First Citizens BancShares Inc. (BancShares) (Nasdaq: FCNCA)
reported strong earnings for the year ended 2019, benefiting from
balance sheet growth leading to strong net interest income,
according to Frank B. Holding, Jr., Chairman of the Board. Key
results for the quarter and year ended December 31, 2019, are
presented below:
|
FOURTH QUARTER RESULTS |
| |
|
|
|
|
|
|
|
|
|
|
|
Q4 2019 |
Q4 2018 |
|
Q4 2019 |
Q4 2018 |
|
Q4 2019 |
Q4 2018 |
|
Q4 2019 |
Q4 2018 |
| Net income (in
millions) |
|
Net income per
share |
|
Return on average
assets |
|
Return on average
equity |
|
$101.9 |
$89.5 |
|
$9.55 |
$7.62 |
|
1.05% |
|
1.00% |
|
|
11.32% |
|
10.17% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
YEAR-TO-DATE (YTD) RESULTS |
|
|
|
|
|
|
|
|
|
|
|
|
|
YTD 2019 |
YTD 2018 |
|
YTD 2019 |
YTD 2018 |
|
YTD 2019 |
YTD 2018 |
|
YTD 2019 |
YTD 2018 |
| Net income (in
millions) |
|
Net income per
share |
|
Return on average
assets |
|
Return on average
equity |
|
$457.4 |
$400.3 |
|
$41.05 |
$33.53 |
|
1.23% |
|
1.15% |
|
|
12.88% |
|
11.69% |
|
|
FOURTH QUARTER HIGHLIGHTS |
| |
|
|
Net income |
Net income for the
fourth quarter of 2019 totaled $101.9 million, an increase of $12.4
million, or 13.9% compared to the same quarter in 2018. Net income
per share increased $1.93, or 25.3%, to $9.55 in the fourth quarter
of 2019, from $7.62 per share during the same quarter in 2018.
Year-to-date net income was $457.4 million, an increase of $57.1
million, or 14.3% over 2018. |
| |
|
|
Return on average assets and equity |
Return on average
assets for the fourth quarter of 2019 was 1.05%, up 5 basis points
from the same quarter in 2018. Return on average equity for the
fourth quarter of 2019 was 11.32%, an improvement of 115 basis
points over the same period of 2018. |
| |
|
|
Net interest income and net interest margin |
BancShares reported
total net interest income of $327.1 million for the fourth quarter
of 2019, an increase of $6.2 million, or 1.9% compared to the same
quarter in 2018. The taxable-equivalent net interest margin (NIM)
was 3.62% for the fourth quarter of 2019, down 20 basis points from
3.82% during the same quarter in 2018. Year-to-date net interest
income was $1.31 billion, an increase of $102.5 million or 8.5%
over 2018. Year-to-date NIM was 3.77%, up 8 basis points from
2018. |
| |
|
|
Operating performance |
Noninterest income
totaled $104.4 million for the fourth quarter of 2019, compared to
$82.0 million for the same quarter of 2018, an increase of $22.4
million or 27.3%. Noninterest expense was $292.3 million for the
fourth quarter of 2019, compared to $275.4 million during the same
quarter of 2018, an increase of $16.9 million or 6.1%. |
| |
|
|
Loans and credit quality |
Total loans grew to
$28.88 billion, an increase of $3.36 billion, or 13.2% since
December 31, 2018. Excluding loan growth from acquisitions of $2.00
billion during 2019, loans grew $1.36 billion or 5.3%. The net
charge-off ratio was 0.14% for the fourth quarter of 2019, up from
0.11% for the same quarter in 2018. |
| |
|
|
Deposits |
Total deposits grew
to $34.43 billion, an increase of $3.76 billion, or 12.3% since
December 31, 2018. Excluding deposit growth from acquisitions of
$2.27 billion during 2019, deposits grew $1.49 billion or
4.8%. |
| |
|
|
Capital |
BancShares
repurchased 254,510 shares of its Class A common stock during the
fourth quarter of 2019 totaling approximately $125.0 million. At
December 31, 2019, BancShares remained well capitalized with a
total risk-based capital ratio of 12.1%, a Tier 1 risk-based
capital ratio and common equity Tier 1 ratio of 10.9%, and a
leverage ratio of 8.8%. |
| |
|
|
|
|
RECENT MERGER ACTIVITY
On December 31, 2019, BancShares’ bank
subsidiary First Citizens Bank & Trust Company (First Citizens
Bank) completed the merger of Franklin, North Carolina-based
Entegra Financial Corp. and its Bank subsidiary, Entegra Bank
(Entegra). Under the terms of the agreement, cash
consideration of $30.18 for each share of common stock was paid to
the shareholders of Entegra totaling approximately $222.8 million.
