First Citizens BancShares Reports Second Quarter 2024 Earnings, Announces Share Repurchase Plan
First Citizens BancShares (Nasdaq: FCNCA) reported Q2 2024 earnings and announced a $3.5 billion share repurchase plan. Key highlights include:
- Net income: $707 million, down from $731 million in Q1 2024
- Earnings per share: $47.54, decreased from $49.26 in Q1
- Net interest income: $1.82 billion, up $4 million from Q1
- Net interest margin: 3.64%, down from 3.67% in Q1
- Noninterest income: $639 million, up $12 million from Q1
- Loans and leases: $139.34 billion, up 2.9% from Q1
- Deposits: $151.08 billion, up 4.0% annualized from Q1
The company reported broad-based loan and deposit growth, strong profitability metrics, and continued credit stabilization across all business segments, including progress in the SVB Commercial segment.
First Citizens BancShares (Nasdaq: FCNCA) ha riportato i risultati del secondo trimestre 2024 e ha annunciato un programma di riacquisto di azioni da 3,5 miliardi di dollari. I punti salienti includono:
- Utile netto: 707 milioni di dollari, in calo rispetto ai 731 milioni del Q1 2024
- Utile per azione: 47,54 dollari, diminuito rispetto ai 49,26 dollari del Q1
- Reddito da interessi netto: 1,82 miliardi di dollari, aumentato di 4 milioni rispetto al Q1
- Margine di interesse netto: 3,64%, in calo rispetto al 3,67% del Q1
- Reddito non da interessi: 639 milioni di dollari, aumentato di 12 milioni rispetto al Q1
- Prestiti e locazioni: 139,34 miliardi di dollari, aumentati del 2,9% rispetto al Q1
- Depositi: 151,08 miliardi di dollari, aumentati del 4% su base annualizzata rispetto al Q1
La società ha riportato una crescita generalizzata dei prestiti e dei depositi, solidi indicatori di redditività e una continua stabilizzazione del credito in tutti i segmenti aziendali, compresi i progressi nel segmento commerciale SVB.
First Citizens BancShares (Nasdaq: FCNCA) anunció sus resultados del segundo trimestre de 2024 y un plan de recompra de acciones de 3,5 mil millones de dólares. Los aspectos más destacados incluyen:
- Ingresos netos: 707 millones de dólares, disminuyendo desde 731 millones en el Q1 2024
- Ganancias por acción: 47,54 dólares, en caída desde 49,26 dólares en el Q1
- Ingreso neto por intereses: 1,82 mil millones de dólares, aumentando 4 millones desde el Q1
- Margen de interés neto: 3,64%, bajando desde 3,67% en el Q1
- Ingresos no por intereses: 639 millones de dólares, aumentando 12 millones desde el Q1
- Préstamos y arrendamientos: 139,34 mil millones de dólares, incrementando 2,9% desde el Q1
- Depósitos: 151,08 mil millones de dólares, aumentando 4% anualizado desde el Q1
La compañía reportó un crecimiento generalizado en préstamos y depósitos, métricas de rentabilidad sólidas y una estabilización continua del crédito en todos los segmentos de negocio, incluyendo avances en el segmento comercial de SVB.
퍼스트 시티즌 은행 주식회사 (Nasdaq: FCNCA)는 2024년 2분기 실적을 발표하고 35억 달러 규모의 자사주 매입 계획을 발표했습니다. 주요 하이라이트는 다음과 같습니다:
- 순이익: 7억 700만 달러, 2024년 1분기 7억 3100만 달러에서 감소
- 주당 순이익: 47.54달러, 1분기 49.26달러에서 감소
- 순이자 수익: 18억 2000만 달러, 1분기 대비 400만 달러 증가
- 순이자 마진: 3.64%, 1분기 3.67%에서 감소
- 비이자 수익: 6억 3900만 달러, 1분기 대비 1200만 달러 증가
- 대출 및 리스: 1393억 4000만 달러, 1분기 대비 2.9% 증가
- 예금: 1510억 8000만 달러, 1분기 대비 연율 4.0% 증가
회사는 대출 및 예금의 광범위한 성장, 강력한 수익성 지표, SVB 상업 부문에서의 진전을 포함한 모든 사업 부문에서의 신용 안정화를 지속적으로 보고했습니다.
