NEW YORK, May 15, 2024 /PRNewswire/ -- First Citizens Bank today announced that its Commercial Real Estate business provided $24.5 million in construction financing for 121 Commerce Center, a large new industrial property in Grapevine, Texas. The facility will cover more than 272,000 square feet and feature 36-foot ceilings, 54 truck doors and more than 350 parking spaces. The 16-acre site is strategically located near Highway 121, Interstate 635 and Dallas-Fort Worth airport. Construction has begun on the ...

NEW YORK, May 14, 2024 /PRNewswire/ -- First Citizens Bank today announced that its Energy Finance business served as sole bookrunner and co-lead arranger on financings totaling more than $150 million for two Apex Clean Energy ("Apex") battery energy storage projects in Texas. First Citizens Energy Finance leverages its deep industry knowledge and expertise to offer comprehensive financing solutions for renewable and conventional power generation. The unit manages a large, diverse portfolio that includes in ...

As a sign of stabilization in US venture capital, findings show long-term tailwinds behind climate tech SAN FRANCISCO , May 14, 2024 /PRNewswire/ -- With 88% of global carbon emissions now covered by a net-zero goal, climate tech has outperformed and investors remain committed to the sector, according to a new report from Silicon Valley Bank (SVB), a division of First Citizens Bank. While overall venture capital (VC) fundraising and deal activity in 2023 saw a 24% decline from 2021, climate tech is only 14% ...

RALEIGH, N.C., May 9, 2024 /PRNewswire/ -- First Citizens Bank today announced a $25,000 donation to support community relief efforts in areas devastated by the tornadoes that recently ripped through the Midwest. The donation will assist the Omaha Community Foundation in partnering with nonprofits to help impacted individuals, families and businesses across Nebraska with their immediate and long-term needs. First Citizens Bank associates present the company's $25,000 donation to the Omaha Community Found ...