First Citizens Bank acquired $1.68 billion in
assets, $1.03 billion in loans and $1.33
billion in deposits. This impact includes approximately $110
million in loans and $180 million in deposits to be divested per
regulatory requirements during 2020.
On September 24, 2019, First Citizens Bank
entered into a definitive merger agreement for the acquisition of
Duluth, Georgia-based Community Financial and its bank subsidiary,
Gwinnett Community Bank. The agreement has been unanimously
approved by the boards of directors of both companies. Under the
terms of the agreement, cash consideration of $2.3 million will be
paid to the shareholders of Community Financial. The transaction is
anticipated to close during the first quarter of 2020, subject to
the satisfaction of customary closing conditions. As of September
30, 2019, Community Financial reported $223 million in assets, $145
million in loans and $211 million in deposits.
NET INTEREST INCOME
Net interest income for the fourth quarter of
2019 totaled $327.1 million, an increase of $6.2 million, or 1.9%,
compared to the fourth quarter of 2018. The taxable-equivalent NIM
was 3.62% during the fourth quarter of 2019, a decrease of 20 basis
points from 3.82% for the comparable quarter in the prior year. Net
interest income growth was largely due to an increase in interest
earned on loans of $20.3 million due primarily to loan volume,
partially offset by a $13.4 million increase in interest expense on
deposits. The primary drivers of the margin decline were a 25 basis
point increase in deposit rates, largely in time deposits and money
markets, and a 6 basis point decline in loan yields.
Net interest income for the twelve months ended
December 31, 2019, totaled $1.31 billion, an increase of $102.5
million, or 8.5%, compared to the same period of 2018. The
taxable-equivalent NIM was 3.77% for the twelve months ended
December 31, 2019, an increase of 8 basis points from 3.69% in
2018. The primary driver of the growth was an increase in interest
income on loans, partially offset by higher interest expense on
deposits. Interest and fees on loans grew $144.1 million due to a
rise in average loan balances and a 19 basis point increase in the
loan yield. This growth was partially offset by a $53.8 million
increase in interest expense on deposits due to a 27 basis point
increase in deposit rates, largely due to time deposits and money
markets, coupled with interest-bearing deposit balance growth.
PROVISION FOR LOAN AND LEASE LOSSES
BancShares recorded net provision expense of
$7.7 million and $31.4 million for the three and twelve month
periods ended December 31, 2019, respectively, as compared to $11.6
million and $28.5 million, respectively, for the same periods in
2018. The fluctuations in provision expense are primarily due to
differences in loan growth, portfolio composition and portfolio
credit quality. The net charge-off ratio was 0.14% and 0.11%,
respectively, for the three and twelve month periods ended December
31, 2019, compared to 0.11% for both the three and twelve month
periods ended December 31, 2018.
NONINTEREST INCOME
Noninterest income for the fourth quarter of
2019 totaled $104.4 million, an increase of $22.4 million, or 27.3%
compared to the fourth quarter of 2018. Noninterest income,
excluding gains on extinguishment of debt, realized gains on
available for sale securities sales and fair value adjustments on
marketable equity securities, was $97.0 million for three months
ended December 31, 2019, compared to $98.5 million for the same
period in 2018. The decrease was primarily driven by a decrease in
cardholder services income of $3.1 million, partially offset by an
increase in mortgage income of $1.6 million.