First Citizens BancShares (Nasdaq: FCNCA) a publié ses résultats pour le deuxième trimestre 2024 et a annoncé un plan de rachat d'actions de 3,5 milliards de dollars. Les points clés comprennent :
- Revenu net : 707 millions de dollars, en baisse par rapport à 731 millions au T1 2024
- Bénéfice par action : 47,54 dollars, en diminution par rapport à 49,26 dollars au T1
- Revenu net d'intérêts : 1,82 milliard de dollars, en hausse de 4 millions par rapport au T1
- Marge d'intérêt nette : 3,64 %, en baisse par rapport à 3,67 % au T1
- Revenus non d'intérêts : 639 millions de dollars, en hausse de 12 millions par rapport au T1
- Prêts et baux : 139,34 milliards de dollars, en augmentation de 2,9 % par rapport au T1
- Dépôts : 151,08 milliards de dollars, en hausse annualisée de 4 % par rapport au T1
La société a rapporté une croissance généralisée des prêts et des dépôts, des indicateurs de rentabilité solides et une stabilisation continue du crédit dans tous les segments d'activité, y compris des progrès dans le segment commercial de SVB.
First Citizens BancShares (Nasdaq: FCNCA) hat die Q2 2024 Ergebnisse veröffentlicht und einen Aktienrückkaufplan über 3,5 Milliarden US-Dollar angekündigt. Wichtige Höhepunkte sind:
- Nettogewinn: 707 Millionen US-Dollar, rückläufig von 731 Millionen im Q1 2024
- Ergebnis pro Aktie: 47,54 US-Dollar, gesunken von 49,26 US-Dollar im Q1
- Nett Zinsüberschuss: 1,82 Milliarden US-Dollar, um 4 Millionen gestiegen im Vergleich zum Q1
- Nettzinsspanne: 3,64%, gesunken von 3,67% im Q1
- Nichtzinsbetriebseinnahmen: 639 Millionen US-Dollar, um 12 Millionen gestiegen im Vergleich zum Q1
- Kredite und Leasing: 139,34 Milliarden US-Dollar, um 2,9% gestiegen im Vergleich zum Q1
- Einlagen: 151,08 Milliarden US-Dollar, um annualisiert 4% gestiegen im Vergleich zum Q1
Das Unternehmen berichtete von einer breiten Kredit- und Einlagenwachstum, starken Rentabilitätskennzahlen und einer kontinuierlichen Kreditstabilisierung in allen Geschäftsbereichen, einschließlich Fortschritten im SVB Gewerbesegment.
- Announced $3.5 billion share repurchase plan
- Net interest income increased by $4 million to $1.82 billion
- Loans and leases grew by 2.9% to $139.34 billion
- Deposits increased by 4.0% annualized to $151.08 billion
- Noninterest income rose by $12 million to $639 million
- Strong liquidity position with $56.91 billion in liquid assets
- Net income decreased from $731 million to $707 million quarter-over-quarter
- Earnings per share declined from $49.26 to $47.54
- Net interest margin decreased from 3.67% to 3.64%
- Net charge-offs increased from 0.31% to 0.38% of average loans
- Nonaccrual loans rose from 0.79% to 0.82% of total loans
First Citizens BancShares' Q2 2024 results demonstrate solid performance across all business segments, with particular progress in the SVB Commercial segment. The bank reported
Key highlights include:
- Net interest income increased by
$4 million to$1.82 billion - Loan growth of
2.9% quarter-over-quarter, reaching$139.34 billion - Deposit growth of
4.0% annualized, totaling$151.08 billion - Announcement of a
$3.5 billion share repurchase plan
The bank's net interest margin slightly decreased to
Credit quality remains stable with a slight increase in nonaccrual loans to
Overall, First Citizens BancShares demonstrates resilience in a challenging banking environment, with its diversified business model and strong capital position providing a solid foundation for future growth.