[PART I—FINANCIAL INFORMATION](index=4&type=section&id=PART%20I%E2%80%94FINANCIAL%20INFORMATION) [Item 1. Financial Statements](index=6&type=section&id=Item%201.%20Financial%20Statements) Presents unaudited consolidated financial statements for Q1 2024, including balance sheets, income statements, and notes on the SVBB acquisition [Consolidated Balance Sheets](index=6&type=section&id=Consolidated%20Balance%20Sheets) Consolidated Balance Sheet Highlights (Unaudited) | Metric | March 31, 2024 (Billions) | December 31, 2023 (Billions) | | :--- | :--- | :--- | | **Total Assets** | $217.84 billion | $213.76 billion | | Loans and leases, net | $133.63 billion | $131.56 billion | | Total Deposits | $149.61 billion | $145.85 billion | | Total Liabilities | $195.99 billion | $192.50 billion | | **Total Stockholders' Equity** | $21.85 billion | $21.26 billion | - Total assets increased by **$4.08 billion** from year-end 2023, primarily driven by growth in loans and leases and investment securities available for sale[15](index=15&type=chunk) - Total deposits grew by **$3.76 billion** during the first quarter of 2024, reflecting an increase in interest-bearing deposits that offset a slight decline in noninterest-bearing accounts[15](index=15&type=chunk) [Consolidated Statements of Income](index=7&type=section&id=Consolidated%20Statements%20of%20Income) Consolidated Income Statement Highlights (Unaudited) | Metric | Three Months Ended March 31, 2024 (Millions) | Three Months Ended March 31, 2023 (Millions) | | :--- | :--- | :--- | | Net Interest Income | $1,817 million | $850 million | | Provision for Credit Losses | $64 million | $783 million | | Noninterest Income | $627 million | $10,259 million | | Noninterest Expense | $1,376 million | $855 million | | **Net Income** | **$731 million** | **$9,518 million** | | **Diluted EPS** | **$49.26** | **$653.64** | - Net income for Q1 2024 was significantly lower than Q1 2023, as the prior year period included a **$9.8 billion** pre-tax gain on the SVBB acquisition[17](index=17&type=chunk) - Net interest income more than doubled year-over-year, reflecting the full-quarter impact of the SVBB acquisition on interest-earning assets and liabilities[17](index=17&type=chunk) - The provision for credit losses decreased substantially from the prior year, which had included a large initial provision related to the SVBB acquisition[17](index=17&type=chunk) [Notes to Unaudited Consolidated Financial Statements](index=12&type=section&id=Notes%20to%20Unaudited%20Consolidated%20Financial%20Statements) - In **Q1 2024**, the company updated its segment reporting, renaming the SVB segment to SVB Commercial and reallocating private banking and wealth management components to the General Bank segment. Loan class disclosures were also recast to remap certain SVB portfolios into Commercial and Consumer categories[39](index=39&type=chunk)[42](index=42&type=chunk)[44](index=44&type=chunk) - The SVBB acquisition on March 27, 2023, resulted in a final after-tax gain of **$9.81 billion**. The company acquired assets with a fair value of approximately **$107.5 billion** and assumed liabilities of **$61.4 billion**[31](index=31&type=chunk)[54](index=54&type=chunk)[60](index=60&type=chunk) - Total loans and leases reached **$135.4 billion**. Nonaccrual loans increased to **$1.07 billion**, or **0.79%** of total loans, up from **0.73%** at year-end 2023[98](index=98&type=chunk)[106](index=106&type=chunk) - The Allowance for Loan and Lease Losses (ALLL) stood at **$1.74 billion**, or **1.28%** of total loans. The provision for credit losses for the quarter was **$64 million**[154](index=154&type=chunk)[156](index=156&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations (MD&A)](index=65&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses Q1 2024 financial performance, covering net income, margin, balance sheet, and capital adequacy [Executive Overview](index=65&type=section&id=Executive%20Overview) Q1 2024 Financial Performance Summary | Metric | Q1 2024 | Q4 2023 | | :--- | :--- | :--- | | Net Income (Millions) | $731 million | $514 million | | Diluted EPS | $49.26 | $34.33 | | Return on Average Assets | 1.36% | 0.95% | | Net Interest Margin | 3.67% | 3.86% | - Net income increased **42%** sequentially, driven by lower provision for credit losses and noninterest expenses, partially offset by lower net interest income[304](index=304&type=chunk) - The company maintains a strong liquidity position with **$59.3 billion** in liquid assets and an additional **$32.9 billion** in contingent liquidity sources as of March 31, 2024[308](index=308&type=chunk)[464](index=464&type=chunk) - Capital ratios remain robust, with a Common Equity Tier 1 ratio of **13.44%**, well above regulatory requirements[300](index=300&type=chunk)[312](index=312&type=chunk) [Results of Operations](index=71&type=section&id=Results%20of%20Operations) - Net interest income (NII) decreased by **5%** from the linked quarter to **$1.82 billion**, and the net interest margin (NIM) compressed by **19 basis points** to **3.67%**. This was primarily due to higher interest expense on deposits and lower loan discount accretion from the SVBB acquisition[318](index=318&type=chunk) - The provision for credit losses was **$64 million**, a significant decrease of **75%** from **$249 million** in the linked quarter, reflecting improved macroeconomic forecasts and lower net charge-offs[322](index=322&type=chunk)[323](index=323&type=chunk) - Noninterest income increased to **$627 million** from **$543 million** in the linked quarter. The prior quarter included an **$83 million** negative adjustment to the gain on the SVBB acquisition[328](index=328&type=chunk)[330](index=330&type=chunk) - Noninterest expense decreased by **8%** to **$1.38 billion**, largely due to lower acquisition-related expenses (**$58 million** vs. **$116 million**) and a smaller