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 June 30, 1995 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 July 31, 1995
Common Stock, $5.00 Par Value 892,813 Shares
Non-voting Common Stock, $5.00 Par Value 50,720 Shares
<PAGE>
PART I - FINANCIAL INFORMATION
Item 1. Financial Statements
Page 2
<PAGE>
FIRST CITIZENS BANCORPORATION OF SOUTH CAROLINA AND SUBSIDIARY
CONSOLIDATED BALANCE SHEET - UNAUDITED (dollars in thousands)
<TABLE>
<CAPTION>
June 30, 1995 December 31, June 30, 1994
(Unaudited) 1994 (Unaudited)
<S> <C> <C> <C>
ASSETS
Cash and due from banks:
Noninterest-bearing $93,407 $89,814 $90,279
Interest-bearing 13,525 13,950 14,450
Total cash and due from banks 106,932 103,764 104,729
Investment securities:
Held-to-maturity 451,708 476,142 502,431
Available-for-sale 11,928 10,539 10,804
Total securities 463,636 486,681 513,235
Gross loans and discounts
Real estate - construction 14,454 7,888 16,923
Real estate - mortgage 596,827 562,687 536,905
Installment 299,716 269,693 255,063
Commercial, financial and agricultural 104,061 96,757 96,105
Less: Reserve for loan losses (20,785) (19,249) (18,570)
Net loans and discounts 994,273 917,776 886,426
Premises and equipment 41,679 40,941 36,023
Other real estate owned 189 270 180
Interest income accrued, not collected 11,390 12,126 9,773
Intangible assets 16,861 15,618 17,515
Other assets 15,062 12,005 14,997
TOTAL ASSETS $1,650,022 $1,589,181 $1,582,878
LIABILITIES AND STOCKHOLDERS' EQUITY
Deposits:
Demand $226,250 $215,301 $213,915
Time 556,348 503,378 508,374
Savings 654,405 667,839 673,599
Total deposits 1,437,003 1,386,518 1,395,888
Federal funds purchased 9,800 11,500 13,600
Securities sold under repurchase agreements 67,863 64,416 49,606
Term loan 12,550 13,400 13,900
Other liabilities 19,847 15,322 16,178
TOTAL LIABILITIES 1,547,063 1,491,156 1,489,172
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 June 30, 1995 and
December 31, 1994 - 50,720; June 30, 1994 - 52,720 254 254 264
Voting common stock - $5.00 par value, authorized
2,000,000; issued and outstanding June 30, 1995,
December 31, 1994 and June 30, 1994 - 892,813 4,464 4,464 4,464
Surplus 55,000 55,000 55,000
Undivided profits 34,976 30,765 26,214
Unrealized gain on investment securities
available-for-sale, net of taxes 4,983 4,260 4,482
TOTAL STOCKHOLDERS' EQUITY 102,959 98,025 93,706
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $1,650,022 $1,589,181 $1,582,878
</TABLE>
Page 3
<PAGE>
FIRST CITIZENS BANCORPORATION OF SOUTH CAROLINA AND SUBSIDIARY
CONSOLIDATED STATEMENT OF INCOME - UNAUDITED
(dollars in thousands, except for per share amounts)
<TABLE>
<CAPTION>
Quarter Ended June 30, Six Months Ended June 30,
1995 1994 % Change 1995 1994 % Change
<S> <C> <C> <C> <C> <C> <C>
Interest income and fees:
Loans $21,796 $18,555 17.47% $42,203 36,656 15.13%
United States Government obligations 6,081 4,992 21.81% 11,689 9,785 19.46%
Tax exempt securities 493 597 -17.42% 1,012 1,226 -17.46%
Other securities and federal funds sold 392 338 15.98% 823 736 11.82%
28,762 24,482 17.48% 55,727 48,403 15.13%
Interest expense:
Deposits 11,897 8,933 33.18% 22,818 17,279 32.06%
Short-term borrowings 1,161 572 102.97% 2,264 1,067 112.18%
Long-term borrowings 258 225 14.67% 531 481 10.40%
13,316 9,730 36.86% 25,613 18,827 36.04%
Net interest income 15,446 14,752 4.70% 30,114 29,575 1.82%
Provision for loan losses 1,467 860 70.58% 1,871 1,158 61.57%
Net interest income after
provision for loan losses 13,979 13,892 0.63% 28,243 28,417 -0.61%
Noninterest income:
Service charges on deposit accounts 2,685 2,317 15.88% 5,257 5,086 3.36%
Fees for other customer services 1,570 1,663 -5.59% 3,148 2,765 13.85%
Other 657 643 2.18% 1,297 1,254 3.43%
4,912 4,623 6.25% 9,702 9,105 6.56%
Noninterest expense:
Salaries and employee benefits 6,999 6,793 3.03% 14,157 13,752 2.95%