First Citizens BancShares' Q2 2024 results offer valuable insights into the current state of the banking industry and broader economic trends. The
The SVB Commercial segment's performance is particularly noteworthy, showing signs of recovery and integration following the high-profile acquisition of Silicon Valley Bank. This segment's growth in both loans (
The bank's investment strategy, focusing on short-duration securities, reflects a prudent approach to managing interest rate risk in an uncertain rate environment. This strategy aligns with broader market expectations of potential rate cuts in the near future.
The announcement of a
While the slight decrease in net interest margin and increase in nonaccrual loans warrant monitoring, the overall stability in credit quality and capital ratios indicates a well-managed balance sheet in a challenging banking landscape.
Chairman and CEO Frank B. Holding, Jr. said: "We are pleased with our second quarter financial results, which reflected broad-based loan and deposit growth, strong profitability metrics and continued stabilization of credit. These results reflected the solid performance from all of our business segments and we were encouraged by the continued progress in our SVB Commercial segment, which achieved both loan and deposit growth. In addition, we are pleased to announce that our Board of Directors approved a share repurchase plan for the repurchase of up to
FINANCIAL HIGHLIGHTS
Measures referenced as adjusted below and net interest margin, excluding purchase accounting accretion, are non-GAAP financial measures (refer to the Financial Supplement available at ir.firstcitizens.com or www.sec.gov for a reconciliation of each non-GAAP measure to the most directly comparable GAAP measure).
Net income for the second quarter of 2024 ("current quarter") was
Adjusted net income for the current quarter was
Current quarter results were primarily impacted by the following notable items to arrive at adjusted net income available to common stockholders:
- Acquisition-related expenses of
,$44 million - Intangible asset amortization of
,$15 million - Gain on sale of leasing equipment of
,$4 million - Unfavorable fair value adjustment on marketable equity securities of
, and$2 million - Net impact of
for the tax effect of notable items.$10 million
NET INTEREST INCOME AND MARGIN
- Net interest income totaled
for the current quarter, an increase of$1.82 billion over the linked quarter. The increase was due to a$4 million increase in interest income, partially offset by a$46 million increase in interest expense.$42 million - The increase in interest income was due to increases in interest on loans and investment securities of
and$68 million , respectively, which were partially offset by a$48 million decrease in interest on interest-earning deposits at banks.$70 million - Loan growth and a higher yield led to an
increase in loan interest income, which was partially offset by an$86 million decrease in loan accretion income, primarily related to the acquisition of Silicon Valley Bridge Bank, N.A. (the "SVBB Acquisition").$18 million - Continued purchases of short duration investment securities increased the average balance and interest income for investment securities and decreased the average balance and interest income for interest-earning deposits at banks.
- Loan growth and a higher yield led to an
- Growth in interest-bearing deposits in the General Bank and SVB Commercial segments and a higher average rate paid led to a
increase in interest expense on deposits, partially offset by a$47 million decrease in borrowing costs.$5 million - Net interest margin was
3.64% compared to3.67% in the linked quarter. Net interest margin, excluding purchase accounting accretion, was3.36% compared to3.35% in the linked quarter.- The yield on average interest-earning assets was
6.26% , an increase of 3 basis points from the linked quarter, primarily due to higher average balances and yields on investment securities and loans, partially offset by lower average balances of interest-earning deposits at banks and lower loan accretion. - The rate paid on average interest-bearing liabilities increased 5 basis points from the linked quarter, primarily due to higher average balances and rates paid for interest-bearing deposits. While the rate paid on average interest-bearing deposits increased 9 basis points from the linked quarter, the pace slowed relative to the linked quarter when the rate paid increased 17 basis points from the fourth quarter of 2023.
