Exhibit 99
| For Immediate Release | Contact: | Barbara Thompson |
| April 23, 2007 | | First Citizens BancShares |
| | | (919) 716-2716 |
FIRST CITIZENS REPORTS EARNINGS FOR FIRST QUARTER 2007
RALEIGH, N.C. - First Citizens BancShares Inc. (Nasdaq: FCNCA) reports earnings for the quarter ending March 31, 2007, of $29.0 million compared to $28.7 million for the corresponding period of 2006 according to Lewis R. Holding, chairman of the board. During 2007, net income benefited from improved noninterest income and lower net charge-offs. BancShares also reported higher noninterest expense and a slight decline in net interest income.
Per share income for the first quarter 2007 totaled $2.78 compared to $2.75 for the same period a year ago. First Citizens’ current quarter results generated an annualized return on average assets of 0.75 percent and an annualized return on average equity of 8.88 percent, compared to respective returns of 0.79 percent and 9.72 percent for the same period of 2006.
First quarter net interest income decreased $1.2 million or 1.0 percent from the same period of 2006, due to a diminished net yield on interest-earning assets that more than offset the impact of healthy balance sheet growth. The net yield on interest-earning assets declined by 23 basis points from the first quarter 2006 to 3.42 percent.
Average loans outstanding increased $493.2 million or 5.1 percent since the first quarter of 2006. Average investment securities increased $195.6 million or 6.8 percent in the first quarter of 2007, when compared to the same period of 2006. The taxable-equivalent yield on interest-earning assets increased from 5.87 percent during the first quarter of 2006 to 6.31 percent during the first quarter of 2007, a 44 basis point increase.
Average interest-bearing liabilities increased by $763.5 million or 7.1 percent during the first quarter of 2007 due to higher levels of both time deposits and short-term borrowings arising from various cash management products. The rate on total interest-bearing liabilities increased from 2.71 percent during the first quarter of 2006 to 3.49 percent during the same period of 2007, a 78 basis point increase.
The provision for credit losses equaled $3.5 million during the first quarter of 2007, a decrease of $3.2 million or 47.6 percent from the same period of 2006. The lower provision for credit losses resulted principally from lower net charge-offs. Net charge-offs in the first quarter of 2007 totaled $2.7 million compared to $5.4 million during the first quarter of 2006, a $2.7 million decrease. On an annualized basis, net charge-offs for the first quarter of 2007 represented 0.11 percent of average loans and leases compared to 0.22 percent for the same period of 2006.
Noninterest income totaled $71.2 million during the first quarter of 2007, a $5.5 million or 8.3 percent increase over 2006. The increase reflected improvements in cardholder and merchant services income, commission income generated by First Citizens Investor Services and working capital finance, fees from processing services and mortgage income. Other income declined by $1.1 million or 28.2 percent primarily due to the absence of premium income from two insurance subsidiaries that were sold in early 2007.
Noninterest expense equaled $139.2 million during the first quarter of 2007, an increase of $7.5 million or 5.7 percent. Salaries and wages increased $2.6 million or 4.7 percent over the same period of 2006, the result of additional staff and 2006 merit increases. Equipment expense increased $1.1 million or 8.7 percent when compared to the previous year due to higher technology costs. Occupancy expense increased $943,000 or 7.3 percent due to new branch locations and a new headquarters facility. Other expense increased $3.5 million or 9.8 percent during the first quarter of 2007, primarily due to higher cardholder reward program costs, cardholder and merchant services processing and advertising costs.
As of March 31, 2007, First Citizens BancShares had total assets of $15.9 billion. BancShares’ banking subsidiaries, First Citizens Bank and IronStone Bank, provide a broad range of financial services to individuals, businesses, professionals and the medical community through a network of 398 branch offices, telephone banking, online banking and ATMs. For more information, visit First Citizens’ Web site at firstcitizens.com.