FDIC special assessment (**$9 million** vs. **$64 million**) compared to the linked quarter[332](index=332&type=chunk)[336](index=336&type=chunk)[337](index=337&type=chunk) [Results by Business Segment](index=80&type=section&id=Results%20by%20Business%20Segment) Segment Net Income (Q1 2024) | Segment | Net Income (Millions) | | :--- | :--- | | General Bank | $210 | | Commercial Bank | $122 | | SVB Commercial | $202 | | Rail | $33 | | Corporate | $164 | - The General Bank segment saw loan growth in commercial and business lending and deposit growth in time and money market products[345](index=345&type=chunk)[346](index=346&type=chunk)[347](index=347&type=chunk) - The SVB Commercial segment experienced loan growth in global fund banking, which was partially offset by declines in technology and life science/healthcare loans. Deposits in this segment decreased slightly to **$34.0 billion**[351](index=351&type=chunk)[352](index=352&type=chunk)[353](index=353&type=chunk) - The Rail segment's net income increased due to higher rental income and lower maintenance expenses, with railcar utilization improving to **99.2%**[354](index=354&type=chunk)[355](index=355&type=chunk)[356](index=356&type=chunk) [Balance Sheet Analysis](index=85&type=section&id=Balance%20Sheet%20Analysis) - Total loans and leases grew by **$2.07 billion** (**2%**) during the quarter to **$135.4 billion**, with growth across all segments[379](index=379&type=chunk) - Investment securities increased by **$5.05 billion** (**17%**) to **$35.0 billion**, driven by purchases of short-duration U.S. Treasury and agency mortgage-backed securities[368](index=368&type=chunk) - Total deposits grew by **$3.76 billion** (**3%**) to **$149.6 billion**, primarily from growth in savings deposits at the Direct Bank[385](index=385&type=chunk) - Uninsured deposits were estimated at **$54.85 billion**, representing **36.7%** of total deposits as of March 31, 2024[391](index=391&type=chunk) [Risk Management](index=91&type=section&id=Risk%20Management) Asset Quality Metrics | Metric | March 31, 2024 | December 31, 2023 | | :--- | :--- | :--- | | Nonperforming Assets (Millions) | $1,132 million | $1,031 million | | NPA Ratio | 0.84% | 0.77% | | Nonaccrual Loans Ratio | 0.79% | 0.73% | | ALLL to Total Loans | 1.28% | 1.31% | - The Commercial Real Estate (CRE) portfolio totaled **$21.1 billion**, or **15.6%** of total loans. The general office sub-portfolio accounted for **$2.75 billion**, or **2.0%** of total loans[423](index=423&type=chunk) - The company remains asset-sensitive to interest rate changes. A hypothetical immediate **100 basis point** parallel increase in rates is estimated to increase Net Interest Income by **8.2%** over the next 12 months[452](index=452&type=chunk) [Capital](index=105&type=section&id=Capital) Regulatory Capital Ratios (BancShares) | Ratio | March 31, 2024 | Well-Capitalized Minimum | | :--- | :--- | :--- | | Common Equity Tier 1 | 13.44% | 6.50% | | Tier 1 Risk-Based Capital | 14.00% | 8.00% | | Total Risk-Based Capital | 15.66% | 10.00% | | Tier 1 Leverage | 10.11% | 5.00% | - The Board declared a quarterly dividend of **$1.64** per common share, payable in June 2024[475](index=475&type=chunk) [Item 3. Quantitative and Qualitative Disclosures about Market Risk](index=103&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) Refers to the MD&A's Risk Management section for detailed disclosures on market risk, primarily interest rate risk - The company's disclosures regarding market risk are incorporated by reference from the "Risk Management" section of the MD&A[495](index=495&type=chunk) [Item 4. Controls and Procedures](index=103&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded disclosure controls were effective, with no material changes to internal controls over financial reporting - Management concluded that disclosure controls and procedures were effective as of the end of the period[496](index=496&type=chunk) - No changes in internal control over financial reporting occurred during the quarter that have materially affected, or are reasonably likely to materially affect, the company's internal controls[497](index=497&type=chunk) [PART II—OTHER INFORMATION](index=104&type=section&id=PART%20II%E2%80%94OTHER%20INFORMATION) [Item 1. Legal Proceedings](index=104&type=section&id=Item%201.%20Legal%20Proceedings) The company is involved in various legal actions, not expected to materially impact financial statements - The company is a defendant in various legal actions from normal business activities, but management believes the outcomes will not be material to the financial statements[500](index=500&type=chunk) [Item 1A. Risk Factors](index=104&type=section&id=Item%201A.%20Risk%20Factors) No material changes to risk factors were reported compared to the 2023 Annual Report on Form 10-K - No material changes in risk factors were reported during the first quarter of 2024 compared to those disclosed in the 2023 Form 10-K[501](index=501&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=104&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company did not repurchase any of its stock during the first quarter ended March 31, 2024 - The company did not repurchase any of its stock during the first quarter of 2024[502](index=502&type=chunk) [Item 5. Other Information](index=104&type=section&id=Item%205.%20Other%20Information) No directors or officers adopted or terminated Rule 10b5-1 trading arrangements during the first quarter - No directors or officers adopted or terminated a Rule 10b5-1 trading arrangement during the first quarter[503](index=503&type=chunk) [Item 6. Exhibits](index=104&type=section&id=Item%206.%20Exhibits) Lists exhibits filed with Form 10-Q, including CEO/CFO certifications and Inline XBRL data - The report includes certifications from the CEO and CFO as required by securities regulations[504](index=504&type=chunk)

