RALEIGH, N.C., April 28, 2022 (GLOBE NEWSWIRE) -- First Citizens BancShares, Inc. (“BancShares”) (Nasdaq: FCNCA) reported earnings for the first quarter ended March 31, 2022.
Chairman and CEO, Frank B. Holding, Jr. on first quarter results, “We are pleased to announce solid first quarter results. We continue to remain focused on ensuring a timely and successful integration with CIT Group Inc. (“CIT”) and made good progress during the quarter. We benefited from another quarter of deposit and loan growth. Net interest income grew and net interest margin expanded compared to the linked quarter, overcoming a reduction in SBA-PPP loans.
“We were additionally pleased with the positive momentum in our card, merchant, wealth and rail lines of business. Expenses were well controlled during the quarter, and we’re committed to achieving our target cost savings from the CIT merger. Credit quality remained strong and net charge-offs remained low. We closed the quarter with strong capital and liquidity levels and believe our current levels support resuming share repurchases in the second half of this year.”
MERGER WITH CIT GROUP, INC.
As previously disclosed, BancShares closed its merger with CIT on January 3, 2022. Total assets acquired were $53.8 billion, which consisted of approximately $32.8 billion of loans, $7.8 billion of operating lease equipment and $6.6 billion of investment securities. Deposits acquired were $39.4 billion. The transaction also included approximately 80 bank branches, about 60 of which were in Southern California and the remaining primarily in the Southwest, Midwest and Southeast. BancShares additionally recorded a preliminary gain on acquisition of $431 million in the first quarter of 2022, representing the excess of the net assets acquired over the purchase price.
FIRST QUARTER HIGHLIGHTS | |
Merger with CIT Group Inc. | BancShares completed its previously announced merger with CIT in the first quarter, creating immediate accretion to tangible book value per share of over 40%. The ongoing financial benefits from the combination are already being realized, and BancShares remains confident in its ability to execute on its previously communicated $250 million in total cost savings by the end of 2023. The merger with CIT resulted in a preliminary gain of $431 million which partially offset the $387 million expense (net of $126 million in tax) to establish the initial allowance for credit losses (“ACL”) on non-purchase credit deteriorated (“non-PCD”) loans and establish the reserve for off balance sheet credit exposures, as well as the $102 million merger-related expenses (net of $33 million in tax) primarily for severance and retention payments, auditing and consulting fees. |
Net income to common shareholders | Net income to common shareholders was $264 million or $16.70 per common share for the first quarter of 2022, compared to $142 million or $14.53 per common share for the same quarter in 2021. Results for the first quarter of 2022 were impacted materially by the CIT merger given the magnitude of the acquired balance sheet, the impacts of purchase accounting and the increases in net income from CIT’s operations. First quarter results included a net $181 million in pre-tax notable items. Excluding notable items, adjusted first quarter net income available to common shareholders was $299 million or $18.95 per share. |
Return on average assets and equity | Return on average assets for the first quarter of 2022 was 1.00%, down from 1.16% for the comparable quarter in 2021. When adjusted for notable items, return on average assets totaled 1.12% for the first quarter of 2022, compared to 1.07% for the comparable quarter in 2021. Return on average equity for the first quarter of 2022 was 11.18%, down from 14.70% for the comparable quarter in 2021. When adjusted for notable items, return on average equity totaled 12.67% for the first quarter of 2022, compared to 13.51% for the same quarter in 2021. |
Net interest income and net interest margin | Net interest income was $649 million for the first quarter of 2022. The net interest margin (“NIM”) was 2.73% for the first quarter of 2022, down 6 basis points from 2.79% for the comparable quarter in 2021 and up 16 basis points from 2.57% in the fourth quarter of 2021. Net interest margin benefited from growth in average loans and investments, as well as the redemption of approximately $3 billion in legacy CIT debt which occurred in late February. |
Allowance for credit losses and credit quality | The ACL was $848 million or 1.29% of total loans at March 31, 2022, compared to $178 million or 0.55% of total loans at December 31, 2021. With the acquisition of CIT, BancShares established an ACL related to the CIT loan portfolio of $738 which was $26 million over CIT’s ACL at December 31, 2021. The improvement of certain macroeconomic factors supporting the ACL estimate process during the quarter resulted in a release of $68 million. Credit quality remains strong and net charge-offs remain at historical lows. The net charge-off ratio was 0.09% for the first quarter of 2022 and nonaccrual loans to total loans was 0.82%. |
Balance sheet growth | Total loans were $65.5 billion, an increase of $33.2 billion since December 31, 2021. Excluding the fair value of loans acquired from CIT and a decline from SBA-PPP loans, total loans grew $455 million or 2.8% on an annualized basis. Total deposits grew to $91.6 billion, an increase of $40.2 billion since December 31, 2021. Excluding net deposits acquired from CIT, deposits increased $833 million or by 3.7% on an annualized basis. |
Capital | BancShares remained well-capitalized with a total risk-based capital ratio of 14.46%, a Tier 1 risk-based capital ratio of 12.39%, a Common Equity Tier 1 ratio of 11.34% and a Tier 1 leverage ratio of 9.43%. |
NET INTEREST INCOME AND NET INTEREST MARGIN (NIM)
Net interest income was $649 million for the first quarter of 2022, an increase of $310 million compared to the first quarter of 2021 and $292 million compared to the linked quarter. The increases in both periods were primarily due to impacts from the merger with CIT.
Interest income on loans was $621 million, and the portfolio yield was 3.88%. This compares to $323 million or 3.92% for the first quarter of 2021 and $328 million or 3.97% in the linked quarter. Interest income on investment securities totaled $83 million and the portfolio yield was 1.77%. This compares to $31 million or 1.27% for the first quarter of 2021 and $40 million or 1.39% in the linked quarter.
Interest expense for the first quarter of 2022 was $61 million, an increase of $45 million compared to the first quarter of 2021 and $46 million compared to the linked quarter. The rate paid on interest bearing deposits was 0.24% compared to 0.14% in the prior year period and 0.11% in the linked quarter. The rate paid on borrowings was 1.95% compared to 2.12% in both prior periods.
NIM was 2.73% for the first quarter of 2022, down 6 basis points from 2.79% for the comparable quarter in 2021 and up 16 basis points from 2.57% in the fourth quarter of 2021. Net interest margin benefited from a better macroeconomic rate environment, growth in average loans and investments, and the redemption of approximately $3 billion in legacy CIT debt, which occurred in late February.
NONINTEREST INCOME
Noninterest income was $850 million for the first quarter of 2022, compared to $137 million for the same period in 2021, an increase of $713 million driven primarily from the acquisition of CIT. The current period included a preliminary gain on acquisition of $431 million, which has been identified as notable. The CIT acquisition additionally contributed $208 million in gross rental income on operating leases, $27 million in factoring commissions, $23 million in fee income and other revenue, and $6 million in gain on the sale of leasing equipment. Lines of business such as wealth, card, and merchant services were positive for the quarter while mortgage income declined with the rising interest rates and decline in volumes.
NONINTEREST EXPENSE
Noninterest expense was $810 million for the first quarter of 2022, compared to $296 million for the same period in 2021, an increase of $514 million driven primarily from the acquisition of CIT. During the quarter, we recorded $135 million in merger-related expenses, which have been identified as notable. Salaries and benefits were $352 million, an increase primarily related to the CIT merger. Depreciation and maintenance on operating leases were $81 million and $43 million, respectively. Occupancy expense, net and equipment expense were up $19 million and $22 million respectively, related to the merger with CIT. A benefit of $27 million was recognized with the termination of legacy retiree benefit plans.
Income tax for the quarter was a benefit of $46 million compared to a provision expense of $44 million for the first quarter of 2021, representing effective tax rates of (20.4%) and 23.6% for the respective periods. The first quarter of 2022 included a non-taxable bargain purchase gain of $431 million and other discrete items.
LOANS AND DEPOSITS
At March 31, 2022, loans totaled $65.5 billion, an increase of $33.2 billion since December 31, 2021. Loans and leases acquired from the CIT merger totaled $32.8 billion, which are net of initial purchase accounting marks. Excluding total net loans acquired from CIT and a decline of $299 million in SBA-PPP loans, total loans grew $455 million or 2.8% on an annualized basis.
At March 31, 2022, deposits totaled $91.6 billion, an increase of $40.2 billion since December 31, 2021. Deposits acquired from the CIT merger totaled $39.4 billion, net of initial purchase accounting marks. Excluding net deposits acquired from CIT, deposits increased $833 million or by 3.7% on an annualized basis.
Total nonaccrual loans were $538 million or 0.82% of total loans at March 31, 2022, compared to $121 million or 0.37% of total loans at December 31, 2021. The increase in total nonaccrual loans was primarily the result of the CIT merger.
ALLOWANCE FOR CREDIT LOSSES (ACL) AND PROVISION FOR CREDIT LOSSES
The ACL was $848 million or 1.29% of total loans at March 31, 2022, compared to $178 million or 0.55% of total loans at December 31, 2021. The increase in the ACL as compared to December 31, 2021, was primarily driven by the loans added in the CIT Merger. Note that no ACL was carried over from CIT; therefore, the quarter included an ACL build for the loans added. We recorded an estimated reserve for purchase credit deteriorated (“PCD”) loans of $284 million and an estimated reserve for non-PCD loans of $454 million.
Provision expense totaled $464 million for the quarter compared to a net benefit of $11 million in the first quarter of 2021. While net charge-offs were up compared to the prior year quarter, the 9 bps on an annualized basis remains below historical averages. Excluding the day 2 provision for non-PCD loans and the reserve for unfunded commitments of $513 million, we reported a net provision benefit of $49 million due to a net $68 million reserve release as we continue to see improvement in certain macroeconomic factors, specifically real estate values that positively impact the ACL estimate. Additionally, we saw improvement in the specific reserves on certain large, impaired loans which also contributed to the release.
EARNINGS CALL DETAILS
BancShares will host a conference call to discuss the company's financial results on Thursday, April 28, 2022, at 9 a.m. Eastern time.
To access this call, dial: Domestic: 833-654-8257 International: 602-585-9869 Conference ID: 7780142
The first quarter 2022 earnings presentation and this news release are available on the company’s website at www.firstcitizens.com/investor-relations.
After the conference call, you may access a replay of the call through May 13, 2022, by dialing 855-859-2056 (domestic) or 404-537-3406 (international) with conference ID 7780142.
ABOUT FIRST CITIZENS BANCSHARES
First Citizens BancShares, Inc. is the financial holding company for First Citizens Bank. In January 2022, First Citizens BancShares and CIT Group Inc. merged, creating one of the top 20 U.S. financial institutions, with approximately $110 billion in assets.
First Citizens Bank helps personal, business, commercial and wealth clients build financial strength that lasts. As the largest family-controlled bank in the United States, First Citizens is continuing a unique legacy of strength, stability and long-term thinking that has spanned generations. Its commercial banking segment brings a wide array of best-in-class lending, leasing and banking services to middle-market companies and small businesses from coast to coast. Founded in 1898 and headquartered in Raleigh, N.C., First Citizens also operates a nationwide direct bank and a network of more than 600 branches in 22 states, many in high-growth markets. Visit firstcitizens.com. First Citizens Bank. Forever First®.
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” 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, the availability of capital and personnel, 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. In addition, statements in this presentation related to future plans involving possible commencement of a share repurchase program remain subject to board and relevant regulatory approvals.
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 presentation are "Non-GAAP,” meaning they are not presented in accordance with generally accepted accounting principles in the U.S. 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. The Non-GAAP measures are reconciled to the most comparable GAAP measure in the following financial highlights.