Noninterest income for the twelve months of 2019
totaled $415.9 million, an increase of $15.7 million, or 3.9%,
compared to 2018. Noninterest income, excluding gains on
extinguishment of debt, realized gains on available for sale
securities sales and fair value adjustments on marketable equity
securities, totaled $388.1 million for the year ended December 31,
2019, compared to $380.8 million for the same period in 2018. This
increase was driven primarily by a $4.7 million increase in
mortgage income, coupled with a $3.6 million increase in cardholder
services.
NONINTEREST EXPENSE
Noninterest expense totaled $292.3 million for
the fourth quarter of 2019, a $16.9 million, or 6.1% increase
compared to the same period in 2018. The increase was largely
driven by a $11.4 million increase in personnel-related expenses
primarily due to increased salaries and wages as a result of merit
increases and personnel additions from acquisitions and a $5.1
million increase in merger-related expenses. Partially offsetting
these increases were a $1.9 million decrease in collection and
foreclosure-related expenses and a $1.7 million decrease in
consulting expenses.
Noninterest expense totaled $1.10 billion for
the twelve months of 2019, a $26.8 million, or 2.5% increase
compared to 2018. The increase was largely driven by a $25.7
million increase in personnel-related expenses largely due to
increased salaries and wages as a result of merit increases and
increased headcount from acquisitions, a $9.4 million increase in
equipment expenses and a $10.7 million increase in merger-related
expenses due to recent acquisition activity. Partially offsetting
these increases were a $8.2 million reduction in FDIC insurance
expense as the large bank surcharge was eliminated in the fourth
quarter of 2018, a $4.6 million decrease in collection and
foreclosure-related expenses and a $4.1 million decline in other
expenses primarily driven by reduced legal fees.
INCOME TAXES
Income tax expense totaled $29.7 million and
$26.5 million for the fourth quarter of 2019 and 2018,
respectively, representing effective tax rates of 22.5% and 22.8%
for the respective periods.
Income tax expense totaled $134.7 million and
$103.3 million for the twelve months of 2019 and 2018,
respectively, representing effective tax rates of 22.7% and 20.5%
for the respective twelve month periods. The effective tax rate
increase in 2019 was primarily due to the 2018 recognition of a tax
benefit resulting from the Tax Act.
LOANS AND DEPOSITS
At December 31, 2019, loans totaled $28.88
billion, an increase of $3.36 billion since December 31, 2018. Of
this growth, $2.00 billion was related to acquisitions, which
included $1.03 billion from the acquisition of Entegra in the
fourth quarter of 2019. Excluding acquired loans, total loans
increased $1.36 billion since December 31, 2018, or by 5.3%.
At December 31, 2019, deposits totaled
$34.43 billion, an increase of $3.76 billion since December 31,
2018. Of this growth, $2.27 billion was related to acquisitions,
which included $1.33 billion from the acquisition of Entegra in the
fourth quarter of 2019. Excluding acquired deposits, total deposits
increased $1.49 billion since December 31, 2018, or by 4.8%.
ALLOWANCE FOR LOAN AND LEASE
LOSSES
The allowance for loan and lease losses was
$225.1 million at December 31, 2019, compared to $223.7
million at December 31, 2018. The allowance as a percentage of
total loans was 0.78% at December 31, 2019, compared to 0.88%
at December 31, 2018.
NONPERFORMING ASSETS
BancShares’ nonperforming assets, including
nonaccrual loans and other real estate owned, were $168.3 million,
or 0.58% of total loans and other real estate owned at
December 31, 2019, compared to $133.9 million or 0.52% at
December 31, 2018.
SHARES REPURCHASED
During the fourth quarter of 2019, BancShares
repurchased 254,510 shares of Class A common stock for $125.0
million at an average cost per share of $490.96. During the twelve
months of 2019, BancShares repurchased a total of 998,910 shares of
Class A common stock for $450.8 million at an average cost per
share of $451.33. During the three months ended December 31, 2018,
BancShares repurchased a total of 257,000 shares of Class A common
stock for $107.2 million at an average cost per share of $417.27.