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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) | | | 2007 | | | 2006 | |
| Interest income | | $ | 216,061 | | $ | 190,001 | |
| Interest expense | | | 99,448 | | | 72,183 | |
| Net interest income | | | 116,613 | | | 117,818 | |
| Provision for credit losses | | | 3,532 | | | 6,737 | |
| Net interest income after provision for credit losses | | | 113,081 | | | 111,081 | |
| Noninterest income | | | 71,202 | | | 65,749 | |
| Noninterest expense | | | 139,190 | | | 131,712 | |
| Income before income taxes | | | 45,093 | | | 45,118 | |
| Income taxes | | | 16,109 | | | 16,461 | |
| Net income | | $ | 28,984 | | $ | 28,657 | |
| Taxable-equivalent net interest income | | $ | 117,056 | | $ | 118,226 | |
| Net income per share | | $ | 2.78 | | $ | 2.75 | |
| Cash dividends per share | | | 0.275 | | | 0.275 | |
| Profitability Information (annualized) | | | | | | | |
| Return on average assets | | | 0.75 | % | | 0.79 | % |
| Return on average equity | | | 8.88 | | | 9.72 | |
| Taxable-equivalent net yield on interest-earning assets | | | 3.42 | | | 3.65 | |
CONDENSED BALANCE SHEETS
| | | | March 31 | | | December 31 | | | March 31 | |
| (thousands, except share data; unaudited) | | | 2007 | | | 2006 | | | 2006 | |
| Cash and due from banks | | $ | 847,202 | | $ | 1,010,984 | | $ | 805,757 | |
| Investment securities | | | 3,031,798 | | | 3,221,048 | | | 2,896,962 | |
| Loans and leases | | | 10,221,578 | | | 10,239,551 | | | 9,810,088 | |
| Reserve for loan losses | | | (132,640 | ) | | (132,004 | ) | | (130,222 | ) |
| Other assets | | | 1,885,840 | | | 1,390,118 | | | 1,716,979 | |
| Total assets | | $ | 15,853,778 | | $ | 15,729,697 | | $ | 15,099,564 | |
| | | | | | | | | | | |
| Deposits | | $ | 12,772,532 | | $ | 12,743,324 | | $ | 12,512,557 | |
| Other liabilities | | | 1,738,919 | | | 1,675,554 | | | 1,379,287 | |
| Shareholders' equity | | | 1,342,327 | | | 1,310,819 | | | 1,207,720 | |
| Total liabilities and shareholders' equity | | $ | 15,853,778 | | $ | 15,729,697 | | $ | 15,099,564 | |
| Book value per share | | $ | 128.64 | | $ | 125.62 | | $ | 114.64 | |
| Tangible book value per share | | | 118.10 | | | 115.02 | | | 104.97 | |
SELECTED AVERAGE BALANCES
| | | | Three Months Ended March 31 | |
| (thousands, except shares outstanding; unaudited) | | | 2007 | | | 2006 | |
| Total assets | | $ | 15,572,613 | | $ | 14,699,290 | |
| Investment securities | | | 3,092,261 | | | 2,896,711 | |
| Loans and leases | | | 10,198,638 | | | 9,705,443 | |
| Interest-earning assets | | | 13,876,402 | | | 13,129,313 | |
| Deposits | | | 12,502,206 | | | 12,192,664 | |
| Interest-bearing liabilities | | | 11,557,940 | | | 10,794,420 | |
| Shareholders' equity | | | 1,323,244 | | | 1,196,174 | |
| Shares outstanding | | | 10,434,453 | | | 10,434,453 | |
| | | | March 31 | | | December 31 | | | March 31 | |
| (dollars in thousands; unaudited) | | | 2007 | | | 2006 | | | 2006 | |
| Nonaccrual loans and leases | | $ | 14,943 | | $ | 14,882 | | $ | 15,844 | |
| Other real estate | | | 6,245 | | | 6,028 | | | 5,573 | |
| Total nonperforming assets | | $ | 21,188 | | $ | 20,910 | | $ | 21,417 | |
| Nonperforming assets to loans and leases plus other real estate | | | 0.21 | % | | 0.20 | % | | 0.22 | % |
| Allowance for credit losses to total loans and leases | | | 1.36 | | | 1.35 | | | 1.40 | |
| Net charge-offs to average loans and leases (annualized) | | | 0.11 | | | 0.18 | | | 0.22 | |
| | | | March 31 | | | December 31 | | | March 31 | |
| (dollars in thousands; unaudited) | | | 2007 | | | 2006 | | | 2006 | |
| Tier 1 capital | | $ | 1,484,597 | | $ | 1,456,947 | | $ | 1,350,880 | |
| Total capital | | | 1,760,418 | | | 1,732,026 | | | 1,621,328 | |
| Risk-weighted assets | | | 11,345,016 | | | 11,266,342 | | | 10,761,223 | |
| Tier 1 capital ratio | | | 13.09 | % | | 12.93 | % | | 12.55 | % |
| Total capital ratio | | | 15.52 | | | 15.37 | | | 15.07 | |
| Leverage capital ratio | | | 9.60 | | | 9.39 | | | 9.26 | |
