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FCNCA · FIRST CITIZENS BANCSHARES INC /DE/

32 filings

10-K

FCNCA 10-K Annual Reports

FIRST CITIZENS BANCSHARES INC /DE/ - 32 annual reports

Filing record · 2016–202610-K1110-Q328-K138

2025
FIRST CITIZENS BANCSHARES INC /DE/ Annual Report, Year Ended Dec 31, 2025
First Citizens BancShares, Inc. (FCNCA) reported its annual results for the fiscal year ending December 31, 2025. The company experienced a notable decrease in net income to $2.21 billion from $2.78 billion in the prior year, largely attributed to lower net interest income and increased noninterest expense, partially offset by higher noninterest income and a lower income tax provision. Total assets grew to $229.70 billion, supported by a 4% increase in total deposits to $161.58 billion, with noninterest-bearing deposits representing a healthy 25.2% of the total. The company continues to execute its share repurchase program, having repurchased $3.03 billion of its Class A common stock during 2025. Strategically, FCNCA announced an agreement to acquire 138 branches from BMO Bank N.A., expected to close in the second half of 2026, which will expand its footprint in the Midwest, Great Plains, and Western U.S. The company maintained strong capital ratios, exceeding regulatory requirements, and ended the year with a total risk-based capital ratio of 13.71%.
Feb 24, 2026
2024
FIRST CITIZENS BANCSHARES INC /DE/ Annual Report, Year Ended Dec 31, 2024
First Citizens BancShares, Inc. (FCNCA) reported solid performance in its 2024 Annual Report, demonstrating resilience amidst a dynamic financial landscape. The company's net income available to common stockholders stood at $2.72 billion, a notable decrease from the prior year, primarily due to a significant gain on acquisition recorded in 2023. However, the core business showed strength with a 6% increase in Net Interest Income (NII) to $7.14 billion, driven by loan growth and higher asset yields, partially offset by increased deposit costs. The balance sheet expanded, with total assets reaching $223.72 billion, supported by a 6% growth in total deposits to $155.23 billion. The company maintained strong capital ratios, significantly exceeding regulatory requirements, including a Common Equity Tier 1 ratio of 12.99%. The loan portfolio grew by 5% to $140.22 billion, with growth across all segments, particularly in commercial and business loans, as well as the global fund banking portfolio. The company actively managed its investment securities portfolio, increasing holdings by 47% to $44.09 billion, primarily in short-duration U.S. agency mortgage-backed and U.S. Treasury securities. Furthermore, BancShares continued its commitment to shareholder returns by repurchasing approximately $1.66 billion of its Class A common stock under its share repurchase program during 2024.
Feb 21, 2025
2023
FIRST CITIZENS BANCSHARES INC /DE/ Annual Report, Year Ended Dec 31, 2023
First Citizens BancShares, Inc. (FCNCA) reported a significant increase in net income for the year ended December 31, 2023, primarily driven by a substantial preliminary gain on the acquisition of Silicon Valley Bridge Bank, N.A. (SVBB). This acquisition, alongside the prior year's merger with CIT Group, has considerably expanded the company's asset base and operational scope. The company experienced robust growth in net interest income due to higher loan volumes and increased interest rates, though this was partially offset by higher deposit and borrowing costs. The SVBB acquisition significantly impacted noninterest income and expenses, with the gain on acquisition being the dominant factor in the period's profitability. BancShares maintained strong capital and liquidity positions throughout the year, exceeding regulatory requirements. The company is navigating a dynamic regulatory environment with proposed changes to capital and liquidity standards for larger banking organizations, and is actively working to integrate its recent acquisitions while managing associated operational and compliance risks.
Feb 23, 2024
2022
FIRST CITIZENS BANCSHARES INC /DE/ Annual Report, Year Ended Dec 31, 2022
First Citizens BancShares, Inc. (FCNCA) reported a significant increase in net income for the year ended December 31, 2022, primarily driven by the successful completion of its merger with CIT Group Inc. This strategic acquisition more than doubled the company's asset size, integrating new business lines and expanding its geographic footprint. The company's net income available to common stockholders rose to $1.05 billion, with diluted earnings per share increasing to $67.40. Financially, the CIT merger significantly impacted the balance sheet, with total assets reaching $109.3 billion and total deposits reaching $89.4 billion as of December 31, 2022. The company's net interest income also saw a substantial increase, up 112% to $2.95 billion, largely due to the expanded asset and liability base and a favorable interest rate environment. Despite this growth, the provision for credit losses increased notably to $645 million, reflecting the Day 2 provision for acquired loans and leases and a more challenging economic outlook. The company maintains strong capital adequacy ratios, exceeding regulatory requirements.
Feb 24, 2023
2021
FIRST CITIZENS BANCSHARES INC /DE/ Annual Report, Year Ended Dec 31, 2021
First Citizens BancShares, Inc. (FCNCA) reported its 2021 annual results, highlighting the significant completion of its merger with CIT Group Inc. (CIT) on January 3, 2022. This merger is transformative, more than doubling the company's asset size and positioning it as a top-tier U.S. bank. The integration of CIT's nationwide commercial lending and digital banking capabilities with FCNCA's robust retail franchise is expected to yield substantial synergies and expand the company's market reach and product offerings. Financially, for the year ended December 31, 2021, FCNCA reported net income available to common shareholders of $528.9 million, or $53.88 per share, a notable increase from the previous year, despite a slight decrease in net interest margin due to balance sheet mix changes and lower yields. The company maintained a strong capital position with all regulatory capital ratios well above requirements. Credit quality remained robust with a low net charge-off ratio and a decrease in nonperforming assets. The company ended the year with substantial liquidity, providing a strong foundation for future growth and operational initiatives.