During the twelve months ended December 31, 2018, BancShares
repurchased a total of 382,000 shares of Class A common stock for
$165.3 million at an average cost per share of $432.78. All Class A
common stock repurchases completed in 2019 and 2018 were
consummated under previously approved authorizations.
On October 29, 2019, the Board authorized share
repurchases of up to 500,000 of BancShares' Class A common stock
for the period November 1, 2019, through January 31, 2020. This
authority will supersede all previously approved authorities. Of
this authority, Bancshares has repurchased 108,410 shares as of
December 31, 2019.
ABOUT FIRST CITIZENS BANCSHARES
BancShares is the financial holding company for
Raleigh, North Carolina-headquartered First Citizens Bank. First
Citizens Bank provides a broad range of financial services to
individuals, businesses, professionals and the medical community
through branch offices in 19 states, including digital banking,
mobile banking, ATMs and telephone banking. As of December 31,
2019, BancShares had total assets of $39.82 billion.
For more information, visit First Citizens’ website at
firstcitizens.com. First Citizens Bank. Forever First®.
DISCLOSURES ABOUT FORWARD LOOKING
STATEMENTS
The discussions included in this Press Release
may contain forward-looking statements within the meaning of the
Private Securities Litigation Act of 1995, including Section 21E of
the Securities Exchange Act of 1934 and Section 27A of the
Securities Act of 1933. For the purposes of these discussions, any
statements that are not statements of historical fact may be deemed
to be forward-looking statements. Such statements are often
characterized by the use of qualifying words such as “expects,”
“anticipates,” “believes,” “estimates,” “plans,” “projects,” or
other statements concerning opinions or judgments of the Registrant
and its management about future events. Such statements involve
known and unknown risks, uncertainties and other factors that may
cause actual results to differ materially from those described in
the statements. The accuracy of such forward-looking statements
could be affected by factors beyond the Registrant’s control,
including, but not limited to, the financial success or changing
conditions or strategies of the Registrant’s customers or vendors,
fluctuations in interest rates, actions of government regulators,
the availability of capital and personnel, the delay in closing (or
failure to close) one or more of our previously announced
acquisition transaction(s), the failure to realize the anticipated
benefits of our previously announced acquisition transaction(s), or
general competitive, economic, political, and market conditions.
These forward-looking statements are made only as of the date of
this Press Release, and the Registrant undertakes no obligation to
revise or update these statements following the date of this Press
Release, except as may be required by law.
CONSOLIDATED FINANCIAL
HIGHLIGHTS
| (Dollars in thousands, except share data; unaudited) |