Contact: | Barbara Thompson | Deanna Hart |
Corporate Communications | Investor Relations | |
919-716-2716 | 919-716-2137 |
Note: References to “Adjusted” results exclude notable items and are Non-GAAP Financial Measures.
First Citizens BancShares, Inc. | ||||||||
Performance Summary Table | ||||||||
(dollars in millions, except per share data) | ||||||||
Key Performance & Metrics | 1Q22 | 4Q21 | 1Q21 | |||||
Per Common Share Data | ||||||||
Average diluted shares oustanding (in thousands) | $ | 15,779 | 9,816 | 9,816 | ||||
Net income available to common stockholders 1 | 16.70 | 12.09 | 14.53 | |||||
Net income available to common stockholders 1 - Adjusted | 18.95 | 12.82 | 13.36 | |||||
Book value per common share | 605.48 | 447.95 | 405.59 | |||||
Tangible book value per common share (TBV) | 574.09 | 410.74 | 367.07 | |||||
Key Performance Metrics | ||||||||
Return on average assets (ROA) | 1.00 | % | 0.84 | % | 1.16 | % | ||
Return on average assets (ROA) - adjusted | 1.12 | % | 0.89 | % | 1.07 | % | ||
Return on average common equity (ROE) | 11.18 | % | 10.96 | % | 14.70 | % | ||
Return on average common equity (ROE) - adjusted | 12.67 | % | 11.63 | % | 13.51 | % | ||
Return on average tangible common equity (ROTCE) | 11.83 | % | 12.00 | % | 16.28 | % | ||
Return on average tangible common equity (ROTCE) - adjusted | 13.41 | % | 12.72 | % | 14.96 | % | ||
Efficiency ratio | 61.57 | % | 66.31 | % | 63.35 | % | ||
Net interest margin (NIM) | 2.73 | % | 2.57 | % | 2.79 | % | ||
Select Balance Sheet Items | ||||||||
Total investments | 19,469 | 13,110 | 10,222 | |||||
Total loans and leases | 65,524 | 32,372 | 33,181 | |||||
Total operating lease equipment (net) | 7,972 | - | - | |||||
Total deposits | 91,597 | 51,406 | 47,331 | |||||
Total borrowings | 3,292 | 1,794 | 1,911 | |||||
Loan to deposit ratio | 71.54 | % | 62.97 | % | 70.10 | % | ||
Noninterest-bearing deposits to total deposits | 28.27 | % | 41.64 | % | 43.34 | % | ||
Capital Ratios 2 | ||||||||
Total risk-based capital ratio | 14.46 | % | 14.35 | % | 14.14 | % | ||
Tier 1 risk-based capital ratio | 12.39 | % | 12.47 | % | 12.02 | % | ||
Common equity Tier 1 ratio | 11.34 | % | 11.50 | % | 11.00 | % | ||
Tier 1 leverage capital ratio | 9.43 | % | 7.59 | % | 7.84 | % | ||
Asset Quality | ||||||||
Ratio of nonaccrual loans to total loans | 0.82 | % | 0.37 | % | 0.59 | % | ||
Allowance for credit losses to loans ratio | 1.29 | % | 0.55 | % | 0.63 | % | ||
Net charge off ratio | 0.09 | % | -0.01 | % | 0.03 | % | ||
1 Per diluted common shares, when applicable. | ||||||||
2 Capital ratios for the current quarter are preliminary pending completion of quarterly regulatory filings. | ||||||||
First Citizens BancShares, Inc. | ||||||||
Income Statement - Consolidated | ||||||||
(dollars in millions, except shares and per share data) | ||||||||
Income Statement - Consolidated | 1Q22 | 4Q21 | 1Q21 | |||||
Interest income | ||||||||
Interest and fees on loans & leases | $ | 621 | 328 | 323 | ||||
Interest on investment securities | 83 | 40 | 31 | |||||
Other interest and dividends | 6 | 4 | 1 | |||||
Total interest income | 710 | 372 | 355 | |||||
Interest expense | ||||||||
Deposits | 39 | 8 | 8 | |||||
Borrowings | 22 | 7 | 8 | |||||
Total interest expense | 61 | 15 | 16 | |||||
Net interest income | 649 | 357 | 339 | |||||
Provision (benefit) for credit losses | 464 | (5 | ) | (11 | ) | |||
Net interest income after provision for credit losses | 185 | 362 | 350 | |||||
Noninterest income | ||||||||
Rental income on operating leases | 208 | - | - | |||||
Other noninterest income | ||||||||
Fee income and other revenue | 33 | 9 | 8 | |||||
Wealth management services | 35 | 33 | 32 | |||||
Gains on leasing equipment, net | 6 | - | - | |||||
Service charges on deposit accounts | 28 | 27 | 22 | |||||
Factoring commissions | 27 | - | - | |||||
Cardholder services, net | 25 | 21 | 20 | |||||
Merchant services, net | 10 | 7 | 9 | |||||
Realized gains on investment securities available for sale, net | - | - | 9 | |||||
Marketable equity securities gains (losses), net | 3 | 3 | 16 | |||||
Gain on acquisition | 431 | - | - | |||||
Gain (loss) on extinguishment of debt | 6 | - | - | |||||
Other noninterest income | 38 | 14 | 21 | |||||
Total other noninterest income | 642 | 114 | 137 | |||||
Total noninterest income | 850 | 114 | 137 | |||||
Noninterest expense | ||||||||
Depreciation on operating lease equipment | 81 | - | - | |||||
Maintenance and other operating lease expenses | 43 | - | - | |||||
Operating expenses | ||||||||
Salaries and benefits | 352 | 193 | 184 | |||||
Net occupancy expense | 49 | 30 | 30 | |||||
Equipment expense | 52 | 30 | 30 | |||||
Third-party processing expense | 24 | 16 | 14 | |||||
FDIC insurance expense | 12 | 4 | 3 | |||||
Merger-related expenses | 135 | 10 | 7 | |||||
Intangible asset amortization | 6 | 2 | 3 | |||||
Other noninterest expense | 56 | 38 | 25 | |||||
Total operating expenses | 686 | 323 | 296 | |||||
Total noninterest expense | 810 | 323 | 296 | |||||
Income before income taxes | 225 | 153 | 191 | |||||
Income taxes | (46 | ) | 30 | 44 | ||||
Net income | 271 | 123 | 147 | |||||
Preferred stock dividends | 7 | 5 | 5 | |||||
Net income available to common stockholders | $ | 264 | 118 | 142 | ||||
Earnings per common share | ||||||||
Basic | $ | 16.70 | 12.09 | 14.53 | ||||
Diluted | 16.70 | N/A | N/A | |||||
Weighted average number of common shares | ||||||||
Basic | 15,779,153 | 9,816,405 | 9,816,405 | |||||
Diluted | 15,779,153 | 9,816,405 | 9,816,405 | |||||
First Citizens BancShares, Inc. | ||||||||
Income Statement - Adjusted for Notable Items - Consolidated | ||||||||
(dollars in millions, except shares and per share data ) | ||||||||
Income Statement - Adjusted for Notable Items - Consolidated | 1Q22 | 4Q21 | 1Q21 | |||||
Interest income | ||||||||
Interest and fees on loans & leases | $ | 621 | 328 | 323 | ||||
Interest on investment securities | 83 | 40 | 31 | |||||
Other interest and dividends | 6 | 4 | 1 | |||||
Total interest income | 710 | 372 | 355 | |||||
Interest expense | ||||||||
Deposits | 39 | 8 | 8 | |||||
Borrowings | 22 | 7 | 8 | |||||
Total interest expense | 61 | 15 | 16 | |||||
Net interest income | 649 | 357 | 339 | |||||
Provision (benefit) for credit losses | (49 | ) | (5 | ) | (11 | ) | ||
Net interest income after provision for credit losses | 698 | 362 | 350 | |||||
Noninterest income | ||||||||
Rental income on operating leases, net | 84 | - | - | |||||
Other noninterest income | - | - | - | |||||
Fee income and other revenue | 33 | 9 | 8 | |||||
Wealth management services | 35 | 33 | 32 | |||||
Gains on leasing equipment, net | - | - | - | |||||
Service charges on deposit accounts | 28 | 27 | 22 | |||||
Factoring commissions | 27 | - | - | |||||
Cardholder services, net | 25 | 21 | 20 | |||||
Merchant services, net | 10 | 7 | 9 | |||||
Realized gains on investment securities available for sale, net | - | - | (0 | ) | ||||
Marketable equity securities gains (losses), net | - | (0 | ) | (0 | ) | |||
Gain on acquisition | - | - | - | |||||
Gain (loss) on extinguishment of debt | - | - | - | |||||
Other noninterest income | 38 | 14 | 21 | |||||
Total other noninterest income | 196 | 111 | 112 | |||||
Total noninterest income | 280 | 111 | 112 | |||||
Noninterest expense | ||||||||
Depreciation on operating lease equipment | - | - | - | |||||
Maintenance and other operating lease expenses | - | - | - | |||||
Operating expenses | - | - | - | |||||
Salaries and benefits | 379 | 193 | 184 | |||||
Net occupancy expense | 49 | 30 | 30 | |||||
Equipment expense | 52 | 30 | 30 | |||||
Third-party processing expense | 24 | 16 | 14 | |||||
FDIC insurance expense | 12 | 4 | 3 | |||||
Merger-related expenses | 0 | 0 | 0 | |||||
Intangible asset amortization | - | - | (0 | ) | ||||
Other noninterest expense | 56 | 38 | 25 | |||||
Total operating expenses | 572 | 311 | 286 | |||||
Total noninterest expense | 572 | 311 | 286 | |||||
Income before income taxes | 406 | 162 | 176 | |||||
Income taxes | 100 | 31 | 40 | |||||
Net income | 306 | 131 | 136 | |||||
Preferred stock dividends | 7 | 5 | 5 | |||||
Net income available to common stockholders | $ | 299 | 126 | 131 | ||||
Earnings per common share | ||||||||
Basic | $ | 18.95 | 12.82 | 13.36 | ||||
Diluted | $ | 18.95 | N/A | N/A | ||||
Weighted average number of common shares | ||||||||
Basic | 15,779,153 | 9,816,405 | 9,816,405 | |||||
Diluted | 15,779,153 | N/A | N/A | |||||
First Citizens BancShares, Inc. | |||||||||||||||||||||||||||
Notable Items | |||||||||||||||||||||||||||
(dollars in millions, except per share data) | |||||||||||||||||||||||||||
Notable Items | 1Q22 | 4Q21 | 1Q21 | ||||||||||||||||||||||||
Pre-Tax | After-Tax | EPS Impact | Pre-Tax | After-Tax | EPS Impact | Pre-Tax | After-Tax | EPS Impact | |||||||||||||||||||