Feb 25, 2022
2020
FIRST CITIZENS BANCSHARES INC /DE/ Annual Report, Year Ended Dec 31, 2020
First Citizens BancShares, Inc. (FCNCA) reported a solid year in 2020, with net income increasing by 7.5% to $491.7 million, or $47.50 per share. This growth was driven by a 5.9% increase in net interest income, largely due to loan growth, including significant participation in the SBA-PPP program. Noninterest income also saw a healthy increase of 14.6%, boosted by gains on investment securities and strong mortgage income. The company is in the process of a significant transformation with its pending merger with CIT Group Inc., which is expected to create a larger, more diversified institution with over $100 billion in assets. This merger is anticipated to enhance their commercial lending capabilities and expand their geographic and product reach, though integration risks and expenses are noted. Despite the low-interest-rate environment, BancShares maintained strong capital and liquidity positions, exceeding regulatory requirements. The company returned capital to shareholders through share repurchases and dividends, demonstrating a commitment to shareholder value. Management is focused on strategic growth, operational efficiency, and adapting to evolving digital technologies.
Feb 24, 2021
2019
FIRST CITIZENS BANCSHARES INC /DE/ Annual Report, Year Ended Dec 31, 2019
First Citizens BancShares, Inc. (FCNCA) reported solid financial performance for the year ended December 31, 2019, with net income of $457.4 million, a 14.3% increase compared to the prior year, translating to $41.05 per share. This growth was primarily driven by an 8.5% increase in net interest income, fueled by loan growth and improved yields, and a 3.9% rise in noninterest income from fee-based services like wealth management and cardholder services. The company maintained a strong capital position, exceeding regulatory requirements under Basel III. FCNCA continued its strategic growth through acquisitions, integrating several smaller banks to expand its market presence. The company's balance sheet remained robust, with total assets growing to $39.8 billion at year-end 2019, supported by strong deposit growth of 12.3%. Despite a challenging interest rate environment with margin compression in the latter half of 2019, the bank demonstrated resilience. Key risk factors highlighted include operational risks, cybersecurity threats, and credit risk management, particularly in concentrated industries. The company also noted the upcoming transition from LIBOR as a potential risk factor.
Feb 26, 2020
2018
FIRST CITIZENS BANCSHARES INC /DE/ Annual Report, Year Ended Dec 31, 2018
First Citizens BancShares, Inc. (FCNCA) reported strong financial performance for the year ended December 31, 2018, with net income increasing by 23.6% to $400.3 million, or $33.53 per share. This growth was driven by a 14.1% increase in net interest income, benefiting from loan growth, higher yields, and lower debt balances. The bank also saw an improvement in its net interest margin to 3.69% on a taxable-equivalent basis. However, noninterest income saw a significant decrease, primarily due to the absence of acquisition gains recorded in the prior year. The company continued its growth strategy through strategic acquisitions, completing three in 2018, which expanded its footprint in new markets and contributed to loan and deposit growth. BancShares maintained robust capital ratios, exceeding regulatory requirements and remaining well-capitalized under Basel III standards.
Feb 20, 2019
2017
FIRST CITIZENS BANCSHARES INC /DE/ Annual Report, Year Ended Dec 31, 2017
First Citizens BancShares, Inc. (BancShares) reported solid financial performance for the year ended December 31, 2017. The company achieved a significant increase in net income, driven by robust loan growth, higher interest income from investments and overnight cash, and substantial gains from strategic acquisitions. Noninterest income also saw growth, primarily from merchant and cardholder services, along with service charges on deposit accounts and wealth management services. The company maintained strong capital ratios under Basel III, exceeding regulatory requirements, and continued to grow its loan and deposit portfolios. Management focused on enhancing operational efficiency and controlling noninterest expenses while strategically pursuing growth opportunities through acquisitions. The company also navigated a changing regulatory landscape, including the impact of the Tax Cuts and Jobs Act, which resulted in a one-time tax expense but is expected to lower future tax rates. Looking ahead, BancShares aims to build on its strong foundation by continuing to focus on core customer deposits and loans, optimizing its branch network, and investing in technology and delivery channels. The company remains committed to prudent risk management and maintaining high levels of liquidity and capital adequacy. The planned acquisition of HomeBancorp, Inc. is expected to further strengthen its presence in Florida, indicating a continued strategy of growth through acquisitions.
Feb 21, 2018
2016
FIRST CITIZENS BANCSHARES INC /DE/ Annual Report, Year Ended Dec 31, 2016
First Citizens BancShares, Inc. (FCNCA) reported solid performance in its 2016 10-K filing, with net income increasing by 7.2% to $225.5 million, or $18.77 per share. This growth was primarily driven by higher net interest income stemming from strong core loan growth and increased investment interest income, alongside a rise in non-interest income. The company successfully integrated three acquisitions during the year (Cordia Bancorp, First CornerStone Bank, and North Milwaukee State Bank), which contributed to loan and deposit growth. BancShares maintained strong capital positions, exceeding Basel III requirements. The bank's strategic initiatives focused on diversifying its loan portfolio, enhancing fee-based income streams through credit card and wealth management services, and optimizing operational efficiency through cost management and technology investments. Despite challenges in the interest rate environment, the company maintained a focus on managing interest rate risk to benefit from a rising rate environment. The filing also highlights a concentration in loans to the medical and dental industries and potential risks associated with real estate market conditions, particularly junior liens.
Feb 22, 2017
2015
FIRST CITIZENS BANCSHARES INC /DE/ Annual Report, Year Ended Dec 31, 2015
First Citizens BancShares, Inc. (FCNCA) reported solid financial performance for the year ended December 31, 2015, with net income reaching $210.4 million, a significant increase from $138.6 million in 2014. This growth was primarily driven by strong core loan expansion, the full-year impact of the Bancorporation merger, and a notable gain from the acquisition of Capitol City Bank & Trust (CCBT). The company also demonstrated robust loan and deposit growth, with net loans increasing by $1.47 billion and deposits growing by $1.25 billion, reflecting successful growth initiatives and organic expansion. Operationally, FCNCA continues to focus on broadening its product and service offerings, optimizing its branch network, and investing in technology to enhance efficiency and profitability. The company maintained strong capital adequacy ratios, exceeding regulatory requirements under the newly implemented Basel III guidelines. Despite a competitive banking landscape and evolving regulatory environment, FCNCA appears well-positioned for continued growth and stability, supported by its diversified revenue streams and prudent risk management.