For the three months ended |
|
Twelve months ended December 31 |
|
|
December 31, 2019 |
|
September 30, 2019 |
|
December 31, 2018 |
|
2019 |
|
2018 |
| SUMMARY OF
OPERATIONS |
|
|
|
|
|
|
|
|
|
|
Interest income |
$ |
354,048 |
|
|
$ |
362,318 |
|
|
$ |
333,573 |
|
|
$ |
1,404,011 |
|
|
$ |
1,245,757 |
|
|
Interest expense |
26,924 |
|
|
25,893 |
|
|
12,691 |
|
|
92,642 |
|
|
36,857 |
|
|
Net interest income |
327,124 |
|
|
336,425 |
|
|
320,882 |
|
|
1,311,369 |
|
|
1,208,900 |
|
|
Provision for loan and lease losses |
7,727 |
|
|
6,766 |
|
|
11,585 |
|
|
31,441 |
|
|
28,468 |
|
|
Net interest income after provision for loan and lease losses |
319,397 |
|
|
329,659 |
|
|
309,297 |
|
|
1,279,928 |
|
|
1,180,432 |
|
|
Noninterest income |
104,393 |
|
|
100,930 |
|
|
82,007 |
|
|
415,861 |
|
|
400,149 |
|
|
Noninterest expense |
292,262 |
|
|
270,425 |
|
|
275,378 |
|
|
1,103,741 |
|
|
1,076,971 |
|
|
Income before income taxes |
131,528 |
|
|
160,164 |
|
|
115,926 |
|
|
592,048 |
|
|
503,610 |
|
|
Income taxes |
29,654 |
|
|
35,385 |
|
|
26,453 |
|
|
134,677 |
|
|
103,297 |
|
|
Net income |
$ |
101,874 |
|
|
$ |
124,779 |
|
|
$ |
89,473 |
|
|
$ |
457,371 |
|
|
$ |
400,313 |
|
|
Taxable-equivalent net interest income |
$ |
328,045 |
|
|
$ |
337,322 |
|
|
$ |
321,804 |
|
|
$ |
1,314,940 |
|
|
$ |
1,212,280 |
|
| PER SHARE
DATA |
|
|
|
|
|
|
|
|
|
|
Net income per share |
$ |
9.55 |
|
|
$ |
11.27 |
|
|
$ |
7.62 |
|
|
$ |
41.05 |
|
|
$ |
33.53 |
|
|
Cash dividends per share |
0.40 |
|
|
0.40 |
|
|
0.40 |
|
|
1.60 |
|
|
1.45 |
|
|
Book value at period-end |
337.38 |
|
|
327.86 |
|
|
300.04 |
|
|
337.38 |
|
|
300.04 |
|
| CONDENSED BALANCE
SHEET |
|
|
|
|
|
|
|
|
|
|
Cash and due from banks |
$ |
376,719 |
|
|
$ |
288,933 |
|
|
$ |
327,440 |
|
|
$ |
376,719 |
|
|
$ |
327,440 |
|
|
Overnight investments |
1,107,844 |
|
|
949,899 |
|
|
797,406 |
|
|
1,107,844 |
|
|
797,406 |
|
|
Investment securities |
7,173,003 |
|
|
7,167,680 |
|
|
6,834,362 |
|
|
7,173,003 |
|
|
6,834,362 |
|
|
Loans and leases |
28,881,496 |
|
|
27,196,511 |
|
|
25,523,276 |
|
|
28,881,496 |
|
|
25,523,276 |
|
|
Less allowance for loan and lease losses |
(225,141 |
) |
|
(226,825 |
) |
|
(223,712 |
) |
|
(225,141 |
) |
|
(223,712 |
) |
|
Other assets |
2,510,575 |
|
|
2,372,126 |
|
|
2,149,857 |
|
|
2,510,575 |
|
|
2,149,857 |
|
|
Total assets |
$ |
39,824,496 |
|
|
$ |
37,748,324 |
|
|
$ |
35,408,629 |
|
|
$ |
39,824,496 |
|
|
$ |
35,408,629 |
|
|
Deposits |
$ |
34,431,236 |
|
|
$ |
32,743,277 |
|
|
$ |
30,672,460 |
|
|
$ |
34,431,236 |
|
|
$ |
30,672,460 |
|
|
Other liabilities |
1,807,076 |
|
|
1,436,565 |
|
|
1,247,215 |
|
|
1,807,076 |
|
|
1,247,215 |
|
|
Shareholders’ equity |
3,586,184 |
|
|
3,568,482 |
|
|
3,488,954 |
|
|
3,586,184 |
|
|
3,488,954 |
|
|
Total liabilities and shareholders’ equity |
$ |
39,824,496 |
|
|
$ |
37,748,324 |
|
|
$ |
35,408,629 |
|
|
$ |
39,824,496 |
|
|
$ |
35,408,629 |
|
| SELECTED
PERIOD AVERAGE BALANCES |
|
|
|
|
|
|
|
|
|
Total assets |
$ |
38,326,641 |
|
|
$ |
37,618,836 |
|
|