Net occupancy expense of premises 514 549 -6.38% 1,086 1,110 -2.16%
Furniture and equipment expense 269 380 -29.21% 660 769 -14.17%
Depreciation expense 879 1,048 -16.13% 1,760 2,114 -16.75%
Amortization of intangibles 1,386 969 43.03% 2,641 1,888 39.88%
Other 5,633 5,161 9.15% 11,194 10,284 8.85%
15,680 14,900 5.23% 31,498 29,917 5.28%
Income before income taxes 3,211 3,615 -11.18% 6,447 7,605 -15.23%
Applicable income taxes 1,063 1,243 -14.48% 2,150 2,532 -15.09%
Net Income 2,148 2,372 -9.44% 4,297 5,073 -15.30%
Per share amounts:
Earnings per common share: $2.23 $2.46 -9.35% $4.46 $5.27 -15.37%
Weighted average common shares
outstanding 943,533 945,533 -0.21% 943,533 945,533 -0.21%
</TABLE>
Page 4
<PAGE>
FIRST CITIZENS BANCORPORATION OF SOUTH CAROLINA AND SUBSIDIARY
CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY - UNAUDITED
(dollars in thousands):
<TABLE>
<CAPTION>
Unrealized
Non-Voting Voting Gain/(Loss Total
Preferred Common Common Undivided Investment Stockholders'
Stock Stock Stock Surplus Profits Securities Equity
<S> <C> <C> <C> <C> <C> <C> <C>
Balance at December 31, 1993 $3,282 $264 $4,464 $55,000 $21,227 $84,237
Net income 5,073 5,073
Preferred stock dividends (86) (86)
Unrealized gain on investment
securities available-for-sale,
net of taxes $4,482 4,482
Balance at June 30, 1994 3,282 264 4,464 55,000 26,214 4,482 93,706
Net income 4,776 4,776
Preferred stock dividends (85) (85)
Reacquired non-voting common stock (10) (140) (150)
Change in unrealized gain on
investment securities
available-for-sale, net of taxes (222) (222)
Balance at December 31, 1994 3,282 254 4,464 55,000 30,765 4,260 98,025
Net income 4,297 4,297
Preferred stock dividends (86) (86)
Change in unrealized gain on
investment securities
available-for-sale, net of
taxes 723 723
Balance at June 30, 1995 $3,282 $254 $4,464 $55,000 $34,976 $4,983 $102,959
</TABLE>
Page 5
<PAGE>
FIRST CITIZENS BANCORPORATION OF SOUTH CAROLINA AND SUBSIDIARY
CONSOLIDATED STATEMENT OF CASH FLOWS - UNAUDITED (dollars in thousands)
<TABLE>
<CAPTION>
Six Months Ended June 30,
1995 1994
<S> <C> <C>
Operating Activities:
Net income $4,297 $5,073
Adjustments to reconcile net income to net cash provided
by operating activities:
Provision for loan losses 1,871 1,158
Depreciation and amortization 4,401 4,002
(Accretion)/amortization of investment securities (250) 131
Deferred income taxes (benefit) provision (279) 979
Gains on sales of premises and equipment (82) (81)
Decrease in interest income accrued, not collected 736 878
Increase in accrued interest payable 2,811 111
Originations of loans held for resale (17,964) (22,392)
Proceeds from sales of loans held for resale 17,464 25,779
Gains on sales of loans held for resale (62) (162)
Increase in other assets (2,151) (4,220)
Increase in other liabilities 1,715 3,408
Other operating activities (1,072) (224)
Net Cash Provided By Operating Activities 11,435 14,440
Investing Activities:
Net increase in loans (77,808) (27,867)
Proceeds from maturities of investment securities,
held-to-maturity 159,425 190,156
Purchases of investment securities, held-to-maturity (134,990) (228,519)
Proceeds from sales of premises and equipment 94 356
Purchases of premises and equipment (2,481) (1,576)
Net decrease in other real estate owned 81 230
Net (increase)/decrease in intangible assets (3,884) (4,819)
Net Cash Used By Investing Activities (59,563) (72,039)
Financing Activities:
Net increase in deposits 50,485 59,522
Increase/(decrease) in federal funds purchased and
securities sold under agreements to repurchase 1,747 (8,000)
Term loan payments (850) (500)
Cash dividends paid (86) (86)
Net Cash Provided (Used) By Financing Activities 51,296 50,936
Increase/(decrease) in cash and due from banks 3,168 (6,663)
Cash and due from banks at beginning of year 103,764 111,392
Cash and due from banks at end of period $106,932 $104,729
