Business Context and Reporting Period
Company: First Citizens BancShares, Inc.
Filing Type: Form 10-K (Annual Report)
Period Ended: December 31, 1997
Headquarters: Raleigh, North Carolina
First Citizens BancShares, Inc. is a Delaware corporation serving as the bank holding company for First-Citizens Bank & Trust Company, the fifth largest commercial bank in North Carolina by deposits. As of December 31, 1997, the Bank operated 329 offices in North Carolina and Virginia. The company expanded its footprint through acquisitions, including the merger of Bank of Marlinton into Bank of White Sulphur Spring in West Virginia (forming a subsidiary with $122.7 million in assets) and the opening of Atlantic States Bank, a federally-chartered thrift with 7 offices and $119.6 million in assets in North Carolina and Georgia. The company employed a total of 4,574 staff members (3,722 full-time and 852 part-time) at year-end.
Key Financial Metrics
The filing provides consolidated balance sheet totals but refers readers to the 1997 Annual Report for detailed income statement figures, cash flows, and margins.
| Metric | Value (as of Dec 31, 1997) |
|---|---|
| Consolidated Assets | $8.95 billion |
| Consolidated Deposits | $7.58 billion |
| Shareholders' Equity | $601.6 million |
| Outstanding Class A Common Stock | 9,026,514 shares |
| Outstanding Class B Common Stock | 1,753,854 shares |
| Aggregate Market Value of Voting Stock (Non-affiliates) | $635,233,000 (as of March 24, 1998) |
Revenue, Profit, Cash Flow, and Margins: The filing text does not provide specific values for net income, revenue, operating margins, or cash flow for the year ended December 31, 1997. These figures are referenced as being contained in the 1997 Annual Report (Items 6, 7, and 8).
Debt and Liquidity: Specific debt obligations and liquidity ratios are not detailed in the provided text, though the company notes that its principal assets are investments in and receivables from banking subsidiaries.
Material Changes and Operational Developments
- Acquisitions and Mergers: Completed the merger of Bank of Marlinton into Bank of White Sulphur Spring in West Virginia on August 1, 1997.
- New Subsidiary: Opened Atlantic States Bank on April 28, 1997, with plans to expand into southwestern Florida.
- Interstate Banking: The company is operating under the Interstate Banking Law, which permitted cross-state mergers beginning June 1, 1997, subject to regulatory approval.
- Dividends: A cash dividend of $0.25 per share was declared on January 26, 1998, payable April 6, 1998.
Outlook, Risks, and Management Commentary
Year 2000 Compliance: Management has devoted substantial resources to ensuring systems operate reliably in the year 2000. While a timetable for correction and testing is in place, the company notes uncertainties regarding the compliance efforts of unaffiliated organizations, vendors, and customers upon which BancShares depends for data and services.
Legal Proceedings: The company is a defendant in various legal actions arising from normal business activities. Management opines that any ultimate liability will not have a material effect on the consolidated financial position.
Dividend Policy: Future dividends are contingent upon satisfactory earnings and projected capital needs. Management expects comparable cash dividends to continue.
Regulatory Environment: As a registered bank holding company, BancShares is subject to the jurisdiction of the Federal Reserve Board and the North Carolina Commissioner of Banks. It is also subject to anti-trust provisions limiting state and national deposit concentrations.
Investor Verification Checklist
- Verify specific net income, revenue, and return on equity figures in the referenced 1997 Annual Report (pages 17-36), as they are not present in this 10-K text.
- Review the "Financial Summary and Selected Average Balances and Ratios" table (Table 1) in the Annual Report for five-year trend analysis.
- Assess the status of Year 2000 compliance testing and the potential exposure to third-party system failures.
- Confirm the progress of the planned expansion of Atlantic States Bank into the Fort Myers, Florida area.
- Examine the consolidated financial statements (pages 38-58 of the Annual Report) for detailed debt structures and liquidity positions.