$ |
35,625,500 |
|
|
$ |
37,161,719 |
|
|
$ |
34,879,912 |
|
|
Investment securities |
7,120,023 |
|
|
6,956,981 |
|
|
7,025,889 |
|
|
6,919,069 |
|
|
7,074,929 |
|
|
Loans and leases |
27,508,062 |
|
|
26,977,476 |
|
|
25,343,813 |
|
|
26,656,048 |
|
|
24,483,719 |
|
|
Interest-earning assets |
36,032,680 |
|
|
35,293,979 |
|
|
33,500,732 |
|
|
34,866,734 |
|
|
32,847,661 |
|
|
Deposits |
33,295,141 |
|
|
32,647,264 |
|
|
30,835,157 |
|
|
32,218,536 |
|
|
30,165,249 |
|
|
Interest-bearing liabilities |
20,958,943 |
|
|
20,551,393 |
|
|
19,282,749 |
|
|
20,394,815 |
|
|
18,995,727 |
|
|
Shareholders’ equity |
$ |
3,570,872 |
|
|
$ |
3,580,235 |
|
|
$ |
3,491,914 |
|
|
$ |
3,551,781 |
|
|
$ |
3,422,941 |
|
|
Shares outstanding |
10,708,084 |
|
|
11,060,462 |
|
|
11,763,832 |
|
|
11,141,069 |
|
|
11,938,439 |
|
| SELECTED
RATIOS |
|
|
|
|
|
|
|
|
|
|
Annualized return on average assets |
1.05 |
% |
|
1.32 |
% |
|
1.00 |
% |
|
1.23 |
% |
|
1.15 |
% |
|
Annualized return on average equity |
11.32 |
|
|
13.83 |
|
|
10.17 |
|
|
12.88 |
|
|
11.69 |
|
|
Taxable-equivalent net interest margin |
3.62 |
|
|
3.80 |
|
|
3.82 |
|
|
3.77 |
|
|
3.69 |
|
|
Efficiency ratio (1) |
68.9 |
|
|
61.9 |
|
|
65.7 |
|
|
64.9 |
|
|
67.7 |
|
|
Tier 1 risk-based capital ratio |
10.9 |
|
|
11.8 |
|
|
12.7 |
|
|
10.9 |
|
|
12.7 |
|
|
Common equity Tier 1 ratio |
10.9 |
|
|
11.8 |
|
|
12.7 |
|
|
10.9 |
|
|
12.7 |
|
|
Total risk-based capital ratio |
12.1 |
|
|
13.1 |
|
|
14.0 |
|
|
12.1 |
|
|
14.0 |
|
|
Leverage capital ratio |
8.8 |
|
|
9.2 |
|
|
9.8 |
|
|
8.8 |
|
|
9.8 |
|
|
(1) The efficiency ratio is a non-GAAP financial measure which
measures productivity and is generally calculated as noninterest
expense divided by total revenue (net interest income and
noninterest income). The efficiency ratio removes the impact of
BancShares’ securities gains, one-time gains on extinguishment of
debt, and fair market value adjustment on marketable equity
securities from the calculation. Management uses this ratio to
monitor performance and believes this measure provides meaningful
information to investors. |
ALLOWANCE FOR LOAN AND LEASE LOSSES AND
ASSET QUALITY DISCLOSURES
| |
Three months ended |
|
Twelve months ended December 31 |
|
(Dollars in thousands, unaudited) |
December 31, 2019 |
|
September 30, 2019 |
|
December 31, 2018 |
|
2019 |
|
2018 |
| ALLOWANCE
FOR LOAN AND LEASE LOSSES (ALLL) |
|
|
|
|
|
|
|
ALLL at beginning of period |
$ |
226,825 |
|
|
$ |
226,583 |
|
|
$ |
219,197 |
|
|
$ |
223,712 |
|
|
$ |
221,893 |
|
|
Provision (credit) expense for loan and lease losses: |
|
|
|
|
|
|
|
|
|
|
PCI loans (1) |
669 |
|
|
(1,476 |
) |
|
(1,765 |
) |
|
(1,608 |
) |
|
(765 |
) |
|
Non-PCI loans (1) |
7,058 |
|
|
8,242 |
|
|
13,350 |
|
|
33,049 |
|
|
29,232 |
|
|
Net charge-offs of loans and leases: |
|
|
|
|
|
|
|
|
|
|
Charge-offs |
(12,624 |
) |
|
(9,647 |
) |
|
(10,816 |
) |
|
(43,027 |
) |
|
(39,671 |
) |
|
Recoveries |
3,213 |
|
|
3,123 |
|
|
3,746 |
|
|
13,015 |
|
|
13,023 |
|
|
Net charge-offs of loans and leases |
