10-KPeriod: FY2019

FIRST CITIZENS BANCSHARES INC /DE/ Annual Report, Year Ended Dec 31, 2019

Filed February 26, 2020For Securities:FCNCAFCNCPFCNCBFCNCOFCNCN

Summary

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.

Financial Highlights

34 data points
Beta

Net Income

$457.37M

EPS (Diluted)

$41.05

Total Assets

$39.82B

Cash & Equivalents

$377.00M

Free Cash Flow

$457.17M

Financial Statements
Beta
Interest Expense$92.64M
Net Income$457.37M
EPS (Basic)$41.05
Shares Outstanding (Basic)11.14M

Key Highlights

  • 1Net income increased by 14.3% to $457.4 million in 2019, with earnings per share rising to $41.05.
  • 2Net 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.
  • 3Noninterest income rose by 3.9% to $415.9 million, driven by growth in wealth management, cardholder services, and mortgage income.
  • 4Total assets grew to $39.8 billion by year-end 2019, with a 13.2% increase in loans and a 12.3% increase in deposits.
  • 5The company returned $468.6 million to shareholders in 2019 through share repurchases and dividends.
  • 6Capital ratios remained strong and well above regulatory requirements under Basel III.
  • 7Strategic acquisitions continued to drive geographic expansion and market presence.

Frequently Asked Questions

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.

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.

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.

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.