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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 quarter ended March 31, 2005

Commission File Number 0-11172

FIRST CITIZENS BANCORPORATION, INC.

(Exact name of registrant as specified in its charter)

Registrant’s telephone number, including area code (803) 733-3456

No Change

(Former name, former address and former fiscal year, 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 by check mark whether the Registrant is an accelerated filer (as defined in Rule 12b-2 of the Act).    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.

PART I - FINANCIAL INFORMATION

Item 1. Financial Statements

FIRST CITIZENS BANCORPORATION, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CONDITION - UNAUDITED (Dollars in thousands, except par values and share data)

The accompanying notes are an integral part of these consolidated financial statements.

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FIRST CITIZENS BANCORPORATION, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF INCOME - UNAUDITED

(Dollars in thousands-except per share data)

The accompanying notes are an integral part of these consolidated financial statements.

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FIRST CITIZENS BANCORPORATION, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY AND COMPREHENSIVE INCOME - UNAUDITED

(Dollars in thousands)

The accompanying notes are an integral part of these consolidated financial statements.

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FIRST CITIZENS BANCORPORATION, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS - UNAUDITED (Dollars in thousands)

The accompanying notes are an integral part of these consolidated financial statements.

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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Dollars in thousands)

A summary of the significant accounting policies of First Citizens Bancorporation, Inc. (“Bancorporation”) is set forth in Note 1 to the Consolidated Financial Statements in Bancorporation’s Annual Report on Form 10-K for 2004. The significant accounting policies used during the current quarter are unchanged from those disclosed in the 2004 Annual Report.

A. Basis of Presentation

The accompanying unaudited consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America for interim financial statement preparation. In the opinion of management, all adjustments necessary for a fair statement of financial position of Bancorporation as of and for each of the periods presented, and all adjustments comprising normal recurring accruals necessary for a fair statement of the consolidated financial statements have been recorded. Certain immaterial amounts in prior periods have been reclassified to conform to the 2005 presentation. Such reclassifications had no material effect on Bancorporation’s reported consolidated financial position or results of operations.

B. Change in Accounting Principles and Effects of New Accounting Pronouncements

In May 2004, the Emerging Issues Task Force (“EITF”) released EITF Issue 03-1, “The Meaning of Other-Than-Temporary Impairment and its Application to Certain Investments.” The Issue provided guidance for evaluating whether an investment is other-than-temporarily impaired and requires certain disclosures with respect to these investments. On September 30, 2004, the FASB Staff Position (“FSP”) EITF Issue 03-1-1, “Effective Date of Paragraph 10-20 of EITF Issue 03-1, “The Meaning of Other-Than-Temporary Impairment and its Application to Certain Investments” was issued. This Staff Position delayed certain measurement and recognition provisions of EITF 03-1. On March 31, 2005, Bancorporation held certain investments having continuous unrealized loss positions for more than 12 months with a fair market value totaling $28,352 and an unrealized loss position totaling $259. Substantially all of these investments were in U.S. government agencies and entities and we expect that these securities would not be settled at a price less than their amortized cost. Because the decline in market value was caused by interest rate increases and not credit quality, and because Bancorporation has the ability and intent to hold these investments until a recovery of fair value, which may be maturity, Bancorporation has not recognized any other-than-temporary impairment in connection with these investments.

C. Allowance for Loan Losses (Dollars in thousands)

The following table shows an analysis of the allowance for loan losses:

D. Goodwill and Other Intangibles (Dollars in thousands)

In accordance with SFAS No.142, no goodwill amortization was recorded for the quarter ended March 31, 2005. There was no change in the carrying amount of goodwill since December 31, 2004.

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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) (continued)

The following table shows the carrying values of core deposit intangibles recorded in Bancorporation’s consolidated financial statements, all of which are being amortized:

Amortization expense on core deposit intangibles was $2,089 and $2,265 for the quarters ended March 31, 2005 and 2004, respectively.

Bancorporation projects the following aggregate amortization expense based on existing core deposit intangibles for each of the next five years:

For the year ended December 31:

Mortgage servicing rights as of March 31, 2005 and December 31, 2004 were $7,024 and $6,326, respectively. The fair market value of these mortgage servicing rights was $8,448 and $7,007 as of March 31, 2005 and December 31, 2004, respectively.

For the quarter ended March 31, 2005, amortization expense related to mortgage servicing rights, included as a reduction of mortgage income in the Consolidated Statements of Income, was negative $233. This was the result of the recapture of $720 of previously recorded impairment partially offset by normal amortization. For the quarter ended March 31, 2004, amortization was $1,016, consisting of $536 in impairment charges and the remainder consisting of normal amortization.

E. Mergers and Acquisitions (Dollars in thousands)

There were no mergers or acquisitions completed during the quarter ended March 31, 2005. See “Subsequent Events” for pending acquisitions.

F. Employee Benefits (Dollars in thousands)

The following table details the components of pension expense recognized as a component of salaries and employee benefits in Bancorporation’s Consolidated Statements of Income:

Bancorporation previously disclosed in its consolidated financial statements for the year ended December 31, 2004 that the estimated employer contribution for 2005 was $4,000. In March 2005, Bancorporation made an additional contribution of $5,035 related to 2004, which resulted in prepaid pension cost increasing to $14,950 as of March 31, 2005. In April 2005, Bancorporation made its entire 2005 contribution of $4,130.