Supplemental disclosures of cash flow information:
Interest paid $22,802 $18,717
Income taxes paid $4,616 $2,168
Unrealized appreciation in investment securities
available-for-sale:
Securities available-for-sale $7,666 $6,895
Shareholders' equity $4,983 $4,485
Deferred taxes $2,683 $2,213
</TABLE>
Page 6
<PAGE>
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 1994. The significant accounting policies used during
the current quarter are unchanged from those disclosed in the 1994
Annual Report.
INCOME TAXES:
Deferred tax assets and liabilities recorded pursuant to Statement
of Financial Accounting Standards ("SFAS") No. 109 are composed of the
following at:
<TABLE>
<CAPTION>
June 30, June 30,
1995 1994
<S> <C> <C>
Provision for loan losses in excess
of amount deductible for taxes $7,229 $6,421
Other, net 1,243 760
Gross deferred tax asset 8,472 7,181
Book depreciation over tax 341 519
Interest income, accretion of bond
discount and expenses recognized
for books not taxed until realized 160 269
Deferred income and expense items
recognized in different accounting periods 401 427
Pension plan 757 739
Unrealized gains on available-for-sale securities 2,683 2,413
Other 178 152
Gross deferred tax liability 4,520 4,519
Net deferred tax asset $ 3,952 $ 2,662
</TABLE>
INVESTMENT SECURITIES:
Bancorporation adopted SFAS No. 115, Accounting for Certain
Investments in Debt and Equity Securities, effective January 1,
1994. 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 No. 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
<PAGE>
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED
LOANS:
In May 1993, The Financial Accounting Standards Board
("FASB") issued SFAS No. 114, "Accounting by Creditors for
Impairment of a Loan," which is effective for fiscal years
beginning after December 15, 1994, with early adoption permitted.
SFAS No. 114 specifies how allowances for credit losses related to
certain impaired loans should be determined and generally requires
impairment to be measured on the basis of discounted expected cash
flows. In October 1994, FASB issued SFAS No. 118, "Accounting by
Creditors for Impairment of a Loan - Income Recognition and Disclosures"
which amends the income recognition requirements of SFAS No. 114.
Bancorporation adopted SFAS No. 114 and SFAS No. 118 as of January 1,
1995. The impact of adoption of SFAS No. 114 and SFAS No. 118 on
Bancorporations's consolidated financial statements was not material.
Page 8
<PAGE>
PART I - FINANCIAL INFORMATION
Item 2. Management's Discussion and Analysis of Financial Condition and
Results of Operations
Page 9
<PAGE>
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF
OPERATIONS
SUMMARY:
First Citizens Bancorporation reported net income of $2,148,000 for the
second quarter of 1995, a 9.44% decrease from the $2,372,000 for the
second quarter a year ago. Net income for the six months ended June
30, 1995 was $4,297,000, a 15.30% decrease from the $5,073,000 reported
for the same period in 1994. The decrease 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 June 30,
1995 increased $90,814,000 or 10.22% when compared to the same period in
1994, with a yield of 9.09% for the second quarter of 1995. Average
taxable and non-taxable investment securities for the second quarter of
1995 decreased by $13,002,000 or 2.61% from the second quarter of
1994, with a taxable equivalent yield of 5.74% for the second quarter
of 1995. Average loans net of unearned interest for the six months
ended June 30, 1995 increased $75,611,000 or 8.54% from the same
period in 1994, with a yield of 8.91% for the six months ended June
30, 1995. Average taxable and non-taxable investment securities for
the six months ended June 30, 1995 increased by $5,184,000 or 1.08% from
the same period in 1994, with a taxable equivalent yield of 5.51% for
the first six months of 1995.
