10-KPeriod: FY2024

FIRST CITIZENS BANCSHARES INC /DE/ Annual Report, Year Ended Dec 31, 2024

Filed February 21, 2025For Securities:FCNCAFCNCPFCNCBFCNCOFCNCN

Summary

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 billion, 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 billion, 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 billion, 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.

Financial Statements
Beta
Revenue$9.76B
Net Income$2.78B
EPS (Basic)$189.42
EPS (Diluted)$189.41
Shares Outstanding (Basic)14.34M
Shares Outstanding (Diluted)14.34M

Key Highlights

  • 1Net 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.
  • 2Net Interest Income (NII) grew 6% to $7.14 billion, driven by loan growth and higher asset yields, despite increased deposit costs.
  • 3Total assets grew to $223.72 billion, with deposits increasing 6% to $155.23 billion, indicating robust funding.
  • 4Capital ratios remain strong, with Common Equity Tier 1 at 12.99%, significantly exceeding regulatory requirements.
  • 5The loan portfolio expanded 5% to $140.22 billion, reflecting growth across all segments, especially in commercial and global fund banking.
  • 6Investment securities increased by 47% to $44.09 billion, focusing on short-duration, high-quality assets.
  • 7The 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.

Frequently Asked Questions

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.

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.

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.

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.

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.