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Bank
FINANCE | Retail Banking
firstcitizens.com

Investments

6

Partners & Customers

5

Service Providers

1

About First Citizens Bancshares

First Citizens BancShares (NASDAQ: FCNCA) operates through its wholly-owned subsidiary First Citizens Bank, a full-service banking institution offering traditional banking services, business and professional services, wealth management capabilities, and mobile bank offerings.

Headquarters Location

4300 Six Forks Road

Raleigh, North Carolina, 27609,

United States

919-716-7000

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Latest First Citizens Bancshares News

First Citizens BancShares Reports Fourth Quarter 2022 Earnings

Jan 26, 2023

01/26/2023 | 06:32am EST Message : *Required fields RALEIGH, N.C., Jan. 26, 2023 /PRNewswire/ -- First Citizens BancShares, Inc. ("BancShares") (NASDAQ: FCNCA) reported earnings for the fourth quarter and year-to-date period ended December 31, 2022. Holding, Jr. commented on the financial results for the quarter and year ended December 31, 2022: "First Citizens delivered solid financial results in 2022 marked by strong top line growth, low credit losses and well controlled expenses. Since the completion of our merger with CIT on January 3, 2022, we have successfully integrated our two companies and are now focused on capitalizing on opportunities to create positive operating leverage by growing revenues and optimizing our operations. We continued to execute on our capital strategy in the fourth quarter, completing our stock repurchase plan while still exceeding our CET 1 target. Looking ahead, we believe that we will have the ability to resume share buybacks in the second half of this year. We have also remained diligent in positioning ourselves to meet the regulatory requirements of a new large financial institution." Holding added: "We are pleased with the performance of our lines of business during the year, achieving robust loan growth in the General Bank and in Industry Verticals and Business Capital within the Commercial Bank. Despite a challenging environment for deposits driven by unprecedented quantitative tightening, we experienced modest growth in noninterest checking accounts and only experienced a slight decline in deposits during the year. During the fourth quarter, deposits grew at an annualized rate of 8.4% driven by growth in our Direct Bank." Holding concluded: "While we acknowledge concerns in the broader economy, and although we experienced an increase in nonaccrual loans during the fourth quarter, overall credit quality remains strong, and we are not seeing signs of significant loan portfolio deterioration. We enter 2023 with solid capital and liquidity positions and we believe that we are well positioned to continue to build customer relationships and grow our balance sheet profitably. And last but not least, I want to thank all of our associates for working so hard in 2022 on merger integration and to support our stockholders, customers and communities. "  FINANCIAL HIGHLIGHTS For the fourth quarter, net income available to common stockholders was $243 million, or $16.67 per diluted common share, compared to $303 million, or $19.25 per diluted common share in the third quarter of 2022. Fourth quarter results were impacted by the strategic decision to exit $1.2 billion of Bank Owned Life Insurance policies. The surrender of the policies resulted in a tax charge of $55 million. Favorable market conditions prompted us to exit this long-term, illiquid asset and, as we receive proceeds from the surrender, it increases our capital and liquidity positions while at the same time allowing us to invest in highly liquid assets at higher yields. During the fourth quarter, we repurchased 472,586 shares of Class A common stock for a total cost of $398 million. For the year, we repurchased 1,500,000 shares of Class A common stock for a total cost of $1.2 billion. Fourth quarter adjusted net income available to common stockholders was $306 million, or $20.94 per diluted common share, as compared to $326 million, or $20.77 per diluted common share in the third quarter. The following bullets highlight significant changes in the components of net income and adjusted net income between the third and fourth quarters (see the supporting tables for a reconciliation of GAAP net income to adjusted net income): Net interest income - Reported Net interest income totaled $802 million compared to $795 million in the third quarter. The $7 million increase was primarily due to a higher yield on earning assets and loan growth, partially offset by higher funding costs and average balances. Net interest margin was 3.36%, a decrease of 4 basis points compared to the third quarter. The yield on earning assets increased by 49 basis points while the cost of funding them increased by 53 basis points. The cost of funding earning assets increased due to higher rates paid on interest-bearing deposits and borrowings as well as a mix shift between noninterest-bearing and interest-bearing deposits. Noninterest income and expense - Reported Noninterest income totaled $429 million compared to $433 million in the third quarter, a decrease of $4 million. Rental income on operating lease equipment increased $5 million on a gross basis driven by continued improvement in utilization and a higher lease rate. Noninterest income from fee generating lines of business including service charges on deposit accounts, factoring and insurance commissions, card services and fee income and other service charges increased $8 million. Other noninterest income declined by $17 million, spread among various accounts. Noninterest expense totaled $760 million