Noninterest income increased by $289,000 or 6.25% and increased
by $597,000 or 6.56%, respectively, for the quarter and six
months ended June 30, 1995, as compared to the same periods in 1994.
For the quarter and six months ended June 30, 1995, noninterest
expense increased $780,000 or 5.23% and $1,581,000 or 5.28%,
respectively, as compared to the same periods in 1994. The
increase in noninterest expense was primarily due to increased
amortization of intangibles.
Net income per common share for the quarter ended June 30, 1995
decreased 9.35% to $2.23, as compared to $2.46 for the second
quarter of 1994. Net income per common share for the six months ended
June 30, 1995 decreased 15.37% to $4.46, as compared to $5.27 for the
same period in 1994.
Book value per common share as of June 30, 1995 increased 10.47% to
$105.64, as compared to $95.63 for the same period in 1994.
As illustrated in the following table, Tier 1 capital was 8.63% at June
30, 1995 as compared to 8.46% at June 30, 1994. Total risk based
capital was 10.52% at June 30, 1995 as compared to 10.67% at June
30, 1994. The risk based capital ratios were calculated using the 1992
Final Rules as defined by Federal regulators.
Page 10
<PAGE>
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF
OPERATIONS
SUMMARY (Continued):
Components of Capital (dollars in thousands):
June 30,
1995 1994
Stockholders' Equity:
Preferred stock $ 3,282 $ 3,282
Common stock 4,718 4,728
Surplus 55,000 55,000
Undivided profits 39,959 30,696
Total stockholders' equity 102,959 93,706
Reserve for loan losses 20,785 18,570
Total primary capital 123,744 112,276
Long-term debt qualifying as secondary capital 12,550 13,900
Total capital $136,294 $126,176
Tier I leverage ratio 5.16 4.77
Risk based capital ratio total 10.52 10.67
Tier I 8.63 8.46
Tier II 1.89 2.21
NET INTEREST INCOME:
Net interest income on a taxable equivalent basis was $15,852,000
for the second quarter of 1995, a increase of 4.44% from the
$15,178,000 for the comparable period in 1994. Net interest income on
a taxable equivalent basis was $30,946,000 for the six months ended June
30, 1995, an increase of 1.73% from the $30,419,000 for the comparable
period in 1994.
The following table presents the components of net interest income
for the quarter and six months ended June 30, 1995 and 1994:
Net Interest Income (dollars in thousands):
<TABLE>
<CAPTION>
Quarter Ended Six Months Ended
June 30, June 30,
1995 1994 1995 1994
<S> <C> <C> <C> <C>
Total interest income $28,762 $24,482 $55,727 $48,403
Total interest expense 13,316 9,730 25,613 18,827
Net interest income 15,446 14,752 30,114 29,576
Tax equivalent adjustment 406 426 832 843
Net interest income (taxable equivalent basis) $15,852 $15,178 $30,946 $30,419
</TABLE>
Page 11
<PAGE>
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS
NET INTEREST INCOME (Continued):
Taxable Equivalent Rate/Volume Variance Analysis (Amounts in thousands)
<TABLE>
<CAPTION>
Quarter Ended June 30, Net
Average Balance Interest Rev./Exp. Yield Change Due To Increase
1995 1994 1995 1994 1995 1994 Rate Volume (Decrease)
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Interest-earning assets:
$979,236 $888,422 $21,937 $18,640 9.09% 8.51% Loans $1,365 $1,932 $3,297
448,984 452,404 6,081 5,055 5.42% 4.47% Taxable investment securities 1,064 (38) 1,026
36,961 46,543 758 918 8.20% 7.89% Non-taxable investment securities 29 (189) (160)
7,608 7,080 113 67 6.02% 3.84% Federal funds sold 41 5 46
13,525 14,546 279 210 8.37% 5.85% Other earning assets 84 (15) 69
