fcnca-20230630

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

____________________________________________________


☒			Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
			For the quarterly period ended June 30, 2023
			or
☐			Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Commission File Number: 001-16715

First Citizens BancShares, Inc.

(Exact name of Registrant as specified in its charter)


Delaware			56-1528994
(State or other jurisdiction of incorporation or organization)			(I.R.S. Employer Identification Number)

4300 Six Forks Road	Raleigh	North Carolina	27609
(Address of principle executive offices)			(Zip code)

		(919)	716-7000
(Registrant’s telephone number, including area code)

____________________________________________________


Securities registered pursuant to Section 12(b) of the Securities Exchange Act of 1934:
Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Class A Common Stock, Par Value $1	FCNCA	Nasdaq Global Select Market
Depositary Shares, Each Representing a 1/40th Interest in a Share of 5.375% Non-Cumulative Perpetual Preferred Stock, Series A	FCNCP	Nasdaq Global Select Market
5.625% Non-Cumulative Perpetual Preferred Stock, Series C	FCNCO	Nasdaq Global Select Market
Securities registered pursuant to Section 12(g) of the Securities Exchange Act of 1934:
Class B Common Stock, Par Value $1

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☐ No ☒

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer”, “smaller reporting company” and ‘emerging growth company’ in Rule 12b-2 of the Exchange Act.

Large accelerated filer

☒

Accelerated filer

☐

Non-accelerated filer

☐

Smaller reporting company

☐

Emerging growth company

☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

Class A Common Stock— 13,514,849 shares

Class B Common Stock—1,005,185 shares

(Number of shares outstanding, by class, as of July 31, 2023

GLOSSARY OF ABBREVIATIONS AND ACRONYMS

The following is a list of certain abbreviations and acronyms we use throughout this document. You may find it helpful to refer back to this table.


Acronym	Definition	Acronym	Definition
ACL	Allowance for Credit Losses	HOA	Home Owner’s Association
AFS	Available for Sale	HQLS	High Quality Liquid Securities
AOCI	Accumulated Other Comprehensive Income	HTM	Held to Maturity
ASC	Accounting Standards Codification	ISDA	International Swaps and Derivatives Association
ASU	Accounting Standards Update	LIBOR	London Inter-Bank Offered Rate
BHC	Bank Holding Company	LGD	Loss Given Default
BOLI	Bank Owned Life Insurance	LOCOM	Lower of the Cost or Market Value
bps	Basis point(s); 1 bp = 0.01%	MD&A	Management’s Discussion and Analysis
C&I	Commercial and Industrial	MSRs	Mortgage Servicing Rights
CAB	Community Association Banking	NCCOB	North Carolina Commissioner of Banks
CCAR	Comprehensive Capital Analysis and Review	NII	Net Interest Income
CECL	Current Expected Credit Losses	NII Sensitivity	Net Interest Income Sensitivity
DPA	Deferred Purchase Agreement	NIM	Net Interest Margin
DTAs	Deferred Tax Assets	OREO	Other Real Estate Owned
EAD	Exposure at Default	PAA	Purchase Accounting Adjustments
ETR	Effective Tax Rate	PCA	Prompt corrective action
EVE Sensitivity	Economic Value of Equity Sensitivity	PCAOB	Public Company Accounting Oversight Board
FASB	Financial Accounting Standards Board	PCD	Purchased Credit Deteriorated
FCB	First-Citizens Bank & Trust Company	PD	Probability of Obligor Default
FDIC	Federal Deposit Insurance Corporation	R&S	Reasonable and Supportable
FHA	Federal Housing Administration	PPP	Paycheck Protection Program
FHC	Financial Holding Company	ROU	Right of Use
FHLB	Federal Home Loan Bank	RSU	Restricted Stock Unit
FOMC	Federal Open Market Committee	SBA	Small Business Administration
FRB	Federal Reserve Bank	SOFR	Secured Overnight Financing Rate
GAAP	Accounting Principles Generally Accepted in the U.S.	TDRs	Troubled Debt Restructuring
GDP	Gross Domestic Product	UPB	Unpaid Principal Balance
HFI	Held for Investment	VIE	Variable Interest Entity

Item 1. Financial Statements

First Citizens BancShares, Inc. and Subsidiaries

Consolidated Balance Sheets (Unaudited)


dollars in millions, except share data	June 30, 2023		December 31, 2022
Assets
Cash and due from banks	$	917	$	518
Interest-earning deposits at banks	37,846		5,025
Securities purchased under agreements to resell	298		—
Investment in marketable equity securities (cost of $75 at June 30, 2023 and $75 at December 31, 2022)	76		95
Investment securities available for sale (cost of $12,923 at June 30, 2023 and $9,967 at December 31, 2022), net of allowance for credit losses	11,894		8,995
Investment securities held to maturity (fair value of $8,652 at June 30, 2023 and $8,795 at December 31, 2022)	10,201		10,279
Assets held for sale	117		60
Loans and leases	133,015		70,781
Allowance for credit losses	(1,637)		(922)
Loans and leases, net of allowance for credit losses	131,378		69,859
Operating lease equipment, net	8,531		8,156
Premises and equipment, net	1,782		1,456
Goodwill	346		346
Other intangible assets	347		140
Other assets	5,769		4,369
Total assets	$	209,502	$	109,298
Liabilities
Deposits:
Noninterest-bearing	$	44,547	$	24,922
Interest-bearing	96,617		64,486
Total deposits	141,164		89,408
Credit balances of factoring clients	1,067		995
Borrowings:



Short-term borrowings	454		2,186




Long-term borrowings	39,685		4,459
Total borrowings	40,139		6,645
Other liabilities	7,361		2,588
Total liabilities	189,731		99,636
Stockholders’ equity
Preferred stock - $0.01 par value (20,000,000 and 10,000,000 shares authorized at June 30, 2023 and December 31, 2022, respectively)	881		881
Common stock:
Class A - $1 par value (32,000,000 and 16,000,000 shares authorized at June 30, 2023 and December 31, 2022, respectively; 13,514,849 and 13,501,017 shares issued and outstanding at June 30, 2023 and December 31, 2022, respectively)	14		14
Class B - $1 par value (2,000,000 shares authorized; 1,005,185 shares issued and outstanding at June 30, 2023 and December 31, 2022)	1		1
Additional paid in capital	4,106		4,109
Retained earnings	15,541		5,392
Accumulated other comprehensive loss	(772)		(735)
Total stockholders’ equity	19,771		9,662
Total liabilities and stockholders’ equity	$	209,502	$	109,298

See accompanying Notes to the Unaudited Consolidated Financial Statements.

First Citizens BancShares, Inc. and Subsidiaries

Consolidated Statements of Income (Unaudited)


	Three Months Ended June 30,				Six Months Ended June 30,
dollars in millions, except share and per share data	2023		2022		2023		2022
Interest income
Interest and fees on loans	$	2,353	$	655	$	3,370	$	1,276
Interest on investment securities	120		89		227		172
Interest on deposits at banks	480		13		567		19
Total interest income	2,953		757		4,164		1,467
Interest expense
Deposits	575		42		863		81
Borrowings	417		15		490		37
Total interest expense	992		57		1,353		118
Net interest income	1,961		700		2,811		1,349
Provision for credit losses	151		42		934		506
Net interest income after provision for credit losses	1,810		658		1,877		843
Noninterest income
Rental income on operating lease equipment	238		213		471		421
Fee income and other service charges	69		37		116		71
Client investment fees	52		—		54		—
Wealth management services	51		37		91		72
International fees	32		2		36		4
Service charges on deposit accounts	44		28		68		55
Factoring commissions	20		27		39		54
Cardholder services, net	41		26		62		51
Merchant services, net	14		9		24		19
Insurance commissions	14		11		27		23
Realized loss on sale of investment securities available for sale, net	—		—		(14)		—
Fair value adjustment on marketable equity securities, net	(10)		(6)		(19)		(3)
Bank-owned life insurance	2		9		7		17
Gain on sale of leasing equipment, net	4		5		8		11
Gain on acquisition	55		—		9,879		431
Gain on extinguishment of debt	—		—		—		6
Other noninterest income	32		26		68		42
Total noninterest income	658		424		10,917		1,274
Noninterest expense
Depreciation on operating lease equipment	91		89		180		170
Maintenance and other operating lease expenses	56		47		112		90
Salaries and benefits	775		345		1,195		701
Net occupancy expense	64		48		114		96
Equipment expense	133		54		191		106
Professional fees	21		11		32		23
Third-party processing fees	54		26		84		50
FDIC insurance expense	22		9		40		21
Marketing expense	41		9		56		17
Acquisition-related expenses	205		34		233		169
Intangible asset amortization	18		6		23		12
Other noninterest expense	92		67		167		100
Total noninterest expense	1,572		745		2,427		1,555
Income before income taxes	896		337		10,367		562
Income tax expense	214		82		167		36
Net income	$	682	$	255	$	10,200	$	526
Preferred stock dividends	15		17		29		24
Net income available to common stockholders	$	667	$	238	$	10,171	$	502
Earnings per common share
Basic	$	45.90	$	14.87	$	700.10	$	31.52
Diluted	$	45.87	$	14.86	$	699.53	$	31.48
Weighted average common shares outstanding
Basic	14,528,134		16,023,613		14,527,417		15,918,978
Diluted	14,537,938		16,035,090		14,539,176		15,937,826

See accompanying Notes to the Unaudited Consolidated Financial Statements.

First Citizens BancShares, Inc. and Subsidiaries

Consolidated Statements of Comprehensive Income (Unaudited)


	Three Months Ended June 30,				Six Months Ended June 30,
dollars in millions	2023		2022		2023		2022
Net income	$	682	$	255	$	10,200