- The yield on average interest-earning assets was
NONINTEREST INCOME AND EXPENSE
- Noninterest income totaled
, an increase of$639 million compared to the linked quarter. Client investment fees increased by$12 million , which was related to higher average off-balance sheet client funds in the SVB Commercial segment. The remaining increases in noninterest income were spread across various items, including a$4 million improvement from the linked quarter for the fair value adjustment on marketable equity securities and a$2 million loss on extinguishment of debt incurred in the linked quarter.$2 million - Adjusted noninterest income was
compared to$479 million in the linked quarter, an increase of$478 million . The previously discussed increases in noninterest income were offset by a decline of$1 million in adjusted rental income on operating lease equipment, primarily related to higher maintenance and other operating lease expenses.$13 million - Noninterest expense was
compared to$1.39 billion for the linked quarter, an increase of$1.38 billion . The increase was primarily attributable to increases of$10 million for maintenance and other operating lease expenses and$15 million for equipment expense, which were partially offset by a decrease of$12 million in acquisition-related expenses.$14 million - Adjusted noninterest expense was
compared to$1.17 billion in the linked quarter. The increase of$1.15 billion was mainly due to higher equipment expense related to increased software maintenance and rent.$14 million
BALANCE SHEET SUMMARY
- Loans and leases totaled
at June 30, 2024, an increase of$139.34 billion ($3.97 billion 2.9% linked quarter growth) compared to at March 31, 2024.$135.37 billion - Loan growth in the SVB Commercial segment of
($2.12 billion 5.3% linked quarter growth) was concentrated in the global fund banking portfolio. - Loan growth in the General Bank segment of
($1.46 billion 2.3% linked quarter growth) was primarily related to commercial and business loans in the Branch Network. - Loan growth of
($386 million 1.2% linked quarter growth) in the Commercial Bank segment was due to several industry verticals, primarily Tech Media and Telecom and Healthcare.
- Loan growth in the SVB Commercial segment of
- Total investment securities were
at June 30, 2024, an increase of$37.67 billion since March 31, 2024. The increase was due to purchases of approximately$2.62 billion , primarily in short duration$4.88 billion U.S. Treasury andU.S. agency mortgage-backed investment securities available for sale during the current quarter, partially offset by paydowns and maturities. - Deposits totaled
at June 30, 2024, an increase of$151.08 billion , or$1.47 billion 4.0% on an annualized basis, since March 31, 2024. The increase was mostly due to growth in the SVB Commercial and General Bank segments, which was partially offset by declines in brokered deposits and Direct Bank deposits in Corporate.- Deposit growth in the SVB Commercial segment of
was mainly due to slight improvement in the macroeconomic environment and increases in client acquisitions.$1.88 billion - Deposit growth in the General Bank segment of
was primarily due to growth in the Branch Network.$329 million - Corporate deposits decreased
, primarily due to a decline of$667 million in brokered deposits. Direct Bank deposits decreased by$532 million as the decline in time deposits was partially offset by growth in savings deposits.$145 million
- Deposit growth in the SVB Commercial segment of
- Noninterest-bearing deposits represented
26.5% of total deposits as of June 30, 2024, compared to26.3% at March 31, 2024. The cost of average total deposits was2.61% for the current quarter, compared to2.53% for the linked quarter. While the cost of average total deposits increased 8 basis points from the linked quarter, the pace slowed relative to the 18 basis point increase in the linked quarter compared to the fourth quarter of 2023. - Funding mix remained stable with
80.1% of the total funding composed of deposits.
