|
||
(State or other jurisdiction of incorporation)
|
(Commission File Number)
|
(IRS Employer Identification No.)
|
|
|||
(Address of principal executive offices)
|
(Zip Code)
|
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
|
|
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
|
|
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
|
|
☐ |
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
|
Title of each class
|
Trading Symbol
|
Name of each exchange on which registered
|
|
|
|
|
|
Exhibit No.
|
Description
|
||
Press Release, dated October 16, 2020
|
|||
Investor Presentation, dated October 16, 2020
|
|||
104
|
Cover Page Interactive Data File (embedded within the Inline XBRL document)
|
First Citizens BancShares, Inc.
|
||||
(Registrant)
|
||||
Date:
|
October 16, 2020
|
By: /s/ Craig L. Nix
|
||
Craig L. Nix
|
||||
Chief Financial Officer
|
![]() |
NEWS RELEASE
|
|
For Immediate Release
|
Contact:
|
Barbara Thompson
|
October 16, 2020
|
First Citizens BancShares
|
|
919.716.2716
|
THIRD QUARTER RESULTS
|
||||||||||||||||||
Q3 2020
|
Q3 2019
|
Q3 2020
|
Q3 2019
|
Q3 2020
|
Q3 2019
|
Q3 2020
|
Q3 2019
|
Q3 2020
|
Q3 2019
|
|||||||||
Net income (in millions)
|
Net income per share
|
Net interest margin
|
Return on average assets
|
Return on average equity
|
||||||||||||||
$142.7
|
$124.8
|
$14.03
|
$11.27
|
3.06%
|
3.77%
|
1.18%
|
1.32%
|
14.93%
|
13.83%
|
|||||||||
YEAR-TO-DATE (“YTD”) RESULTS
|
||||||||||||||||||
2020
|
2019
|
2020
|
2019
|
2020
|
2019
|
2020
|
2019
|
2020
|
2019
|
|||||||||
Net income (in millions)
|
Net income per share
|
Net interest margin
|
Return on average assets
|
Return on average equity
|
||||||||||||||
$353.6
|
$355.5
|
$33.96
|
$31.50
|
3.23%
|
3.80%
|
1.05%
|
1.29%
|
12.59%
|
13.41%
|
|||||||||
THIRD QUARTER HIGHLIGHTS
|
||||||||||||||||||
Net income
|
Net income for the third quarter of 2020 totaled $142.7 million, an increase of $17.9 million, or 14.3%, compared to the same
quarter in 2019. Net income per common share increased to $14.03 for the third quarter of 2020, from $11.27 per share during the same quarter in 2019.
|
|||||||||||||||||
Return on average assets and equity
|
Return on average assets for the third quarter of 2020 was 1.18%, down from 1.32% during the same quarter in 2019. Return on
average equity for the third quarter of 2020 was 14.93%, up from 13.83% during the same period of 2019.
|
|||||||||||||||||
Net interest income and net interest margin
|
BancShares reported total net interest income of $353.7 million for the third quarter of 2020, an increase of $17.2 million, or
5.1%, compared to the same quarter in 2019. The taxable-equivalent net interest margin (“NIM”) was 3.06% for the third quarter of 2020, down 71 basis points from 3.77% during the same quarter in 2019 and down 8 basis points from 3.14%
during the second quarter of 2020.
|
|||||||||||||||||
Allowance for credit losses
|
The allowance for credit losses (“ACL”) was $223.9 million at September 30, 2020, compared to $225.1 million at December 31,
2019. The change relates primarily to a $37.9 million reduction in the ACL as a result of adopting the Current Expected Credit Loss model (“CECL”), partially offset by a reserve build of $36.1 million due to an increase in potential loan
losses related to the impact of COVID-19.
|
|||||||||||||||||
Operating performance
|
Noninterest income totaled $120.6 million for the third quarter of 2020, an increase of $19.6 million, or 19.5%, compared to the
same quarter of 2019. Noninterest expense was $291.7 million for the third quarter of 2020, an increase of $21.3 million, or 7.9%, compared to the same quarter of 2019.
|
|||||||||||||||||
Loans and credit quality
|
Total loans grew to $32.85 billion, an increase of $3.96 billion, or by 18.3% on an annualized basis, since December 31, 2019.
