Business
First Citizens BancShares Reports Earnings For Second Quarter 2020
RALEIGH, N.C., July 28, 2020 (GLOBE NEWSWIRE) -- First Citizens BancShares Inc. (“BancShares”) (Nasdaq: FCNCA) reported strong earnings for the second quarter
About this update from First Citizens Bancshares, Inc.
[{"type":"text","content":"RALEIGH, N.C., July 28, 2020 (GLOBE NEWSWIRE) -- First Citizens BancShares Inc. (“BancShares”) (Nasdaq: FCNCA) reported strong earnings for the second quarter of 2020. Key results for the quarter ended June 30, 2020, are presented below:\n SECOND QUARTER RESULTS Q2 2020 Q2 2019 Q2 2020 Q2 2019 Q2 2020 Q2 2019 Q2 2020 Q2 2019 Q2 2020 Q2 2019Net income (in millions) Net income per share Net interest margin Return on average assets Return on average equity$153.8 $119.4 $14.74 $10.56 3.14% 3.77% 1.36% 1.29% 16.43% 13.50% YEAR-TO-DATE (YTD) RESULTS 2020 2019 2020 2019 2020 2019 2020 2019 2020 2019Net income (in millions) Net income per share Net interest margin Return on average assets Return on average equity$211.0 $230.7 $20.04 $20.23 3.33% 3.81% 0.98% 1.28% 11.40% 13.19% SECOND QUARTER HIGHLIGHTS Net incomeNet income for the second quarter of 2020 totaled $153.8 million, an increase of $34.4 million, or 28.8% compared to the same quarter in 2019. Net income per common share increased to $14.74 in the second quarter of 2020, from $10.56 per share during the same quarter in 2019. Return on average assets and equityReturn on average assets for the second quarter of 2020 was 1.36%, up from 1.29% in the same quarter in 2019. Return on average equity for the second quarter of 2020 was 16.43%, up from 13.50% in the same period of 2019. Net interest income and net interest margin BancShares reported total net interest income of $337.4 million for the second quarter of 2020, an increase of $10.0 million, or 3.1% compared to the same quarter in 2019. The taxable-equivalent net interest margin (“NIM”) was 3.14% for the second quarter of 2020, down 63 basis points from 3.77% during the same quarter in 2019 and down 41 basis points from 3.55% during the first quarter of 2020. Allowance for credit lossesThe allowance for credit losses (“ACL”) was $222.5 million at June 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 performanceNoninterest income totaled $165.4 million for the second quarter of 2020, compared to $106.9 million for the same quarter of 2019,...