(9,411 |
) |
|
(6,524 |
) |
|
(7,070 |
) |
|
(30,012 |
) |
|
(26,648 |
) |
|
ALLL at end of period |
$ |
225,141 |
|
|
$ |
226,825 |
|
|
$ |
223,712 |
|
|
$ |
225,141 |
|
|
$ |
223,712 |
|
|
ALLL at end of period allocated to loans and leases: |
|
|
|
|
|
|
|
|
|
|
PCI |
$ |
7,536 |
|
|
$ |
6,867 |
|
|
$ |
9,144 |
|
|
$ |
7,536 |
|
|
$ |
9,144 |
|
|
Non-PCI |
217,605 |
|
|
219,958 |
|
|
214,568 |
|
|
30,012 |
|
|
214,568 |
|
|
ALLL at end of period |
$ |
225,141 |
|
|
$ |
226,825 |
|
|
$ |
223,712 |
|
|
$ |
225,141 |
|
|
$ |
223,712 |
|
|
Reserve for unfunded commitments |
$ |
1,055 |
|
|
$ |
1,097 |
|
|
$ |
1,107 |
|
|
$ |
1,055 |
|
|
$ |
1,107 |
|
| SELECTED LOAN
DATA |
|
|
|
|
|
|
|
|
|
|
Average loans and leases: |
|
|
|
|
|
|
|
|
|
|
PCI |
$ |
495,783 |
|
|
$ |
530,390 |
|
|
$ |
616,664 |
|
|
$ |
537,131 |
|
|
$ |
671,128 |
|
|
Non-PCI |
26,937,524 |
|
|
26,379,156 |
|
|
24,727,149 |
|
|
26,058,370 |
|
|
23,812,591 |
|
|
Loans and leases at period-end: |
|
|
|
|
|
|
|
|
|
|
PCI |
558,716 |
|
|
513,589 |
|
|
606,576 |
|
|
558,716 |
|
|
606,576 |
|
|
Non-PCI |
28,322,780 |
|
|
26,682,922 |
|
|
24,916,700 |
|
|
28,322,780 |
|
|
24,916,700 |
|
| RISK
ELEMENTS |
|
|
|
|
|
|
|
|
|
|
Nonaccrual loans and leases |
$ |
121,689 |
|
|
$ |
109,645 |
|
|
$ |
85,822 |
|
|
$ |
121,689 |
|
|
$ |
85,822 |
|
|
Other real estate |
46,591 |
|
|
46,253 |
|
|
48,030 |
|
|
46,591 |
|
|
48,030 |
|
|
Total nonperforming assets |
$ |
168,280 |
|
|
$ |
155,898 |
|
|
$ |
133,852 |
|
|
$ |
168,280 |
|
|
$ |
133,852 |
|
|
Accruing loans and leases 90 days or more past due |
$ |
27,548 |
|
|
$ |
27,534 |
|
|
$ |
39,908 |
|
|
$ |
27,548 |
|
|
$ |
39,908 |
|
| RATIOS |
|
|
|
|
|
|
|
|
|
|
Net charge-offs (annualized) to average loans and leases |
0.14 |
|
|
0.10 |
|
|
0.11 |
|
|
0.11 |
|
|
0.11 |
|
|
ALLL to total loans and leases: |
|
|
|
|
|
|
|
|
|
|
PCI |
1.35 |
|
|
1.34 |
|
|
1.51 |
|
|
1.35 |
|
|
1.51 |
|
|
Non-PCI |
0.77 |
|
|
0.82 |
|
|
0.86 |
|
|
0.77 |
|
|
0.86 |
|
|
Total |
0.78 |
|
|
0.83 |
|
|
0.88 |
|
|
0.78 |
|
|
0.88 |
|
|
Ratio of total nonperforming assets to total loans, leases and
other real estate owned |
0.58 |
|
|
0.57 |
|
|
0.52 |
|
|
0.58 |
|
|
0.52 |
|
(1) Loans and leases are evaluated at
acquisition and where a discount is noted at least in part due to
credit quality, the loans are accounted for under the guidance in
ASC Topic 310-30, Loans and Debt Securities Acquired with
Deteriorated Credit Quality. Loans for which it is probable at
acquisition that all required payments will not be collected in
accordance with the contractual terms are considered purchased
credit-impaired (PCI) loans. PCI loans and leases are recorded at
fair value at the date of acquisition. No allowance for loan and
lease losses is recorded on the acquisition date as the fair value
of the acquired assets incorporates assumptions regarding credit
risk. An allowance is recorded if there is additional credit
deterioration after the acquisition date. Non-PCI loans include
originated and purchased non-impaired loans.
