First Citizens Bancshares, Inc. · NASDAQ:FCNCA
First Citizens Bancshares — Q3 2021 Earnings Presentation
21 slides from First Citizens Bancshares's earnings presentation, Oct 27, 2021
Slide 1: First Citizens BancShares Third Quarter 2021 Earnings Conference Call
First Citizens BancShares Third Quarter 2021 Earnings Conference Call October 27, 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 BancShares. Words such
Slide 3: 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”). Timing • Both parties have responded to all questions issued by the Staff of the FRB, and the Staff
Slide 4: Earnings Highlights
4 Earnings Highlights Increase (Decrease) Highlights 2Q21 3Q20 $ in thousands 3Q21 2Q21 3Q20 $ % $ % 3Q21 vs. 2Q21 Net interest income $346,887 $346.393 $353.659 $ 494 0.1 % $ (6,772) (1.9)% ▪ Net income available to common shareholders totaled Noninterest income 122,944 134,150 120,572 (11,206) (8.
Slide 5: Quarterly Net Interest Income and Margin (TE) Trends
Quarterly Net Interest Income and Margin (TE) (1) Trends 5 Net Interest Income & Margin (TE) (1) Highlights $500,000 4.00% 3Q21 vs. 2Q21 3.06% 3.02% ▪ Net interest income (TE)(1) increased 2.80% 2.68% 2.61% 3.00% $0.4 million, or by 0.1%. $400,000 $354,256 $359,370 ▪ Increase primarily due to higher
Slide 6: Net Interest Margin (TE) Rollforward - Drivers of Margin Compression
Net Interest Margin (TE) Rollforward - Drivers of Margin Compression 6 NIM Rollforwards 3Q21 to 2Q21 2.68% +3 bps 2.61% +1 bps (8) bps (2) bps (1) bps 2Q21 Earning Asset Mix Loan Yield SBA-PPP Deposit Costs Investment Yield 3Q21 3.06% 3Q21 to 3Q20 +6 bps 2.61% (40) bps +5 bps +1 bps (16) bps (1) bps
Slide 7: Noninterest Income
7 Noninterest Income Noninterest Income Trends Excluding Non-Core Highlights Summary ($ in millions) (1) Activity ($ in 000) 3Q21 vs. 2Q21 $137 $134 Noninterest income decreased by $11.2 million primarily due to the $127 following: $121 $123 ▪ $16.1 million decrease in other income (non-core) due to
Slide 8: Noninterest Expense
8 Noninterest Expense Noninterest Income Trends Excluding Non-Core Highlights Summary ($ in millions) (1) Activity ($ in 000) $313 3Q21 vs. 2Q21 $305 $302 $292 $296 $10 Noninterest expense increased by $11.2 million primarily due to the $9 $9 $7 $10 following: $51 ▪ $4.2 million increase in personne
Slide 9: Balance Sheet Highlights & Key Financial Ratios
9 Balance Sheet Highlights & Key Financial Ratios ($ in millions, except Change vs. Highlights per share amounts) 3Q21 2Q21 3Q20 2Q21 3Q20 3Q21 vs 2Q21 Assets ▪ Overnight investments increased $2.0 billion, funded Cash and due from banks $ 337 $ 395 $ 352 $ (58) $ (15) primarily by continued growth
Slide 10: Loans and Leases
10 Loans and Leases Loan Composition ($ in millions) Highlights $35,000 $33,181 Quarter to Date Annualized and Year over Year Growth $32,845 $32,792 $32,690 $32,516 $2,770 8.3% $1,698 5.2% $1,087 3.3% Total Loans 3Q21 vs. 2Q21: (2.1)% $3,113 9.5% $2,406 7.3% $397 1.2% $373 1.2% $30,000 $463 1.4% $43
Slide 11: Quarterly Credit Quality Trends
11 Quarterly Credit Quality Trends Net Charge-Offs (NCO) & Ratio (1) Allowance & Allowance Ratio (1) $10,000 0.25% $250,000 4.00% $223,936 $224,314 0.20% $225,000 $7,500 $210,651 3.00% $23,987 $ in thousands $25,127 $ in thousands $200,000 $22,935 $189,094 0.15% $200,327 $5,025 $198,809 $183,194 $4,
