First Citizens Bancshares, Inc. · NASDAQ:FCNCA
First Citizens Bancshares — Q4 2021 Earnings Presentation
28 slides from First Citizens Bancshares's earnings presentation, Jan 26, 2022
Slide 1: Fourth Quarter 2021 Earnings Conference Call
First Citizens BancShares Fourth Quarter 2021 Earnings Conference Call January 26, 2022
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: Completed Merger with CIT Group, Inc.
3 Completed Merger with CIT Group, Inc. Washington A Nationwide First Citizens (529) Franchise with: 600+ branches in CIT Group (80) Wisconsin 22 states Oregon Nebraska Nevada West Maryland Kansas Virginia Colorado Missouri California Virginia Oklahoma Tennessee North Arizona New Carolina Mexico Geo
Slide 4: A purpose-driven bank: Forever First
4 We are a purpose-driven bank that always puts its customers first as epitomized by our motto, Forever First® We've built a track record of service, stability and reliability Forever First® means remembering and never compromise the security that banking is about people first of our customers’ asse
Slide 5: First Citizens Bank forever first
ea First Citizens Bank forever first cy Better banking. Better tomorrows. Long-Term Thinking Service Excellence Powerful Results We build relationships that last We're dedicated to helping the From our customers to our with deeper learning and more people, companies and institutions associates to ou
Slide 6: Quarterly Earnings Highlights
6 Quarterly Earnings Highlights Increase (Decrease) Highlights 3Q21 4Q20 $ in thousands 4Q21 3Q21 4Q20 $ % $ % 4Q21 vs. 3Q21 Net interest income $357,402 $346,887 $358,716 $ 10,515 3.0% $ (1,314) (0.4)% ▪ Net income available to common shareholders totaled Noninterest income 114,259 122,944 126,765
Slide 7: Full Year Earnings Highlights
7 Full Year Earnings Highlights Increase (Decrease) Highlights $ in thousands 2021 2020 $ % Net interest income $ 1,390,334 $ 1,388,169 $ 2,165 0.2 % ▪ Net income available to common shareholders totaled $528.9 Noninterest income 508,002 476,750 31,252 6.6 million or $53.88 per share in 2021 compare
Slide 8: Quarterly Net Interest Income and Margin Trends
Quarterly Net Interest Income and Margin (TE) (1) Trends 8 Net Interest Income & Margin (TE) (1) $500,000 4.00% 3.02% 2.80% 2.68% 2.61% 2.58% 3.00% $400,000 $359,370 $357,950 $340,271 $347,035 $347,451 $11,720 $9,820 2.00% $10,864 $12,797 $10,797 $300,000 $347,650 $334,238 $336,654 $348,130 1.00% $3
Slide 9: Net Interest Margin Rollforward - Drivers of Margin Compression
Net Interest Margin (TE) (1) Rollforward - Drivers of Margin Compression 9 NIM Rollforwards 3Q21 to 4Q21 2.61% +7 bps 2.58% (8) bps (2) bps 3Q21 Earning Asset Mix Investment Yield SBA-PPP 4Q21 4Q20 to 4Q21 3.02% +4 bps 2.58% +3 bps (42) bps +1 bps (8) bps (2) bps 4Q20 Earning Asset Mix Loan Yield SB
Slide 10: Average Balance and Yield Analysis
Quarterly Average Balances and Yields (TE) (1) 10 Average Balance and Yield (TE) Analysis ($ in thousands) (1) Change vs 4Q21 3Q21 4Q20 3Q21 4Q20 Income/ Yield/ Income/ Yield/ Income/ Yield/ Avg. Income/ Yield/ Avg. Income/ Yield/ Avg. Balance Expense (1) Rate Avg. Balance Expense (1) Rate Avg. Bala
Slide 11: Noninterest Income
11 Noninterest Income Noninterest Income Trends Excluding Non-Core Highlights Summary ($ in millions) (1) Activity ($ in 000) 4Q21 vs. 3Q21 $137 $134 Noninterest income decreased by $8.7 million primarily due to the $127 following: $123 ▪ $8.1 million decrease in other income (non-core) (1) due to l
Slide 12: Noninterest Expense
12 Noninterest Expense Noninterest Income Trends Excluding Non-Core Highlights Summary ($ in millions) (1) Activity ($ in 000) $323 4Q21 vs. 3Q21 $313 $305 $302 $12 Noninterest expense increased by $10.4 million primarily due to the $296 $10 $9 $9 following: $10 $51 $58 ▪ $6.8 million increase in ot
Slide 13: Balance Sheet Highlights & Key Financial Ratios
13 Balance Sheet Highlights & Key Financial Ratios ($ in millions, except per share amounts) Change vs. Highlights 4Q21 3Q21 4Q20 3Q21 4Q20 4Q21 vs 3Q21 Assets ▪ Investment securities increased $2.2 billion due to the Cash and due from banks $ 338 $ 337 $ 362 $ 1 $ (24) purchasing of US Treasuries t
Slide 14: Loans and Leases
14 Loans and Leases Loan Composition ($ in millions) Highlights $35,000 $33,181 Quarter to Date Annualized and Year over Year Growth $32,792 $32,690 $32,516 $32,372 3.3% $494 1.5% 4Q21 vs. 3Q21: $2,406 7.3% $2,770 8.3% $1,698 5.2% $1,087 $338 1.1% $397 1.2% $373 1.2% $30,000 $463 1.4% $433 1.3% Tota
Slide 15: Quarterly Credit Quality Trends
15 Quarterly Credit Quality Trends Net Charge-Offs (NCO) & Ratio (1) Allowance & Allowance Ratio (1) $7,500 $250,000 4.00% 0.15% $224,314 $5,025 $4,781 $225,000 $5,000 $210,651 3.00% $23,987 $ in thousands $ in thousands 0.10% $2,689 $200,000 $22,935 $189,094 0.07% $200,327 $183,194 $2,500 $1,954 0.