Feb 24, 2016
2014
FIRST CITIZENS BANCSHARES INC /DE/ Annual Report, Year Ended Dec 31, 2014
First Citizens BancShares, Inc. (FCNCA) for the fiscal year ending December 31, 2014, reported a net income of $138.6 million, a decrease from $166.9 million in 2013, impacted by declining earnings from its FDIC-assisted loan portfolio, partially offset by the Bancorporation merger and associated gain on shares. The company's asset base grew significantly to $30.08 billion, driven by strategic mergers, including the substantial Bancorporation acquisition. Loan growth was robust at 42.9%, primarily due to mergers and organic origination, while noninterest income saw a healthy increase driven by merger contributions and security gains. The bank maintained strong capital ratios, exceeding regulatory requirements. Looking ahead, the company is navigating a complex regulatory environment, including the implementation of Basel III capital requirements, which will increase capital demands over the next few years. Management continues to focus on integrating recent acquisitions, managing interest rate risk, and maintaining credit quality within its diversified loan portfolio, which includes a notable concentration in medical-related industries. The company's strategy emphasizes organic growth complemented by strategic acquisitions to expand its market presence.
Feb 25, 2015
2013
FIRST CITIZENS BANCSHARES INC /DE/ Annual Report, Year Ended Dec 31, 2013
First Citizens BancShares, Inc. /DE/ (FCNCA) filed its 2013 10-K, detailing a solid financial performance driven by a recovery in the banking sector and strategic growth initiatives. The company reported net income of $167.7 million, or $17.43 per share, a significant increase from the previous year, reflecting improved net interest income after provisions and higher noninterest income. While net interest income saw a decrease due to the shrinkage of acquired loans, the provision for loan and lease losses was a credit in 2013, a positive swing from the prior year, indicating improved credit quality. The company continued its strategy of expanding its branch network, operating 397 branches across 18 states and Washington D.C. as of December 31, 2013. It also successfully integrated several FDIC-assisted transactions, which provided significant growth opportunities and risk protection through loss share agreements. Looking ahead, BancShares is focused on modernizing its technology systems, with a significant investment of over $100 million planned over the next few years to enhance business continuity and reduce operational risk.
Feb 26, 2014
2012
FIRST CITIZENS BANCSHARES INC /DE/ Annual Report, Year Ended Dec 31, 2012
First Citizens BancShares (FCNCA) reported 2012 net income of $134.3 million, or $13.11 per share, down 31.1% from $195.0 million ($18.80 per share) in 2011. The decline was driven mainly by the absence of acquisition gains: 2011 included $150.4 million of gains from FDIC-assisted transactions, which contributed roughly $91.5 million after tax. Return on average assets fell to 0.64% from 0.92%, and return on average equity to 7.01% from 10.77%. Core trends were mixed: net interest income rose 5.0% to $914.7 million, helped by lower deposit costs and acquired-loan accretion of $304.0 million, while noninterest income fell 59.2% to $189.3 million, largely because of a $101.6 million charge to the FDIC indemnification receivable. Noninterest expense fell 3.3% to $766.9 million. Credit costs improved. The provision for loan and lease losses dropped to $142.9 million from $232.3 million, and net charge-offs declined to $94.0 million from $189.9 million. Nonperforming assets fell to $310.4 million (2.3% of loans, leases and OREO) from $553.8 million, although nonperforming assets not covered by FDIC loss share agreements rose to $133.4 million. Capital remains strong, with a Tier 1 risk-based ratio of 14.27% and a leverage ratio of 9.22%. The bank is well-capitalized, but Dodd-Frank will phase out $93.5 million of trust preferred securities from Tier 1 capital starting in 2013, and Basel III is a further headwind. Management also disclosed a $100 million core technology modernization project running from 2013 through 2016, and an early-2013 agreement to sell most of its processing services business to a vendor. For investors, the key questions are whether core earnings can grow without acquisition gains, how quickly accretion income and FDIC loss share protection will decline as the acquired loan book runs off, and whether the technology spend and capital changes will weigh on returns. The Holding family controls about 52% of total voting power through its Class A and Class B shares, which limits the influence of public shareholders.
Mar 1, 2013
2011
FIRST CITIZENS BANCSHARES INC /DE/ Annual Report, Year Ended Dec 31, 2011
First Citizens BancShares (FCNCA) reported 2011 net income of $195.0 million, or $18.80 per share, versus $193.0 million ($18.50 per share) in 2010, with return on average assets of 0.92% and return on average equity of 10.77%. Earnings were heavily supported by FDIC-assisted acquisition gains of $150.4 million (from United Western and Colorado Capital Bank), which together with loss-share-related noninterest income made up a large share of profitability. Net interest income rose 12.5% to $871.0 million, driven largely by $319.4 million of discount accretion on acquired loans, which the company itself describes as unpredictable and likely to create volatility in future periods. The filing carries significant caveats. Management concluded that internal control over financial reporting was NOT effective as of December 31, 2011, due to a material weakness in accounting for acquired loans (ASC 310-30) and the FDIC loss-share receivable; the auditor issued an adverse opinion on ICFR. Credit costs remained elevated: the provision for loan losses rose to $232.3 million, net charge-offs on covered loans reached $136.5 million, and nonperforming assets rose to $803.9 million (5.68% of loans, leases and OREO). Covered-asset NPAs were 23.0% of covered assets. Capital remains strong, with a Tier 1 risk-based ratio of 15.41% and leverage ratio of 9.90%, both well above well-capitalized thresholds. However, investors should note that $243.5 million of trust preferred securities will be phased out of Tier 1 capital beginning in 2013 under Dodd-Frank, reducing pro forma Tier 1 leverage to 8.73% if fully eliminated. The company's earnings quality, dependence on future FDIC-assisted deals for acquisition gains, and the open material weakness are the key items for investors to weigh.
