First Citizens Bancshares, Inc. · NASDAQ:FCNCA
First Citizens Bancshares — IPO Roadshow (March 2020)
25 slides from First Citizens Bancshares's IPO roadshow presentation, Mar 4, 2020
Slide 1: Preferred Stock Offering Presentation March 2020
Preferred StockOffering Presentation March 2020
Slide 2: Forward Looking Statements
Forward Looking Statements This presentation may contain forward-looking statements with respect to First Citizens BancShares, Inc.’s (the “Corporation”) financial condition, results of operations and business within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of
Slide 3: Offering Disclaimer
Offering Disclaimer We have filed a registration statement (including a prospectus) (File No. 333-236647) and a preliminary prospectus supplement with the SEC for the offering to which this presentation relates. Before you invest, you should read the prospectus in that registration statement, the pr
Slide 4: Terms of the Proposed Preferred Stock Offering
Terms of the Proposed Preferred Stock Offering First Citizens BancShares, Inc. Issuer (Depositary Shares 1/40) Non-Cumulative Perpetual Preferred, Series A Security $150 million Amount Fixed Rate Structure Nasdaq (pending) Listing 5 Years Call Date Piper Sandler, Raymond James, UBS Book-Running Mana
Slide 5: A Top Tier U.S. Banking Institution
A Top Tier U.S. Banking InstitutionPurposefully Devoted to Better Banking that Helps People Live Better Lives Since 1898 $39.8B Assets $28.9B Total Loans & Leases $34.4B Deposits 1.23% ROAA 12.9% / 14.2% ROAE / ROATCE1 27bps Cost of Deposits 10.9% CET1 Ratio Well-established with +100 years of opera
Slide 6: Key Investment Highlights
Key Investment Highlights Source: Company documents Over 122 years of successful operating history spanning various economic cyclesHigh quality balance sheet with an excellent liquidity positionStrong, low-cost core deposit base with a concentration in high-growth Southeast markets, supplemented wit
Slide 7: Our Financial True North = forever first
Our Financial True North = forever firstLong-term Focus Growing Tangible Book Value Through a Unified Organizational Effort Our PeopleRetain, Recruit & DevelopOur Employees Our CustomersGrow Deposits and Enhance the Experience Our OperationsPurge Inefficiencies and Drive Collaboration Strategies to
Slide 8: We Operate in Some of the Best U.S. Markets
We Operate in Some of the Best U.S. MarketsOur Top 10 Markets Raleigh,NC Deposits in Market In-Market Deposit Rank Note: Deposits in market as of June 30, 2019 as compiled and reported by S&P Global Market IntelligenceSource: FDIC; S&P Global Market Intelligence $3.4B #4 Charlotte,NC $2.7B #5 Columb
Slide 9: Strong and Experienced Management Team
Strong and Experienced Management Team Mr. Frank Brown Holding, Jr. has been Chairman since February 2009 and Chief Executive Officer since January 2008. He previously served as Chief Executive Officer of former subsidiary, IronStone Bank, from February 2009 to January 2011, and President of First C
Slide 10: History of Profitability and Sound Risk Management
History of Profitability and Sound Risk ManagementWe Have Stayed Committed to Continuous Improvement in the Bottom Line Note: Financial data as of December 31, 2019Source: Company documents; S&P Global Market Intelligence
Slide 11: Stable Portfolio of Low Cost Deposits
Stable Portfolio of Low Cost DepositsOur Primary Funding Base is Well Positioned in Any Rate Environment Note: Financial data as of December 31, 2019Source: Company documents; S&P Global Market Intelligence 2014 2015 2016 2017 2018 2019 155bps 27bps 6bps 10bps
Slide 12: Diversified Loan Portfolio with Strong Asset Quality
Diversified Loan Portfolio with Strong Asset Quality Nonperforming assets is defined as nonaccrual loans plus other real estate owned; 2) Shown as a percent of loans with a maturity greater than one yearNote: Financial data as of December 31, 2019; Concentration shown as a percent of Total RBC; Fixe
