First Citizens Bancshares, Inc. · NASDAQ:FCNCA
First Citizens Bancshares — Q2 2021 Earnings Presentation
22 slides from First Citizens Bancshares's earnings presentation, Aug 3, 2021
Slide 1: Second Quarter 2021 Earnings Conference Call
First Citizens BancShares Second Quarter 2021 Earnings Conference Call August 3, 2021
Slide 2: Important Notices
2 Important Notices Forward Looking Statements This communication contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 regarding the financial condition, results of operations, business plans and future performance of First Citizens BancSha
Slide 3: Earnings Highlights
3 Earnings Highlights Increase (Decrease) Highlights 1Q21 2Q20 $ in thousands 2Q21 1Q21 2Q20 $ % $ % 2Q21 vs. 1Q21 ▪ Net income available to common shareholders totaled Net interest income $346,393 $339,652 $337,394 $ 6,741 2.0 % $ 8,999 2.7 % $148.2 million, or $15.09 per share, in 2Q21 compared to
Slide 4: Quarterly Net Interest Income and Margin Trends
Quarterly Net Interest Income and Margin Trends 4 Net Interest Income & Margin (1) Highlights $500,000 4.00% 2Q21 vs. 1Q21 3.14% 3.06% 3.02% ▪ Net interest income(1) increased $6.8 2.80% 2.68% 3.00% million, or by 2.0%. $400,000 $354,256 $359,370 ▪ Increase primarily due to higher $337,965 $340,271
Slide 5: Net Interest Margin Rollforward - Drivers of Margin Compression
Net Interest Margin Rollforward - Drivers of Margin Compression 5 NIM Rollforwards Highlights 1Q21 to 2Q21 2Q21 vs. 1Q21 ▪ 12 bps decline comprised of: ▪ ~ (13) bps related to earning asset mix; 2.80% ▪ ~ (2) bps related to SBA-PPP; partially +2 bps 2.68% offset by: +1 bps (13) bps ▪ ~ 1 bps related
Slide 6: Noninterest Income
6 Noninterest Income Noninterest Income Trends Excluding Non-Core Highlights Summary ($ in millions) (1) Activity ($ in 000) $165 2Q21 vs. 1Q21 Noninterest income decreased by $2.5 million primarily due to the $22 following: $137 ▪ $7.1 million decrease in mortgage income driven by a $3.1 million $1
Slide 7: Noninterest Expense
7 Noninterest Expense Noninterest Income Trends Excluding Non-Core Highlights Summary ($ in millions) (1) Activity ($ in 000) $305 $302 2Q21 vs. 1Q21 $292 $292 $296 $9 $9 Noninterest expense increased by $5.7 million primarily due $8 $7 $10 to the following: $53 $43 $47 $49 $49 ▪ $5.4 million increa
Slide 8: Balance Sheet Highlights & Key Financial Ratios
8 Balance Sheet Highlights & Key Financial Ratios Change vs. Highlights $ in millions 2Q21 1Q21 2Q20 1Q21 2Q20 2Q21 vs 1Q21 Assets ▪ Loans decreased $491 million, or by 5.9% on an Cash and due from banks $ 395 $ 410 $ 389 $ (15) $ 6 annualized basis primarily due to a $1.1 billion net Overnight inve
Slide 9: Loans and Leases
9 Loans and Leases Loan Composition ($ in millions) Highlights $35,000 $33,181 Year to Date Annualized and Year over Year Growth $32,418 $32,845 $32,792 $32,690 $2,770 8.3% $1,698 5.2% Total Loans 2Q21 vs. 1Q21: (5.9)% $3,113 9.5% $2,406 7.3% $3,084 9.5% $397 1.2% $30,000 $463 1.4% $433 1.3% Adjuste
Slide 10: Quarterly Credit Quality Trends
10 Quarterly Credit Quality Trends Net Charge-Offs (NCO) & Ratio (1) Allowance & Allowance Ratio (1) $10,000 0.25% $250,000 4.00% $222,450 $223,936 $224,314 $7,361 0.20% $225,000 $7,500 $210,651 3.00% $23,987 $ in thousands $25,127 $ in thousands $26,928 0.15% $200,000 $22,935 $189,094 $5,025 $198,8
Slide 11: Allowance for Credit Losses (ACL)
11 Allowance for Credit Losses (ACL) Allowance Rollforward Highlights $ in thousands Non-PCD PCD Total ▪ Portfolio remains stable with strong credit quality. ACL as of December 31, 2020 $ 200,327 $ 23,987 $ 224,314 Charge-offs (14,872) (1,219) (16,091) ▪ Net charge-off (NCO) ratio (1) is near histor
