Financial Performance and Assets - As of December 31, 2024, BancShares had total consolidated assets of $223.72 billion[17]. - As of December 31, 2024, BancShares employed approximately 17,475 staff, reflecting a commitment to talent retention and development[38]. - The total risk-based capital ratio required under Basel III is 10.50%, with a Tier 1 risk-based capital ratio of 8.50% and a common equity Tier 1 ratio of 7.00%[62]. - The Parent Company relies on dividends from FCB, which may be restricted by state and federal laws, affecting its ability to service debt and pay dividends[144]. - The company issued a five-year note of approximately $36.07 billion payable to the FDIC, with a fixed interest rate of 3.50%[212]. Market Presence and Competition - BancShares operates a network of more than 500 branches and offices nationwide, with significant concentrations in North Carolina (11.3%) and South Carolina (9.3%) based on deposit market share[34]. - The acquisition of Silicon Valley Bridge Bank on March 27, 2023, included all customer deposits and certain liabilities, enhancing BancShares' market presence[26]. - The CIT Group merger completed on January 3, 2022, further expanded BancShares' operational capabilities and market reach[27]. - BancShares faces significant competition from various financial service providers, which may reduce market share and profitability[130]. - The company is subject to significant competition in attracting and retaining qualified personnel, which is critical for executing its growth and acquisition strategies[171]. Regulatory Compliance and Risk Management - BancShares is subject to enhanced prudential standards as a bank holding company with more than $100 billion in consolidated assets[53]. - BancShares is required to maintain an enterprise-wide risk management system commensurate with its size, risks, activities, and complexity[64]. - The proposed Basel III Endgame rule would apply additional capital requirements for banking organizations with $100 billion or more in total consolidated assets[67]. - FCB is required to submit a full Resolution Plan every three years under the CIDI Rule, with the first submission due by July 1, 2025[63]. - The company is required to maintain adequate liquidity to meet obligations, with enhanced liquidity risk management requirements as a Category IV banking organization[121]. Capital and Investment Strategies - BancShares submitted a capital plan in 2024 in accordance with regulatory requirements, which includes an assessment of expected uses and sources of capital[57]. - FCB is committed to invest $16 billion over five years in community development, including $5.9 billion in small business lending and $6.9 billion in community development lending[85]. - An addendum to the community benefits plan includes a $6.5 billion target, with $2.25 billion allocated for small business lending and $3.6 billion for CRA development lending[86]. - The company anticipates increased compliance costs and risks associated with climate change regulations, which may require significant capital expenditures[178]. Economic and Market Risks - Economic uncertainty could reduce demand for the company's products and services, impacting loan volumes and fee income[135]. - Unfavorable economic conditions could adversely affect the company's operations and financial condition, particularly in key markets such as North Carolina, South Carolina, California, Texas, New York, Massachusetts, and Florida[203]. - Concerns regarding the U.S. debt ceiling and budget deficit could lead to economic slowdowns or recessions, impacting financial markets and the company's earnings[205]. - The Federal Reserve's actions on interest rates could significantly influence net interest income (NII) and net interest margin (NIM)[197]. Cybersecurity and Operational Risks - Cybersecurity threats necessitate significant resources for protective measures, with ongoing risks of data breaches and operational disruptions[154]. - The company faces heightened cybersecurity risks due to geopolitical tensions, particularly from Russia and Iran, which could lead to malicious cyber activities against its operations[155]. - The company is exposed to operational risks from third-party dependencies, which could lead to significant disruptions in business activities if any of these entities experience failures or cyberattacks[158]. - There have been no material losses reported to date from cyberattacks, but the company acknowledges the potential for future losses that may exceed insurance coverage limits[160]. Strategic Initiatives and Future Outlook - BancShares plans to continue pursuing acquisition opportunities to enhance profitability, but future acquisitions may face increased regulatory scrutiny due to recent changes in bank merger review standards[123]. - The SVBB Acquisition increased the complexity of BancShares' business and expanded its geographic scope, with legacy loans concentrated in technology, life science, and healthcare sectors[128]. - Rapid technological changes require the company to continuously adapt its product offerings to remain competitive, with risks associated with customer adoption of new technologies[145]. - BancShares is actively monitoring and evaluating proposals related to AI regulation and their potential impact on operations[108].