Depreciation on operating lease equipment | $ | (81 | ) | (61 | ) | (3.87 | ) | - | - | - | - | - | - | ||||||||||||||
Maintenance and other operating lease expenses | (43 | ) | (32 | ) | (2.05 | ) | - | - | - | - | - | - | |||||||||||||||
Gains on leasing equipment, net of impairments | (6 | ) | (5 | ) | (0.31 | ) | - | - | - | - | - | - | |||||||||||||||
Realized gains on investment securities available for sale, net | - | - | - | - | - | - | (9 | ) | (7 | ) | (0.73 | ) | |||||||||||||||
Marketable equity securities gains, net | (3 | ) | (2 | ) | (0.12 | ) | (3 | ) | (2 | ) | (0.24 | ) | (16 | ) | (12 | ) | (1.27 | ) | |||||||||
Gain on acquisitions | (431 | ) | (431 | ) | (27.34 | ) | - | - | - | - | - | - | |||||||||||||||
Gain on extinguishment of debt | (6 | ) | (5 | ) | (0.29 | ) | - | - | - | - | - | - | |||||||||||||||
CTA release | - | - | - | - | - | - | - | - | |||||||||||||||||||
Legacy consumer mortgage loan sales | - | - | - | - | - | - | - | - | - | ||||||||||||||||||
Noninterest income - total adjustments | $ | (570 | ) | (536 | ) | (33.98 | ) | (3 | ) | (2 | ) | (0.24 | ) | (25 | ) | (20 | ) | (2.00 | ) | ||||||||
Depreciation on operating lease equipment | (81 | ) | (61 | ) | 3.87 | - | - | - | - | - | - | ||||||||||||||||
Maintenance and other operating lease expenses | (43 | ) | (32 | ) | 2.05 | - | - | - | - | - | - | ||||||||||||||||
Restructuring costs | - | - | - | - | - | - | - | - | - | ||||||||||||||||||
Merger-related expenses | (135 | ) | (102 | ) | 6.45 | (10 | ) | (8 | ) | 0.78 | (7 | ) | (5 | ) | 0.54 | ||||||||||||
Intangible asset amortization | (6 | ) | (5 | ) | 0.29 | (2 | ) | (2 | ) | 0.16 | (3 | ) | (3 | ) | 0.26 | ||||||||||||
Termination of US Medical Plan and US Life Insurance | 27 | 20 | (1.28 | ) | - | - | - | 0 | - | - | - | ||||||||||||||||
Noninterest expense - total adjustments | $ | (238 | ) | (180 | ) | 11.38 | (12 | ) | (9 | ) | 0.94 | (10 | ) | (8 | ) | 0.81 | |||||||||||
CECL Day 2 provision and reserve for unfunded commitments | (513 | ) | (387 | ) | 24.50 | - | - | - | - | - | - | ||||||||||||||||
Provision for credit losses - total adjustments | $ | (513 | ) | (387 | ) | 24.50 | - | - | - | - | - | - | |||||||||||||||
Total impact of notable items | $ | $ | 181 | $ | 31 | $ | 1.90 | 9 | 7 | $ | 0.70 | (15 | ) | (12 | ) | $ | (1.20 | ) | |||||||||
First Citizens BancShares, Inc. | ||||||||
Balance Sheet | ||||||||
(dollars in millions) | ||||||||
Balance Sheet | 1Q22 | 4Q21 | 1Q21 | |||||
Assets | ||||||||
Cash and due from banks | $ | 523 | 338 | 410 | ||||
Interest-earning deposits at banks | 9,285 | 9,115 | 7,589 | |||||
Securities purchased under agreement to resell | ||||||||
Investment in marketable equity securities | 100 | 98 | 107 | |||||
Investment in securities available for sale | 9,295 | 9,203 | 7,307 | |||||
Investment securities held to maturity | 10,074 | 3,809 | 2,808 | |||||
Assets held for sale | 83 | 98 | 130 | |||||
Loans and leases | 65,524 | 32,372 | 33,181 | |||||
Allowance for credit losses | (848 | ) | (178 | ) | (211 | ) | ||
Loans and leases, net of allowance for credit losses | 64,676 | 32,194 | 32,970 | |||||
Operating lease equipment, net | 7,972 | - | ||||||
Premises and equipment | 1,431 | 1,233 | 1,239 | |||||
Bank owned life insurance | 1,326 | 116 | 115 | |||||
Goodwill | 346 | 346 | 350 | |||||
Other intangible assets | 156 | 19 | 28 | |||||
Other assets | 3,330 | 1,739 | 856 | |||||
Total assets | $ | 108,597 | 58,308 | 53,909 | ||||
Liabilities | ||||||||
Deposits | ||||||||
Noninterest-bearing | $ | 25,898 | 21,405 | 20,515 | ||||
Interest-bearing | 65,699 | 30,001 | 26,816 | |||||
Total deposits | 91,597 | 51,406 | 47,331 | |||||
Credit balances of factoring clients | 1,150 | |||||||
Securities sold under customer repurchase agreements | 616 | 589 | 681 | |||||
Federal Home Loan Bank borrowings | 639 | 645 | 648 | |||||
Senior unsecured borrowings | 895 | - | - | |||||
Subordinated debt | 1,058 | 478 | 497 | |||||
Other borrowings | 84 | 72 | 85 | |||||
Other liabilities | 1,988 | 381 | 345 | |||||
Total liabilities | $ | 98,027 | 53,571 | 49,587 | ||||
Stockholders’ equity | ||||||||
Preferred stock - $0.01 par value | 881 | 340 | 340 | |||||
Common Stock: | ||||||||
Class A - $1 par value | 15 | 9 | 9 | |||||
Class B - $1 par value | 1 | 1 | 1 | |||||
Surplus | 5,344 | - | ||||||
Retained earnings | 4,634 | 4,377 | 4,006 | |||||
Accumulated other comprehensive (loss) income | (305 | ) | 10 | (34 | ) | |||
Total stockholders’ equity | 10,570 | 4,737 | 4,322 | |||||
Total liabilities and stockholders’ equity | $ | 108,597 | 58,308 | 53,909 | ||||
Common Shares Outstanding | 15,978,414 | 9,816,405 | 9,816,405 | |||||
Book value per common share | $ | 605.48 | 447.92 | 405.65 | ||||
Tangible book value per common share | 574.09 | 410.74 | 367.07 | |||||
Other assets | ||||||||
Investments in low income housing and other tax credits | $ | 702 | 157 | 162 | ||||
Right of use assets | 384 | 63 | 65 | |||||
Pension assets | 296 | 289 | 166 | |||||
Accrued interest receivable | 247 | 134 | 148 | |||||
Income taxes receivable | 834 | 799 | 40 | |||||
Fair value of derivative financial instruments | 110 | - | - | |||||
Countertparty receivables | 106 | - | - | |||||
Federal Home Loan Bank stock | 39 | 40 | 41 | |||||
Other real estate owned | 43 | 39 | 49 | |||||
Mortgage servicing rights | 29 | 24 | 24 | |||||
Other | 540 | 194 | 161 | |||||
Total other assets | $ | 3,330 | 1,739 | 856 | ||||
Other liabilities | ||||||||
Accrued expenses and accounts payable | $ | 534 | 5 | 3 | ||||
Current and deferred taxes | 161 | 34 | - | |||||
Lease liabilities | 385 | 64 | 66 | |||||
Commitments to find investments in tax credits | 242 | 43 | 50 | |||||
Fair value of derivative financial instruments | 204 | - | - | |||||
Accrued interest payable | 24 | 8 | 5 | |||||
Reserve for off-balances sheet credit exposure | 75 | 12 | 12 | |||||
Other | 363 | 215 | 209 | |||||
Total other liabilities | $ | 1,988 | 381 | 345 | ||||
First Citizens BancShares, Inc. | ||||||||
Loans & Deposits | ||||||||
(dollars in milions) | ||||||||
Loans & Leases (End of Period) | 1Q22 | 4Q21 | 1Q21 | |||||
Loans & Leases by Class | ||||||||
Commercial | ||||||||
Commercial construction | $ | 2,633 | 1,238 | 1,131 | ||||
Owner occupied commercial mortgages | 13,553 | 12,099 | 11,480 | |||||
Non-owner occupied commercial mortgages | 9,293 | 3,041 | 3,094 | |||||
Commercial and industrial | 22,402 | 5,937 | 7,403 | |||||
Leases | 2,220 | 271 | 317 | |||||
Total commercial | $ | 50,101 | 22,586 | 23,425 | ||||
Consumer | ||||||||
Residental mortgage | $ | 11,711 | 6,088 | 5,974 | ||||
Revolving mortgage | 1,840 | 1,818 | 1,971 | |||||
Consumer auto | 1,320 | 1,332 | 1,272 | |||||
Consumer other | 552 | 548 | 539 | |||||
Total consumer | 15,423 | 9,786 | 9,756 | |||||
Total loans & leases | $ | 65,524 | 32,372 | 33,181 | ||||
Less allowance for credit losses | (848 | ) | (178 | ) | (211 | ) | ||
Net loans & leases | $ | 64,676 | 32,194 | 32,970 | ||||
Deposits (End of Period) | 1Q22 | 4Q21 | 1Q21 | |||||
Non-interest-bearing demand | $ | 25,898 | 21,405 | 20,515 | ||||
Checking with interest | 16,702 | 12,694 | 10,820 | |||||
Money market | 26,249 | 10,590 | 9,590 | |||||
Savings | 13,506 | 4,236 | 3,676 | |||||
Time | 9,242 | 2,481 | 2,729 | |||||
Total deposits | $ | 91,597 | 51,406 | 47,331 | ||||
First Citizens BancShares, Inc. | ||||||||
Asset Quality & Allowance for Credit Losses | ||||||||
(dollars in milions) | ||||||||
Asset Quality & Allowance | 1Q22 | 4Q21 | 1Q21 | |||||
Nonaccrual loans | $ | 538 | 121 | 194 | ||||
Ratio of nonaccrual loans to total loans | 0.82 | % | 0.37 | % | 0.59 | % | ||
Charge-offs | $ | 33 | 8 | 9 | ||||
Recoveries | (18 | ) | (9 | ) | (6 | ) | ||
Net charge-offs | $ | 15 | (1 | ) | 3 | |||
Net charge-off ratio | 0.09 | % | -0.01 | % | 0.03 | % | ||
Allowance for credit losses | $ | 848 | 178 | 211 | ||||
Allowance for credit losses to loans ratio | 1.29 | % | 0.55 | % | 0.63 | % | ||
Allowance for credit losses - beginning | $ | 178 | 183 | 225 | ||||
CIT merger - intial PCD allowance | 284 | - | - | |||||
CIT merger - initial NPCD allowance | 454 | - | - | |||||
Provision (credit) | (53 | ) | (5 | ) | (11 | ) | ||
Net charge-offs | (15 | ) | 1 | (3 | ) | |||
Allowance for credit losses - ending | $ | 848 | 179 | 211 | ||||
Reserve for off balance sheet credit exposures | $ | 75 | 12 | 12 | ||||
Total provision expense | $ | 464 | (5 | ) | (11 | ) | ||
First Citizens BancShares, Inc. | ||||||||||||||||||||||||
Average Balance Sheet - Yields/Rates | ||||||||||||||||||||||||
(dollars in millions) | ||||||||||||||||||||||||
Average Balance Sheet | 1Q22 | 4Q21 | 1Q21 | |||||||||||||||||||||
Average Balance | Income / Expense | Yield / Rate | Average Balance | Income / Expense | Yield / Rate | Average Balance | Income / Expense | Yield / Rate | ||||||||||||||||