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Financial Data and Key Metrics Changes - The company reported earnings per share of $52.92, adjusting for notable items, reflecting a strong performance [2] - Return on equity (ROE) and return on assets (ROA) adjusted for notable items were 15.01% and 1.46% respectively, benefiting from a 13% increase in net income driven by lower net charge-offs and higher non-interest income [6] - Net interest income declined by 5% from the previous quarter but was above expectations, primarily due to lower accretion income and higher deposit costs [6][7] Business Line Data and Key Metrics Changes - Loans grew by more than $2 billion over the last quarter, with an annualized growth rate of 6.2%, driven by strong production in industry verticals such as TMT, healthcare, and energy [8][19] - The SVB commercial segment saw growth in global fund banking, although technology and healthcare banking experienced expected declines due to paydowns outpacing new funding [9] - Deposits increased at an annualized rate of 10.4%, amounting to approximately $3.8 billion in the first quarter, attributed to strong core deposit growth [20] Market Data and Key Metrics Changes - VC fundraising hit its lowest level since 2017, continuing into the first quarter of 2023, although there remains significant dry powder available for investment [3] - The company anticipates that the venture capital environment will remain challenging, particularly in the first half of 2024, impacting SVB deposits [23] Company Strategy and Development Direction - The company is focused on stabilizing the SVB franchise, growing core deposits and loans, and strengthening its balance sheet while enhancing regulatory readiness [4][5] - There is a commitment to investing in the wealth business, which is seen as a key income driver, with a focus on aligning SVB Private and First Citizens Wealth under one leadership team [15] - The company plans to manage capital methodically, aiming to reduce the CET1 ratio to 10.5% by the end of 2025 while continuing to support organic growth and share repurchases [21][128] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the potential for IPO activity to improve, which could lead to increased venture capital investment in 2024 [120][131] - The company expects to see gradual improvement in client funds and cash burn in the second half of the year, with a focus on capturing private market fundraising [42][131] - Management remains cautious about the macroeconomic environment but is encouraged by the stabilization of the SVB franchise and the potential for growth in various banking segments [5][102] Other Important Information - The company has made significant progress in regulatory readiness and compliance, including submitting a capital plan to the Federal Reserve [13][101] - The adjusted efficiency ratio is expected to be in the low 50% range in 2024, slightly up from 49% for the full year of 2023 [46] Q&A Session Summary Question: What is the company's approach to cash levels and security purchases? - The company is currently holding a higher cash level than optimal, around 15%, and plans to normalize it to 10% to 15% over time, with expectations to deploy an additional $3 billion to $4 billion into the investment portfolio by year-end [30][31] Question: How does the company view its reserve levels in light of credit improvements? - The company feels prudently reserved, covering first quarter net charge-offs 2.8 times, and is confident in its overall reserve coverage despite some stress in specific portfolios [34][105] Question: What factors contributed to the change in net interest income guidance? - The upward revision in net interest income guidance was primarily due to the shift in rate cut expectations, moving from three cuts to a range of zero to three cuts [22][35] Question: How does the company plan to manage its capital moving forward? - The company intends to manage its capital down to a CET1 ratio of 10.5% over the next two years, with a focus on methodical share repurchases and maintaining strong capital levels [39][128] Question: What is the outlook for loan yields and their drivers? - Loan yields declined due to lower accretion income, with expectations for stability if no rate cuts occur, but potential declines if three rate cuts are implemented [75][76] Question: How does the company view the stability of the SVB brand and its future strategy? - Management believes the SVB brand has stabilized and plans to continue competing effectively while being cautious until there is more confidence in the market [82][84]

For the quarter ended March 2024, First Citizens BancShares (FCNCA) reported revenue of $2.44 billion, up 90.2% over the same period last year. EPS came in at $52.92, compared to $20.09 in the year-ago quarter.The reported revenue represents a surprise of +6.08% over the Zacks Consensus Estimate of $2.3 billion. With the consensus EPS estimate being $44.27, the EPS surprise was +19.54%.While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to ...

Showing its ability to navigate challenging economic conditions and make progress in integrating its purchase of Silicon Valley Bank, Raleigh-based First Citizens BancShares posted a solid first quarter on Thursday (April 25) marked by an optimistic take on consumer spending.The company reported a substantial net income jump of $731 million for Q1, up from $514 million in Q4 2023. This growth in net income reflects a robust increase in adjusted net income as well, with figures reaching $784 million compared ...