Financial Data and Key Metrics - No specific financial data or key metrics changes mentioned in the provided content [1][2][3][4][5][6] Business Line Data and Key Metrics - No specific business line data or key metrics changes mentioned in the provided content [1][2][3][4][5][6] Market Data and Key Metrics - No specific market data or key metrics changes mentioned in the provided content [1][2][3][4][5][6] Company Strategy and Industry Competition - No specific company strategy or industry competition details mentioned in the provided content [1][2][3][4][5][6] Management Commentary on Operating Environment and Future Outlook - No specific management commentary on the operating environment or future outlook mentioned in the provided content [1][2][3][4][5][6] Other Important Information - The company's comments include forward-looking statements subject to risks and uncertainties, with no obligation to update such statements [4] - Non-GAAP financial measures are referenced, with reconciliations available in Section 5 of the presentation [4] - The company is not responsible for the accuracy of earnings transcripts provided by third parties [5] Q&A Session - No Q&A session details provided in the content [1][2][3][4][5][6]

Core Insights - First Citizens BancShares (FCNCA) reported revenue of $2.41 billion for the quarter ended December 2024, reflecting a decrease of 1.9% year-over-year, while EPS was $45.10, down from $46.58 in the same quarter last year [1] - The reported revenue exceeded the Zacks Consensus Estimate of $2.25 billion by 7.02%, and the EPS surpassed the consensus estimate of $39.46 by 14.29% [1] Financial Metrics - Net Interest Margin was reported at 3.3%, matching the five-analyst average estimate [4] - Efficiency Ratio stood at 63%, higher than the five-analyst average estimate of 58.2% [4] - Book value per share was $1,556.16, below the five-analyst average estimate of $1,570.78 [4] - Net charge-off ratio was 0.5%, consistent with the average estimate from four analysts [4] - Average Balance of Total interest-earning assets was $204.78 billion, slightly above the four-analyst average estimate of $203.62 billion [4] - Nonaccrual loans at period end were $1.18 billion, lower than the three-analyst average estimate of $1.31 billion [4] - Net Interest Income was reported at $1.71 billion, slightly above the five-analyst average estimate of $1.70 billion [4] - Factoring commissions were $20 million, exceeding the four-analyst average estimate of $18.91 million [4] - Merchant services, net, reported $13 million, above the four-analyst average estimate of $12.03 million [4] - Cardholder services, net, were $41 million, slightly below the average estimate of $41.96 million based on four analysts [4] - International fees were $33 million, exceeding the three-analyst average estimate of $29.48 million [4] - Wealth management services reported $54 million, above the three-analyst average estimate of $53.36 million [4] Stock Performance - Shares of First Citizens have returned +2.9% over the past month, compared to the Zacks S&P 500 composite's +2.5% change [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating potential performance in line with the broader market in the near term [3]

First Citizens BancShares, Inc. Fourth Quarter 2024 Earnings Conference Call January 24, 2025 Important Notices Forward Looking Statements This presentation 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," "i ...

Group 1 - First Citizens BancShares (FCNCA) reported quarterly earnings of $45.10 per share, exceeding the Zacks Consensus Estimate of $39.46 per share, but down from $46.58 per share a year ago, representing an earnings surprise of 14.29% [1] - The company posted revenues of $2.41 billion for the quarter ended December 2024, surpassing the Zacks Consensus Estimate by 7.02%, compared to year-ago revenues of $2.45 billion [2] - First Citizens shares have increased approximately 4.9% since the beginning of the year, outperforming the S&P 500's gain of 4% [3] Group 2 - The current consensus EPS estimate for the upcoming quarter is $37.27 on revenues of $2.2 billion, and for the current fiscal year, it is $161.34 on revenues of $8.91 billion [7] - The Zacks Industry Rank indicates that the Banks - Southeast sector is currently in the top 20% of over 250 Zacks industries, suggesting a favorable outlook for stocks in this category [8] Group 3 - The estimate revisions trend for First Citizens is mixed, resulting in a Zacks Rank 3 (Hold) for the stock, indicating expected performance in line with the market in the near future [6] - Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5]

