01—Abstract
Summary
Summary of the 10-K filed February 26, 2020. Cited figures are marked; the original filing is the authoritative source.
First Citizens BancShares, Inc. (FCNCA) reported solid financial performance for the year ended December 31, 2019, with net income of $457.4 milliona, a 14.3% increase compared to the prior year, translating to $41.05 per share.
This growth was primarily driven by an 8.5%b 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 billionc 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.
02—Key points
Key Highlights
- Net income increased by 14.3% to $457.4 million in 2019, with earnings per share rising to $41.05.
- Net interest income grew by 8.5% to $1.31 billion, supported by a 6.1% increase in average interest-earning assets and a 24 basis point improvement in yield.
- Noninterest income rose by 3.9% to $415.9 million, driven by growth in wealth management, cardholder services, and mortgage income.
- Total assets grew to $39.8 billion by year-end 2019, with a 13.2% increase in loans and a 12.3% increase in deposits.
- The company returned $468.6 million to shareholders in 2019 through share repurchases and dividends.
- Capital ratios remained strong and well above regulatory requirements under Basel III.
- Strategic acquisitions continued to drive geographic expansion and market presence.
03—One dollar
04—Financials
Financial Highlights
Figures from 10-KFY2019filed February 26, 2020Financial Statements
FY2019 against FY2018
| Line item | FY2019FY2018 | Change |
|---|---|---|
| Interest Expense | $92.64M$36.86M | +151.4% |
| Net Income | $457.37M$400.31M | +14.3% |
| EPS (Basic) | $41.05$33.53 | +22.4% |
| Shares Outstanding (Basic) | 11.14M11.94M | −6.7% |
05—Questions
Frequently Asked Questions
What was First Citizens BancShares' net income in 2019?
First Citizens BancShares reported a net income of $457.4 million for the year ended December 31, 2019, which represents a 14.3% increase from the previous year.
How did the company's loan and deposit growth perform in 2019?
The company experienced strong growth in both loans and deposits. Loans and leases increased by 13.2% to $28.88 billion, and total deposits grew by 12.3% to $34.43 billion by December 31, 2019.
What is the company's outlook on net interest margin given the interest rate environment?
While the net interest margin increased for the full year 2019, the company experienced margin compression throughout the year due to lower federal funds rates and higher deposit costs. Management expects continued market rate pressures to impact the net interest margin in 2020, anticipating an initial decrease followed by stabilization.
What were the key acquisitions made by First Citizens BancShares in 2019?
In 2019, First Citizens BancShares completed mergers with Biscayne Bancshares, Inc. (Florida), First South Bancorp, Inc. (South Carolina), and Entegra Financial Corp. (North Carolina), aimed at expanding its market presence and enhancing banking efforts in these regions.
06—Continue