fcnca-20230930

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 September 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— 13,514,918 shares

Class B Common Stock—1,005,185 shares

(Number of shares outstanding, by class, as of October 31, 2023)

GLOSSARY OF ABBREVIATIONS AND ACRONYMS

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


Acronym	Definition	Acronym	Definition
AFS	Available for Sale	HFI	Held for Investment
AHFS	Assets Held for Sale	HQLS	High Quality Liquid Securities
ALLL	Allowance for Loan and Lease Losses	HTM	Held to Maturity
AOCI	Accumulated Other Comprehensive Income	IPO	Initial Public Offering
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
CRE	Commercial Real Estate	NIM	Net Interest Margin
DPA	Deferred Purchase Agreement	NPR	Notice of Proposed Rulemaking
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	PCD	Purchased Credit Deteriorated
FASB	Financial Accounting Standards Board	PD	Probability of Obligor Default
FCB	First-Citizens Bank & Trust Company	R&S	Reasonable and Supportable
FDIC	Federal Deposit Insurance Corporation	PPP	Paycheck Protection Program
FHA	Federal Housing Administration	ROU	Right of Use
FHC	Financial Holding Company	SBA	Small Business Administration
FHLB	Federal Home Loan Bank	SOFR	Secured Overnight Financing Rate
FOMC	Federal Open Market Committee	TDRs	Troubled Debt Restructuring
FRB	Federal Reserve Bank	UPB	Unpaid Principal Balance
GAAP	Accounting Principles Generally Accepted in the U.S.	VIE	Variable Interest Entity
GDP	Gross Domestic Product

Item 1. Financial Statements

First Citizens BancShares, Inc. and Subsidiaries

Consolidated Balance Sheets (Unaudited)


dollars in millions, except share data	September 30, 2023		December 31, 2022
Assets
Cash and due from banks	$	791	$	518
Interest-earning deposits at banks	36,704		5,025
Securities purchased under agreements to resell	549		—
Investment in marketable equity securities (cost of $75 at September 30, 2023 and $75 at December 31, 2022)	75		95
Investment securities available for sale (cost of $17,836 at September 30, 2023 and $9,967 at December 31, 2022), net of allowance for credit losses	16,661		8,995
Investment securities held to maturity (fair value of $8,152 at September 30, 2023 and $8,795 at December 31, 2022)	10,082		10,279
Assets held for sale	58		60
Loans and leases	133,202		70,781
Allowance for loan and lease losses	(1,673)		(922)
Loans and leases, net of allowance for loan and lease losses	131,529		69,859
Operating lease equipment, net	8,661		8,156
Premises and equipment, net	1,768		1,456
Goodwill	346		346
Other intangible assets	329		140
Other assets	6,212		4,369
Total assets	$	213,765	$	109,298
Liabilities
Deposits:
Noninterest-bearing	$	43,141	$	24,922
Interest-bearing	103,092		64,486
Total deposits	146,233		89,408
Credit balances of factoring clients	1,282		995
Borrowings:



Short-term borrowings	453		2,186




Long-term borrowings	37,259		4,459
Total borrowings	37,712		6,645
Other liabilities	8,149		2,588
Total liabilities	193,376		99,636
Stockholders’ equity
Preferred stock - $0.01 par value (20,000,000 and 10,000,000 shares authorized at September 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 September 30, 2023 and December 31, 2022, respectively; 13,514,918 and 13,501,017 shares issued and outstanding at September 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 September 30, 2023 and December 31, 2022)	1		1
Additional paid in capital	4,106		4,109
Retained earnings	16,267		5,392
Accumulated other comprehensive loss	(880)		(735)
Total stockholders’ equity	20,389		9,662
Total liabilities and stockholders’ equity	$	213,765	$	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 September 30,				Nine Months Ended September 30,
dollars in millions, except share and per share data	2023		2022		2023		2022
Interest income
Interest and fees on loans	$	2,426	$	785	$	5,796	$	2,061
Interest on investment securities	180		90		407		262
Interest on deposits at banks	504		31		1,071		50
Total interest income	3,110		906		7,274		2,373
Interest expense
Deposits	769		78		1,632		159
Borrowings	351		33		841		70
Total interest expense	1,120		111		2,473		229
Net interest income	1,990		795		4,801		2,144
Provision for credit losses	192		60		1,126		566
Net interest income after provision for credit losses	1,798		735		3,675		1,578
Noninterest income
Rental income on operating lease equipment	248		219		719		640
Fee income and other service charges	70		41		185		112
Client investment fees	52		—		106		—
Wealth management services	49		35		140		107
International fees	34		3		71		7
Service charges on deposit accounts	44		21		112		76
Factoring commissions	21		24		60		78
Cardholder services, net	41		25		103		76
Merchant services, net	12		8		36		27
Insurance commissions	13		11		40		34
Realized loss on sale of investment securities available for sale, net	(12)		—		(26)		—
Fair value adjustment on marketable equity securities, net	(1)		(2)		(20)		(5)
Bank-owned life insurance	1		8		8		25
Gain on sale of leasing equipment, net	10