Loans and leases | $ | 64,144 | $ | 621 | 3.88 | % | $ | 32,488 | $ | 328 | 3.97 | % | $ | 33,087 | $ | 323 | 3.92 | % | ||||||
Total investment securities | 19,492 | 83 | 1.71 | % | 11,424 | 40 | 1.39 | % | 9,758 | 31 | 1.27 | % | ||||||||||||
Interest-earning deposits at banks | 11,476 | 6 | 0.19 | % | 10,690 | 4 | 0.15 | % | 5,871 | 1 | 0.10 | % | ||||||||||||
Total interest-earning assets | 95,112 | 710 | 2.99 | % | 54,602 | 372 | 2.68 | % | 48,716 | 355 | 2.92 | % | ||||||||||||
Operating lease equipment, net (including held for sale) | 7,924 | - | - | |||||||||||||||||||||
Cash and due from banks | 536 | 337 | 333 | |||||||||||||||||||||
Allowance for credit losses | (907 | ) | (184 | ) | (224 | ) | ||||||||||||||||||
All other non-interest bearing assets | 6,569 | 3,361 | 2,585 | |||||||||||||||||||||
Total Assets | 109,234 | 58,116 | 51,410 | |||||||||||||||||||||
Interest bearing deposits | ||||||||||||||||||||||||
Checking with interest | 16,606 | 5 | 0.10 | % | 11,994 | 2 | 0.05 | % | 10,746 | 1 | 0.05 | % | ||||||||||||
Money market | 26,199 | 15 | 0.24 | % | 10,358 | 2 | 0.09 | % | 9,009 | 3 | 0.11 | % | ||||||||||||
Savings | 13,659 | 9 | 0.26 | % | 4,140 | - | 0.03 | % | 3,462 | - | 0.04 | % | ||||||||||||
Time deposits | 9,794 | 10 | 0.43 | % | 2,517 | 4 | 0.62 | % | 2,805 | 5 | 0.66 | % | ||||||||||||
Total interest bearing deposits | 66,258 | 39 | 0.24 | % | 29,009 | 8 | 0.11 | % | 26,022 | 9 | 0.14 | % | ||||||||||||
Securities sold under customer repuchase agreements | 600 | - | 0.16 | % | 650 | - | 0.16 | % | 641 | - | 0.21 | % | ||||||||||||
Borrowings | ||||||||||||||||||||||||
FHLB borrowings | 641 | 2 | 1.27 | % | 645 | 2 | 1.28 | % | 651 | 2 | 1.28 | % | ||||||||||||
Senior unsecured borrowings | 2,719 | 12 | 1.71 | % | - | - | 0.00 | % | - | - | 0.00 | % | ||||||||||||
Subordinated debt | 1,061 | 8 | 2.96 | % | 497 | 4 | 3.34 | % | 497 | 4 | 3.37 | % | ||||||||||||
Other borrowings | 85 | - | 1.95 | % | 75 | 1 | 1.25 | % | 87 | 1 | 1.22 | % | ||||||||||||
Total borrowings | 4,506 | 22 | 1.95 | % | 1,217 | 7 | 2.12 | % | 1,235 | 7 | 2.12 | % | ||||||||||||
Total interest-bearing liabilities | 71,364 | 61 | 0.35 | % | 30,876 | 15 | 0.19 | % | 27,898 | 16 | 0.23 | % | ||||||||||||
Non-interest bearing deposits | 25,315 | 22,229 | ||||||||||||||||||||||
Other non-interest bearing liabilities | 2,132 | 378 | 23,512 | |||||||||||||||||||||
Stockholders' equity | 10,423 | 4,633 | ||||||||||||||||||||||
Total liabilities and stockholders' equity | $ | 109,234 | $ | 58,116 | $ | 51,410 | ||||||||||||||||||
Interest rate spread | 2.64 | % | 2.49 | % | 2.69 | % | ||||||||||||||||||
Net interest income and net yield on interest-earning assets | $ | 649 | 2.73 | % | $ | 357 | 2.57 | % | $ | 339 | 2.79 | % | ||||||||||||
First Citizens BancShares, Inc. | |||||||||
Non-GAAP Reconciliation #1 | |||||||||
(dollars in millions, except per share data) | |||||||||
1Q22 | 4Q21 | 1Q21 | |||||||
Net income (GAAP measure) | $ | 271 | 123 | 147 | |||||
Less: Preferred dividends | 7 | 5 | 5 | ||||||
Net income available to common stockholders (GAAP measure) | a | 264 | 118 | 142 | |||||
Plus: Total tax-effected notable items | 35 | 8 | (11 | ) | |||||
Adjusted net income available to common stockholders (non-GAAP measure) | b | $ | 299 | 126 | 131 | ||||
Weighted average common shares outstanding | c | 15,779,153 | 9,816,405 | 9,816,405 | |||||
Basic earnings per share (GAAP measure) | a/c | $ | 16.70 | 12.09 | 14.53 | ||||
Adjusted basic earnings per share (non-GAAP measure) | b/c | 18.95 | 12.82 | 13.36 | |||||
Total average stockholders' equity (GAAP measure) | $ | 10,423 | 4,633 | 4,275 | |||||
Less: Preferred stock | 863 | 340 | 340 | ||||||
Total average common stockholders' equity (GAAP measure) | e | $ | 9,560 | 4,293 | 3,935 | ||||
Return on equity (GAAP measure) | a/e | 11.18 | % | 10.96 | % | 14.70 | % | ||
Adjusted return on equity (non-GAAP measure) | b/e | 12.67 | % | 11.63 | % | 13.51 | % | ||
Total average common stockholders' equity (GAAP measure) | $ | 9,560 | 4,293 | 3,935 | |||||
Less: Average goodwill | 346 | 350 | 350 | ||||||
Less: Average intangible assets | 182 | 21 | 30 | ||||||
Total tangible common stockholders' equity (non-GAAP measure) | f | $ | 9,032 | 3,922 | 3,555 | ||||
Return on tangible common equity (non-GAAP measure) | a/f | 11.83 | % | 12.00 | % | 16.28 | % | ||
Adjusted return on tangible common equity (non-GAAP measure) | b/f | 13.43 | % | 12.72 | % | 14.96 | % | ||
Total average assets (GAAP measure) | g | $ | 110,395 | 58,116 | 51,410 | ||||
Net income (GAAP measure) | h | $ | 271 | 123 | 147 | ||||
Plus: Total tax-effected notable items | 35 | 8 | (11 | ) | |||||
Adjusted net income (non-GAAP measure) | i | $ | 306 | 132 | 137 | ||||
Return on assets (GAAP measure) | h/g | 1.00 | % | 0.84 | % | 1.16 | % | ||
Adjusted return on assets (non-GAAP meausre) | h/i | 1.12 | % | 0.89 | % | 1.07 | % | ||
First Citizens BancShares, Inc. | |||||||||
Non-GAAP Reconciliation #2 | |||||||||
(dollars in millions) | |||||||||
1Q22 | 4Q21 | 1Q21 | |||||||
Total noninterest income (GAAP measure) | $ | 850 | 114 | 137 | |||||
Less: Depreciation and maintenance on operating leases | 124 | - | - | ||||||
Subtotal | 726 | 114 | 137 | ||||||
Less: Other notable items | 446 | 3 | 25 | ||||||
Total core noninterest income (non-GAAP measure) | $ | 280 | 111 | 112 | |||||
Total noninterest expense (GAAP measure) | $ | 810 | 323 | 296 | |||||
Less: Depreciation and maintenance on operating leases | 124 | - | - | ||||||
Subtotal | 686 | 323 | 296 | ||||||
Less: Other notable items | 114 | 12 | 10 | ||||||
Total core noninterest expense (non-GAAP measure) | a | $ | 572 | 311 | 286 | ||||
Net interest income (GAAP measure) | $ | 649 | 357 | 339 | |||||
Total core noninterest income (non-GAAP measure) | 280 | 111 | 112 | ||||||
Total efficiency revenue | b | $ | 929 | 468 | 451 | ||||
Efficiency ratio (non-GAAP measure) | b/a | 61.57 | % | 66.31 | % | 63.35 | % | ||
First Citizens BancShares, Inc. | ||||||
Non-GAAP Reconciliation #3 | ||||||
(dollars in millions, except per share data) | ||||||
1Q22 | 4Q21 | 1Q21 | ||||
Total stockholders' equity (GAAP measure) | a | $ | 11,041 | 4,737 | 4,322 | |
Less: Preferred stock | 865 | 340 | 340 | |||
Common stockholders' equity (non-GAAP measure) | b | $ | 10,176 | 4,397 | 3,982 | |
Common stockholders' equity (non-GAAP measure) | $ | 10,176 | 4,397 | 3,982 | ||
Less: Goodwill | 346 | 346 | 350 | |||
Less: Intangible assets | 121 | 19 | 28 | |||
Tangible common stockholders' equity or tangible capital (non-GAAP measure) | c | $ | 9,708 | 4,032 | 3,604 | |
Total shares outstanding | d | 16,001,510 | 9,816,405 | 9,816,405 | ||
Book value per common share (non-GAAP measure) | b/d | $ | 635.92 | 447.95 | 405.59 | |
Tangible book value per common share (non-GAAP measure) | c/d | 606.72 | 410.74 | 367.07 | ||
РОЛИ, Северная Каролина, 28 апреля 2022 года (GLOBE NEWSWIRE) -- First Citizens BancShares, Inc. (“BancShares”) (Nasdaq: FCNCA) отчиталась о доходах за первый квартал, закончившийся 31 марта 2022 года.
Председатель и главный исполнительный директор Фрэнк Б. Холдинг-младший о результатах первого квартала: “Мы рады объявить о хороших результатах первого квартала. Мы по-прежнему сосредоточены на обеспечении своевременной и успешной интеграции с CIT Group Inc. (“CIT”) и добились значительного прогресса в течение квартала. Мы выиграли от еще одного квартала роста депозитов и кредитов. Чистый процентный доход вырос, а чистая процентная маржа увеличилась по сравнению с предыдущим кварталом, преодолев сокращение кредитов SBA-PPP.
“Мы также были довольны положительной динамикой в наших карточных, торговых, финансовых и железнодорожных направлениях бизнеса. Расходы хорошо контролировались в течение квартала, и мы стремимся достичь нашей целевой экономии за счет слияния CIT. Кредитное качество оставалось высоким, а чистые списания оставались низкими. Мы завершили квартал с высоким уровнем капитала и ликвидности и считаем, что наши текущие уровни поддерживают возобновление выкупа акций во второй половине этого года”.
слияние с cit group, inc.
Как сообщалось ранее, BancShares закрыла свое слияние с CIT 3 января 2022 года. Общая сумма приобретенных активов составила 53,8 миллиарда долларов, которые состояли из примерно 32,8 миллиарда долларов кредитов, 7,8 миллиарда долларов оборудования для операционной аренды и 6,6 миллиарда долларов инвестиционных ценных бумаг. Привлеченные депозиты составили 39,4 миллиарда долларов. Сделка также включала около 80 банковских отделений, около 60 из которых находились в Южной Калифорнии, а остальные в основном на Юго-Западе, Среднем Западе и Юго-Востоке. BancShares дополнительно зафиксировала предварительную прибыль от приобретения в размере 431 миллиона долларов в первом квартале 2022 года, что представляет собой превышение приобретенных чистых активов над ценой покупки.