1,486,314 1,408,995 29,168 24,890 7.93% 7.14% Total interest-earning assets 2,583 1,695 4,278
Noninterest-earning assets:
77,073 77,068 Cash and due from banks
41,353 36,202 Premises and equipment
21,853 19,638 Other, less reserve for loan losses
140,279 132,908 Total noninterest-earning assets
$1,626,593 $1,541,903 TOTAL ASSETS
Interest-bearing liabilities:
$1,191,607 $1,151,342 11,896 8,933 4.05% 3.15% Deposits 2,646 317 2,963
Federal funds purchased and securities
81,397 59,040 1,162 572 5.79% 3.93% sold under agreements to repurchase 370 220 590
12,611 13,939 258 225 8.18% 6.46% Long-term debt 54 (21) 33
1,285,615 1,224,321 13,316 9,730 4.20% 3.22% Total interest-bearing liabilities 3,070 516 3,586
Noninterest-bearing liabilities:
219,007 204,855 Demand deposits
19,805 20,245 Other liabilities
238,812 225,100 Total noninterest-bearing liabilities
102,166 92,482 Stockholders' equity
TOTAL LIABILITIES AND
$1,626,593 $1,541,903 13,316 9,730 STOCKHOLDERS' EQUITY 3,070 516 3,586
$15,852 $15,160 Net interest income ($487) $1,179 $692
7.93% 7.14% Interest income to interest-earning assets
3.63% 2.80% Interest expense to interest-earning assets
4.30% 4.34% Net interest income to interest-earning assets
</TABLE>
Page 12
<PAGE>
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS
NET INTEREST INCOME (Continued):
Taxable Equivalent Rate/Volume Variance Analysis (Amounts in thousands)
<TABLE>
<CAPTION>
Six Months Ended June 30, Net
Average Balance Interest Rev./Exp. Yield Change Due To Increase
1995 1994 1995 1994 1995 1994 Rate Volume (Decrease)
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Interest-earning assets:
$961,192 $885,581 $42,488 $36,838 8.91% 8.39% Loans, net of unearned interest $2,479 $3,171 $5,650
446,335 430,970 11,803 9,904 5.29% 4.60% Taxable investment securities 1,546 353 1,899
38,243 48,424 1,558 1,885 8.15% 7.79% Non-taxable investment securities 69 (396) (327)
8,980 12,609 260 207 5.84% 3.31% Federal funds sold 113 (60) 53
13,553 14,628 450 411 6.70% 5.67% Other earning assets 69 (30) 39
1,468,303 1,392,212 56,559 49,245 7.77% 7.13% Total interest-earning assets 4,276 3,038 7,314
Noninterest-earning assets:
76,225 76,511 Cash and due from banks
41,189 36,454 Premises and equipment
21,521 21,925 Other, less reserve for loan losses
138,935 134,890 Total noninterest-earning assets
$1,607,238 $1,527,102 TOTAL ASSETS
Interest-bearing liabilities:
$1,181,280 $1,147,674 22,818 17,279 3.90% 3.04% Deposits 5,029 510 5,539
Federal funds purchased and securities
79,177 62,426 2,264 1,067 5.77% 3.45% sold under agreements to repurchase 908 289 1,197
12,858 14,060 531 481 8.26% 6.84% Long-term debt 91 (41) 50
1,273,315 1,224,160 25,613 18,827 4.06% 3.10% Total interest-bearing liabilities 6,028 758 6,786
Noninterest-bearing liabilities:
213,946 197,745 Demand deposits
18,954 17,456 Other liabilities
232,900 215,201 Total noninterest-bearing liabilities
101,023 87,741 Stockholders' equity
TOTAL LIABILITIES AND
$1,607,238 $1,527,102 25,613 18,827 STOCKHOLDERS' EQUITY 6,028 758 6,786
$30,946 $30,418 Net interest income ($1,752) $2,280 $528
7.77% 7.13% Interest income to interest-earning assets
3.52% 2.73% Interest expense to interest-earning assets
4.24% 4.39% Net interest income to interest-earning assets
</TABLE>
Page 13
<PAGE>
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF
OPERATIONS
RESERVE FOR LOAN LOSSES:
The reserve at June 30, 1995 was $20,785,000 or 2.05% of total loans as
compared to $18,570,000 or 2.05% of total loans at June 30, 1994.