for both the third and fourth quarters. While the total was unchanged over the prior quarter, there was a $6 million increase in marketing costs related to the Direct Bank and a $3 million increase in net occupancy expense due to increased repairs and utilities costs. These were offset by a $4 million decline in maintenance and depreciation expense on operating lease equipment, a $4 million decline in merger-related expenses and a $1 million decline in other operating expenses spread among various accounts. Noninterest income and expense - Adjusted Adjusted noninterest income totaled $290 million compared to $288 million in the third quarter, an increase of $2 million. The combination of higher rental income discussed above and a $4 million decline in depreciation and maintenance expense on operating lease equipment resulted in a $9 million increase in adjusted rental income on operating lease equipment. Noninterest income from fee generating lines of business including service charges on deposit accounts, factoring and insurance commissions, card services and fee income and other service charges increased $8 million. Other noninterest income declined by $15 million, spread among various accounts. Adjusted noninterest expense totaled $590 million compared to $577 million in the third quarter, an increase of $13 million primarily due to the $6 million increase in marketing costs related to the Direct Bank, the $3 million increase in net occupancy expense noted above and a $4 million increase in other operating expenses spread among various accounts. Credit Provision for credit losses totaled $79 million compared to $60 million in the third quarter, an increase of $19 million. The increase was primarily due to an increase in net charge-offs and a reserve build in the quarter. The increase in allowance for credit losses over the prior quarter was due to changes in reserves on individually evaluated loans, loan growth and continued deterioration in the economic outlook, partially offset by a change in portfolio mix. Net charge-offs totaled $24 million or a ratio of 0.14% of average loans, compared to $18 million or a ratio of 0.10% of average loans during the third quarter. Nonaccrual loans as a percentage of total loans increased this quarter to 0.89% from 0.65%. The increase in nonaccrual loans was driven primarily by our non-owner occupied commercial real estate portfolio and more specifically related to general office exposure in the Commercial Bank segment. Balance Sheet Loans totaled $70.8 billion, an increase of $1.0 billion, or 5.6% on an annualized basis due to strong growth in our branch network, Mortgage and Business Capital, partially offset by declines in Commercial Services and Real Estate Finance. Deposits totaled $89.4 billion, an increase of $1.9 billion, or 8.4% on an annualized basis. Interest-bearing deposits increased $3.5 billion driven primarily by the $2.5 billion of growth in the Direct Bank and the addition of $0.7 billion in brokered deposits. Borrowings decreased $1.7 billion during the quarter, replaced by interest-bearing deposits to support our asset growth. EARNINGS CALL DETAILS BancShares will host a conference call and webcast to discuss the company's financial results on Thursday, January 26, 2023, at 9 a.m. Eastern time. To access this call, dial: United States: 1-844-200-6205 Access code: 836216 The fourth quarter 2022 earnings presentation and this news release are available on the company's website at ir.firstcitizens.com, and the conference call will be webcast live at this same location. A replay of the call will be available until Thursday, February 16, 2023, by calling 1-866-813-9403 (United States), 1-226-828-7578 (Canada) or +44-204-525-0658 (all other locations) and referencing access code 724723. A webcast archive of the conference call will be available through February 16, 2023, at ir.firstcitizens.com. ABOUT FIRST CITIZENS BANCSHARES First Citizens BancShares, Inc. (NASDAQ: FCNCA), a top 20 U.S. financial institution with more than $100 billion in assets, is the financial holding company for First-Citizens Bank & Trust Company ("First Citizens Bank"). First Citizens Bank helps personal, business, commercial and wealth clients build financial strength that lasts. Founded in 1898 and headquartered in Raleigh, N.C., First Citizens is the largest family-controlled bank in the United States, providing a unique legacy of strength, stability and long-term thinking that has spanned generations. First Citizens Bank offers an array of general banking services including a network of 500-plus branches in 22 states; commercial banking expertise delivering best-in-class lending, leasing and other financial services coast to coast; and a nationwide direct bank. Discover more at firstcitizens.com. FORWARD-LOOKING STATEMENTS This communication contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995 regarding the financial condition, results of operations, business plans and future performance of BancShares. Words such as "anticipates," "believes," "estimates," "expects," "predicts," "forecasts," "intends," "plans," "projects," "targets," "designed," "could," "may," "should," "will," "potential," "continue", "aims" or other similar words and expressions are intended to identify these forward-looking statements. These forward-looking statements are based on BancShares' current expectations and assumptions regarding BancShares' business, the economy, and other future conditions. Because forward-looking statements relate to future results and occurrences, they are subject to inherent risks, uncertainties, changes in circumstances and other risk factors that are difficult to predict. Many possible events or factors could affect