Mar 7, 2012
2010
FIRST CITIZENS BANCSHARES INC /DE/ Annual Report, Year Ended Dec 31, 2010
First Citizens BancShares (FCNCA) reported 2010 net income of $193.0 million, or $18.50 per share, up from $116.3 million ($11.15 per share) in 2009, with return on average assets rising to 0.93% from 0.66% and return on average equity to 11.54% from 7.94%. The improvement was driven largely by the FDIC-assisted acquisitions of First Regional Bank and Sun American Bank in 2010, which generated $136.0 million in bargain purchase gains and lifted net interest income 51.7% to $774.2 million. The taxable-equivalent net yield on earning assets rose to 4.22% partly because of $145.4 million of discount accretion from unscheduled loan payoffs, which management warns is unpredictable and will create earnings volatility. Underlying credit costs remained elevated. The provision for loan and lease losses rose to $143.5 million from $79.4 million, nonperforming assets reached $560.1 million (4.10% of loans, leases and OREO), and noncovered nonperforming assets rose to 1.71% from 1.32%. Noninterest expense climbed 12.6% to $733.4 million, with $61.9 million tied to the new FDIC-assisted branches. Management also flagged that the Dodd-Frank Act will significantly reduce debit card interchange income in 2011 and will phase out $265 million of trust preferred securities from Tier 1 capital beginning in 2013. Capital remains strong, with a Tier 1 risk-based ratio of 14.86% and a leverage ratio of 9.18%, both well above well-capitalized thresholds. Subsequent events include the January 2011 FDIC-assisted acquisition of United Western Bank in Colorado (about $993 million of loans and $1.6 billion of deposits assumed) and the January 2011 merger of IronStone Bank into First-Citizens Bank & Trust. Investors should weigh the one-time nature of acquisition gains and loss-share income against the rising credit costs and the regulatory headwinds ahead.
Mar 1, 2011
2009
FIRST CITIZENS BANCSHARES INC /DE/ Annual Report, Year Ended Dec 31, 2009
First Citizens BancShares (FCNCA) reported 2009 net income of $116.3 million, or $11.15 per share, up from $91.1 million ($8.73 per share) in 2008. The improvement was driven by a $104.4 million pre-tax bargain purchase gain from the FDIC-assisted acquisitions of Temecula Valley Bank and Venture Bank, which offset higher credit costs, FDIC premiums, and foreclosure expenses. Excluding the acquisition gains, underlying profitability was weaker: return on average assets was 0.66% and return on average equity 7.94%, and the company flagged that its returns have historically compared unfavorably with similarly sized peers. Credit quality deteriorated in the legacy portfolio. Provision for loan losses rose 20.4% to $79.4 million and net charge-offs reached $64.7 million. Nonperforming assets climbed to $374.3 million from $71.7 million, though $220.2 million of that is covered by FDIC loss-share agreements that protect the bank from most losses on the acquired loans. Noncovered nonperforming assets rose to $154.0 million, driven largely by restructured loans and residential construction exposure in Atlanta and southwest Florida, where IronStone Bank is concentrated. Balance sheet growth and capital remained strong. Deposits grew 11.8% to $15.3 billion, total assets reached $18.5 billion, and the Tier 1 risk-based capital ratio was 13.34%. Management expects the bank industry to report weak earnings and low capital generation in 2010, and it intends to pursue further FDIC-assisted acquisitions, including First Regional Bank in January 2010. The filing also highlights that the Holding family controls roughly 47% of voting power, and that the company's 2010 dividend was declared at $0.30 per share.
Mar 1, 2010
2008-A
FIRST CITIZENS BANCSHARES INC /DE/ Annual Report (Amendment), Year Ended Dec 31, 2008
This filing is an amendment (10-K/A) to First Citizens BancShares, Inc.'s Annual Report on Form 10-K for the fiscal year ended December 31, 2008. The amendment's primary purpose is to correct the SEC file number on the report cover and to revise the officer certifications filed with the original 10-K. It is important for investors to note that this amendment does not introduce new financial information or update disclosures beyond these specific administrative corrections. Investors should refer to subsequent filings for events and financial performance occurring after February 27, 2009, the filing date of the original 10-K. The filing confirms that First Citizens BancShares, Inc. is a large accelerated filer and not a shell company. The aggregate market value of its common equity held by non-affiliates was approximately $718.3 million as of June 30, 2008. This amendment, filed on January 8, 2010, is essentially a procedural update to a previous filing from early 2009, and does not contain operational or financial performance data for the period ending December 31, 2009.
Jan 8, 2010
2008
FIRST CITIZENS BANCSHARES INC /DE/ Annual Report, Year Ended Dec 31, 2008
First Citizens BancShares (FCNCA) reported a weaker 2008 as credit costs surged, though its balance sheet remained strong. Net income fell 16.2% to $91.1 million ($8.73 per share) from $108.6 million ($10.41) in 2007, with return on average assets declining to 0.56% from 0.68% and return on average equity to 6.13% from 7.92%. The drop was driven mainly by a provision for credit losses that nearly doubled to $65.8 million, while net interest income grew 4.0% to $499.8 million on balance sheet growth. Noninterest income rose 5.6% to $312.1 million and noninterest expense rose 5.5% to $606.5 million. Asset quality deteriorated sharply, concentrated in residential construction loans in the Atlanta, Georgia and southwest Florida markets. Nonperforming assets reached $71.7 million (0.61% of loans plus other real estate), up from $19.9 million a year earlier, and net charge-offs rose to $45.3 million (0.40% of average loans) from $28.0 million. Management stated that $42.3 million of nonperforming assets arose from these two markets, and that it expects additional residential construction loans to move to nonaccrual in 2009 and ISB to operate at a loss at least through 2009. Capital and liquidity remain a relative strength. Tier 1 risk-based capital was 13.20%, total risk-based capital 15.49%, and the leverage ratio 9.88%, all well above well-capitalized thresholds. Management declined to apply for TARP Capital Purchase Program funds, citing adequate capital, and elected into the TLGP expanded deposit insurance program but not the debt guarantee. Deposits grew 6.1% to $13.71 billion, and the company declared a quarterly dividend of $0.275 per share, unchanged from prior periods, payable April 6, 2009. Investors should weigh the stable dividend and strong capital against rising credit losses, the drag from the de novo IronStone Bank subsidiary, and a Q4 2008 return on equity of just 3.43%.