Slide 16: Annual Credit Quality Trends
16 Annual Credit Quality Trends Net Charge-Offs (NCO) & Ratio (1) Allowance & Allowance Ratio (1) $35,000 0.25% $250,000 5.00% $30,012 $225,141 $224,314 $221,893 $223,712 $28,000 $26,648 0.20% $225,000 4.00% $9,144 $7,536 $10,026 $ in thousands $22,594 $22,448 $217,605 $23,987 $ in thousands $211,86
Slide 17: Allowance for Credit Losses
17 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 (33,105) (2,317) (35,422) ▪ Net charge-off ratio is near historic lows at
Slide 18: Deposits
18 Deposits Deposit Composition ($ in millions) Highlights $55,000 Quarter to Date Annualized and Year over Year Growth $51,406 $50,065 $50,000 $48,411 $2,481 4.8% 4Q21 vs. 3Q21: Total Deposits 10.6% $47,331 $2,573 5.1% $2,621 5.4% Increase of $1.3 billion, or 10.6%, on an annualized $2,729 5.8% $45
Slide 19: Funding Mix
19 Funding Mix Summary ($ in millions) Change vs. 4Q21 3Q21 2Q21 1Q21 4Q20 3Q21 4Q20 Total deposits $ 51,406 96.6 % $ 50,065 96.4 % $ 48,411 96.2 % $ 47,331 96.1 % $ 43,432 95.8 % $ 1,341 $ 7,974 Securities sold under customer repurchase agreements 589 1.1 664 1.3 693 1.4 681 1.4 641 1.4 (75) (52) F
Slide 20: Capital Ratios
20 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 $5
Slide 21: Appendix
Appendix FirstCitizens BancShares F
Slide 22: CIT Group, Inc. Income Statement
22 CIT Group, Inc. (in millions, unaudited) Quarters Ended Years Ended Income Statement December 31, 2021 September 30, 2021 December 31, 2020 December 31, 2021 December 31, 2020 Interest income Interest and fees on loans $ 340.6 $ 341.9 $ 387.2 $ 1,402.2 $ 1,667.8 Other interest and dividends 21.8
Slide 23: CIT Group, Inc. Balance Sheet
23 CIT Group, Inc. (in millions, unaudited) Quarters Ended Balance Sheet December 31, 2021 September 30, 2021 December 31, 2020 Assets Total cash and interest bearing cash $ 3,016.1 $ 4,598.5 $ 4,011.7 Securities purchased under agreement to resell 0 100.0 150.0 Investment securities 6,813.7 5,775.2
Slide 24: Reconciliation of GAAP to Non-GAAP Measures
24 Reconciliation of GAAP to Non-GAAP Measures Quarter-to-Date Year-to-Date INCOME STATEMENT DATA December 31, September 30, June 30, March 31, December 31, December 31, December 31, In thousands 2021 2021 2021 2021 2020 2021 2020 Pre-Provision Net Revenue Income before income taxes $ 153,611 $ 158,
Slide 25: Reconciliation of GAAP to Non-GAAP Measures
25 Reconciliation of GAAP to Non-GAAP Measures Quarter-to-Date Year-to-Date INCOME STATEMENT DATA December 31, September 30, June 30, March 31, December 31, December 31, December 31, In thousands 2021 2021 2021 2021 2020 2021 2020 Adjusted Noninterest Income Total noninterest income $ 114,259 $ 122,
Slide 26: Reconciliation of GAAP to Non-GAAP Measures
26 Reconciliation of GAAP to Non-GAAP Measures Quarter-to-Date Year-to-Date BALANCE SHEET DATA December 31, September 30, June 30, March 31, December 31, December 31, December 31, In millions 2021 2021 2021 2021 2020 2021 2020 SBA-PPP Impact on Loans and Deposits Total loans $ 32,372 $ 32,516 $ 32,6
Slide 27: Reconciliation of GAAP to Non-GAAP Measures
27 Reconciliation of GAAP to Non-GAAP Measures Quarter-to-Date Year-to-Date BALANCE SHEET DATA December 31, September 30, June 30, March 31, December 31, December 31, December 31, In millions 2021 2021 2021 2021 2020 2021 2020 Common Equity and Tangible Common Equity Shareholders' equity $ 4,737 $ 4
Slide 28: Reconciliation of GAAP to Non-GAAP Measures
28 Reconciliation of GAAP to Non-GAAP Measures PER SHARE DATA December 31, September 30, June 30, March 31, December 31, In thousands (excl. per share data) 2021 2021 2021 2021 2020 Book Value Per Share Total shareholders' equity $ 4,737,241 $ 4,581,295 $ 4,476,490 $ 4,321,400 $ 4,229,268 Less: Pref
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