10-KPeriod: FY2014

FIRST CITIZENS BANCSHARES INC /DE/ Annual Report, Year Ended Dec 31, 2014

Filed February 25, 2015For Securities:FCNCAFCNCPFCNCBFCNCOFCNCN

Summary

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.

Financial Highlights

34 data points
Beta

Net Income

$138.56M

EPS (Diluted)

$13.56

Total Assets

$30.08B

Cash & Equivalents

$604.18M

Free Cash Flow

$99.53M

Financial Statements
Beta
Interest Expense$50.35M
Net Income$138.56M
EPS (Basic)$13.56
Shares Outstanding (Basic)10.22M

Key Highlights

  • 1Net income decreased by 17% to $138.6 million in 2014 compared to $166.9 million in 2013, impacted by a decline in FDIC-assisted loan portfolio earnings.
  • 2Total assets increased significantly to $30.08 billion as of December 31, 2014, up from $21.19 billion at the end of 2013, largely due to the Bancorporation merger.
  • 3Total loans and leases grew by 42.9% to $18.77 billion, driven by $4.49 billion from the Bancorporation merger and $1.30 billion in originated portfolio growth.
  • 4Noninterest income increased by 27% to $340.4 million, boosted by the Bancorporation merger and a $29.1 million gain on Bancorporation shares.
  • 5The company maintained strong capital adequacy, with Tier 1 risk-based capital ratio at 13.61% and leverage ratio at 8.91% as of December 31, 2014, both exceeding regulatory requirements.
  • 6The company is preparing for new Basel III capital requirements, which will be phased in and result in higher minimum capital ratios.
  • 7Merger-related expenses totaled $13.1 million for 2014, related to the 1st Financial and Bancorporation transactions.

Frequently Asked Questions

First Citizens BancShares reported a net income of $138.6 million for 2014, a decrease from $166.9 million in 2013. This was attributed to lower earnings from FDIC-assisted loans, partially offset by the Bancorporation merger and an associated gain on shares. Total assets grew substantially to $30.08 billion due to strategic mergers.

The company completed significant mergers in 2014, most notably the Bancorporation merger, which significantly increased total assets to $30.08 billion and loans to $18.77 billion. Noninterest income also rose due to merger contributions and a gain on Bancorporation shares. The company incurred merger-related expenses totaling $13.1 million for the year.

First Citizens BancShares maintained strong capital ratios in 2014, exceeding regulatory requirements with a Tier 1 risk-based capital ratio of 13.61% and a leverage ratio of 8.91%. The company is preparing for new Basel III capital requirements, which will be phased in and result in higher minimum capital demands.