Slide 13: Historical Credit Quality Trends
Historical Credit Quality TrendsMaintaining Solid Risk Management and Consistent Profitability Nonperforming assets is defined as nonaccrual loans plus other real estate owned Note: Financial data as of December 31, 2019; U.S. Banks reflects all depositories headquartered in the U.S. as aggregated a
Slide 14: Wealth Management Consistent Sources of Fee Income
Wealth Management Consistent Sources of Fee Income See appendix for reconciliation of GAAP to Non-GAAP financial metricsNote: Financial data as of December 31, 2019; Other includes ATM Income, Gain / (loss) on securities, and other sources of fee incomeSource: Company documents; S&P Global Market In
Slide 15: Extensive and Diligent M&A Experience Helps Supplement Organic Growth
Extensive and Diligent M&A Experience Helps Supplement Organic Growth Note: Financial data as of December 31, 2019; Growth values reflect the Q4 of previous decade (i.e. ’90 – ’99 reflects the growth from Q4 ‘89 to Q4’99); Deposits from FDIC transactions reflect the amount of deposits assumedSource:
Slide 16: Our Operating Strategy Has Resulted in Our Market Success
Our Operating Strategy Has Resulted in Our Market Success Key Drivers of Our Success Historical Stock Compounded Annual Growth Rate Ability to View Returns Over a Long Term TimelineLow-cost, Stable Deposit BaseStrong Capital Base to Support GrowthThoughtful Acquisition StrategyExperienced Management
Slide 17: Regulatory Capital Trends
Regulatory Capital TrendsHistorical and Pro Forma Capital for Subordinated Notes and Proposed Preferred Stock Issuances Note: See page 19 for detailed assumptions on issuance amount, illustrative terms and risk weighting; Financial data as of December 31, 2019Source: S&P Global Market Intelligence T
Slide 18: Capital Structure and Liquidity
18 Capital Structure and Liquidity 1)Illustrative and pro forma for the recently closed Subordinated Notes offering and the proposed issuance of depositary shares representing fractional interests in non-cumulative perpetual preferred stock Note: See page 19 for detailed assumptions on issuance amou
Slide 19: Illustrative Impact of the Subordinated Notes and Proposed Preferred Stock Issuance
19 Illustrative Impact of the Subordinated Notes and Proposed Preferred Stock IssuanceDouble Leverage and Interest CoveragePro Forma Actual Illustrative Offering Adjustments For Offerings 12/31/2019 Subordinated Debt¹ Preferred Stock 12/31/2019 Common Equity Tier 1 Capital Ratio 10.86% 10.80% 10.83%
Slide 20: Appendix
Appendix First Citizens BancShares a
Slide 21: Historical Financial Highlights
Historical Financial Highlights Note: Nonperforming assets (NPAs) is defined as nonaccrual loans plus other real estate ownedSource: Company documents; S&P Global Market Intelligence
Slide 22: Credit Ratings Summary
Credit Ratings Summary Source: Company documents First Citizens BancShares, Inc. Issuer Baa1 (Stable) Subordinated Debt Baa3 (Stable) Preferred Stock
Slide 23: Overview of the Securities Portfolio
Overview of the Securities Portfolio Source: Company documents Total Securities Portfolio:$7.1B Approximately $376.7 million of cash and equivalents as of December 31, 2019Approximately $7.1 billion in securities, primarily concentrated in government securitiesWeighted average yield of 2.37%Average
Slide 24: Current Interest Rate Risk Position
Current Interest Rate Risk PositionChange in Net Interest Income and Economic Value of Equity versus Change in Interest Rates Source: Company documents
Slide 25: GAAP To Non GAAP Reconciliation
GAAP To Non GAAP Reconciliation($000s) Source: Company documents
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