Feb 27, 2009
2007
FIRST CITIZENS BANCSHARES INC /DE/ Annual Report, Year Ended Dec 31, 2007
First Citizens BancShares (FCNCA) reported 2007 net income of $108.6 million, down 14.1% from $126.5 million in 2006, with diluted EPS falling to $10.41 from $12.12. The decline was driven by a 60.6% jump in the provision for credit losses to $33.6 million, an 8.2% rise in noninterest expense to $574.7 million, and a net interest margin that compressed 13 basis points to 3.41%. Return on average equity fell to 7.92% from 10.19%, and return on assets to 0.68% from 0.83%. Net interest income was nearly flat at $480.3 million, up only 0.8%, as a flat yield curve and aggressive loan and deposit pricing offset balance sheet growth. The filing also highlights a split performance profile between the two banking subsidiaries. First-Citizens Bank & Trust (FCB), the mature North Carolina franchise, earned $125.2 million, while the de novo IronStone Bank (ISB), focused on high-growth Sun Belt and western markets, posted a $7.7 million loss, and management expects ISB to remain unprofitable in 2008. Credit quality remains strong on a historical basis, with nonperforming assets at 0.18% of loans and other real estate, but management flagged $23.1 million of residential construction loans placed on nonaccrual in early 2008 and increased its unallocated reserve to 8.0% of the total allowance. The company also disclosed a significant deficiency in Working Capital Finance lending that was remediated by year-end, and ongoing patent litigation with DataTreasury. Capital and liquidity remain conservative. Tier 1 risk-based capital was 13.02% and the Tier 1 leverage ratio 9.63% at the holding company, and both banks are well capitalized. Shareholders' equity rose to $1.44 billion, with book value per share of $138.12. The Board declared a quarterly dividend of 27.5 cents, unchanged at $1.10 annually, which represents a payout ratio near 10.6% of earnings. Investors should weigh the stable, well-capitalized core bank against slowing earnings momentum, margin pressure, ISB's continuing losses, and rising credit risk as the 2008 economic outlook deteriorated.
Feb 28, 2008
2006
FIRST CITIZENS BANCSHARES INC /DE/ Annual Report, Year Ended Dec 31, 2006
First Citizens BancShares, Inc. (FCNCA) reported a solid 2006 for its shareholders, with net income of $126.5 million, up 12.1% from $112.9 million in 2005, and diluted-equivalent EPS of $12.12 versus $10.82. Return on average assets improved to 0.83% from 0.81%, and return on average equity rose to 10.19% from 9.98%. Growth was driven by a $1.12 billion increase in average interest-earning assets, net interest income up 5.3% to $471.5 million, and noninterest income up 5.9% to $279.3 million, led by cardholder and merchant services. Credit quality improved: net charge-offs fell to 0.18% of average loans from 0.28%, and nonperforming assets dropped to 0.20% of loans and other real estate. Capital remained strong, with the holding company's Tier 1 risk-based ratio at 12.93% and all banking subsidiaries well-capitalized. The main investor considerations are the cost of funding and the drag from the company's de novo expansion. The net yield on interest-earning assets fell 12 basis points to 3.48% amid a flat yield curve, and noninterest expense rose 6.8% to $534.0 million, largely from branch expansion. IronStone Bank (ISB), the Atlanta-born, multi-state thrift, still posted only $2.2 million of net income in 2006 after losses in prior years, and management expects it to run near breakeven in 2007 as it enters Dallas, Oklahoma City and Kansas City. Profitability also continues to trail similarly sized peers, which management acknowledges, and the company has deliberately prioritized asset quality and capital conservation over short-term returns. The company remains closely held: the Class B shares carry 16 votes each, the Holding family and related persons have significant influence, and a meaningful share of processing fee income comes from banks controlled by related persons ($26.1 million in 2006). Management plans to keep paying a $0.275 quarterly dividend, and the company has historically funded growth through retained earnings and non-equity capital rather than issuing stock.
Feb 28, 2007
2005
FIRST CITIZENS BANCSHARES INC /DE/ Annual Report, Year Ended Dec 31, 2005
First Citizens BancShares (FCNCA) reported a strong 2005 with net income of $112.9 million, up 50.8% from $74.8 million in 2004, and diluted-equivalent EPS of $10.82 versus $7.17. The improvement was driven mainly by a 15.6% increase in net interest income to $447.8 million, as the net interest margin widened to 3.60% from 3.38% on higher market rates. Noninterest income rose 4.9% to $263.4 million, led by cardholder and merchant services, while noninterest expense grew 4.1% to $499.4 million. Total assets reached $14.64 billion at year-end, and the Class A stock closed at $174.42. The company's main growth and risk story is IronStone Bank (ISB), its de novo subsidiary operating in 53 offices across nine western and southeastern states. ISB posted a $2.9 million net loss in 2005 and cumulative losses since 1997 of $29.2 million, and BancShares has injected $250 million of capital into it. Management plans a further $30 million infusion in 2006 and expects ISB to keep weighing on earnings as it expands. Parent-level capital remains solid, with a total risk-based capital ratio of 15.1% and a Tier 1 leverage ratio of 9.2%, and all banking subsidiaries are well-capitalized. Credit quality remained sound, with nonperforming assets at 0.27% of loans and other real estate and net charge-offs at 0.28% of average loans. Investors should weigh several concentrations: medical-related loans are 13.7% of the portfolio, 11.2% of loans exceed regulatory loan-to-value guidelines, and the balance sheet is liability-sensitive by $1.23 billion within one year. The company also relies on related-party processing revenue of about $24 million a year and carries a substantial share of Class B shares with 16 votes each.
