fcnca-20240930

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, 2024
			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—12,984,310 shares

Class B Common Stock—1,005,185 shares

(Number of shares outstanding, by class, as of October 31, 2024)

GLOSSARY OF ABBREVIATIONS AND ACRONYMS

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


Acronym	Definition	Acronym	Definition
ALLL	Allowance for Loan and Lease Losses	LOCOM	Lower of the Cost or Market Value
AOCI	Accumulated Other Comprehensive Income	MD&A	Management’s Discussion and Analysis
ASC	Accounting Standards Codification	MSRs	Mortgage Servicing Rights
ASU	Accounting Standards Update	NCCOB	North Carolina Commissioner of Banks
BHC	Bank Holding Company	NII	Net Interest Income
bps	Basis point(s); 1 bp = 0.01%	NII Sensitivity	Net Interest Income Sensitivity
CODM	Chief Operating Decision Maker	NIM	Net Interest Margin
CRA	Community Reinvestment Act of 1977	NPR	Notice of Proposed Rulemaking
CRE	Commercial Real Estate	OREO	Other Real Estate Owned
DPA	Deferred Purchase Agreement	PAA	Purchase Accounting Accretion or Amortization
DTAs	Deferred Tax Assets	PAM	Proportional Amortization Method
ETR	Effective Income Tax Rate	PCD	Purchased Credit Deteriorated
EVE Sensitivity	Economic Value of Equity Sensitivity	PD	Probability of Obligor Default
FASB	Financial Accounting Standards Board	ROU	Right of Use
FCB	First-Citizens Bank & Trust Company	SBA	Small Business Administration
FDIC	Federal Deposit Insurance Corporation	SEC	Securities and Exchange Commission
FHLB	Federal Home Loan Bank	SOFR	Secured Overnight Financing Rate
FOMC	Federal Open Market Committee	SVB	Silicon Valley Bank
FRB	Board of Governors of the Federal Reserve System or Federal Reserve Bank	SVBB	Silicon Valley Bridge Bank, N.A.
GAAP	United States Generally Accepted Accounting Principles	TMT	Technology Media and Telecommunications
HQLS	High-Quality Liquid Securities	UPB	Unpaid Principal Balance
ISDA	International Swaps and Derivatives Association	VIE	Variable Interest Entity
LGD	Loss Given Default

PART I—FINANCIAL INFORMATION

Item 1. Financial Statements.

First Citizens BancShares, Inc. and Subsidiaries

Consolidated Balance Sheets (Unaudited)


dollars in millions, except share data	September 30, 2024		December 31, 2023
Assets
Cash and due from banks	$	862	$	908
Interest-earning deposits at banks	25,640		33,609
Securities purchased under agreements to resell	455		473
Investment in marketable equity securities (cost of $70 at September 30, 2024 and $75 at December 31, 2023)	82		84
Investment securities available for sale (cost of $28,502 at September 30, 2024 and $20,688 at December 31, 2023), net of allowance for credit losses	28,190		19,936
Investment securities held to maturity (fair value of $9,168 at September 30, 2024 and $8,503 at December 31, 2023)	10,391		9,979
Assets held for sale	68		76
Loans and leases	138,695		133,302
Allowance for loan and lease losses	(1,678)		(1,747)
Loans and leases, net of allowance for loan and lease losses	137,017		131,555
Operating lease equipment, net	9,186		8,746
Premises and equipment, net	1,974		1,877
Goodwill	346		346
Other intangible assets, net	265		312
Other assets	6,091		5,857
Total assets	$	220,567	$	213,758
Liabilities
Deposits:
Noninterest-bearing	$	39,396	$	39,799
Interest-bearing	112,178		106,055
Total deposits	151,574		145,854
Credit balances of factoring clients	1,250		1,089
Borrowings:



Short-term borrowings	391		485




Long-term borrowings	36,770		37,169
Total borrowings	37,161		37,654
Other liabilities	7,754		7,906
Total liabilities	197,739		192,503
Stockholders’ equity
Preferred stock - $0.01 par value (20,000,000 shares authorized at September 30, 2024 and December 31, 2023)	881		881
Common stock:
Class A - $1 par value (32,000,000 shares authorized at September 30, 2024 and December 31, 2023; 13,174,023 and 13,514,933 shares issued and outstanding at September 30, 2024 and December 31, 2023, respectively)	13		14
Class B - $1 par value (2,000,000 shares authorized and 1,005,185 shares issued and outstanding at September 30, 2024 and December 31, 2023)	1		1
Additional paid in capital	3,389		4,108
Retained earnings	18,703		16,742
Accumulated other comprehensive loss	(159)		(491)
Total stockholders’ equity	22,828		21,255
Total liabilities and stockholders’ equity	$	220,567	$	213,758

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	2024		2023		2024		2023
Interest income
Interest and fees on loans	$	2,430	$	2,426	$	7,206	$	5,796
Interest on investment securities	358		180		970		407
Interest on deposits at banks	350		504		1,176		1,071
Total interest income	3,138		3,110		9,352		7,274
Interest expense
Deposits	1,004		769		2,907		1,632
Borrowings	338		351		1,011		841
Total interest expense	1,342		1,120		3,918		2,473
Net interest income	1,796		1,990		5,434		4,801
Provision for credit losses	117		192		276		1,126
Net interest income after provision for credit losses	1,679		1,798		5,158		3,675
Noninterest income
Rental income on operating lease equipment	262		248		776		719
Fee income and other service charges	81		71		233		188
Client investment fees	55		52		159		106
Wealth management services	54		49		157		140
International fees	29		30		87		63
Service charges on deposit accounts	45		44		133		112
Factoring commissions	19		21		55		60
Cardholder services, net	42		41		122		103
Merchant services, net	12		12		36		36
Insurance commissions	14		13		42		40
Realized gain (loss) on sale of investment securities, net	4		(12)		4		(26)
Fair value adjustment on marketable equity securities, net	9		(1)		3		(20)
Gain on sale of leasing equipment, net	5		10		19		18
Gain on acquisition	—		12		—		9,891
Loss on extinguishment of debt	—		—		(2)		—
Other noninterest income	19		25		92		102
Total noninterest income	650		615		1,916		11,532
Noninterest expense
Depreciation on operating lease equipment	99		95		293		275
Maintenance and other operating lease expenses	59		51		164		163



		Page
PART I—FINANCIAL INFORMATION

Item 1.	Financial Statements	4
	Consolidated Balance Sheets (Unaudited)	4
	Consolidated Statements of Income (Unaudited)	5
	Consolidated Statements of Comprehensive Income (Unaudited)	6
	Consolidated Statements of Changes in Stockholders’ Equity (Unaudited)	7
	Consolidated Statements of Cash Flows (Unaudited)	9
	Notes to Unaudited Consolidated Financial Statements	11
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	66
Item 3.	Quantitative and Qualitative Disclosure about Market Risk	113
Item 4.	Controls and Procedures	113

PART II—OTHER INFORMATION

Item 1.	Legal Proceedings	114
Item 1A.	Risk Factors	114
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	114
Item 5.	Other Information	114
Item 6.	Exhibits	115
Signatures		116