For the quarter ended June 30, 1995, the provision for loan losses was
$1,467,000, an increase of 70.58% over the $860,000 for the same
period in 1994. For the six months ended June 30, 1995, the provision
for possible loan losses was $1,871,000, an increase of 61.57% over
the $1,158,000 for 1994.
Net charge-offs were $197,000 in the second quarter of 1995 which
represented a decrease of 51.24% when compared to the $404,000
reported for the comparable period of 1994. For the six months ended
June 30, 1995, net charge-offs were $335,000, a 48.38% decrease from the
$649,000 for the six months ended 1994.
Provision and Reserve for Loan Losses (dollars in thousands):
<TABLE>
<CAPTION>
Quarter Ended Six Months Ended
June 30, June 30,
1995 1994 1995 1994
<S> <C> <S> <S> <S>
Reserve for loan losses:
Balance at beginning of period $19,515 $18,114 $19,249 $18,061
Provision charged to expense 1,467 860 1,871 1,158
Charge-offs (369) (558) (722) (997)
Recoveries 172 154 387 348
Net charge-offs (197) (404) (335) (649)
Balance at end of period $20,785 $18,570 $20,785 $18,570
Ratios (annualized):
Net Charge-offs to:
Average loans .08 .18 .07 .15
Loans at end of period .08 .18 07 .14
Reserve for loan losses 3.79 8.70 3.22 6.99
</TABLE>
Page 14
<PAGE>
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF
OPERATIONS
NONINTEREST INCOME AND EXPENSE:
Total noninterest income for the quarter was $4,912,000, an
increase of 6.25% from the $4,623,000 earned for the second quarter of
1994. For the six months ended June 30, 1995, total noninterest income
was $9,702,000, an increase of 6.56% from the $9,105,000 earned for the
same period in 1994.
Total noninterest expense for the second quarter of 1995 was
$15,680,000, an increase of 5.23% when compared with $14,900,000 for
the same period a year ago. For the six months ended June 30, 1995,
total noninterest expense was $31,498,000, an increase of 5.28% when
compared with $29,917,000 for the same period a year ago.
The following table provides additional details of noninterest income
and expense:
Page 15
<PAGE>
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS
NONINTEREST INCOME AND EXPENSE (Continued):
The following table provides details of noninterest income and expense:
Noninterest Income and Expense (dollars in thousands):
<TABLE>
<CAPTION>
Quarter Ended Six Months Ended
June 30, Change June 30, Change
1995 1994 Amount Percent 1995 1994 Amount Percent
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Noninterest income:
Service charges on deposit
accounts $2,685 $2,317 $368 15.88% $5,257 $5,086 $171 3.36%
Commissions, service charges 582 812 (230) -28.33% 1,231 1,108 123 11.10%
Mortgage servicing 487 414 73 17.63% 983 831 152 18.29%
Bankcard fees and discounts 501 437 64 14.65% 934 826 108 13.08%
All other 657 643 14 2.18% 1,297 1,254 43 3.43%
Total noninterest income $4,912 $4,623 $289 6.25% $9,702 $9,105 $597 6.56%
Noninterest expense:
Salaries and wages $5,517 $5,472 $45 0.82% $11,220 $11,456 ($236) -2.06%
Pension and other employee
benefits 1,482 1,321 161 12.19% 2,937 2,296 641 27.92%
Total staff expenses 6,999 6,793 206 3.03% 14,157 13,752 405 2.95%
Occupancy expense 800 816 (16) -1.96% 1,649 1,645 4 0.24%
Furniture and equipment expense 863 1,161 (298) -25.67% 1,857 2,348 (491) -20.91%
Amortization of intangibles 1,386 969 417 43.03% 2,641 1,888 753 39.88%
Telephone 302 328 (26) -7.93% 618 657 (39) -5.94%
Stationery and supplies 286 226 60 26.55% 552 622 (70) -11.25%
Professional services 429 216 213 98.61% 729 667 62 9.30%
Automated services 1,163 1,073 90 8.39% 2,361 2,121 240 11.32%
FDIC insurance assessment 787 742 45 6.06% 1,566 1,483 83 5.60%
Bankcard 521 487 34 6.98% 980 861 119 13.82%
Postage 292 358 (66) -18.44% 608 617 (9) -1.46%
All other 1,852 1,731 121 6.99% 3,780 3,256 524 16.09%
Total noninterest expense $15,680 $14,900 $780 5.23% $31,498 $29,917 $1,581 5.28%
</TABLE>
Page 16
<PAGE>
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.