BancShares' future financial results and performance and could cause the actual results, performance or achievements of BancShares to differ materially from any anticipated results expressed or implied by such forward-looking statements. Such risks and uncertainties include, among others, general competitive, economic, political, geopolitical events (including the military conflict between Russia and Ukraine) and market conditions, the impacts of the global COVID-19 pandemic on BancShares' business and customers, the financial success or changing conditions or strategies of BancShares' customers or vendors, fluctuations in interest rates, actions of government regulators, including the recent and projected interest rate hikes by the Board of Governors of the Federal Reserve Board (the "Federal Reserve"), the potential impact of decisions by the Federal Reserve on BancShares' capital plans, adverse developments with respect to U.S. or global economic conditions, including the significant turbulence in the capital or financial markets, the impact of the current inflationary environment, the impact of implementation and compliance with current or proposed laws, regulations and regulatory interpretations, the availability of capital and personnel, the timing and authorization of any future repurchases of our Class A common under potential share repurchase programs and the failure to realize the anticipated benefits of BancShares' previous acquisition transaction(s), including the recently completed transaction with CIT, which acquisition risks include (1) disruption from the transaction, or recently completed mergers, with customer, supplier or employee relationships, (2) the possibility that the amount of the costs, fees, expenses and charges related to the transaction may be greater than anticipated, including as a result of unexpected or unknown factors, events or liabilities, (3) reputational risk and the reaction of the parties' customers to the transaction, (4) the risk that the cost savings and any revenue synergies from the transaction may not be realized or take longer than anticipated to be realized and (5) difficulties experienced in the integration of the businesses. Except to the extent required by applicable laws or regulations, BancShares disclaims any obligation to update forward-looking statements or to publicly announce the results of any revisions to any of the forward-looking statements included herein to reflect future events or developments. Additional factors which could affect the forward-looking statements can be found in BancShares' Annual Report on Form 10-K for the fiscal year ended December 31, 2021, and its other filings with the Securities and Exchange Commission (the "SEC"). NON-GAAP MEASURES Certain measures in this release and supporting tables, including those referenced as "Adjusted", are "Non-GAAP", meaning they are not presented in accordance with generally accepted accounting principles in the U.S. ("GAAP") and also are not codified in U.S. banking regulations currently applicable to BancShares. BancShares believes that Non-GAAP financial measures, when reviewed in conjunction with GAAP financial information, can provide transparency about or an alternative means of assessing its operating results and financial position to its investors, analysts and management. Non-GAAP measures should be considered a supplement to, and not a substitute for, financial measures prepared in accordance with GAAP. The Non-GAAP measures are reconciled to the most directly  comparable GAAP measure, in the Non-GAAP reconciliation table(s) at the end of this earnings release, and notable items are summarized in a separate table. (2.00) (1) Notable items include income and expense for infrequent transactions and certain recurring items (typically noncash) that Management believes should be excluded from adjusted measures (non-GAAP) to enhance understanding of operations and comparability to historical periods. Management utilizes both GAAP and adjusted measures (non-GAAP) to analyze the Company's performance. Refer to the Non-GAAP reconciliation table(s) at the end of this earnings release for a reconciliation of Non-GAAP measures to the most directly comparable GAAP measures. (2) Depreciation and maintenance and other operating lease expenses are reclassified from noninterest expense to a reduction of rental income on operating lease equipment. There is no net impact to earnings for this notable item as adjusted noninterest income and expense are reduced by the same amount. Adjusted rental income on operating lease equipment (non-GAAP) is net of depreciation and maintenance expense for operating lease equipment. Management believes this measure enhances comparability to banking peers, primarily due to the extent of our rail and other equipment rental activities. Refer to the Non-GAAP reconciliation table(s) at the end of this earnings release for a reconciliation of Non-GAAP measures to the most directly comparable GAAP measure. (3) Primarily includes the following: 3Q22- contract settlement with a rail customer; YTD22- contract settlement with rail customer and gain on sale of other assets. (4) Primarily includes the following: 3Q22- impairment of a call center facility; YTD22-  impairment of a call center facility and termination of two post retirement benefit plans. (5) Includes $55 million of tax expense related to the early surrender of BOLI policies. During 4Q22, management decided to early surrender $1.2 billion of BOLI policies. This triggered a taxable gain of $160 million and resulted in tax expense of $55 million. (6) The income tax impact includes tax discrete items and changes in the estimated annualized effective tax rate.