Excluding $3.11 billion of loans originated under the Small Business Administration Paycheck Protection Program (“SBA-PPP”), total loans increased $851.0 million since December 31, 2019, or by 3.9% on an annualized basis. The net charge-off
ratio was 0.03% and 0.07% for the three and nine months ended September 30, 2020, respectively, compared to 0.10% for both the three and nine months ended September 30, 2019.
|
|||||||||||||||||
Deposits
|
Total deposits grew to $42.25 billion, an increase of $7.82 billion, or by 30.3% on an annualized basis, since December 31, 2019.
Excluding estimated SBA-PPP deposits which combined totaled $1.30 billion, total deposits increased $6.52 billion since December 31, 2019, or by 25.3% on an annualized basis.
|
|||||||||||||||||
Capital
|
During the third quarter of 2020, BancShares repurchased 117,700 shares of Class A common stock for $47.1 million.
BancShares remained well capitalized with a total risk-based capital ratio of 13.7%, a Tier 1 risk-based capital ratio of 11.5%, a common equity Tier 1 ratio of 10.4% and a Tier 1 leverage ratio of 7.8%.
|
|||||||||||||||||
(Dollars in thousands, except share data; unaudited)
|
Three months ended
|
Nine months ended September 30
|
|||||||||||||||||
September 30, 2020
|
June 30, 2020
|
September 30, 2019
|
2020
|
2019
|
|||||||||||||||
SUMMARY OF OPERATIONS
|
|||||||||||||||||||
Interest income
|
$
|
374,334
|
$
|
363,257
|
$
|
362,318
|
$
|
1,107,150
|
$
|
1,049,963
|
|||||||||
Interest expense
|
20,675
|
25,863
|
25,893
|
77,697
|
65,718
|
||||||||||||||
Net interest income
|
353,659
|
337,394
|
336,425
|
1,029,453
|
984,245
|
||||||||||||||
Provision for credit losses
|
4,042
|
20,552
|
6,766
|
52,949
|
23,714
|
||||||||||||||
Net interest income after provision for credit losses
|
349,617
|
316,842
|
329,659
|
976,504
|
960,531
|
||||||||||||||
Noninterest income
|
120,572
|
165,402
|
100,930
|
349,985
|
311,468
|
||||||||||||||
Noninterest expense
|
291,662
|
291,679
|
270,425
|
883,312
|
811,479
|
||||||||||||||
Income before income taxes
|
178,527
|
190,565
|
160,164
|
443,177
|
460,520
|
||||||||||||||
Income taxes
|
35,843
|
36,779
|
35,385
|
89,538
|
105,023
|
||||||||||||||
Net income
|
$
|
142,684
|
$
|
153,786
|
$
|
124,779
|
$
|
353,639
|
$
|
355,497
|
|||||||||
Less: Preferred stock dividends
|
4,636
|
4,790
|
—
|
9,426
|
—
|
||||||||||||||
Net income available to common shareholders
|
$
|
138,048
|
$
|
148,996
|
$
|
124,779
|
$
|
344,213
|
$
|
355,497
|
|||||||||
Net interest income, taxable equivalent
|
$
|
354,256
|
$
|
337,965
|
$
|
337,322
|
$
|
1,031,395
|
$
|
986,896
|
|||||||||
PER COMMON SHARE DATA
|
|||||||||||||||||||
Net income
|
$
|
14.03
|
$
|
14.74
|
$
|
11.27
|
$
|
33.96
|
$
|
31.50
|
|||||||||
Cash dividends on common shares
|
0.40
|
0.40
|
0.40
|
1.20
|
1.20
|
||||||||||||||
Book value at period-end
|
380.43
|
367.57
|
327.86
|
380.43
|
327.86
|
||||||||||||||
CONDENSED BALANCE SHEET
|
|||||||||||||||||||
Cash and due from banks
