01—Abstract
Summary
Summary of the 10-K filed February 21, 2025. Cited figures are marked; the original filing is the authoritative source.
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 billiona, 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 billionb, 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 billionc, 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.
02—Key points
Key Highlights
- Net income available to common stockholders was $2.72 billion, a decrease from the prior year largely due to a significant 2023 acquisition gain, but core operations showed underlying strength.
- Net Interest Income (NII) grew 6% to $7.14 billion, driven by loan growth and higher asset yields, despite increased deposit costs.
- Total assets grew to $223.72 billion, with deposits increasing 6% to $155.23 billion, indicating robust funding.
- Capital ratios remain strong, with Common Equity Tier 1 at 12.99%, significantly exceeding regulatory requirements.
- The loan portfolio expanded 5% to $140.22 billion, reflecting growth across all segments, especially in commercial and global fund banking.
- Investment securities increased by 47% to $44.09 billion, focusing on short-duration, high-quality assets.
- The company repurchased $1.66 billion of Class A common stock in 2024 under its $3.50 billion repurchase program, signaling confidence and returning capital to shareholders.
03—One dollar
04—Financials
Financial Highlights
Figures from 10-KFY2024filed February 21, 2025Financial Statements
FY2024 against FY2023
| Line item | FY2024FY2023 | Change |
|---|---|---|
| Revenue | $9.76B$18.79B | −48.1% |
| Net Income | $2.78B$11.47B | −75.8% |
| EPS (Basic) | $189.42$785.14 | −75.9% |
| EPS (Diluted) | $189.41$784.51 | −75.9% |
| Shares Outstanding (Basic) | 14.34M14.53M | −1.3% |
| Shares Outstanding (Diluted) | 14.34M14.54M | −1.4% |
05—Questions
Frequently Asked Questions
How did First Citizens BancShares perform financially in 2024 compared to 2023?
In 2024, First Citizens BancShares reported net income available to common stockholders of $2.72 billion, a decrease from $11.41 billion in 2023. This reduction was primarily due to a significant gain on acquisition recorded in 2023 related to the SVBB acquisition. However, core operational performance showed strength with Net Interest Income (NII) increasing by 6% to $7.14 billion, driven by loan growth and higher asset yields, which offset increased deposit costs.
What is the current status of the company's balance sheet and capital position?
The company's total assets grew to $223.72 billion by the end of 2024, with total deposits increasing by 6% to $155.23 billion. BancShares maintained a strong capital position, with regulatory capital ratios significantly exceeding requirements. Notably, the Common Equity Tier 1 ratio was 12.99%, demonstrating a solid foundation for operations and growth.
What are the key drivers of loan growth and what segments are contributing most?
The total loan portfolio increased by 5% to $140.22 billion in 2024. Growth was observed across all segments: General Bank saw increases primarily in commercial and business loans, Commercial Bank benefited from expansion in technology, media, telecommunications (TMT), and healthcare verticals, and SVB Commercial experienced growth in its global fund banking portfolio.
How is the company managing its investment securities portfolio, and what is its strategy?
First Citizens BancShares increased its investment securities portfolio by 47% to $44.09 billion by the end of 2024. The strategy focused on purchasing short-duration U.S. agency mortgage-backed securities and U.S. Treasury securities, aimed at generating incremental income while managing interest rate risk and maintaining liquidity.
What is the company's approach to returning capital to shareholders?
During 2024, First Citizens BancShares repurchased approximately $1.66 billion of its Class A common stock under its $3.50 billion share repurchase program authorized through 2025. This activity, along with consistent dividend payments, reflects the company's commitment to enhancing shareholder value.
06—Continue