Financial Performance - Net interest income for Q4 2024 was $1,709 million, a decrease of 10.6% from $1,911 million in Q4 2023[1] - Net income available to common stockholders for the year ended December 31, 2024, was $2,716 million, compared to $11,407 million in 2023, representing a decline of 76.2%[1] - Total noninterest income for the year ended December 31, 2024, was $2,615 million, down from $12,075 million in 2023, a decrease of 78.3%[2] - Diluted earnings per common share (EPS) for Q4 2024 was $49.21, up from $34.33 in Q4 2023, an increase of 43.4%[2] - Net income (GAAP) for Q4 2024 was $700 million, an increase of 9.6% from $639 million in Q3 2024 and a 36.2% increase from $514 million in Q4 2023[20] - Adjusted net income (non-GAAP) for Q4 2024 was $643 million, down 4.7% from $675 million in Q3 2024 but up 7.2% from $693 million in Q4 2023[20] Credit Quality - Provision for credit losses increased to $155 million in Q4 2024 from $249 million in Q4 2023, reflecting a decrease of 37.8%[1] - The provision for credit losses decreased to $431 million for the year ended December 31, 2024, down from $659 million in 2023, indicating improved credit quality[11] - Nonaccrual loans to total loans and leases improved to 0.84% in Q4 2024 from 0.73% in Q4 2023, indicating better asset quality[1] - Provision for loan and lease losses for the three months ended December 31, 2024, was $158 million, compared to $123 million for the three months ended September 30, 2024, and $251 million for the three months ended December 31, 2023[15] Asset and Liability Management - Total loans and leases increased to $140,221 million in Q4 2024 from $133,302 million in Q4 2023, a growth of 5.4%[1] - The loan to deposit ratio was 90.33% in Q4 2024, slightly down from 91.39% in Q4 2023, reflecting stable funding[1] - Total deposits increased to $155,229 million as of December 31, 2024, up 6.4% from $145,854 million a year earlier[13] - Total assets increased to $223,720 million as of December 31, 2024, up from $213,758 million a year earlier, representing a growth of 4.6%[3] Efficiency and Cost Management - The efficiency ratio improved to 63.01% in Q4 2024 from 60.80% in Q4 2023, indicating better cost management[1] - The adjusted efficiency ratio (non-GAAP) improved to 56.98% in Q4 2024 from 48.00% in Q4 2023, showing enhanced operational performance[22] - The efficiency ratio (GAAP) for Q4 2024 was 63.01%, compared to 60.80% in Q4 2023, indicating a decline in operational efficiency[22] Tax Efficiency - The effective tax rate (GAAP) for Q4 2024 was 4.88%, significantly lower than 27.93% in Q4 2023, indicating a substantial reduction in tax liability[22] - The company reported an adjusted effective tax rate (non-GAAP) of 19.89% for Q4 2024, compared to 29.47% in Q4 2023, indicating improved tax efficiency[22] Stockholder Equity - The total stockholders' equity decreased slightly to $22,228 million from $22,828 million in the previous quarter, indicating a decline of 2.6%[3] - Stockholders' equity as of December 31, 2024, was $22,598 million, compared to $22,851 million as of September 30, 2024, and $20,740 million as of December 31, 2023[16] - Book value per share increased to $1,556.16 in Q4 2024 from $1,403.12 in Q4 2023, representing an increase of 10.9% year-over-year[22]

Company Commitment - First Citizens Bank has committed $2 million in donations and financial support to aid in critical humanitarian and small business relief efforts for those impacted by the Southern California wildfires [1] - The commitment aims to bolster resource mobilization to impacted areas through various organizations and support the longer-term revitalization and stabilization of the region [2] - A portion of the funds will directly benefit the immediate and ongoing needs of First Citizens associates impacted by the wildfires [2] Company Operations and Impact - Southern California is home to more than 1,000 First Citizens Bank associates and 30 branches and offices serving clients in the region [3] - The wildfires have had a devastating impact on customers, colleagues, and community members, prompting the bank to assure continued support [3] - Bank associates are working with customers to understand their needs and develop flexible solutions to support recovery [3] Company Overview - First Citizens Bank serves personal, business, commercial, and wealth clients, offering general banking services, commercial banking expertise, innovation banking, and a nationwide direct bank [5] - The bank operates a network of more than 500 branches and offices across 30 states [5] - Parent company First Citizens BancShares, Inc is a top 20 US financial institution with over $200 billion in assets and a member of the Fortune 500 [5]