Mar 14, 2006
2004
FIRST CITIZENS BANCSHARES INC /DE/ Annual Report, Year Ended Dec 31, 2004
First Citizens BancShares (FCNCA) reported 2004 net income of $74.8 million, or $7.17 per share, down 0.5% from $75.2 million in 2003 and well below $92.8 million in 2002. The decline came despite improved net interest income and noninterest income, which were offset by higher noninterest expense ($479.6 million, up 3.1%), a larger loan loss provision ($34.5 million, up 42.5%), and a higher effective tax rate of 39.7%, which included a $5.0 million North Carolina tax settlement. Return on average assets was 0.58% and return on average equity was 7.10%, both weaker than prior years and, per management, unfavorable versus similar-sized peers. Balance sheet growth was driven by loans, which rose 12.3% to $9.35 billion, with commercial mortgages up 23.6% and ISB (IronStone Bank, the de novo thrift expanding into Western and Sunbelt markets) loans up 26.4%. Deposits grew 6.0% to $11.35 billion. Asset quality remained strong: nonperforming assets were 0.25% of loans plus other real estate, and net charge-offs were 0.26% of average loans. The allowance for loan losses covered 1.40% of loans. The main investor concern is the ISB expansion. ISB has lost money every year since its 1997 launch, with cumulative losses of $26.3 million, BancShares has injected $230 million of capital into it, and management expects losses to continue for the foreseeable future. Capital remains solid, with a Tier 1 risk-based ratio of 12.1% and a leverage ratio of 9.3%, and all banking subsidiaries are well capitalized. The company also declared a 27.5-cent quarterly dividend for April 2005 and expects rising interest rates in 2005 to benefit its asset-sensitive balance sheet.
Mar 11, 2005
2003
FIRST CITIZENS BANCSHARES INC /DE/ Annual Report, Year Ended Dec 31, 2003
First Citizens BancShares (FCNCA) reported a difficult 2003 in its FY2003 10-K: net income fell 18.9% to $75.2 million ($7.19 per share) from $92.8 million ($8.85 per share) in 2002. The decline was driven mainly by a $20.2 million (5.3%) drop in net interest income, as falling market rates compressed the taxable-equivalent net yield on earning assets from 3.63% to 3.32%, and by a 7.6% rise in noninterest expense to $465.1 million. Partial offsets were a 10.8% increase in noninterest income, helped by a $5.7 million gain on branch sales, and a lower provision for loan losses of $24.2 million. The balance sheet grew modestly, with total assets of $12.56 billion and gross loans up 9.3% to $8.33 billion, led by commercial mortgages and revolving home-equity lines. Deposits rose 2.6% to $10.71 billion, but the mix shifted toward demand and money-market accounts as customers avoided low-yielding time deposits. Asset quality stayed strong by industry standards, with nonperforming assets at 0.29% of loans plus other real estate and net charge-offs at 0.23% of average loans, though nonaccrual loans rose to $18.2 million. Capital remained well above minimums, with a total risk-based ratio of 14.2% and a leverage ratio of 9.3%. The main investor concern is the Atlantic States Bank (ASB) de novo expansion. ASB posted losses in each of 2001 through 2003 ($2.0 million in 2003, cumulative $23.4 million), management expects losses to continue, and BancShares has infused $200 million into ASB since 1997, with further infusions planned for 2004 and 2005. Management also flagged that FCB's ability to upstream dividends at 2003 levels is doubtful, which could limit ASB's expansion. The company's return on average assets was 0.61% and return on equity 7.54%, both of which management acknowledges compare unfavorably with similarly sized peers.
Mar 15, 2004
2002
FIRST CITIZENS BANCSHARES INC /DE/ Annual Report, Year Ended Dec 31, 2002
First Citizens BancShares (FCNCA) reported 2002 net income of $92.8 million, or $8.85 per share, up 6.7% from $86.9 million ($8.27 per share) in 2001, though below the $98.3 million earned in 2000. Growth came from higher net interest income (up 3.6% to $382.2 million) and noninterest income (up 2.7% to $221.4 million), partially offset by rising noninterest expense (up 2.6% to $433.4 million) and a larger loan loss provision ($26.6 million, up 10%). Return on average assets was 0.78% and return on average equity was 10.03%. Total assets reached $12.23 billion at year-end, with deposits of $10.44 billion (up 4.8%) and gross loans of $7.62 billion (up 5.9%). The bank's net interest margin compressed sharply as the Federal Reserve cut rates. The taxable-equivalent net yield fell from 4.10% in 2000 to 3.69% in 2001 and 3.63% in 2002, and the yield on earning assets dropped 149 basis points to 5.66%. Management partly offset this by shifting deposits from higher-cost time deposits to lower-cost transaction accounts, which widened the interest rate spread to 3.32%. Credit quality remained sound but was drifting weaker: nonperforming assets rose to $22.9 million (0.30% of loans plus OREO) from $20.2 million, and net charge-offs increased to 0.29% of average loans. The reserve for loan losses covered 1.48% of total loans. Capital remained strong, with a Tier 1 risk-based ratio of 13.5%, a total risk-based ratio of 14.8%, and a leverage ratio of 9.2%, all well above regulatory minimums. The company is a financial holding company with two banks: First-Citizens Bank & Trust (342 branches in NC, VA and WV) and Atlantic States Bank/IronStone Bank (41 offices in GA, FL, TX, with a new Arizona office and planned California expansion). Management expects continued pressure on margins, a slowdown in commercial loan demand, and rising pension and health care costs in 2003, and it declared a 27.5-cent quarterly dividend.
