10-QPeriod: Q1 FY2024

FIRST CITIZENS BANCSHARES INC /DE/ Quarterly Report for Q1 Ended Mar 31, 2024

Filed May 9, 2024For Securities:FCNCAFCNCPFCNCBFCNCOFCNCN

Summary

First Citizens BancShares, Inc. (FCNCA) reported a strong first quarter of 2024, with net income available to common stockholders reaching $716 million, or $49.26 per diluted share. This represents a significant increase from the previous quarter, driven by a substantial decrease in the provision for credit losses and lower noninterest expenses, partially offset by a decline in net interest income. The company's balance sheet showed continued growth, with total loans and leases increasing by 2% to $135.37 billion and total deposits rising by 3% to $149.61 billion. Investment securities also saw a notable increase of 17% to $35.04 billion. Capital ratios remained robust, well exceeding regulatory requirements, indicating a strong financial position. The company's liquidity position was solid, with ample cash and high-quality liquid securities. While the company experienced a slight decrease in net interest margin, this was attributed to a higher cost of deposits and a decline in loan discount accretion. The provision for credit losses saw a significant reduction, reflecting improved macroeconomic forecasts and lower net charge-offs. Management continues to focus on managing interest rate risk and maintaining a strong capital and liquidity position amidst a dynamic economic environment.

Financial Highlights

37 data points
Beta

Revenue

$2.44B

Net Income

$731.00M

29.9% Net Margin

EPS (Diluted)

$49.26

Total Assets

$217.84B

Cash & Equivalents

$698.00M

Free Cash Flow

$367.00M

Financial Statements
Beta
Revenue$2.44B
Interest Expense$1.27B
Net Income$731.00M
EPS (Basic)$49.27
EPS (Diluted)$49.26
Shares Outstanding (Basic)14.53M
Shares Outstanding (Diluted)14.54M

Key Highlights

  • 1Net income available to common stockholders increased significantly by 44% quarter-over-quarter to $716 million.
  • 2Diluted earnings per share rose to $49.26, up from $34.33 in the prior quarter.
  • 3Total loans and leases grew by 2% to $135.37 billion, reflecting broad-based growth across segments.
  • 4Total deposits increased by 3% to $149.61 billion, driven by growth in the Direct Bank and branch network.
  • 5Investment securities portfolio expanded by 17% to $35.04 billion.
  • 6Provision for credit losses decreased by 75% to $64 million.
  • 7Capital ratios remained strong, significantly exceeding regulatory minimums.

Frequently Asked Questions

The significant increase in net income available to common stockholders was primarily driven by a substantial decrease in the provision for credit losses, which fell by 75% to $64 million, and lower noninterest expenses. These factors, combined with higher noninterest income, more than offset a modest decline in net interest income.

First Citizens BancShares experienced healthy growth in both loans and deposits. Total loans and leases increased by 2% to $135.37 billion, with growth observed across most segments. Total deposits rose by 3% to $149.61 billion, supported by increases in the Direct Bank and the branch network.

The company maintains a strong capital position, with all regulatory capital ratios significantly exceeding well-capitalized thresholds. Liquidity remains solid, characterized by substantial cash and high-quality liquid securities, as well as significant unused borrowing capacity from credit facilities.

The Net Interest Margin (NIM) saw a slight decrease of 19 basis points to 3.67%. This was primarily attributed to a higher interest expense on deposits, reflecting a shift in deposit mix towards higher-cost products and competitive pricing, as well as a decline in loan discount accretion from the prior quarter.