FIRST QUARTER HIGHLIGHTS | |
Merger with CIT Group Inc. | BancShares completed its previously announced merger with CIT in the first quarter, creating immediate accretion to tangible book value per share of over 40%. The ongoing financial benefits from the combination are already being realized, and BancShares remains confident in its ability to execute on its previously communicated $250 million in total cost savings by the end of 2023. The merger with CIT resulted in a preliminary gain of $431 million which partially offset the $387 million expense (net of $126 million in tax) to establish the initial allowance for credit losses (“ACL”) on non-purchase credit deteriorated (“non-PCD”) loans and establish the reserve for off balance sheet credit exposures, as well as the $102 million merger-related expenses (net of $33 million in tax) primarily for severance and retention payments, auditing and consulting fees. |
Net income to common shareholders | Net income to common shareholders was $264 million or $16.70 per common share for the first quarter of 2022, compared to $142 million or $14.53 per common share for the same quarter in 2021. Results for the first quarter of 2022 were impacted materially by the CIT merger given the magnitude of the acquired balance sheet, the impacts of purchase accounting and the increases in net income from CIT’s operations. First quarter results included a net $181 million in pre-tax notable items. Excluding notable items, adjusted first quarter net income available to common shareholders was $299 million or $18.95 per share. |
Return on average assets and equity | Return on average assets for the first quarter of 2022 was 1.00%, down from 1.16% for the comparable quarter in 2021. When adjusted for notable items, return on average assets totaled 1.12% for the first quarter of 2022, compared to 1.07% for the comparable quarter in 2021. Return on average equity for the first quarter of 2022 was 11.18%, down from 14.70% for the comparable quarter in 2021. When adjusted for notable items, return on average equity totaled 12.67% for the first quarter of 2022, compared to 13.51% for the same quarter in 2021. |
Net interest income and net interest margin | Net interest income was $649 million for the first quarter of 2022. The net interest margin (“NIM”) was 2.73% for the first quarter of 2022, down 6 basis points from 2.79% for the comparable quarter in 2021 and up 16 basis points from 2.57% in the fourth quarter of 2021. Net interest margin benefited from growth in average loans and investments, as well as the redemption of approximately $3 billion in legacy CIT debt which occurred in late February. |
Allowance for credit losses and credit quality | The ACL was $848 million or 1.29% of total loans at March 31, 2022, compared to $178 million or 0.55% of total loans at December 31, 2021. With the acquisition of CIT, BancShares established an ACL related to the CIT loan portfolio of $738 which was $26 million over CIT’s ACL at December 31, 2021. The improvement of certain macroeconomic factors supporting the ACL estimate process during the quarter resulted in a release of $68 million. Credit quality remains strong and net charge-offs remain at historical lows. The net charge-off ratio was 0.09% for the first quarter of 2022 and nonaccrual loans to total loans was 0.82%. |
Balance sheet growth | Total loans were $65.5 billion, an increase of $33.2 billion since December 31, 2021. Excluding the fair value of loans acquired from CIT and a decline from SBA-PPP loans, total loans grew $455 million or 2.8% on an annualized basis. Total deposits grew to $91.6 billion, an increase of $40.2 billion since December 31, 2021. Excluding net deposits acquired from CIT, deposits increased $833 million or by 3.7% on an annualized basis. |
Capital | BancShares remained well-capitalized with a total risk-based capital ratio of 14.46%, a Tier 1 risk-based capital ratio of 12.39%, a Common Equity Tier 1 ratio of 11.34% and a Tier 1 leverage ratio of 9.43%. |
чистый процентный доход и чистая процентная маржа (nim)
Чистый процентный доход за первый квартал 2022 года составил 649 миллионов долларов, увеличившись на 310 миллионов долларов по сравнению с первым кварталом 2021 года и на 292 миллиона долларов по сравнению с предыдущим кварталом. Увеличение в оба периода было в основном обусловлено последствиями слияния с CIT.
Процентный доход по кредитам составил 621 миллион долларов, а доходность портфеля составила 3,88%. Это сопоставимо с 323 миллионами долларов или 3,92% в первом квартале 2021 года и 328 миллионами долларов или 3,97% в соответствующем квартале. Процентный доход по инвестиционным ценным бумагам составил 83 миллиона долларов, а доходность портфеля составила 1,77%. Это сопоставимо с 31 миллионом долларов или 1,27% в первом квартале 2021 года и 40 миллионами долларов или 1,39% в соответствующем квартале.
Процентные расходы за первый квартал 2022 года составили 61 миллион долларов, увеличившись на 45 миллионов долларов по сравнению с первым кварталом 2021 года и на 46 миллионов долларов по сравнению с предыдущим кварталом. Ставка, выплачиваемая по процентным депозитам, составила 0,24% по сравнению с 0,14% в предыдущем году и 0,11% в соответствующем квартале. Ставка, выплачиваемая по займам, составила 1,95% по сравнению с 2,12% в обоих предыдущих периодах.
NIM составил 2,73% в первом квартале 2022 года, что на 6 базисных пунктов ниже, чем 2,79% за аналогичный квартал 2021 года, и на 16 базисных пунктов выше, чем 2,57% в четвертом квартале 2021 года. Чистая процентная маржа выиграла от улучшения макроэкономических условий, роста средних кредитов и инвестиций, а также погашения устаревшего долга CIT на сумму около 3 миллиардов долларов, которое произошло в конце февраля.
незаинтересованный доход
Непроцентный доход за первый квартал 2022 года составил 850 миллионов долларов по сравнению со 137 миллионами долларов за аналогичный период 2021 года, увеличившись на 713 миллионов долларов в основном за счет приобретения CIT. Текущий период включал предварительную прибыль от приобретения в размере 431 миллиона долларов, которая была признана значительной. Приобретение CIT дополнительно принесло 208 миллионов долларов валового дохода от операционной аренды, 27 миллионов долларов комиссионных за факторинг, 23 миллиона долларов комиссионных доходов и других доходов, а также 6 миллионов долларов прибыли от продажи лизингового оборудования. Направления бизнеса, такие как благосостояние, карточные и торговые услуги, были положительными в течение квартала, в то время как доход по ипотечным кредитам снизился из-за роста процентных ставок и снижения объемов.
незаинтересованные расходы
Непроцентные расходы составили 810 миллионов долларов за первый квартал 2022 года по сравнению с 296 миллионами долларов за аналогичный период 2021 года, увеличившись на 514 миллионов долларов в основном за счет приобретения CIT. В течение квартала мы зафиксировали расходы, связанные со слиянием, в размере 135 миллионов долларов, которые были определены как значительные. Заработная плата и пособия составили 352 миллиона долларов, что в основном связано со слиянием CIT. Амортизация и техническое обслуживание по договорам операционной аренды составили 81 миллион долларов и 43 миллиона долларов соответственно. Расходы на размещение, чистые расходы и расходы на оборудование выросли на 19 миллионов долларов и 22 миллиона долларов соответственно, что связано со слиянием с CIT. Пособие в размере 27 миллионов долларов было признано в связи с прекращением действия унаследованных пенсионных планов.
Налог на прибыль за квартал составил 46 миллионов долларов США по сравнению с расходами на создание резервов в размере 44 миллионов долларов США за первый квартал 2021 года, что соответствует эффективным налоговым ставкам (20,4%) и 23,6% за соответствующие периоды. Первый квартал 2022 года включал не облагаемую налогом прибыль от выгодной покупки в размере 431 миллиона долларов и другие отдельные статьи.
кредиты и депозиты
По состоянию на 31 марта 2022 года общий объем кредитов составил 65,5 миллиарда долларов, увеличившись на 33,2 миллиарда долларов с 31 декабря 2021 года. Кредиты и договоры аренды, приобретенные в результате слияния CIT, составили 32,8 миллиарда долларов США за вычетом первоначальных учетных марок при покупке. Без учета общего объема чистых кредитов, полученных от CIT, и снижения на 299 миллионов долларов США по кредитам SBA-PPP, общий объем кредитов вырос на 455 миллионов долларов или на 2,8% в годовом исчислении.
По состоянию на 31 марта 2022 года общая сумма депозитов составила 91,6 миллиарда долларов, увеличившись на 40,2 миллиарда долларов с 31 декабря 2021 года. Депозиты, приобретенные в результате слияния CIT, составили 39,4 миллиарда долларов за вычетом первоначальных учетных марок при покупке. Без учета чистых депозитов, полученных от CIT, депозиты увеличились на 833 миллиона долларов, или на 3,7% в годовом исчислении.
Общий объем кредитов, не связанных с получением кредитов, составил 538 миллионов долларов, или 0,82% от общего объема кредитов на 31 марта 2022 года, по сравнению со 121 миллионом долларов, или 0,37% от общего объема кредитов на 31 декабря 2021 года. Увеличение общего объема невозвратных кредитов было в первую очередь результатом слияния CIT.
резерв на возможные потери по кредитам (acl) и резерв на возможные потери по кредитам
ACL составил 848 миллионов долларов или 1,29% от общего объема кредитов на 31 марта 2022 года по сравнению с 178 миллионами долларов или 0,55% от общего объема кредитов на 31 декабря 2021 года. Увеличение ACL по сравнению с 31 декабря 2021 года было в основном обусловлено кредитами, полученными в результате слияния CIT. Обратите внимание, что ни один ACL не был перенесен из CIT; следовательно, квартал включал сборку ACL для добавленных кредитов. Мы зарегистрировали оценочный резерв по кредитам с ухудшением качества кредитов на покупку (“PCD”) в размере 284 миллионов долларов США и оценочный резерв по кредитам, не связанным с PCD, в размере 454 миллионов долларов США.
Расходы по резервированию составили 464 миллиона долларов за квартал по сравнению с чистой прибылью в размере 11 миллионов долларов в первом квартале 2021 года. В то время как чистые списания выросли по сравнению с предыдущим кварталом, 9 базисных пунктов в годовом исчислении остаются ниже средних исторических показателей. Исключая резерв на 2-й день по кредитам, не связанным с PCD, и резерв по необеспеченным обязательствам в размере 513 миллионов долларов США, мы сообщили о чистой прибыли в размере 49 миллионов долларов США из-за чистого высвобождения резерва в размере 68 миллионов долларов США, поскольку мы продолжаем наблюдать улучшение некоторых макроэкономических факторов, в частности стоимости недвижимости, которые положительно влияют на ACL оценка. Кроме того, мы увидели улучшение удельных резервов по некоторым крупным обесцененным кредитам, что также способствовало выпуску.
детали звонка о доходах
BancShares проведет телефонную конференцию для обсуждения финансовых результатов компании в четверг, 28 апреля 2022 года, в 9 утра по восточному времени.
Чтобы получить доступ к этому звонку, наберите: Внутренний: 833-654-8257 Международный: 602-585-9869 Идентификатор конференции: 7780142
Презентация прибыли за первый квартал 2022 года и настоящий пресс-релиз доступны на веб-сайте компании по адресу www.firstcitizens.com/investor-relations .
После конференц-звонка вы можете получить доступ к воспроизведению звонка до 13 мая 2022 года, набрав 855-859-2056 (внутренний) или 404-537-3406 (международный) с идентификатором конференции 7780142.
об First Citizens BancShares
First Citizens BancShares, Inc. является финансовой холдинговой компанией First Citizens Bank. В январе 2022 года First Citizens BancShares и CIT Group Inc. объединились, создав одно из 20 крупнейших финансовых учреждений США с активами примерно в 110 миллиардов долларов.
First Citizens Bank помогает личным, деловым, коммерческим и богатым клиентам наращивать финансовую устойчивость на длительный срок. Являясь крупнейшим семейным банком в Соединенных Штатах, First Citizens продолжает уникальное наследие силы, стабильности и долгосрочного мышления, которое охватывало поколения. Его коммерческий банковский сегмент предлагает широкий спектр лучших в своем классе кредитных, лизинговых и банковских услуг компаниям среднего и малого бизнеса от побережья до побережья. Основанная в 1898 году со штаб-квартирой в Роли, Северная Каролина, First Citizens также управляет общенациональным прямым банком и сетью из более чем 600 филиалов в 22 штатах, многие из которых находятся на быстрорастущих рынках. Посещение firstcitizens.com . Первый Гражданский банк. Навсегда Первый®.
прогнозные заявления
Это сообщение содержит “прогнозные заявления” по смыслу Закона о реформе судебных разбирательств по частным ценным бумагам 1995 года в отношении финансового состояния, результатов операций, бизнес-планов и будущих результатов деятельности BancShares. Такие слова, как “ожидает”, “полагает”, “оценивает”, “ожидает”, “прогнозирует”, “прогнозирует”, “намеревается”, “планирует”, “проекты”, “цели”, “разработан”, “может”, “может”, “должен”, “будет”, “потенциал”, “продолжать” или другие подобные слова и выражения предназначены для обозначения этих прогнозных заявлений. Эти прогнозные заявления основаны на текущих ожиданиях и предположениях BancShares относительно бизнеса BancShares, экономики и других будущих условий.