Core Insights - The wine industry is experiencing a significant demand-based correction, marking the first such change in three decades, driven by a generational shift towards younger consumers [3] - Despite an overall decline in global wine demand, the premium wine segment shows resilience, with the top quartile of wineries achieving an average sales growth of 22% [2][8] - The market environment is expected to lead to the most accessible bottle pricing in the last 30 years, benefiting consumers seeking value [2] Market Trends - Total wine category sales are projected to end 2024 with negative volume growth between -3% and -1%, while the weighted average of wineries experienced a 3.4% revenue decline [8] - No- and low-alcohol wines, as well as white wine and prosecco, are witnessing positive growth, indicating a shift in consumer preferences [4] - The youngest consumers are increasingly abstaining from wine or opting for alternatives, a trend expected to continue into 2025 and beyond [4][5] Consumer Behavior - Older consumers (60+) who traditionally purchase more wine are being replaced by younger consumers who have lower purchasing indices and prefer other drink categories [5] - To restore balance between demand and supply, it is critical to increase consumption among consumers aged 30-45 [5] Industry Challenges - Wine supply is currently backed up throughout production and sales channels, creating challenges for industry players [2] - Tasting room visitation is predicted to be slightly lower in 2025 compared to 2024, indicating potential difficulties in attracting consumers [8] - 42% of winery survey respondents plan to implement small price increases in 2025, which may be challenging in an oversupplied market [8]

Core Viewpoint - Analysts expect First Citizens BancShares (FCNCA) to report quarterly earnings of $39.46 per share, reflecting a year-over-year decline of 15.3%, with revenues projected at $2.23 billion, down 9% from the previous year [1] Earnings Estimates - Revisions to earnings estimates are crucial indicators for predicting investor actions regarding the stock, with empirical research showing a strong correlation between earnings estimate trends and short-term stock performance [2] Key Metrics Projections - Analysts estimate an 'Efficiency Ratio' of 58.2%, down from 60.8% a year ago [4] - 'Net Interest Margin' is expected to be 3.3%, compared to 3.9% in the previous year [4] - 'Average Balance - Total interest-earning assets' is projected at $203.62 billion, up from $196.25 billion a year ago [4] Loan and Asset Estimates - 'Nonaccrual loans at period end' are projected to reach $1.31 billion, up from $969 million in the same quarter last year [5] - 'Total nonperforming assets' are expected to be $1.35 billion, compared to $1.03 billion a year ago [5] Income Estimates - 'Net Interest Income' is projected at $1.70 billion, down from $1.91 billion a year ago [6] - 'Merchant services, net' is estimated at $12.03 million, slightly up from $12 million in the same quarter last year [6] - 'Cardholder services, net' is expected to reach $41.96 million, compared to $36 million a year ago [6] Service Charges and Fees - 'Service charges on deposit accounts' are expected to be $45.34 million, up from $44 million in the same quarter last year [7] - 'Factoring commissions' are projected at $18.91 million, down from $22 million a year ago [7] - 'International fees' are expected to be $29.48 million, slightly down from $30 million in the previous year [8] - 'Fee income and other service charges' are projected at $81.27 million, up from $80 million a year ago [8] Stock Performance - Shares of First Citizens have returned +2.7% over the past month, outperforming the Zacks S&P 500 composite, which changed by -0.4% [8]

Core Viewpoint - First Citizens BancShares (FCNCA) is expected to report a year-over-year decline in earnings and revenues for the quarter ended December 2024, with the consensus outlook indicating a significant impact on its stock price depending on actual results compared to estimates [1][3]. Earnings Expectations - The consensus EPS estimate for First Citizens is $39.46 per share, reflecting a year-over-year decrease of 15.3% [3]. - Expected revenues for the quarter are $2.23 billion, which is a 9% decline from the same quarter last year [3]. Estimate Revisions - The consensus EPS estimate has remained unchanged over the last 30 days, indicating stability in analyst expectations [4]. - The Most Accurate Estimate for First Citizens is higher than the Zacks Consensus Estimate, resulting in a positive Earnings ESP of +3.34%, suggesting a bullish outlook from analysts [10]. Earnings Surprise Prediction - A positive Earnings ESP is a strong indicator of an earnings beat, especially when combined with a Zacks Rank of 1 (Strong Buy), 2 (Buy), or 3 (Hold) [8]. - First Citizens holds a Zacks Rank of 3, indicating a likelihood of beating the consensus EPS estimate [11]. Historical Performance - In the last reported quarter, First Citizens had an expected EPS of $47.94 but delivered $45.87, resulting in a surprise of -4.32% [12]. - Over the past four quarters, the company has surpassed consensus EPS estimates two times [13]. Industry Context - Amerant Bancorp Inc. (AMTB), another player in the Southeast banking industry, is expected to report an EPS of $0.27 for the same quarter, indicating a year-over-year decline of 41.3% [17]. - Amerant's revenues are projected to be $100.54 million, down 0.7% from the previous year [17]. - The consensus EPS estimate for Amerant has been revised up by 2.7% over the last 30 days, but it currently has an Earnings ESP of 0.00%, making predictions about beating the consensus EPS estimate uncertain [18].