First Citizens Bancshares, Inc. · NASDAQ:FCNCA
First Citizens Bancshares — Q1 2021 Earnings Presentation
23 slides from First Citizens Bancshares's earnings presentation, Apr 28, 2021
Slide 1: First Quarter 2021 Earnings Conference Call
First Citizens BancShares First Quarter 2021 Earnings Conference Call April 28, 2021
Slide 2: Forward Looking Statements
2 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 BancShares, Inc. ("Banc
Slide 3: Update on CIT Group Merger
3 Update on CIT Group Merger 1Q21 Accomplishments ▪ The core merger and integration management team continue to meet regularly to guide organizational design and oversee integration planning. ▪ Technology and Business Unit Integration plans are finalized. ▪ Received regulatory approval from the Nort
Slide 4: Earnings Highlights
4 Earnings Highlights Change vs. Highlights 4Q20 1Q20 $ in thousands 1Q21 4Q20 1Q20 $ % $ % Current Quarter vs. Linked Quarter ▪ Pre-provision net revenue was relatively flat as Net interest income $339,652 $358,716 $338,400 $ (19,064) (5.3)% $ 1,252 0.4 % noninterest income grew and expense decline
Slide 5: Quarterly Net Interest Income and Margin Trends
Quarterly Net Interest Income and Margin Trends 5 Net Interest Income & Margin (1) Highlights Current Quarter vs. Linked Quarter $500,000 3.55% 4.00% 3.14% • Net interest income (1) decreased $19.1 million, or 3.06% 3.02% by 5.3%. 2.80% 3.00% $400,000 • Decrease primarily due to a $21.7 million decl
Slide 6: Net Interest Margin Rollforward - Drivers of Margin Compression
Net Interest Margin Rollforward - Drivers of Margin Compression 6 NIM Rollforwards Highlights 4Q20 to 1Q21 Current Quarter vs. Linked Quarter ▪ 22 bps decline comprised of: ▪ ~ (10) bps related to earning asset mix; 3.02% ▪ ~ (7) bps related to SBA-PPP yield; +2 bps 2.80% ▪ ~ (7) bps related to loan
Slide 7: Noninterest Income
7 Noninterest Income Noninterest Income Trends Excluding Non-Core Highlights Summary ($ in millions) (1) Activity ($ in 000) Current Quarter vs. Linked Quarter $165 Noninterest income increased by $9.9 million primarily due to: $22 ▪ $4.6 million increase in wealth management services driven by $137
Slide 8: Noninterest Expense
8 Noninterest Expense Noninterest Income Trends Excluding Non-Core Highlights Summary ($ in millions) (1) Activity ($ in 000) $305 Current Quarter vs. Linked Quarter $300 $296 $292 $292 $9 Noninterest expense decreased by $9.4 million primarily due to: $8 $10 $8 $7 ▪ $9.8 million decrease in other e
Slide 9: Balance Sheet Highlights & Key Financial Ratios
9 Balance Sheet Highlights & Key Financial Ratios Change vs. Highlights $ in millions 1Q21 4Q20 1Q20 4Q20 1Q20 1Q21 vs 4Q20 Assets Cash and due from banks $ 410 $ 362 $ 454 $ 48 $ (44) ▪ Overnight investments increased $3.2 billion funded Overnight investments 7,589 4,347 689 3,242 6,900 primarily b
Slide 10: Loans and Leases
10 Loans and Leases Loan Composition ($ in millions) Highlights $32,845 $32,792 $33,181 $33,000 $32,418 Year to Date Annualized and Year over Year Growth 7.3% $2,770 8.4% $3,113 9.5% $2,406 Total Loans 1Q21 vs. 4Q20: 4.8% $3,084 9.5% $30,000 $29,241 $463 1.4% $433 1.3% $531 1.6% $496 1.5% $560 1.9%
Slide 11: Paycheck Protection Program
11 Paycheck Protection Program Financial Highlights ($ in 000) 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 $ 1,747,239 $ 1,022,667 $ 2,769,906 ▪ The interes
Slide 12: Quarterly Credit Quality Trends