Поскольку прогнозные заявления касаются будущих результатов и событий, они подвержены неотъемлемым рискам, неопределенностям, изменениям обстоятельств и другим факторам риска, которые трудно предсказать. Многие возможные события или факторы могут повлиять на будущие финансовые результаты и результаты деятельности BancShares и могут привести к тому, что фактические результаты, результаты или достижения BancShares будут существенно отличаться от любых ожидаемых результатов, выраженных или подразумеваемых в таких прогнозных заявлениях. Такие риски и неопределенности включают, среди прочего, общие конкурентные, экономические, политические, геополитические события (включая военный конфликт между Россией и Украиной) и рыночные условия, влияние глобальной пандемии COVID-19 на бизнес и клиентов BancShares, финансовый успех или изменение условий или стратегий клиентов BancShares. или поставщиков, колебания процентных ставок, действия государственных регулирующих органов, наличие капитала и персонала, а также неспособность реализовать ожидаемые выгоды от предыдущих сделок по приобретению BancShares, включая недавно завершенную сделку с CIT, риски приобретения которой включают (1) срыв сделки или недавно завершенные слияния, отношения с клиентами, поставщиками или сотрудниками, (2) вероятность того, что сумма расходов, сборов, расходов и сборов, связанных со сделкой, может быть больше, чем ожидалось, в том числе в результате неожиданных или неизвестных факторов, событий или обязательств, (3) репутационный риск и реакция клиентов сторон сделки, (4) риск того, что экономия затрат и любая синергия доходов от сделки могут не быть реализованы или занять больше времени, чем ожидалось, и (5) трудности, возникающие при интеграции бизнеса. Кроме того, заявления в этой презентации, касающиеся будущих планов, связанных с возможным началом программы обратного выкупа акций, по-прежнему подлежат одобрению Советом директоров и соответствующими регулирующими органами.
За исключением случаев, предусмотренных применимыми законами или нормативными актами, BancShares отказывается от каких-либо обязательств по обновлению прогнозных заявлений или публичному объявлению результатов любых изменений в любом из прогнозных заявлений, включенных в настоящий документ, для отражения будущих событий или событий. Дополнительные факторы, которые могут повлиять на прогнозные заявления, можно найти в Годовом отчете BancShares по форме 10-K за финансовый год, закончившийся 31 декабря 2021 года, и в других его заявках в Комиссию по ценным бумагам и биржам (“SEC”).
показатели, не относящиеся к gaap
Некоторые показатели в этой презентации являются "Не относящимися к GAAP”, что означает, что они не представлены в соответствии с общепринятыми принципами бухгалтерского учета в США, а также не кодифицированы в банковских правилах США, применимых в настоящее время к BancShares. BancShares считает, что финансовые показатели, не относящиеся к GAAP, при рассмотрении в сочетании с финансовой информацией GAAP, могут обеспечить прозрачность или альтернативный способ оценки операционных результатов и финансового положения для инвесторов, аналитиков и руководства. Показатели, не относящиеся к GAAP, сверяются с наиболее сопоставимыми показателями GAAP в следующих финансовых отчетах.
Contact: | Barbara Thompson | Deanna Hart |
Corporate Communications | Investor Relations | |
919-716-2716 | 919-716-2137 |
Примечание: Ссылки на “Скорректированные” результаты исключают заметные статьи и являются финансовыми показателями, не относящимися к ОПБУ.
First Citizens BancShares, Inc. | ||||||||
Performance Summary Table | ||||||||
(dollars in millions, except per share data) | ||||||||
Key Performance & Metrics | 1Q22 | 4Q21 | 1Q21 | |||||
Per Common Share Data | ||||||||
Average diluted shares oustanding (in thousands) | $ | 15,779 | 9,816 | 9,816 | ||||
Net income available to common stockholders 1 | 16.70 | 12.09 | 14.53 | |||||
Net income available to common stockholders 1 - Adjusted | 18.95 | 12.82 | 13.36 | |||||
Book value per common share | 605.48 | 447.95 | 405.59 | |||||
Tangible book value per common share (TBV) | 574.09 | 410.74 | 367.07 | |||||
Key Performance Metrics | ||||||||
Return on average assets (ROA) | 1.00 | % | 0.84 | % | 1.16 | % | ||
Return on average assets (ROA) - adjusted | 1.12 | % | 0.89 | % | 1.07 | % | ||
Return on average common equity (ROE) | 11.18 | % | 10.96 | % | 14.70 | % | ||
Return on average common equity (ROE) - adjusted | 12.67 | % | 11.63 | % | 13.51 | % | ||
Return on average tangible common equity (ROTCE) | 11.83 | % | 12.00 | % | 16.28 | % | ||
Return on average tangible common equity (ROTCE) - adjusted | 13.41 | % | 12.72 | % | 14.96 | % | ||
Efficiency ratio | 61.57 | % | 66.31 | % | 63.35 | % | ||
Net interest margin (NIM) | 2.73 | % | 2.57 | % | 2.79 | % | ||
Select Balance Sheet Items | ||||||||
Total investments | 19,469 | 13,110 | 10,222 | |||||
Total loans and leases | 65,524 | 32,372 | 33,181 | |||||
Total operating lease equipment (net) | 7,972 | - | - | |||||
Total deposits | 91,597 | 51,406 | 47,331 | |||||
Total borrowings | 3,292 | 1,794 | 1,911 | |||||
Loan to deposit ratio | 71.54 | % | 62.97 | % | 70.10 | % | ||
Noninterest-bearing deposits to total deposits | 28.27 | % | 41.64 | % | 43.34 | % | ||
Capital Ratios 2 | ||||||||
Total risk-based capital ratio | 14.46 | % | 14.35 | % | 14.14 | % | ||
Tier 1 risk-based capital ratio | 12.39 | % | 12.47 | % | 12.02 | % | ||
Common equity Tier 1 ratio | 11.34 | % | 11.50 | % | 11.00 | % | ||
Tier 1 leverage capital ratio | 9.43 | % | 7.59 | % | 7.84 | % | ||
Asset Quality | ||||||||
Ratio of nonaccrual loans to total loans | 0.82 | % | 0.37 | % | 0.59 | % | ||
Allowance for credit losses to loans ratio | 1.29 | % | 0.55 | % | 0.63 | % | ||
Net charge off ratio | 0.09 | % | -0.01 | % | 0.03 | % | ||
1 Per diluted common shares, when applicable. | ||||||||
2 Capital ratios for the current quarter are preliminary pending completion of quarterly regulatory filings. | ||||||||
First Citizens BancShares, Inc. | ||||||||
Income Statement - Consolidated | ||||||||
(dollars in millions, except shares and per share data) | ||||||||
Income Statement - Consolidated | 1Q22 | 4Q21 | 1Q21 | |||||
Interest income | ||||||||
Interest and fees on loans & leases | $ | 621 | 328 | 323 | ||||
Interest on investment securities | 83 | 40 | 31 | |||||
Other interest and dividends | 6 | 4 | 1 | |||||
Total interest income | 710 | 372 | 355 | |||||
Interest expense | ||||||||
Deposits | 39 | 8 | 8 | |||||
Borrowings | 22 | 7 | 8 | |||||
Total interest expense | 61 | 15 | 16 | |||||
Net interest income | 649 | 357 | 339 | |||||
Provision (benefit) for credit losses | 464 | (5 | ) | (11 | ) | |||
Net interest income after provision for credit losses | 185 | 362 | 350 | |||||
Noninterest income | ||||||||
Rental income on operating leases | 208 | - | - | |||||
Other noninterest income | ||||||||
Fee income and other revenue | 33 | 9 | 8 | |||||
Wealth management services | 35 | 33 | 32 | |||||
Gains on leasing equipment, net | 6 | - | - | |||||
Service charges on deposit accounts | 28 | 27 | 22 | |||||
Factoring commissions | 27 | - | - | |||||
Cardholder services, net | 25 | 21 | 20 | |||||
Merchant services, net | 10 | 7 | 9 | |||||
Realized gains on investment securities available for sale, net | - | - | 9 | |||||
Marketable equity securities gains (losses), net | 3 | 3 | 16 | |||||
Gain on acquisition | 431 | - | - | |||||
Gain (loss) on extinguishment of debt | 6 | - | - | |||||
Other noninterest income | 38 | 14 | 21 | |||||
Total other noninterest income | 642 | 114 | 137 | |||||
Total noninterest income | 850 | 114 | 137 | |||||
Noninterest expense | ||||||||
Depreciation on operating lease equipment | 81 | - | - | |||||
Maintenance and other operating lease expenses | 43 | - | - | |||||
Operating expenses | ||||||||
Salaries and benefits | 352 | 193 | 184 | |||||
Net occupancy expense | 49 | 30 | 30 | |||||
Equipment expense | 52 | 30 | 30 | |||||
Third-party processing expense | 24 | 16 | 14 | |||||
FDIC insurance expense | 12 | 4 | 3 | |||||
Merger-related expenses | 135 | 10 | 7 | |||||
Intangible asset amortization | 6 | 2 | 3 | |||||
Other noninterest expense | 56 | 38 | 25 | |||||
Total operating expenses | 686 | 323 | 296 | |||||
Total noninterest expense | 810 | 323 | 296 | |||||
Income before income taxes | 225 | 153 | 191 | |||||
Income taxes | (46 | ) | 30 | 44 | ||||
Net income | 271 | 123 | 147 | |||||
Preferred stock dividends | 7 | 5 | 5 | |||||
Net income available to common stockholders | $ | 264 | 118 | 142 | ||||
Earnings per common share | ||||||||
Basic | $ | 16.70 | 12.09 | 14.53 | ||||
Diluted | 16.70 | N/A | N/A | |||||
Weighted average number of common shares | ||||||||
Basic | 15,779,153 | 9,816,405 | 9,816,405 | |||||
Diluted | 15,779,153 | 9,816,405 | 9,816,405 | |||||
First Citizens BancShares, Inc. | ||||||||
Income Statement - Adjusted for Notable Items - Consolidated | ||||||||
(dollars in millions, except shares and per share data ) | ||||||||
Income Statement - Adjusted for Notable Items - Consolidated | 1Q22 | 4Q21 | 1Q21 | |||||
Interest income | ||||||||
Interest and fees on loans & leases | $ | 621 | 328 | 323 | ||||
Interest on investment securities | 83 | 40 | 31 | |||||
Other interest and dividends | 6 | 4 | 1 | |||||