|
$
|
352,419
|
$
|
389,233
|
$
|
288,933
|
$
|
352,419
|
$
|
288,933
|
|||||||||
Overnight investments
|
3,137,945
|
3,107,575
|
949,899
|
3,137,945
|
949,899
|
||||||||||||||
Investment securities
|
9,860,594
|
9,508,476
|
7,167,680
|
9,860,594
|
7,167,680
|
||||||||||||||
Loans and leases
|
32,845,144
|
32,418,425
|
27,196,511
|
32,845,144
|
27,196,511
|
||||||||||||||
Less allowance for credit losses
|
(223,936)
|
(222,450)
|
(226,825)
|
(223,936)
|
(226,825)
|
||||||||||||||
Other assets
|
2,694,707
|
2,664,935
|
2,372,126
|
2,694,707
|
2,372,126
|
||||||||||||||
Total assets
|
$
|
48,666,873
|
$
|
47,866,194
|
$
|
37,748,324
|
$
|
48,666,873
|
$
|
37,748,324
|
|||||||||
Deposits
|
$
|
42,250,606
|
$
|
41,479,245
|
$
|
32,743,277
|
$
|
42,250,606
|
$
|
32,743,277
|
|||||||||
Other liabilities
|
2,341,853
|
2,395,505
|
1,436,565
|
2,341,853
|
1,436,565
|
||||||||||||||
Shareholders’ equity
|
4,074,414
|
3,991,444
|
3,568,482
|
4,074,414
|
3,568,482
|
||||||||||||||
Total liabilities and shareholders’ equity
|
$
|
48,666,873
|
$
|
47,866,194
|
$
|
37,748,324
|
$
|
48,666,873
|
$
|
37,748,324
|
|||||||||
SELECTED PERIOD AVERAGE BALANCES
|
|||||||||||||||||||
Total assets
|
$
|
48,262,155
|
$
|
45,553,502
|
$
|
37,618,836
|
$
|
44,834,045
|
$
|
36,770,191
|
|||||||||
Investment securities
|
9,930,197
|
8,928,467
|
6,956,981
|
8,774,840
|
6,851,348
|
||||||||||||||
Loans and leases
|
32,694,996
|
31,635,958
|
26,977,476
|
31,148,683
|
26,368,922
|
||||||||||||||
Interest-earning assets
|
45,617,376
|
42,795,781
|
35,293,979
|
42,151,861
|
34,473,814
|
||||||||||||||
Deposits
|
41,905,844
|
39,146,415
|
32,647,264
|
38,612,836
|
31,856,771
|
||||||||||||||
Interest-bearing liabilities
|
25,591,707
|
24,407,285
|
20,551,393
|
24,388,339
|
20,204,705
|
||||||||||||||
Common shareholders’ equity
|
3,679,138
|
3,648,284
|
3,580,235
|
3,651,132
|
3,545,418
|
||||||||||||||
Shareholders’ equity
|
$
|
4,019,075
|
$
|
3,988,225
|
$
|
3,580,235
|
$
|
3,896,645
|
$
|
3,545,418
|
|||||||||
Common shares outstanding
|
9,836,629
|
10,105,520
|
11,060,462
|
10,137,321
|
11,286,984
|
||||||||||||||
SELECTED RATIOS
|
|||||||||||||||||||
Annualized return on average assets
|
1.18
|
%
|
1.36
|
%
|
1.32
|
%
|
1.05
|
%
|
1.29
|
%
|
|||||||||
Annualized return on average equity
|
14.93
|
16.43
|
13.83
|
12.59
|
13.41
|
||||||||||||||
Net yield on interest-earning assets (taxable equivalent)
|
3.06
|
3.14
|
3.77
|
3.23
|
3.80
|
||||||||||||||
Tier 1 risk-based capital ratio
|
11.5
|
11.4
|
11.8
|
11.5
|
11.8
|
||||||||||||||
Tier 1 common equity ratio
|
10.4
|
10.3
|
11.8
|
10.4
|
11.8
|
||||||||||||||
Total risk-based capital ratio
|
13.7
|
13.6
|
13.1
|
13.7
|
13.1
|
||||||||||||||
Tier 1 leverage capital ratio
|
7.8
|
8.1
|
9.2
|
7.8
|
9.2
|
||||||||||||||
Three months ended
|
Nine months ended September 30
|
||||||||||||||||||
(Dollars in thousands, unaudited)
|
September 30, 2020
|
June 30, 2020
|
September 30, 2019
|
2020
|
2019
|
||||||||||||||
