FIRST CITIZENS(FCNCP) - 2024 Q2 - Quarterly Report

Financial Performance - Net interest income for the three months ended June 30, 2024, was $1.821 billion, a decrease of 7.1% compared to $1.961 billion in the same period of 2023[14]. - Net income for the three months ended June 30, 2024, was $707 million, up 3.7% from $682 million in the same period of 2023[14]. - For the six months ended June 30, 2024, net income was $1,438 million, a decrease of 86.9% compared to $10,200 million for the same period in 2023[22]. - Noninterest income for the six months ended June 30, 2024, was $1.266 billion, significantly lower than $10.917 billion in the same period of 2023, primarily due to a one-time gain on acquisition in 2023[14]. - Earnings per common share for the three months ended June 30, 2024, was $47.54, compared to $45.90 for the same period in 2023, representing a growth of 3.6%[14]. Asset and Liability Management - Total assets increased to $219.827 billion as of June 30, 2024, up from $213.758 billion at December 31, 2023, representing a growth of 2.5%[12]. - Total liabilities increased to $197.340 billion as of June 30, 2024, compared to $192.503 billion at December 31, 2023, reflecting a growth of 2.9%[12]. - Total stockholders' equity increased to $22.487 billion as of June 30, 2024, up from $21.255 billion at December 31, 2023, marking a growth of 5.8%[12]. - The allowance for loan and lease losses was $1.700 billion as of June 30, 2024, slightly down from $1.747 billion at December 31, 2023[12]. Credit Quality - Provision for credit losses decreased to $95 million for the three months ended June 30, 2024, compared to $151 million in the same period of 2023, indicating improved credit quality[14]. - The provision for credit losses for the same period was $159 million, down from $934 million in 2023, indicating improved credit quality[22]. - BancShares reported no debt securities on nonaccrual status as of June 30, 2024, indicating a stable credit quality[90]. - The total delinquency status for loans and leases was $1.411 billion past due as of June 30, 2024, compared to $1.550 billion on December 31, 2023, indicating a decrease in delinquency[99]. Acquisition and Integration - The company completed the acquisition of Silicon Valley Bridge Bank on March 27, 2023, which included substantially all loans and certain other assets[27]. - The total purchase price consideration for the acquisition was $36.308 billion, which includes a Purchase Money Note of $35.808 billion and a Value Appreciation Instrument of $500 million[57]. - BancShares acquired assets with a total fair value of approximately $107.54 billion, including $68.47 billion of loans and $35.31 billion of cash and interest-earning deposits at banks[51]. - The company assumed liabilities with a total fair value of approximately $61.42 billion, primarily including $56.01 billion of customer deposits[51]. Investment Securities - The fair value of investment securities held to maturity was $8.946 billion as of June 30, 2024, with total investment securities valued at $36.077 billion[79]. - BancShares' investment securities available for sale had a fair value of $27.05 billion as of June 30, 2024, down from $19.94 billion at December 31, 2023[84]. - The total investment securities held to maturity had a fair value of $8.95 billion as of June 30, 2024, compared to $8.50 billion at December 31, 2023[84]. Loan Performance - Total loans and leases as of June 30, 2024, amounted to $139.341 billion, an increase from $133.302 billion on December 31, 2023[99]. - Nonaccrual loans totaled $1.141 billion as of June 30, 2024, up from $969 million on December 31, 2023[101]. - The total amount of loans greater than 90 days past due and still accruing was $152 million as of June 30, 2024[101]. - The total amount of other real estate owned (OREO) and repossessed assets was $64 million as of June 30, 2024, compared to $62 million on December 31, 2023[101]. Modifications and Charge-offs - Total loans and leases modified during the three months ended June 30, 2024, amounted to $293 million, with a total modification percentage of 0.21%[123]. - The total gross charge-offs for loans and leases reached $287 million for the six months ended June 30, 2024, compared to $238 million for the same period in 2023, reflecting an increase of approximately 20.6%[117]. - The total residential mortgage charge-offs were $2 million for the six months ended June 30, 2024, consistent with the previous year[117]. Deposits - Total deposits rose to $151.079 billion, an increase of 3.8% from $145.854 billion at the end of 2023[12]. - Time deposits decreased to $15.159 billion as of June 30, 2024, from $16.432 billion at December 31, 2023, a decline of 7.7%[167]. Derivative Instruments - The total notional amount of derivatives designated as hedging instruments is $3,999 million, with a liability fair value of $815 million[178]. - The total notional amount of derivatives not designated as hedging instruments is $35,184 million, with an asset fair value of $646 million and a liability fair value of $(636) million[178]. - The fair value of derivative financial instruments was $646 million as of June 30, 2024, slightly up from $640 million at December 31, 2023[165].