Total interest income | 710 | 372 | 355 | |||||
Interest expense | ||||||||
Deposits | 39 | 8 | 8 | |||||
Borrowings | 22 | 7 | 8 | |||||
Total interest expense | 61 | 15 | 16 | |||||
Net interest income | 649 | 357 | 339 | |||||
Provision (benefit) for credit losses | (49 | ) | (5 | ) | (11 | ) | ||
Net interest income after provision for credit losses | 698 | 362 | 350 | |||||
Noninterest income | ||||||||
Rental income on operating leases, net | 84 | - | - | |||||
Other noninterest income | - | - | - | |||||
Fee income and other revenue | 33 | 9 | 8 | |||||
Wealth management services | 35 | 33 | 32 | |||||
Gains on leasing equipment, net | - | - | - | |||||
Service charges on deposit accounts | 28 | 27 | 22 | |||||
Factoring commissions | 27 | - | - | |||||
Cardholder services, net | 25 | 21 | 20 | |||||
Merchant services, net | 10 | 7 | 9 | |||||
Realized gains on investment securities available for sale, net | - | - | (0 | ) | ||||
Marketable equity securities gains (losses), net | - | (0 | ) | (0 | ) | |||
Gain on acquisition | - | - | - | |||||
Gain (loss) on extinguishment of debt | - | - | - | |||||
Other noninterest income | 38 | 14 | 21 | |||||
Total other noninterest income | 196 | 111 | 112 | |||||
Total noninterest income | 280 | 111 | 112 | |||||
Noninterest expense | ||||||||
Depreciation on operating lease equipment | - | - | - | |||||
Maintenance and other operating lease expenses | - | - | - | |||||
Operating expenses | - | - | - | |||||
Salaries and benefits | 379 | 193 | 184 | |||||
Net occupancy expense | 49 | 30 | 30 | |||||
Equipment expense | 52 | 30 | 30 | |||||
Third-party processing expense | 24 | 16 | 14 | |||||
FDIC insurance expense | 12 | 4 | 3 | |||||
Merger-related expenses | 0 | 0 | 0 | |||||
Intangible asset amortization | - | - | (0 | ) | ||||
Other noninterest expense | 56 | 38 | 25 | |||||
Total operating expenses | 572 | 311 | 286 | |||||
Total noninterest expense | 572 | 311 | 286 | |||||
Income before income taxes | 406 | 162 | 176 | |||||
Income taxes | 100 | 31 | 40 | |||||
Net income | 306 | 131 | 136 | |||||
Preferred stock dividends | 7 | 5 | 5 | |||||
Net income available to common stockholders | $ | 299 | 126 | 131 | ||||
Earnings per common share | ||||||||
Basic | $ | 18.95 | 12.82 | 13.36 | ||||
Diluted | $ | 18.95 | N/A | N/A | ||||
Weighted average number of common shares | ||||||||
Basic | 15,779,153 | 9,816,405 | 9,816,405 | |||||
Diluted | 15,779,153 | N/A | N/A | |||||
First Citizens BancShares, Inc. | |||||||||||||||||||||||||||
Notable Items | |||||||||||||||||||||||||||
(dollars in millions, except per share data) | |||||||||||||||||||||||||||
Notable Items | 1Q22 | 4Q21 | 1Q21 | ||||||||||||||||||||||||
Pre-Tax | After-Tax | EPS Impact | Pre-Tax | After-Tax | EPS Impact | Pre-Tax | After-Tax | EPS Impact | |||||||||||||||||||
Depreciation on operating lease equipment | $ | (81 | ) | (61 | ) | (3.87 | ) | - | - | - | - | - | - | ||||||||||||||
Maintenance and other operating lease expenses | (43 | ) | (32 | ) | (2.05 | ) | - | - | - | - | - | - | |||||||||||||||
Gains on leasing equipment, net of impairments | (6 | ) | (5 | ) | (0.31 | ) | - | - | - | - | - | - | |||||||||||||||
Realized gains on investment securities available for sale, net | - | - | - | - | - | - | (9 | ) | (7 | ) | (0.73 | ) | |||||||||||||||
Marketable equity securities gains, net | (3 | ) | (2 | ) | (0.12 | ) | (3 | ) | (2 | ) | (0.24 | ) | (16 | ) | (12 | ) | (1.27 | ) | |||||||||
Gain on acquisitions | (431 | ) | (431 | ) | (27.34 | ) | - | - | - | - | - | - | |||||||||||||||
Gain on extinguishment of debt | (6 | ) | (5 | ) | (0.29 | ) | - | - | - | - | - | - | |||||||||||||||
CTA release | - | - | - | - | - | - | - | - | |||||||||||||||||||
Legacy consumer mortgage loan sales | - | - | - | - | - | - | - | - | - | ||||||||||||||||||
Noninterest income - total adjustments | $ | (570 | ) | (536 | ) | (33.98 | ) | (3 | ) | (2 | ) | (0.24 | ) | (25 | ) | (20 | ) | (2.00 | ) | ||||||||
Depreciation on operating lease equipment | (81 | ) | (61 | ) | 3.87 | - | - | - | - | - | - | ||||||||||||||||
Maintenance and other operating lease expenses | (43 | ) | (32 | ) | 2.05 | - | - | - | - | - | - | ||||||||||||||||
Restructuring costs | - | - | - | - | - | - | - | - | - | ||||||||||||||||||
Merger-related expenses | (135 | ) | (102 | ) | 6.45 | (10 | ) | (8 | ) | 0.78 | (7 | ) | (5 | ) | 0.54 | ||||||||||||
Intangible asset amortization | (6 | ) | (5 | ) | 0.29 | (2 | ) | (2 | ) | 0.16 | (3 | ) | (3 | ) | 0.26 | ||||||||||||
Termination of US Medical Plan and US Life Insurance | 27 | 20 | (1.28 | ) | - | - | - | 0 | - | - | - | ||||||||||||||||
Noninterest expense - total adjustments | $ | (238 | ) | (180 | ) | 11.38 | (12 | ) | (9 | ) | 0.94 | (10 | ) | (8 | ) | 0.81 | |||||||||||
CECL Day 2 provision and reserve for unfunded commitments | (513 | ) | (387 | ) | 24.50 | - | - | - | - | - | - | ||||||||||||||||
Provision for credit losses - total adjustments | $ | (513 | ) | (387 | ) | 24.50 | - | - | - | - | - | - | |||||||||||||||
Total impact of notable items | $ | $ | 181 | $ | 31 | $ | 1.90 | 9 | 7 | $ | 0.70 | (15 | ) | (12 | ) | $ | (1.20 | ) | |||||||||
First Citizens BancShares, Inc. | ||||||||
Balance Sheet | ||||||||
(dollars in millions) | ||||||||
Balance Sheet | 1Q22 | 4Q21 | 1Q21 | |||||
Assets | ||||||||
Cash and due from banks | $ | 523 | 338 | 410 | ||||
Interest-earning deposits at banks | 9,285 | 9,115 | 7,589 | |||||
Securities purchased under agreement to resell | ||||||||
Investment in marketable equity securities | 100 | 98 | 107 | |||||
Investment in securities available for sale | 9,295 | 9,203 | 7,307 | |||||
Investment securities held to maturity | 10,074 | 3,809 | 2,808 | |||||
Assets held for sale | 83 | 98 | 130 | |||||
Loans and leases | 65,524 | 32,372 | 33,181 | |||||
Allowance for credit losses | (848 | ) | (178 | ) | (211 | ) | ||
Loans and leases, net of allowance for credit losses | 64,676 | 32,194 | 32,970 | |||||
Operating lease equipment, net | 7,972 | - | ||||||
Premises and equipment | 1,431 | 1,233 | 1,239 | |||||
Bank owned life insurance | 1,326 | 116 | 115 | |||||
Goodwill | 346 | 346 | 350 | |||||
Other intangible assets | 156 | 19 | 28 | |||||
Other assets | 3,330 | 1,739 | 856 | |||||
Total assets | $ | 108,597 | 58,308 | 53,909 | ||||
Liabilities | ||||||||
Deposits | ||||||||
Noninterest-bearing | $ | 25,898 | 21,405 | 20,515 | ||||
Interest-bearing | 65,699 | 30,001 | 26,816 | |||||
Total deposits | 91,597 | 51,406 | 47,331 | |||||
Credit balances of factoring clients | 1,150 | |||||||
Securities sold under customer repurchase agreements | 616 | 589 | 681 | |||||
Federal Home Loan Bank borrowings | 639 | 645 | 648 | |||||
Senior unsecured borrowings | 895 | - | - | |||||
Subordinated debt | 1,058 | 478 | 497 | |||||
Other borrowings | 84 | 72 | 85 | |||||
Other liabilities | 1,988 | 381 | 345 | |||||
Total liabilities | $ | 98,027 | 53,571 | 49,587 | ||||
Stockholders’ equity | ||||||||
Preferred stock - $0.01 par value | 881 | 340 | 340 | |||||
Common Stock: | ||||||||
Class A - $1 par value | 15 | 9 | 9 | |||||
Class B - $1 par value | 1 | 1 | 1 | |||||
Surplus | 5,344 | - | ||||||
Retained earnings | 4,634 | 4,377 | 4,006 | |||||
Accumulated other comprehensive (loss) income | (305 | ) | 10 | (34 | ) | |||
Total stockholders’ equity | 10,570 | 4,737 | 4,322 | |||||
Total liabilities and stockholders’ equity | $ | 108,597 | 58,308 | 53,909 | ||||
Common Shares Outstanding | 15,978,414 | 9,816,405 | 9,816,405 | |||||
Book value per common share | $ | 605.48 | 447.92 | 405.65 | ||||
Tangible book value per common share | 574.09 | 410.74 | 367.07 | |||||
Other assets | ||||||||
Investments in low income housing and other tax credits | $ | 702 | 157 | 162 | ||||
Right of use assets | 384 | 63 | 65 | |||||
Pension assets | 296 | 289 | 166 | |||||
Accrued interest receivable | 247 | 134 | 148 | |||||
Income taxes receivable | 834 | 799 | 40 | |||||
Fair value of derivative financial instruments | 110 | - | - | |||||
Countertparty receivables | 106 | - | - | |||||
Federal Home Loan Bank stock | 39 | 40 | 41 | |||||
Other real estate owned | 43 | 39 | 49 | |||||
Mortgage servicing rights | 29 | 24 | 24 | |||||
Other | 540 | 194 | 161 | |||||
Total other assets | $ | 3,330 | 1,739 | 856 | ||||
Other liabilities | ||||||||
Accrued expenses and accounts payable | $ | 534 | 5 | 3 | ||||
Current and deferred taxes | 161 | 34 | - | |||||
Lease liabilities | 385 | 64 | 66 | |||||
Commitments to find investments in tax credits | 242 | 43 | 50 | |||||
Fair value of derivative financial instruments | 204 | - | - | |||||
Accrued interest payable | 24 | 8 | 5 | |||||
Reserve for off-balances sheet credit exposure | 75 | 12 | 12 | |||||
Other | 363 | 215 | 209 | |||||
Total other liabilities | $ | 1,988 | 381 | 345 | ||||
First Citizens BancShares, Inc. | ||||||||
Loans & Deposits | ||||||||
(dollars in milions) | ||||||||
Loans & Leases (End of Period) | 1Q22 | 4Q21 | 1Q21 | |||||
Loans & Leases by Class | ||||||||
Commercial | ||||||||
Commercial construction | $ | 2,633 | 1,238 | 1,131 | ||||
Owner occupied commercial mortgages | 13,553 | 12,099 | 11,480 | |||||
Non-owner occupied commercial mortgages | 9,293 | 3,041 | 3,094 | |||||
Commercial and industrial | 22,402 | 5,937 | 7,403 | |||||