12 Quarterly Credit Quality Trends Net Charge-Offs (NCO) & Ratio (1) Allowance & Allowance Ratio (1) $10,000 0.25% $250,000 3.00% $222,450 $223,936 $224,314 $7,506 $7,361 0.20% $225,000 $7,500 $209,259 $210,651 $23,987 $ in thousands $ in thousands $26,928 $25,127 2.00% 0.15% $200,000 $22,935 $5,025
Slide 13: Allowance for Credit Losses (ACL)
13 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 (7,800) (763) (8,563) ▪ Net charge-offs are near historic lows at 4 bps,
Slide 14: Deposits
14 Deposits Deposit Composition ($ in millions) Highlights $50,000 Year to Date Annualized and Year over Year Growth $47,331 $2,729 5.8% Total Deposits 1Q21 vs. 4Q20: 36.4% $43,432 $42,251 $41,479 Adjusted Deposits(1) 1Q21 vs. 4Q20: 32.9% $2,889 6.6% Total Deposits 1Q21 vs. 1Q20: 33.9% $3,140 7.4% $
Slide 15: Funding Mix
15 Funding Mix Summary ($ in millions) Change vs. 1Q21 4Q20 3Q20 2Q20 1Q20 4Q20 1Q20 Total deposits $ 47,331 96.1 % $ 43,432 95.8 % $ 42,251 95.6 % $ 41,479 95.4 % $ 35,347 94.8 % $ 3,899 $ 11,984 Securities sold under customer repurchase agreements 681 1.4 641 1.4 694 1.6 740 1.7 540 1.4 40 141 FHL
Slide 16: Capital Ratios
16 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 Ne
Slide 17: Looking Ahead - Outlook for Remainder of 2021
17 Looking Ahead - Outlook for Remainder of 2021 Highlights Commentary ▪ Net interest margin is expected to remain a headwind primarily due to lower earning asset yield driven by excess liquidity on the balance sheet. ▪ We expect nominal improvements in the yield on new and maturing loans due to inc
Slide 18: Appendix
Appendix FirstCitizens BancShares F
Slide 19: Reconciliation of GAAP to Non-GAAP Measures
19 Reconciliation of GAAP to Non-GAAP Measures Quarter-to-Date INCOME STATEMENT DATA March 31, December 31, September 30, June 30, March 31, In thousands 2021 2020 2020 2020 2020 Pre-Provision Net Revenue Income before income taxes $ 191,349 $ 174,705 $ 178,527 $ 190,565 $ 74,085 Provision for credi
Slide 20: Reconciliation of GAAP to Non-GAAP Measures
20 Reconciliation of GAAP to Non-GAAP Measures Quarter-to-Date INCOME STATEMENT DATA March 31, December 31, September 30, June 30, March 31, In thousands 2021 2020 2020 2020 2020 Adjusted Noninterest Income Total noninterest income $ 136,649 $ 126,765 $ 120,572 $ 165,402 $ 64,011 Less: Securities ga
Slide 21: Reconciliation of GAAP to Non-GAAP Measures
21 Reconciliation of GAAP to Non-GAAP Measures BALANCE SHEET DATA March 31, December 31, September 30, June 30, March 31, In millions 2021 2020 2020 2020 2020 SBA-PPP Impact on Loans and Deposits Total loans $ 33,181 $ 32,792 $ 32,845 $ 32,418 $ 29,241 SBA-PPP loans 2,770 2,406 3,113 3,084 — Loans e
Slide 22: Reconciliation of GAAP to Non-GAAP Measures
22 Reconciliation of GAAP to Non-GAAP Measures BALANCE SHEET DATA March 31, December 31, September 30, June 30, March 31, In millions 2021 2020 2020 2020 2020 Tangible Assets Total assets $ 53,909 $ 49,958 $ 48,667 $ 47,866 $ 41,594 Goodwill (350) (350) (350) (350) (350) Core deposit and other intan
Slide 23: Reconciliation of GAAP to Non-GAAP Measures
23 Reconciliation of GAAP to Non-GAAP Measures PER SHARE DATA March 31, December 31, September 30, June 30, March 31, In Thousands 2021 2020 2020 2020 2020 Book Value Per Share Total shareholders' equity $ 4,321,400 4,229,268 4,074,415 3,991,444 3,957,520 Preferred stock (339,937) (339,937) (339,937
First Citizens BancShares — Q1 2021 Earnings Presentation on 6ix