Mar 14, 2003
2001
FIRST CITIZENS BANCSHARES INC /DE/ Annual Report, Year Ended Dec 31, 2001
First Citizens BancShares, Inc. (FCNCA) reported a decrease in net income for 2001 to $86.9 million, down from $98.3 million in 2000. This decline was attributed to higher noninterest expenses and provisions for loan losses, partially offset by growth in noninterest income and a modest increase in net interest income. Despite the lower net income, the company maintained strong capital ratios, exceeding regulatory minimums, supported in part by the issuance of trust preferred securities. The company experienced significant growth in deposits, which exceeded loan demand, leading to a substantial increase in its investment securities portfolio. Management anticipates continued modest loan demand in 2002 due to economic conditions but expects favorable growth in revolving mortgage loans. The company's diversification across banking operations in North Carolina, Virginia, West Virginia, Georgia, and Florida, along with its financial holding company status, provides a broad operational base. FCNCA's asset quality remained stable, though nonperforming assets saw a slight increase, with management expecting this trend to continue until economic recovery. The company also focused on managing interest rate risk, maintaining a largely liability-sensitive position that could unfavorably impact net interest income if rates were to increase significantly. Noninterest income saw growth driven by service charges on deposit accounts, credit card income, and mortgage income, while noninterest expense increased due to higher salaries, employee benefits, and operating costs associated with branch expansion. The company also noted upcoming changes in accounting standards related to goodwill and intangible assets, which will impact future amortization policies.
Mar 18, 2002
2000
FIRST CITIZENS BANCSHARES INC /DE/ Annual Report, Year Ended Dec 31, 2000
First Citizens BancShares, Inc. (FCNCA) reported a strong 2000 with net income of $98.3 million, up 20.2% from $81.8 million in 1999, and diluted EPS of $9.32 versus $7.70. Return on average assets improved to 0.98% from 0.85%, and return on equity rose to 12.88% from 11.79%. Much of the improvement was helped by nonrecurring items, which the company estimates added $14.7 million after tax (about $1.39 per share), including a $12.1 million after-tax gain from selling its mortgage servicing rights, a $2.6 million gain from selling four branches, and securities gains, partially offset by a $1.9 million after-tax charge for closing 15 branches. Investors should therefore view core earnings growth as more modest than the headline figure suggests. Core operations showed steady but mixed trends. Net interest income grew 3.7% on a GAAP basis to $365.3 million, and average loans rose 8.7% to $6.96 billion, driven by commercial real estate and home equity lending. However, interest expense jumped 21.8% as the blended cost of interest-bearing liabilities rose to 4.41% from 3.75%, compressing the interest rate spread to 3.50% from 3.61%. The company also carries a one-year negative interest-sensitivity gap of $924 million, meaning rising rates could hurt net interest income. Noninterest expense rose 5.1% to $394.8 million, and the efficiency of the franchise remains a watch item. Asset quality and capital remain solid. Net charge-offs were a low 0.17% of average loans, and nonperforming assets were 0.25% of loans, though both nonaccrual loans and 90-day past-due loans increased and management flagged the late-2000 economic slowdown as a risk. The reserve for loan losses covered 1.44% of loans. Capital is strong, with a Tier 1 risk-based ratio of 10.37%, total risk-based capital of 11.67%, and a leverage ratio of 8.11%, all above well-capitalized thresholds. The company also repurchased shares and declared a $0.25 quarterly dividend for 2001, keeping the annual payout at $1.00 per share.
Mar 19, 2001
1998
FIRST CITIZENS BANCSHARES INC /DE/ Annual Report, Year Ended Dec 31, 1998
First Citizens BancShares, Inc. (FCNCA) reported full-year 1998 net income of $71.0 million, up 0.6% from $70.6 million in 1997, with diluted-equivalent EPS rising to $6.62 from $6.22. The improvement came from growth in net interest income ($327.4 million, up 7.6%) and noninterest income ($146.1 million, up 26.7%), largely offset by a 14.0% jump in noninterest expense to $342.9 million and a sharp rise in the loan loss provision to $19.9 million from $8.7 million. Return on average assets slipped to 0.77% from 0.85%, though return on average equity held near 11.3%. Total assets reached $9.61 billion, deposits $8.11 billion, and shareholders' equity $660.7 million, with book value per share rising to $62.18. Balance sheet growth was driven by internal loan expansion: gross loans rose 13.8% to $6.20 billion, with commercial and industrial and indirect auto lending leading the way. Management also issued $150 million of 8.05% trust preferred securities in March 1998 to bolster capital after large share repurchases, lifting the leverage ratio to 7.3% from 5.8%. Credit quality remained strong, with nonperforming assets at just 0.23% of loans and net charge-offs at 0.14% of average loans, though the reserve build signals management's expectation of continued loan growth. Interest-rate risk is a watch item, as the one-year cumulative negative repricing gap stood at $2.11 billion. Year 2000 remediation was largely complete, with a total project cost estimated at $8.5 million.