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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) (continued)

G. Earnings Per Share (Dollars in thousands, except per share data)

Bancorporation’s basic earnings per common share were calculated as follows:

H. Subsequent Events (Dollars in thousands, except share data)

On April 5, 2005, Bancorporation completed the issuance and sale of an aggregate of $75,000 principal amount of 6.80% Subordinated Notes. The notes are unsecured and subordinated in right of payment to all of our senior indebtedness, and call for payment in full at maturity on April 1, 2015, with interest payable semi-annually (at an annual rate of 6.80%) on April 1 and October 1 each year, beginning October 1, 2005.

Bancorporation used the net proceeds from the sale of the notes to infuse additional capital into one of its wholly-owned bank subsidiaries, First Citizens Bank and Trust Company, Inc. (the “Bank”). The Bank currently plans to use that capital to supplement its cash in order to complete its proposed acquisition of Summit Financial Corporation.

On April 21, 2005, Bancorporation’s Board of Directors declared a $.35 dividend on common stock to shareholders of record on May 13, 2005, payable May 25, 2005.

On May 1, 2005, the Bank completed its acquisition of Peoples Community Capital Corporation, Inc. Total assets of $127,877, total loans of $81,446 and total deposits of $106,993 were acquired as a result of the transaction.

I. Commitments, Contingencies and Financial Instruments with Off-Balance Sheet Risk

Bancorporation is a defendant in litigation arising out of normal banking activities. In the opinion of management and Bancorporation’s counsel, the ultimate resolution of these matters will not have a material effect on Bancorporation’s consolidated financial condition or results of operations.

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Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

Forward-Looking Statements

This discussion may contain statements that could be deemed forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934 and the Private Securities Litigation Reform Act, which statements are inherently subject to risks and uncertainties. Forward-looking statements are statements that include projections, predictions, expectations or beliefs about future events or results, or otherwise are not statements of historical fact. Such statements are often characterized by the use of the qualifying words (and their derivatives) such as “expect,” “believe,” “estimate,” “plan,” “project,” “anticipate,” or other statements concerning opinions or judgments of Bancorporation and its management about future events. Factors that could influence the accuracy of such forward-looking statements include, but are not limited to, the financial success or changing strategies of Bancorporation’s customers, competition, deposit attrition, actions of government regulators, the level of market interest rates, and general economic conditions, and risks, uncertainties, and other factors described from time to time in Bancorporation’s periodic reports filed with the United States Securities and Exchange Commission.

Critical Accounting Policies

The accounting and reporting policies of Bancorporation and its subsidiaries are in accordance with accounting principles generally accepted in the United States of America and conform to general practices within the banking industry. Bancorporation’s financial position and results of operations are affected by management’s application of accounting policies, including judgments made to arrive at the carrying value of assets and liabilities and amounts reported for revenues, expenses and related disclosures. Different assumptions in the application of these policies could result in material changes in Bancorporation’s consolidated financial position and/or consolidated results of operations. The more critical accounting and reporting policies include Bancorporation’s accounting for the allowance for loan losses, pension, goodwill and intangible assets associated with mergers and acquisitions and income taxes. Bancorporation’s accounting policies are fundamental to understanding Management’s Discussion and Analysis of Financial Condition and Results of Operations. Accordingly, Bancorporation’s significant accounting policies are discussed in detail in Bancorporation’s 2004 Annual Report on Form 10-K filed with the Securities and Exchange Commission.

RESULTS OF OPERATIONS

Executive Overview of First Quarter Results (Dollars in thousands, except share data)

Net income for the quarters ended March 31, 2005 and 2004 was $9,956 and $8,324, respectively. Net income per common share was $11.03 and $9.16, respectively. See calculation of earnings per share in the Notes to the Consolidated Financial Statements.

During the quarter, net interest income increased by $2,391, or by 6.37% over the comparable quarter in 2004 primarily due to earning asset growth. Earning asset growth was primarily attributable to internal loan growth. Average earning assets grew by 7.25% from $4.02 billion at March 31, 2004 to $4.32 billion at March 31, 2005, while the ratio of net interest income to average earning assets declined from 3.78% for the quarter ended March 31, 2004 to 3.77% for the quarter ended March 31, 2005. See Table 2 “Net interest income” in Management’s Discussion and Analysis of Financial Condition and Results of Operations for a detailed analysis and discussion of net interest income.

Noninterest income increased by $1,493, or by 11.48% over the comparable period in 2004, while noninterest expense increased by $1,050, or by 2.88% over the comparable period in 2004. Noninterest income increased during the quarter primarily due to increases in mortgage income and gain on sale of fixed assets, partially offset by a decline in service charges on deposits. Noninterest expense increased during the quarter primarily related to occupancy and related furniture and equipment expense and an increase in data processing expense. See “Noninterest income and expense” in Management’s Discussion and Analysis of Financial Condition and Results of Operations for a detailed discussion of noninterest income and expense.

Return on average stockholders’ equity and average assets are key measures of earnings performance. Return on average stockholders’ equity for the quarters ended March 31, 2005 and March 31, 2004 was 10.75% and 9.69%, respectively. Return on average assets for the quarters ended March 31, 2005 and March 31, 2004 was 0.86% and 0.76%, respectively.

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MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS (continued)

Table 1 provides summary information on selected ratios and average and year-to-date balances.

Table 1: Selected Summary Information (Dollars in thousands, except per share data)