ALLOWANCE FOR CREDIT LOSSES (1)
|
|||||||||||||||||||
ACL at beginning of period
|
$
|
222,450
|
$
|
209,259
|
$
|
226,583
|
$
|
225,141
|
$
|
223,712
|
|||||||||
Adoption of ASC 326
|
—
|
—
|
—
|
(37,924)
|
—
|
||||||||||||||
Initial PCD allowance on new acquisitions(2)
|
—
|
—
|
—
|
1,193
|
—
|
||||||||||||||
Provision for credit losses
|
4,042
|
20,552
|
6,766
|
52,949
|
23,714
|
||||||||||||||
Net charge-offs of loans and leases:
|
|||||||||||||||||||
Charge-offs
|
(8,932)
|
(12,064)
|
(9,647)
|
(35,257)
|
(30,403)
|
||||||||||||||
Recoveries
|
6,376
|
4,703
|
3,123
|
17,834
|
9,802
|
||||||||||||||
Net charge-offs of loans and leases
|
(2,556)
|
(7,361)
|
(6,524)
|
(17,423)
|
(20,601)
|
||||||||||||||
ACL at end of period
|
$
|
223,936
|
$
|
222,450
|
$
|
226,825
|
$
|
223,936
|
$
|
226,825
|
|||||||||
ACL at end of period allocated to:
|
|||||||||||||||||||
PCD
|
$
|
25,127
|
$
|
26,928
|
$
|
6,867
|
$
|
25,127
|
$
|
6,867
|
|||||||||
Non-PCD
|
198,809
|
195,522
|
219,958
|
198,809
|
219,958
|
||||||||||||||
ACL at end of period
|
$
|
223,936
|
$
|
222,450
|
$
|
226,825
|
$
|
223,936
|
$
|
226,825
|
|||||||||
Reserve for unfunded commitments
|
$
|
13,971
|
$
|
13,685
|
$
|
1,097
|
$
|
13,971
|
$
|
1,097
|
|||||||||
SELECTED LOAN DATA
|
|||||||||||||||||||
Average loans and leases:
|
|||||||||||||||||||
PCD
|
$
|
512,559
|
$
|
546,998
|
$
|
530,390
|
$
|
529,819
|
$
|
551,065
|
|||||||||
Non-PCD
|
32,065,084
|
30,992,001
|
26,379,156
|
30,525,411
|
25,762,098
|
||||||||||||||
Loans and leases at period-end:
|
|||||||||||||||||||
PCD
|
495,878
|
530,651
|
513,589
|
495,878
|
513,589
|
||||||||||||||
Non-PCD
|
32,349,266
|
31,887,774
|
26,682,922
|
32,349,266
|
26,682,922
|
||||||||||||||
RISK ELEMENTS
|
|||||||||||||||||||
Nonaccrual loans and leases(3)
|
$
|
186,454
|
$
|
197,791
|
$
|
109,645
|
$
|
186,454
|
$
|
109,645
|
|||||||||
Other real estate owned
|
52,789
|
53,850
|
46,253
|
52,789
|
46,253
|
||||||||||||||
Total nonperforming assets
|
$
|
239,243
|
$
|
251,641
|
$
|
155,898
|
$
|
239,243
|
$
|
155,898
|
|||||||||
Accruing loans and leases 90 days or more past due(3)
|
$
|
3,587
|
$
|
3,796
|
$
|
27,534
|
$
|
3,587
|
$
|
27,534
|
|||||||||
RATIOS
|
|||||||||||||||||||
Net charge-offs (annualized) to average loans and leases
|
0.03
|
%
|
0.09
|
%
|
0.10
|
%
|
0.07
|
%
|
0.10
|
%
|
|||||||||
ACL to total loans and leases(4):
|
|||||||||||||||||||
PCD
|
5.07
|
5.07
|
1.34
|
5.07
|
1.34
|
||||||||||||||
Non-PCD
|
0.61
|
0.61
|
0.82
|
0.61
|
0.82
|
||||||||||||||
Total
|
0.68
|
0.69
|
0.83
|
0.68
|
0.83
|
||||||||||||||
Ratio of total nonperforming assets to total loans, leases and other real estate owned
|
0.73
|
0.77
|
0.57
|
0.73
|
0.57
|
Three months ended
|
||||||||||||||||||||||||||||||||
September 30, 2020
|
June 30, 2020
|
September 30, 2019
|
||||||||||||||||||||||||||||||
Average
|
Yield/
|
Average
|
Yield/
|
Average
|
Yield/
|
|||||||||||||||||||||||||||
(Dollars in thousands, unaudited)
|
Balance
|
Interest
|
Rate (2)
|
Balance
|
