total noninterest income $4,697 $4,593 $104 2.26%
Noninterest expense:
Salaries and wages $5,758 $5,497 $261 4.75%
Pension and other employee
benefits 1,246 1,292 (46) -3.56%
Total staff expenses 7,004 6,789 215 3.17%
Occupancy expense 855 915 (60) -6.56%
Furniture and equipment expense 1,241 1,683 (442) -26.26%
Amortization of intangibles 1,164 920 244 26.52%
Telephone 310 306 4 1.31%
Stationery and supplies 234 332 (98) -29.52%
Professional services 246 273 (27) -9.89%
Automated services 609 200 409 204.50%
FDIC insurance assessment 769 825 (56) -6.79%
Bankcard 534 426 108 25.35%
Postage 570 277 293 105.78%
Courier 424 191 233 121.99%
Consultant contracts 82 91 (9) -9.89%
Legal 80 81 (1) -1.23%
All other 1,098 1,456 (358) -24.59%
Total noninterest expense $15,220 $14,765 $455 3.08%
Nine Months Ended
September 30, Change
1994 1993 Amount Percent
Noninterest income:
Service charges on deposit
accounts $7,740 $7,745 ($5) -0.06%
Commissions, service charges
and fees 963 797 166 20.83%
Mortgage servicing 1,261 1,527 (266) -17.42%
Bankcard fees and discounts 1,295 1,194 101 8.46%
All other 2,549 2,581 (32) -1.24%
Total noninterest income $13,808 $13,844 ($36) -0.26%
Noninterest expense:
Salaries and wages $17,214 $16,112 $1,102 6.84%
Pension and other employee
benefits 3,553 3,878 (325) -8.38%
Total staff expenses 20,767 19,990 777 3.89%
Occupancy expense 2,500 2,662 (162) -6.09%
Furniture and equipment expense 3,595 4,010 (415) -10.35%
Amortization of intangibles 3,052 2,689 363 13.50%
Telephone 985 962 23 2.39%
Stationery and supplies 856 914 (58) -6.35%
Professional services 913 635 278 43.78%
Automated services 3,353 523 2,830 541.11%
FDIC insurance assessment 2,252 2,431 (179) -7.36%
Bankcard 1,395 1,236 159 12.86%
Postage 812 845 (33) -3.91%
Courier 609 562 47 8.36%
Consultant contracts 296 303 (7) -2.31%
Legal 238 659 (421) -63.88%
All other 3,523 4,261 (738) -17.32%
Total noninterest expense $45,146 $42,682 $2,464 5.77%
PAGE 13
PART II - OTHER INFORMATION
Item 1. Legal Proceedings.
Neither Registrant nor its subsidiary, First Citizens Bank and Trust Company,
nor its subsidiaries, are a party to, nor is any of their property the subject
of, any material or other pending legal proceeding, other than ordinary
routine proceedings incidental to their business.
Item 2. Changes in Securities.
Not Applicable.
Item 3. Defaults upon Senior Securities.
Not Applicable.
Item 4. Submission of Matters to Vote of Security Holders.
Not Applicable.
Item 5. Other Information.
Not Applicable.
Item 6. Exhibits and Reports on Form 8-K.
(a) Exhibits
11 Statement Re Computation of Per Share Earnings - Page 19
(b) No reports on Form 8-K were filed during the quarter ended September
30, 1994.
PAGE 14
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
FIRST CITIZENS BANCORPORATION
OF SOUTH CAROLINA, INC.
(Registrant)
Dated: November 14, 1994 Jay C. Case, Treasurer
(Chief Financial Officer)
Dated: November 14, 1994 Jay C. Case, Treasurer
(Chief Financial Officer)
ITEM 6. (A)
EXHIBIT 11
STATEMENT RE COMPUTATION OF PER SHARE EARNINGS
(DOLLARS IN THOUSANDS)
QUARTER ENDED NINE MONTHS ENDED
SEPTEMBER 30, SEPTEMBER 30,
1994 1993 1994 1993
Net income $2,445 $3,334 $7,518 10,211
Less: Preferred stock dividend
requirements 43 43 128 129
Net income applicable to common
stock $2,402 $3,291 $7,390 $10,082
Weighted average common shares
outstanding 944,598 945,533 945,225 945,533
Earnings per common share:
Income before cumulative
effect of a change
in accounting principle $2.55 $3.48 $7.82 $10.43
Cumulative effect on prior
years (to December 31, 1992)
of changing to a different
method of accounting for
income taxes .00 .00 .00 .23
Net income $2.55 $3.48 $7.82 $10.66
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