Slide 12: Allowance for Credit Losses (ACL)
12 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 (25,146) (2,018) (27,164) ▪ Net charge-off ratio near historic lows at 6
Slide 13: Deposits
13 Deposits Deposit Composition ($ in millions) Highlights $55,000 Quarter to Date Annualized and Year over Year Growth $50,065 $50,000 $48,411 Total Deposits 3Q21 vs. 2Q21: 13.6% $47,331 $2,573 5.1% $2,621 5.4% Total Deposits 3Q21 vs. 3Q20: 18.5% $2,729 5.8% $45,000 $43,432 $42,251 $2,889 6.6% 3Q21
Slide 14: Funding Mix
14 Funding Mix Summary ($ in millions) Change vs. 3Q21 2Q21 1Q21 4Q20 3Q20 2Q21 3Q20 Total deposits $ 50,065 96.4 % $ 48,411 96.2 % $ 47,331 96.1 % $ 43,432 95.8 % $ 42,251 95.6 % $ 1,654 $ 7,814 Securities sold under customer repurchase agreements 664 1.3 693 1.4 681 1.4 641 1.4 694 1.6 (29) (30) F
Slide 15: Capital Ratios
15 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 $4
Slide 16: Paycheck Protection Program
16 Paycheck Protection Program Financial Highlights ($ in thousands) Round 1 & 2 Highlights ▪ The first round of the SBA-PPP loan program Round 1 Round 2 Total provided loans totaling $3.2 billion to approximately Loan balance, net of fees $ 78,039 $ 1,008,878 $ 1,086,917 23,000 customers. Originati
Slide 17: Reconciliation of GAAP to Non-GAAP Measures
17 Reconciliation of GAAP to Non-GAAP Measures Quarter-to-Date INCOME STATEMENT DATA September 30, June 30, March 31, December 31, September 30, In thousands 2021 2021 2021 2020 2020 Pre-Provision Net Revenue Income before income taxes $ 158,132 $ 198,568 $ 191,349 $ 174,705 $ 178,527 Less: Provisio
Slide 18: Reconciliation of GAAP to Non-GAAP Measures
18 Reconciliation of GAAP to Non-GAAP Measures Quarter-to-Date INCOME STATEMENT DATA September 30, June 30, March 31, December 31, September 30, In thousands 2021 2021 2021 2020 2020 Adjusted Noninterest Income Total noninterest income $ 122,944 $ 134,150 $ 136,649 $ 126,765 $ 120,572 Less: Securiti
Slide 19: Reconciliation of GAAP to Non-GAAP Measures
19 Reconciliation of GAAP to Non-GAAP Measures BALANCE SHEET DATA September 30, June 30, March 31, December 31, September 30, In millions 2021 2021 2021 2020 2020 SBA-PPP Impact on Loans and Deposits Total loans $ 32,516 $ 32,690 $ 33,181 $ 32,792 $ 32,845 Less: SBA-PPP loans 1,087 1,698 2,770 2,406
Slide 20: Reconciliation of GAAP to Non-GAAP Measures
20 Reconciliation of GAAP to Non-GAAP Measures BALANCE SHEET DATA September 30, June 30, March 31, December 31, September 30, In millions 2021 2021 2021 2020 2020 Common Equity and Tangible Common Equity Shareholders' equity $ 4,581 $ 4,476 $ 4,322 $ 4,229 $ 4,074 Preferred stock (340) (340) (340) (
Slide 21: Reconciliation of GAAP to Non-GAAP Measures
21 Reconciliation of GAAP to Non-GAAP Measures PER SHARE DATA September 30, June 30, March 31, December 31, September 30, In thousands (excl. per share data) 2021 2021 2021 2020 2020 Book Value Per Share Total shareholders' equity $ 4,581,295 $ 4,476,490 $ 4,321,400 $ 4,229,268 $ 4,074,415 Less: Pre
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