Slide 12: Deposits
12 Deposits Deposit Composition ($ in millions) Highlights $50,000 $48,411 $47,331 Year to Date Annualized and Year over Year Growth $2,621 5.4% $2,729 5.8% $45,000 $43,432 Total Deposits 2Q21 vs. 1Q21: 9.2% $42,251 $41,479 $2,889 6.6% Total Deposits 2Q21 vs. 2Q20: 16.7% $40,000 $3,140 7.4% $3,277 7
Slide 13: Funding Mix
13 Funding Mix Summary ($ in millions) Change vs. 2Q21 1Q21 4Q20 3Q20 2Q20 1Q21 2Q20 Total deposits $ 48,411 96.2 % $ 47,331 96.1 % $ 43,432 95.8 % $ 42,251 95.6 % $ 41,479 95.4 % $ 1,080 $ 6,932 Securities sold under customer repurchase agreements 693 1.4 681 1.4 641 1.4 694 1.6 740 1.7 12 (47) FHL
Slide 14: Capital Ratios
14 Capital Ratios Capital Ratio Rollforward (1) Highlights Risk-Based Capital Tier 1 ▪ Capital levels remain strong and in excess of the capital Total Tier 1 CET1 Leverage conservation buffer. December 31, 2020 13.81 % 11.63 % 10.61 % 7.86 % ▪ Year-to-date net income before preferred dividends of $3
Slide 15: CIT Merger Update
CIT Merger Update + North Carolina Commissioner of Banks and Federal Deposit Insurance Corporation have approved. + Awaiting approval from the Board of Governors of the Federal Reserve System (“FRB”). * Closing is expected in the third quarter, subject to the above approval and the satisfaction or w
Slide 16: Appendix
Appendix FirstCitizens BancShares F
Slide 17: Paycheck Protection Program
17 Paycheck Protection Program Financial Highlights ($ in thousands) Round 1 & 2 Highlights ▪ The first round of the SBA-PPP loan program provided loans Round 1 Round 2 Total totaling $3.2 billion to approximately 23,000 customers. Loan balance net of fees $ 525,301 $ 1,173,115 $ 1,698,416 ▪ The int
Slide 18: Reconciliation of GAAP to Non-GAAP Measures
18 Reconciliation of GAAP to Non-GAAP Measures Quarter-to-Date INCOME STATEMENT DATA June 30, March 31, December 31, September 30, June 30, In thousands 2021 2021 2020 2020 2020 Pre-Provision Net Revenue Income before income taxes $ 198,568 $ 191,349 $ 174,705 $ 178,527 $ 190,565 Provision for credi
Slide 19: Reconciliation of GAAP to Non-GAAP Measures
19 Reconciliation of GAAP to Non-GAAP Measures Quarter-to-Date INCOME STATEMENT DATA June 30, March 31, December 31, September 30, June 30, In thousands 2021 2021 2020 2020 2020 Adjusted Noninterest Income Total noninterest income $ 134,150 $ 136,649 $ 126,765 $ 120,572 $ 165,402 Less: Securities ga
Slide 20: Reconciliation of GAAP to Non-GAAP Measures
20 Reconciliation of GAAP to Non-GAAP Measures BALANCE SHEET DATA June 30, March 31, December 31, September 30, June 30, In millions 2021 2021 2020 2020 2020 SBA-PPP Impact on Loans and Deposits Total loans $ 32,690 $ 33,181 $ 32,792 $ 32,845 $ 32,418 SBA-PPP loans 1,698 2,770 2,406 3,113 3,084 Loan
Slide 21: Reconciliation of GAAP to Non-GAAP Measures
21 Reconciliation of GAAP to Non-GAAP Measures BALANCE SHEET DATA June 30, March 31, December 31, September 30, June 30, In millions 2021 2021 2020 2020 2020 Common Equity and Tangible Common Equity Shareholders' equity $ 4,476 $ 4,322 $ 4,229 $ 4,074 $ 3,991 Preferred stock (340) (340) (340) (340)
Slide 22: Reconciliation of GAAP to Non-GAAP Measures
22 Reconciliation of GAAP to Non-GAAP Measures PER SHARE DATA June 30, March 31, December 31, September 30, June 30, In thousands (excl. per share data) 2021 2021 2020 2020 2020 Book Value Per Share Total shareholders' equity $ 4,476,490 $ 4,321,400 $ 4,229,268 $ 4,074,415 $ 3,991,444 Preferred stoc
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