Business Context and Reporting Period
This Form 10-K covers the fiscal year ended December 31, 1996, for First Citizens BancShares, Inc. (BancShares), a Delaware corporation and bank holding company. BancShares operates primarily through its subsidiary, First-Citizens Bank & Trust Company, the fifth largest commercial bank in North Carolina by deposits. As of year-end 1996, the Bank operated 308 offices in North Carolina and Virginia. The company also holds two West Virginia-chartered banks: Bank of Marlinton and Bank of White Sulphur Springs.
Key Financial Metrics
Based on the consolidated financial position as of December 31, 1996:
- Consolidated Assets: $8.1 billion
- Consolidated Deposits: $7 billion
- Shareholders' Equity: $615.5 million
- Workforce: 4,282 total employees (3,457 full-time, 825 part-time)
- Dividends: A cash dividend of $0.25 per share was declared on January 27, 1997, payable April 7, 1997.
Note: Specific figures for net income, revenue, operating margins, cash flow, and debt levels are not provided in the text of this filing summary; they are referenced as being located in the 1996 Annual Report (pages 20-37 and 39-42).
Material Changes and Acquisitions
The filing details the following acquisitions and operational changes:
- Bank of Marlinton: Acquired September 1, 1994. Held $60 million in assets as of December 31, 1996, with two offices.
- Bank of White Sulphur Springs (WSS): Acquired June 1, 1995. Held $68.6 million in assets as of December 31, 1996, with two offices.
- Interstate Banking Law: The company notes that new federal legislation allows for interstate mergers beginning June 1, 1997, subject to regulatory approval and concentration limits.
Outlook, Risks, and Management Commentary
Management Outlook: Management expects comparable cash dividends to continue in the future, contingent upon satisfactory earnings and projected capital needs. The company anticipates continued competition in North Carolina, West Virginia, and Virginia due to statewide branching laws.
Risks and Contingencies:
- Legal Proceedings: BancShares and its subsidiaries are defendants in various legal actions arising from normal business activities. Management believes any ultimate liability will not have a material effect on the consolidated financial position.
- Regulatory Restrictions: Legal restrictions exist regarding the ability of the Bank to transfer funds to BancShares via cash dividends or loans.
- Competition: The banking environment is described as highly competitive within the company's market areas.
Investor Verification Checklist
- Verify specific net income, revenue, and return on equity figures in the 1996 Annual Report (referenced in Item 6 and Item 7).
- Review the Consolidated Statements of Cash Flows (referenced in Item 8, page 42) to assess liquidity trends.
- Confirm the status of the pending interstate merger opportunities under the new Interstate Banking Law effective June 1, 1997.
- Examine the "Notes to Consolidated Financial Statements" (pages 43-59) for details on legal proceedings and regulatory capital requirements.
- Check the definitive Proxy Statement (dated March 14, 1997) for executive compensation and security ownership details.