Interest
|
Rate (2)
|
Balance
|
Interest
|
Rate (2)
|
|||||||||||||||||||||||
INTEREST-EARNING ASSETS
|
||||||||||||||||||||||||||||||||
Loans and leases (1)
|
$
|
32,694,996
|
$
|
336,934
|
4.06
|
%
|
$
|
31,635,958
|
$
|
326,618
|
4.10
|
%
|
$
|
26,977,476
|
$
|
315,621
|
4.61
|
%
|
||||||||||||||
Investment securities:
|
||||||||||||||||||||||||||||||||
U.S. Treasury
|
695,419
|
497
|
0.28
|
206,575
|
679
|
1.32
|
834,577
|
5,262
|
2.50
|
|||||||||||||||||||||||
Government agency
|
587,377
|
1,335
|
0.91
|
657,405
|
1,428
|
0.87
|
628,322
|
4,742
|
3.02
|
|||||||||||||||||||||||
Mortgage-backed securities
|
8,047,247
|
28,236
|
1.40
|
7,555,947
|
28,532
|
1.51
|
5,195,711
|
27,891
|
2.15
|
|||||||||||||||||||||||
Corporate bonds
|
489,602
|
6,433
|
5.26
|
299,250
|
3,782
|
5.06
|
149,888
|
1,912
|
5.10
|
|||||||||||||||||||||||
Other investments
|
110,552
|
739
|
2.66
|
209,290
|
2,236
|
4.30
|
148,483
|
636
|
1.70
|
|||||||||||||||||||||||
Total investment securities
|
9,930,197
|
37,240
|
1.50
|
8,928,467
|
36,657
|
1.64
|
6,956,981
|
40,443
|
2.32
|
|||||||||||||||||||||||
Overnight investments
|
2,992,183
|
757
|
0.10
|
2,231,356
|
553
|
0.10
|
1,359,522
|
7,151
|
2.09
|
|||||||||||||||||||||||
Total interest-earning assets
|
$
|
45,617,376
|
$
|
374,931
|
3.24
|
$
|
42,795,781
|
$
|
363,828
|
3.38
|
$
|
35,293,979
|
$
|
363,215
|
4.06
|
|||||||||||||||||
INTEREST-BEARING LIABILITIES
|
||||||||||||||||||||||||||||||||
Interest-bearing deposits:
|
||||||||||||||||||||||||||||||||
Checking with interest
|
$
|
9,239,838
|
$
|
1,369
|
0.06
|
%
|
$
|
8,562,145
|
$
|
1,310
|
0.06
|
%
|
$
|
7,361,758
|
$
|
1,509
|
0.08
|
%
|
||||||||||||||
Savings
|
3,070,619
|
314
|
0.04
|
2,846,557
|
312
|
0.04
|
2,636,583
|
528
|
0.08
|
|||||||||||||||||||||||
Money market accounts
|
8,108,832
|
3,634
|
0.18
|
7,618,883
|
6,519
|
0.34
|
6,088,740
|
6,610
|
0.43
|
|||||||||||||||||||||||
Time deposits
|
3,205,850
|
8,151
|
1.01
|
3,398,979
|
9,775
|
1.16
|
3,523,658
|
13,090
|
1.47
|
|||||||||||||||||||||||
Total interest-bearing deposits
|
23,625,139
|
13,468
|
0.23
|
22,426,564
|
17,916
|
0.32
|
19,610,739
|
21,737
|
0.44
|
|||||||||||||||||||||||
Securities sold under customer repurchase agreements
|
710,237
|
395
|
0.22
|
659,244
|
399
|
0.24
|
533,371
|
542
|
0.40
|
|||||||||||||||||||||||
Other short-term borrowings
|
—
|
—
|
—
|
45,549
|
248
|
2.16
|
23,236
|
203
|
3.50
|
|||||||||||||||||||||||
Long-term borrowings
|
1,256,331
|
6,812
|
2.15
|
1,275,928
|
7,300
|
2.26
|
384,047
|
3,411
|
3.51
|
|||||||||||||||||||||||
Total interest-bearing liabilities
|
$
|
25,591,707
|
$
|
20,675
|
0.32
|
$
|
24,407,285
|
$
|
25,863
|
0.42
|
$
|
20,551,393
|
$
|
25,893
|
0.50
|
|||||||||||||||||
Interest rate spread
|
2.92
|
%
|
2.96
|
%
|
3.56
|
%
|
||||||||||||||||||||||||||
Net interest income and net yield on interest-earning assets
|
$
|
354,256
|
3.06
|
%
|
$
|
337,965
|
3.14
|
%
|
$
|
337,322
|
3.77
|
%
|
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