The Annual Meeting of Shareholders of Registrant was held on April
26, 1995. At the meeting, Shareholders voted to fix the number of
Directors at 26 for 1995 and the 26 Nominees named in Registrant's
Proxy Statement dated March 10, 1995 were elected as Directors for a
term of 1 year. No other matters were voted on at the
meeting, and there was no solicitation in opposition to management's
Nominees as listed in the Proxy Statement.
Item 5. Other Information.
On May 18, 1995, Registrant purchased some assets and assumed the
liabilities of two offices of NationsBank located in Central and
Liberty, South Carolina. Total assets purchased were $8,102,000 and
liabilitites assumed totaled $31,050,000, of which $30,816,000 were
deposits. A premium of $3,013,000 on deposits purchased will be
assigned to a core deposit intangible asset and will be amortized over
seven and one half (7 1/2) years. The acquisition will be accounted for
by the purchase method of accounting. Proforma financial information is
not attached since the business acquired is not considered a
"significant subsidiary" per Rule 1-02(v).
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 June 30,
1995.
Page 17
<PAGE>
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: August 11, 1995 By: /s/ Jay C. Case
Jay C. Case, Treasurer
(Chief Financial Officer)
Page 18
<PAGE>
Item 6. (a)
EXHIBIT 11
Statement Re Computation of Per Share Earnings
(dollars in thousands)
<TABLE>
<CAPTION>
Quarter Ended Six Months Ended
June 30, June 30,
1995 1994 1995 1994
<S> <C> <C> <C> <C>
Net income $2,148 $2,372 $4,297 $5,073
Less: Preferred stock dividend requirements 43 43 86 86
Net income applicable to common stock $2,105 $2,329 $4,211 $4,987
Weighted average common shares outstanding 943,533 945,533 943,533 945,533
Earnings per common share $2.23 $2.46 $4.46 $5.27
</TABLE>
Page 19
<PAGE>
<TABLE> <S> <C>
<ARTICLE> 9
<CIK> 0000708848
<NAME> FIRST CITIZENS
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1995
<PERIOD-START> JAN-01-1995
<PERIOD-END> JUN-30-1995
<CASH> 93,407
<INT-BEARING-DEPOSITS> 13,525
<FED-FUNDS-SOLD> 0
<TRADING-ASSETS> 0
<INVESTMENTS-HELD-FOR-SALE> 0
<INVESTMENTS-CARRYING> 463,636
<INVESTMENTS-MARKET> 467,188
<LOANS> 1,015,058
<ALLOWANCE> 20,785
<TOTAL-ASSETS> 1,650,022
<DEPOSITS> 1,437,003
<SHORT-TERM> 77,663
<LIABILITIES-OTHER> 19,847
<LONG-TERM> 12,550
<COMMON> 4,718
0
3,282
<OTHER-SE> 94,959
<TOTAL-LIABILITIES-AND-EQUITY> 1,650,022
<INTEREST-LOAN> 42,203
<INTEREST-INVEST> 12,701
<INTEREST-OTHER> 823
<INTEREST-TOTAL> 55,727
<INTEREST-DEPOSIT> 22,818
<INTEREST-EXPENSE> 25,613
<INTEREST-INCOME-NET> 30,114
<LOAN-LOSSES> 1,871
<SECURITIES-GAINS> 0
<EXPENSE-OTHER> 31,498
<INCOME-PRETAX> 6,447
<INCOME-PRE-EXTRAORDINARY> 6,447
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 4,297
<EPS-PRIMARY> 4.46
<EPS-DILUTED> 4.46
<YIELD-ACTUAL> 7.77
<LOANS-NON> 3,177
<LOANS-PAST> 1,004
<LOANS-TROUBLED> 936
<LOANS-PROBLEM> 14,238
<ALLOWANCE-OPEN> 19,249
<CHARGE-OFFS> 722
<RECOVERIES> 387
<ALLOWANCE-CLOSE> 20,785
<ALLOWANCE-DOMESTIC> 20,785
<ALLOWANCE-FOREIGN> 0
<ALLOWANCE-UNALLOCATED> 14,243
</TABLE>