First Citizens Bancshares Investments

6 Investments

First Citizens Bancshares has made 6 investments. Their latest investment was in Truckee-Tahoe as part of their Unattributed on October 10, 2022.

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First Citizens Bancshares Investments Activity

investments chart

Date

Round

Company

Amount

New?

Co-Investors

Sources

10/13/2022

Unattributed

Truckee-Tahoe

$19M

Yes

1

9/8/2022

Debt

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$99M

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10

8/30/2022

Line of Credit - II

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$99M

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10

8/14/2022

Grant - IV

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$99M

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10

5/10/2022

Loan

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$99M

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10

Date

10/13/2022

9/8/2022

8/30/2022

8/14/2022

5/10/2022

Round

Unattributed

Debt

Line of Credit - II

Grant - IV

Loan

Company

Truckee-Tahoe

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Amount

$19M

$99M

$99M

$99M

$99M

New?

Yes

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Co-Investors

Sources

1

10

10

10

10

First Citizens Bancshares Acquisitions

12 Acquisitions

First Citizens Bancshares acquired 12 companies. Their latest acquisition was CIT Group on January 04, 2022.

Date

Investment Stage

Companies

Valuation
Valuations are submitted by companies, mined from state filings or news, provided by VentureSource, or based on a comparables valuation model.

Total Funding

Note

Sources

1/4/2022

$99M

Acq - P2P

8

9/25/2019

$99M

Acquired

3

4/24/2019

$99M

Acq - P2P

5

1/11/2019

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$99M

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10

11/16/2018

Other

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$99M

$99M

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10

Date

1/4/2022

9/25/2019

4/24/2019

1/11/2019

11/16/2018

Investment Stage

Other

Companies

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Valuation

$99M

$99M

$99M

$99M

$99M

Total Funding

$99M

Note

Acq - P2P

Acquired

Acq - P2P

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Sources

8

3

5

10

10

First Citizens Bancshares Partners & Customers

5 Partners and customers

First Citizens Bancshares has 5 strategic partners and customers. First Citizens Bancshares recently partnered with Justine Petersen on March 3, 2022.

Date

Type

Business Partner

Country

News Snippet

Sources

3/15/2022

Partner

United States

FCB Banks and Justine PETERSEN: a legacy of community partnership - Justine Petersen

Shawna Collier , chief partnership officer at Justine PETERSEN adds , `` If it were not for banking institutions like FCB , communities less fortunate would lack access to financial products and services that are foundational in building financial assets and intergenerational wealth . ''

1

2/28/2019

Partner

United States

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10

2/21/2019

Sponsored

United States

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10

7/20/2017

Vendor

United States

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10

8/26/2008

Partner

United States

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10

Date

3/15/2022

2/28/2019

2/21/2019

7/20/2017

8/26/2008

Type

Partner

Partner

Sponsored

Vendor

Partner

Business Partner

Country

United States

United States

United States

United States

United States

News Snippet

FCB Banks and Justine PETERSEN: a legacy of community partnership - Justine Petersen

Shawna Collier , chief partnership officer at Justine PETERSEN adds , `` If it were not for banking institutions like FCB , communities less fortunate would lack access to financial products and services that are foundational in building financial assets and intergenerational wealth . ''

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Sources

1

10

10

10

10

First Citizens Bancshares Service Providers

1 Service Provider

First Citizens Bancshares has 1 service provider relationship

Service Provider

Associated Rounds

Provider Type

Service Type

Acq - P2P

Investment Bank

Financial Advisor

Service Provider

Associated Rounds

Acq - P2P

Provider Type

Investment Bank

Service Type

Financial Advisor

Partnership data by VentureSource

First Citizens Bancshares Team

128 Team Members

First Citizens Bancshares has 128 team members, including current Chief Executive Officer, Frank Holding.

Name

Work History

Title

Status

Frank Holding

Chief Executive Officer

Current

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Name

Frank Holding

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Work History

Title

Chief Executive Officer

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Status

Current

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