Mar 31, 1999
1997
FIRST CITIZENS BANCSHARES INC /DE/ Annual Report, Year Ended Dec 31, 1997
First Citizens BancShares (FCNCA) reported a solid 1997 under its 10-K filed March 30, 1998. Net income rose 7.8% to $70.6 million ($6.22 per share) from $65.5 million ($5.77 per share) in 1996, with ROA steady at 0.85% and ROE at 11.04%. Growth was driven by higher net interest income (up 6.4% on a taxable-equivalent basis) and noninterest income (up 11.6%), which more than offset a 7.9% rise in noninterest expense. Excluding the 1996 one-time FDIC SAIF assessment, 1997 earnings would have been roughly 1.7% lower than 1996, so the headline growth is flattered by the comparison base. Total assets reached $8.95 billion, deposits $7.58 billion, and loans $5.45 billion, with loan growth of 10.5% including modest acquisition contribution. Credit quality remained strong: net charge-offs were 0.12% of average loans and nonperforming assets were 0.26% of loans, though consumer and credit card losses are rising with personal bankruptcies. Capital ratios declined during the year, with the Tier 1 ratio falling to 8.63% from 10.2% and total risk-based capital to 9.87% from 11.5%, largely because of a $58 million commitment to repurchase 600,000 shares from a related party and a reclassification of pension-held shares to liabilities. The company remains above regulatory minimums. Investors should also note the balance sheet's interest-rate sensitivity: a one-year negative gap of $2.32 billion means rising rates could pressure net interest income. The filing also discloses Year 2000 remediation costs of about $2.2 million in 1997 with an additional $2 to $3 million expected. The company operates 329 offices across North Carolina, Virginia, West Virginia, and Georgia, and is the fifth-largest commercial bank in North Carolina by deposits. Growth has come largely from acquisitions and de novo branching, and management plans continued expansion in small business lending, EquityLine home equity loans, and indirect auto lending.
Mar 30, 1998
1996-A2
FIRST CITIZENS BANCSHARES INC /DE/ Annual Report (Amendment), Year Ended Dec 31, 1996
This excerpt of First Citizens BancShares, Inc.'s Form 10-K for the fiscal year ended December 31, 1996 contains only the cover page and exhibit index. It does not include business descriptions, financial statements, or MD&A. The financial results are incorporated by reference from the 1996 Annual Report (Exhibit 13), and the Financial Data Schedule is listed as Exhibit 27, so the analysis of performance, asset quality, capital, and earnings cannot be completed from this text alone. The cover page identifies the registrant as a Delaware holding company headquartered at 239 Fayetteville Street Mall, Raleigh, North Carolina, whose principal operating subsidiary is First-Citizens Bank & Trust Company. Its equity is split into two classes of common stock registered under Section 12(g): Class A (9,637,940 shares outstanding) and Class B (1,758,370 shares outstanding) as of March 12, 1997. The aggregate market value of voting stock held by nonaffiliates on that date was $427,758,000. The exhibit index shows a long history of executive employment and retirement agreements with insiders, along with merger agreements related to prior acquisitions of First Investors Savings Bank, State Bank, Allied Bank Capital, and Edgecombe Homestead. Investors seeking the bank's balance sheet, earnings, and credit metrics should review the full 1996 Annual Report and the Exhibit 27 financial data schedule.
May 21, 1997
1996-A
FIRST CITIZENS BANCSHARES INC /DE/ Annual Report (Amendment), Year Ended Dec 31, 1996
First Citizens BancShares, Inc. (FCNCA) reported a solid 1996 for its fiscal year ended December 31, 1996. Net income rose about 15% to $65.5 million ($5.77 per share, up from $5.37), and return on average assets improved slightly to 0.85%. Growth was driven by a 15.9% increase in taxable-equivalent net interest income to $288.3 million, as average interest-earning assets grew 12.9% through acquisitions (notably Allied Bank Capital in February 1996) and deposit growth. Total assets reached $8.06 billion, deposits $6.95 billion, and shareholders' equity $615.5 million, with the leverage capital ratio at 6.4%. The main headwinds were credit quality and expenses. Net charge-offs rose to 0.15% of average loans from 0.05%, driven mainly by consumer and credit card losses, and the provision for loan losses nearly doubled to $8.9 million. Noninterest expense climbed 13.3% to $278.7 million, including a one-time $10 million SAIF special assessment, and the effective tax rate rose to 35.6%. Management expects charge-offs in 1997 to approximate 1996 levels and plans to move the credit card operation to Roanoke, Virginia, in mid-1997. For investors, the filing shows a closely held, family-controlled institution: the Holding family and affiliates control a large share of votes through the high-vote Class B stock (16 votes per share). The company also raised its quarterly dividend to $0.25 for payment in April 1997 and continued share repurchases. Investors should note a one-year interest-sensitivity gap of about $913 million, which means rising rates could pressure net interest income in the near term.
Mar 24, 1997
1996
FIRST CITIZENS BANCSHARES INC /DE/ Annual Report, Year Ended Dec 31, 1996
First Citizens BancShares, Inc. (Nasdaq: FCNCA), the Raleigh, North Carolina-based holding company for First-Citizens Bank & Trust Company, filed its 10-K for fiscal year 1996 on March 18, 1997. As of December 31, 1996, the company reported consolidated assets of $8.1 billion, deposits of $7.0 billion, and shareholders' equity of $615.5 million. The Bank is the fifth-largest commercial bank in North Carolina by total deposits and operated 308 offices across North Carolina and Virginia, with two small West Virginia acquisitions (Bank of Marlinton and Bank of White Sulphur Springs) adding further footprint. Growth has come mainly from acquisitions and de novo branching under the Holding family's leadership. The filing is largely a wrapper document. Most financial detail, including MD&A, financial statements, selected financial data, and stock and dividend tables, is incorporated by reference from the 1996 Annual Report to Shareholders (filed as Exhibit 13), so the key numbers investors need sit outside this main document. Management disclosed a quarterly cash dividend of $0.25 per share declared January 27, 1997, and stated an expectation that comparable dividends will continue, subject to earnings and capital needs. Legal proceedings are routine, and management does not expect material effects on consolidated financial position. The filing also discusses the regulatory backdrop. The Interstate Banking Law permits interstate bank mergers beginning June 1, 1997, and North Carolina and West Virginia allow statewide branching, which increases competitive pressure in the company's markets. Part III items are incorporated by reference to the March 14, 1997 proxy statement. Because the document does not include profitability metrics such as net income or return on equity, investors should review Exhibit 13 for those figures.
Mar 18, 1997