10-KPeriod: FY2015

FIRST CITIZENS BANCSHARES INC /DE/ Annual Report, Year Ended Dec 31, 2015

Filed February 24, 2016For Securities:FCNCAFCNCPFCNCBFCNCOFCNCN

Summary

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.

Financial Highlights

34 data points
Beta

Net Income

$210.39M

EPS (Diluted)

$17.52

Total Assets

$31.48B

Cash & Equivalents

$534.09M

Free Cash Flow

$143.32M

Financial Statements
Beta
Interest Expense$44.30M
Net Income$210.39M
EPS (Basic)$17.52
Shares Outstanding (Basic)12.01M

Key Highlights

  • 1Net income for 2015 was $210.4 million, a 51.8% increase compared to $138.6 million in 2014.
  • 2Net loans increased by $1.47 billion to $20.24 billion, primarily driven by originated portfolio growth.
  • 3Total deposits grew by $1.25 billion to $26.93 billion, driven by organic growth in low-cost accounts.
  • 4The company recorded a $42.9 million gain from the acquisition of Capitol City Bank & Trust (CCBT).
  • 5Net charge-offs decreased to $18.9 million (0.10% of average loans) from $29.6 million (0.20%) in 2014.
  • 6Capital ratios remained strong, with a Common Equity Tier 1 ratio of 12.51% and a Leverage Capital Ratio of 8.96% as of December 31, 2015, exceeding regulatory well-capitalized standards.
  • 7The company is actively pursuing strategic initiatives focused on core revenue growth, expense control, branch network optimization, and technology enhancements.

Frequently Asked Questions

The primary driver of the substantial increase in net income for 2015 was a combination of strong core loan growth, the full-year impact of the Bancorporation merger completed in late 2014, and a significant gain of $42.9 million recognized from the acquisition of Capitol City Bank & Trust (CCBT).

The company experienced robust growth in both its loan and deposit portfolios. Net loans increased by $1.47 billion to $20.24 billion, primarily driven by organic growth in the originated portfolio. Deposits grew by $1.25 billion to $26.93 billion, mainly due to organic growth in low-cost demand and checking accounts.

As of December 31, 2015, First Citizens BancShares was well-capitalized under the Basel III guidelines, exceeding regulatory requirements. Key ratios included a Tier 1 risk-based capital ratio of 12.65%, a Common Equity Tier 1 ratio of 12.51%, and a Leverage Capital Ratio of 8.96%. The company anticipates remaining well-capitalized even after the full phase-in of Basel III requirements.

The Bancorporation merger, fully reflected in 2015 results, significantly boosted total revenue and expanded the balance sheet. The acquisition of Capitol City Bank & Trust (CCBT) contributed a gain of $42.9 million to noninterest income and expanded the company's presence in Georgia. Both acquisitions have been accounted for under the acquisition method.