PROVISION FOR CREDIT LOSSES AND CREDIT QUALITY
- Provision for credit losses, which includes the provision for loan and lease losses and the benefit for off-balance sheet credit exposure, was
compared to$95 million for the linked quarter. The$64 million increase was mainly related to a$31 million lower benefit for off balance sheet credit exposure as the pace of decline for unfunded commitment volumes slowed relative to the linked quarter.$29 million - Net charge-offs totaled
for the current quarter, representing$132 million 0.38% of average loans, compared to , or$103 million 0.31% of average loans, for the linked quarter. The increase in net charge-offs was mainly related to Equipment Finance and Investor Dependent loans.$29 million - Nonaccrual loans were
, or$1.14 billion 0.82% of loans, at June 30, 2024, compared to , or$1.07 billion 0.79% of loans, at March 31, 2024. - The allowance for loan and lease losses totaled
, or$1.70 billion 1.22% of total loans at June 30, 2024, reflecting a reserve release of for the current quarter, compared to a$37 million reserve release for the linked quarter. The reserve release for the current quarter was primarily the result of a mix shift to the Global Fund Banking portfolio, which has lower loss rates relative to our other loan portfolios, lower specific reserves for individually evaluated loans, stable credit quality, and changes in the macroeconomic forecast.$10 million
CAPITAL AND LIQUIDITY
- Capital ratios are well above regulatory requirements. The estimated total risk-based capital, Tier 1 risk-based capital, Common equity Tier 1 risk-based capital, and Tier 1 leverage ratios were
15.45% ,13.87% ,13.33% , and10.29% , respectively, at June 30, 2024. - During the current quarter, a dividend of
per share of common stock was declared and paid.$1.64 - Liquidity position remains strong as liquid assets were
at June 30, 2024, compared to$56.91 billion at March 31, 2024.$59.33 billion
EARNINGS CALL/ WEBCAST DETAILS
BancShares will host a conference call to discuss the company's financial results on Thursday, July 25, 2024, at 9 a.m. Eastern time.
The call may be accessed via webcast on the company's website at ir.firstcitizens.com or through the dial-in details below:
All other locations: 1-929-526-1599
Access code: 930922
Our earnings release, investor presentation, and financial supplement are available at ir.firstcitizens.com. In addition, these materials will be furnished to the Securities and Exchange Commission (the "SEC") on a Form 8-K and will be available on the SEC website at www.sec.gov. After the event, a replay of the call will be available via webcast at ir.firstcitizens.com.
ABOUT FIRST CITIZENS BANCSHARES
First Citizens BancShares, Inc., a top 20 U.S. financial institution with more than
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, asset quality, future performance, and other strategic goals 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 factors that are difficult to predict. Many possible events or factors could affect BancShares' future financial results and performance and could cause 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 (including the upcoming
BancShares' share repurchase program allows BancShares to repurchase shares of its Class A common stock through 2025. BancShares is not obligated under the share repurchase program to repurchase any minimum or particular number of shares, and repurchases may be suspended or discontinued at any time (subject to the terms of any Rule 10b5-1 plan in effect) without prior notice. The authorization to repurchase Class A common stock will be utilized at management's discretion. The actual timing and amount of Class A common stock that may be repurchased will depend on a number of factors, including the terms of any Rule 10b5-1 plan then in effect, price, general business and market conditions, regulatory requirements, and alternative investment opportunities or capital needs.
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, 2023 and its other filings with the SEC.
NON-GAAP MEASURES
Certain measures in this release, including those referenced as "adjusted", are "non-GAAP," meaning they are numerical measures of BancShares' financial performance, financial position or cash flows that are not presented in accordance with generally accepted accounting principles in the
Contact: | Deanna Hart | Angela English | |
Investor Relations | Corporate Communications | ||
919-716-2137 | 803-931-1854 |
View original content to download multimedia:https://www.prnewswire.com/news-releases/first-citizens-bancshares-reports-second-quarter-2024-earnings-announces-share-repurchase-plan-302205999.html
SOURCE First Citizens BancShares, Inc.
FAQ
What was First Citizens BancShares' (FCNCA) net income for Q2 2024?
How much is First Citizens BancShares' (FCNCA) new share repurchase plan worth?
What was First Citizens BancShares' (FCNCA) earnings per share in Q2 2024?