First Ctzns-nca has a market cap of $1.79 billion; its shares were traded at around $174.59 with a P/E ratio of 12.6 and P/S ratio of 1.4. The dividend yield of First Ctzns-nca stocks is 0.7%. First Ctzns-nca had an annual average earning growth of 1.5% over the past 10 years.
Highlight of Business Operations:Income on interest-earning assets. Interest income amounted to $246.8 million during the first quarter of 2012, a $1.6 million or 0.6 percent increase from the first quarter of 2011. The increase in interest income resulted from higher yields on loans resulting from an increase in accretable yield recognized on acquired loans. Average interest-earning assets decreased $482.8 million or 0.0 percent from $19.07 billion to $18.58 billion. The taxable-equivalent yield on interest-earning assets equaled 5.36 percent for the first quarter of 2012, compared to 5.24 percent for the corresponding period of 2011 as reflected in Table 6.
Cardholder and merchant services generated $22.5 million of revenue during the first quarter of 2012, a decrease of $4.3 million or 16.2 percent compared to the first quarter of 2011. This decrease resulted from a reduction in interchange income derived from Visa check cards. Cardholder income will continue to be adversely affected by the new interchange rates during 2012.
We assess our interest rate risk by simulating future amounts of net interest income under various interest rate scenarios and comparing those results to forecasted net interest income assuming stable rates. Certain variable rate products, including revolving mortgage loans, have interest rate floors. Due to the existence of contractual floors on loans, competitive pressures that constrain our ability to reduce deposit interest rates, and the extremely low current level of interest rates, it is highly unlikely that the rates on most interest-earning assets and interest-bearing liabilities can decline from current levels. In our simulations, we do not calculate rate shocks, rate ramps or market value of equity for declining rate scenarios, and assume that the prime rate will not move below the March 31, 2012 rate of 3.25 percent. Our rate ramp simulations indicate that net interest income will increase by 3.7 percent to 7.3 percent depending upon the speed and magnitude that rates increase. Comparable rate shock results indicate increases in net interest income ranging from 10.5 percent to 21.3 percent. Our projections do not incorporate assumptions of likely customer migration of short-term deposit instruments to long-term, higher-rate instruments as rates rise. Such transfer would offset much of the calculated favorable changes. We also utilize the market value of equity as a tool in measuring and managing interest rate risk. As of March 31, 2012, the market value of equity calculated with a 200-basis point immediate increase in interest rates equals 10.67%, down marginally compared to the market value of equity calculated with stable rates.
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