Leases | 2,220 | 271 | 317 | |||||
Total commercial | $ | 50,101 | 22,586 | 23,425 | ||||
Consumer | ||||||||
Residental mortgage | $ | 11,711 | 6,088 | 5,974 | ||||
Revolving mortgage | 1,840 | 1,818 | 1,971 | |||||
Consumer auto | 1,320 | 1,332 | 1,272 | |||||
Consumer other | 552 | 548 | 539 | |||||
Total consumer | 15,423 | 9,786 | 9,756 | |||||
Total loans & leases | $ | 65,524 | 32,372 | 33,181 | ||||
Less allowance for credit losses | (848 | ) | (178 | ) | (211 | ) | ||
Net loans & leases | $ | 64,676 | 32,194 | 32,970 | ||||
Deposits (End of Period) | 1Q22 | 4Q21 | 1Q21 | |||||
Non-interest-bearing demand | $ | 25,898 | 21,405 | 20,515 | ||||
Checking with interest | 16,702 | 12,694 | 10,820 | |||||
Money market | 26,249 | 10,590 | 9,590 | |||||
Savings | 13,506 | 4,236 | 3,676 | |||||
Time | 9,242 | 2,481 | 2,729 | |||||
Total deposits | $ | 91,597 | 51,406 | 47,331 | ||||
First Citizens BancShares, Inc. | ||||||||
Asset Quality & Allowance for Credit Losses | ||||||||
(dollars in milions) | ||||||||
Asset Quality & Allowance | 1Q22 | 4Q21 | 1Q21 | |||||
Nonaccrual loans | $ | 538 | 121 | 194 | ||||
Ratio of nonaccrual loans to total loans | 0.82 | % | 0.37 | % | 0.59 | % | ||
Charge-offs | $ | 33 | 8 | 9 | ||||
Recoveries | (18 | ) | (9 | ) | (6 | ) | ||
Net charge-offs | $ | 15 | (1 | ) | 3 | |||
Net charge-off ratio | 0.09 | % | -0.01 | % | 0.03 | % | ||
Allowance for credit losses | $ | 848 | 178 | 211 | ||||
Allowance for credit losses to loans ratio | 1.29 | % | 0.55 | % | 0.63 | % | ||
Allowance for credit losses - beginning | $ | 178 | 183 | 225 | ||||
CIT merger - intial PCD allowance | 284 | - | - | |||||
CIT merger - initial NPCD allowance | 454 | - | - | |||||
Provision (credit) | (53 | ) | (5 | ) | (11 | ) | ||
Net charge-offs | (15 | ) | 1 | (3 | ) | |||
Allowance for credit losses - ending | $ | 848 | 179 | 211 | ||||
Reserve for off balance sheet credit exposures | $ | 75 | 12 | 12 | ||||
Total provision expense | $ | 464 | (5 | ) | (11 | ) | ||
First Citizens BancShares, Inc. | ||||||||||||||||||||||||
Average Balance Sheet - Yields/Rates | ||||||||||||||||||||||||
(dollars in millions) | ||||||||||||||||||||||||
Average Balance Sheet | 1Q22 | 4Q21 | 1Q21 | |||||||||||||||||||||
Average Balance | Income / Expense | Yield / Rate | Average Balance | Income / Expense | Yield / Rate | Average Balance | Income / Expense | Yield / Rate | ||||||||||||||||
Loans and leases | $ | 64,144 | $ | 621 | 3.88 | % | $ | 32,488 | $ | 328 | 3.97 | % | $ | 33,087 | $ | 323 | 3.92 | % | ||||||
Total investment securities | 19,492 | 83 | 1.71 | % | 11,424 | 40 | 1.39 | % | 9,758 | 31 | 1.27 | % | ||||||||||||
Interest-earning deposits at banks | 11,476 | 6 | 0.19 | % | 10,690 | 4 | 0.15 | % | 5,871 | 1 | 0.10 | % | ||||||||||||
Total interest-earning assets | 95,112 | 710 | 2.99 | % | 54,602 | 372 | 2.68 | % | 48,716 | 355 | 2.92 | % | ||||||||||||
Operating lease equipment, net (including held for sale) | 7,924 | - | - | |||||||||||||||||||||
Cash and due from banks | 536 | 337 | 333 | |||||||||||||||||||||
Allowance for credit losses | (907 | ) | (184 | ) | (224 | ) | ||||||||||||||||||
All other non-interest bearing assets | 6,569 | 3,361 | 2,585 | |||||||||||||||||||||
Total Assets | 109,234 | 58,116 | 51,410 | |||||||||||||||||||||
Interest bearing deposits | ||||||||||||||||||||||||
Checking with interest | 16,606 | 5 | 0.10 | % | 11,994 | 2 | 0.05 | % | 10,746 | 1 | 0.05 | % | ||||||||||||
Money market | 26,199 | 15 | 0.24 | % | 10,358 | 2 | 0.09 | % | 9,009 | 3 | 0.11 | % | ||||||||||||
Savings | 13,659 | 9 | 0.26 | % | 4,140 | - | 0.03 | % | 3,462 | - | 0.04 | % | ||||||||||||
Time deposits | 9,794 | 10 | 0.43 | % | 2,517 | 4 | 0.62 | % | 2,805 | 5 | 0.66 | % | ||||||||||||
Total interest bearing deposits | 66,258 | 39 | 0.24 | % | 29,009 | 8 | 0.11 | % | 26,022 | 9 | 0.14 | % | ||||||||||||
Securities sold under customer repuchase agreements | 600 | - | 0.16 | % | 650 | - | 0.16 | % | 641 | - | 0.21 | % | ||||||||||||
Borrowings | ||||||||||||||||||||||||
FHLB borrowings | 641 | 2 | 1.27 | % | 645 | 2 | 1.28 | % | 651 | 2 | 1.28 | % | ||||||||||||
Senior unsecured borrowings | 2,719 | 12 | 1.71 | % | - | - | 0.00 | % | - | - | 0.00 | % | ||||||||||||
Subordinated debt | 1,061 | 8 | 2.96 | % | 497 | 4 | 3.34 | % | 497 | 4 | 3.37 | % | ||||||||||||
Other borrowings | 85 | - | 1.95 | % | 75 | 1 | 1.25 | % | 87 | 1 | 1.22 | % | ||||||||||||
Total borrowings | 4,506 | 22 | 1.95 | % | 1,217 | 7 | 2.12 | % | 1,235 | 7 | 2.12 | % | ||||||||||||
Total interest-bearing liabilities | 71,364 | 61 | 0.35 | % | 30,876 | 15 | 0.19 | % | 27,898 | 16 | 0.23 | % | ||||||||||||
Non-interest bearing deposits | 25,315 | 22,229 | ||||||||||||||||||||||
Other non-interest bearing liabilities | 2,132 | 378 | 23,512 | |||||||||||||||||||||
Stockholders' equity | 10,423 | 4,633 | ||||||||||||||||||||||
Total liabilities and stockholders' equity | $ | 109,234 | $ | 58,116 | $ | 51,410 | ||||||||||||||||||
Interest rate spread | 2.64 | % | 2.49 | % | 2.69 | % | ||||||||||||||||||
Net interest income and net yield on interest-earning assets | $ | 649 | 2.73 | % | $ | 357 | 2.57 | % | $ | 339 | 2.79 | % | ||||||||||||
First Citizens BancShares, Inc. | |||||||||
Non-GAAP Reconciliation #1 | |||||||||
(dollars in millions, except per share data) | |||||||||
1Q22 | 4Q21 | 1Q21 | |||||||
Net income (GAAP measure) | $ | 271 | 123 | 147 | |||||
Less: Preferred dividends | 7 | 5 | 5 | ||||||
Net income available to common stockholders (GAAP measure) | a | 264 | 118 | 142 | |||||
Plus: Total tax-effected notable items | 35 | 8 | (11 | ) | |||||
Adjusted net income available to common stockholders (non-GAAP measure) | b | $ | 299 | 126 | 131 | ||||
Weighted average common shares outstanding | c | 15,779,153 | 9,816,405 | 9,816,405 | |||||
Basic earnings per share (GAAP measure) | a/c | $ | 16.70 | 12.09 | 14.53 | ||||
Adjusted basic earnings per share (non-GAAP measure) | b/c | 18.95 | 12.82 | 13.36 | |||||
Total average stockholders' equity (GAAP measure) | $ | 10,423 | 4,633 | 4,275 | |||||
Less: Preferred stock | 863 | 340 | 340 | ||||||
Total average common stockholders' equity (GAAP measure) | e | $ | 9,560 | 4,293 | 3,935 | ||||
Return on equity (GAAP measure) | a/e | 11.18 | % | 10.96 | % | 14.70 | % | ||
Adjusted return on equity (non-GAAP measure) | b/e | 12.67 | % | 11.63 | % | 13.51 | % | ||
Total average common stockholders' equity (GAAP measure) | $ | 9,560 | 4,293 | 3,935 | |||||
Less: Average goodwill | 346 | 350 | 350 | ||||||
Less: Average intangible assets | 182 | 21 | 30 | ||||||
Total tangible common stockholders' equity (non-GAAP measure) | f | $ | 9,032 | 3,922 | 3,555 | ||||
Return on tangible common equity (non-GAAP measure) | a/f | 11.83 | % | 12.00 | % | 16.28 | % | ||
Adjusted return on tangible common equity (non-GAAP measure) | b/f | 13.43 | % | 12.72 | % | 14.96 | % | ||
Total average assets (GAAP measure) | g | $ | 110,395 | 58,116 | 51,410 | ||||
Net income (GAAP measure) | h | $ | 271 | 123 | 147 | ||||
Plus: Total tax-effected notable items | 35 | 8 | (11 | ) | |||||
Adjusted net income (non-GAAP measure) | i | $ | 306 | 132 | 137 | ||||
Return on assets (GAAP measure) | h/g | 1.00 | % | 0.84 | % | 1.16 | % | ||
Adjusted return on assets (non-GAAP meausre) | h/i | 1.12 | % | 0.89 | % | 1.07 | % | ||
First Citizens BancShares, Inc. | |||||||||
Non-GAAP Reconciliation #2 | |||||||||
(dollars in millions) | |||||||||
1Q22 | 4Q21 | 1Q21 | |||||||
Total noninterest income (GAAP measure) | $ | 850 | 114 | 137 | |||||
Less: Depreciation and maintenance on operating leases | 124 | - | - | ||||||
Subtotal | 726 | 114 | 137 | ||||||
Less: Other notable items | 446 | 3 | 25 | ||||||
Total core noninterest income (non-GAAP measure) | $ | 280 | 111 | 112 | |||||
Total noninterest expense (GAAP measure) | $ | 810 | 323 | 296 | |||||
Less: Depreciation and maintenance on operating leases | 124 | - | - | ||||||
Subtotal | 686 | 323 | 296 | ||||||
Less: Other notable items | 114 | 12 | 10 | ||||||
Total core noninterest expense (non-GAAP measure) | a | $ | 572 | 311 | 286 | ||||
Net interest income (GAAP measure) | $ | 649 | 357 | 339 | |||||
Total core noninterest income (non-GAAP measure) | 280 | 111 | 112 | ||||||
Total efficiency revenue | b | $ | 929 | 468 | 451 | ||||
Efficiency ratio (non-GAAP measure) | b/a | 61.57 | % | 66.31 | % | 63.35 | % | ||
First Citizens BancShares, Inc. | ||||||
Non-GAAP Reconciliation #3 | ||||||
(dollars in millions, except per share data) | ||||||
1Q22 | 4Q21 | 1Q21 | ||||
Total stockholders' equity (GAAP measure) | a | $ | 11,041 | 4,737 | 4,322 | |
Less: Preferred stock | 865 | 340 | 340 | |||
Common stockholders' equity (non-GAAP measure) | b | $ | 10,176 | 4,397 | 3,982 | |
Common stockholders' equity (non-GAAP measure) | $ | 10,176 | 4,397 | 3,982 | ||
Less: Goodwill | 346 | 346 | 350 | |||
Less: Intangible assets | 121 | 19 | 28 | |||
Tangible common stockholders' equity or tangible capital (non-GAAP measure) | c | $ | 9,708 | 4,032 | 3,604 | |
Total shares outstanding | d | 16,001,510 | 9,816,405 | 9,816,405 | ||
Book value per common share (non-GAAP measure) | b/d | $ | 635.92 | 447.95 | 405.59 | |
Tangible book value per common share (non-GAAP measure) | c/d | 606.72 | 410.74 | 367.07 | ||