AVERAGE BALANCE AND NET INTEREST MARGIN
SUMMARY
| |
Three months ended |
|
| |
December 31, 2019 |
|
September 30, 2019 |
|
December 31, 2018 |
|
| |
Average |
|
|
|
Yield/ |
|
Average |
|
|
|
Yield/ |
|
Average |
|
|
|
Yield/ |
|
| (Dollars in thousands,
unaudited) |
Balance |
|
Interest |
|
Rate (2) |
|
Balance |
|
Interest |
|
Rate (2) |
|
Balance |
|
Interest |
|
Rate (2) |
|
| INTEREST-EARNING
ASSETS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans and leases (1) |
$ |
27,508,062 |
|
|
$ |
308,832 |
|
|
4.46 |
|
% |
$ |
26,977,476 |
|
|
$ |
315,621 |
|
|
4.65 |
|
% |
$ |
25,343,813 |
|
|
$ |
288,484 |
|
|
4.52 |
|
% |
| Investment securities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U. S. Treasury |
595,515 |
|
|
3,706 |
|
|
2.47 |
|
|
834,577 |
|
|
5,262 |
|
|
2.50 |
|
|
1,454,889 |
|
|
7,261 |
|
|
1.98 |
|
|
|
Government agency |
659,857 |
|
|
4,224 |
|
|
2.56 |
|
|
628,322 |
|
|
4,742 |
|
|
3.02 |
|
|
192,830 |
|
|
1,288 |
|
|
2.67 |
|
|
|
Mortgage-backed securities |
5,563,653 |
|
|
29,964 |
|
|
2.15 |
|
|
5,195,711 |
|
|
27,891 |
|
|
2.15 |
|
|
5,136,489 |
|
|
29,261 |
|
|
2.28 |
|
|
|
Corporate bonds |
172,424 |
|
|
2,165 |
|
|
5.02 |
|
|
149,888 |
|
|
1,912 |
|
|
5.10 |
|
|
135,962 |
|
|
1,810 |
|
|
5.32 |
|
|
|
Other investments |
128,574 |
|
|
653 |
|
|
2.02 |
|
|
148,483 |
|
|
636 |
|
|
1.70 |
|
|
105,719 |
|
|
326 |
|
|
1.22 |
|
|
| Total investment
securities |
7,120,023 |
|
|
40,712 |
|
|
2.29 |
|
|
6,956,981 |
|
|
40,443 |
|
|
2.32 |
|
|
7,025,889 |
|
|
39,946 |
|
|
2.27 |
|
|
| Overnight investments |
1,404,595 |
|
|
5,425 |
|
|
1.53 |
|
|
1,359,522 |
|
|
7,151 |
|
|
2.09 |
|
|
1,131,030 |
|
|
6,065 |
|
|
2.13 |
|
|
| Total interest-earning
assets |
$ |
36,032,680 |
|
|
$ |
354,969 |
|
|
3.92 |
|
% |
$ |
35,293,979 |
|
|
$ |
363,215 |
|
|
4.09 |
|
% |
$ |
33,500,732 |
|
|
$ |
334,495 |
|
|
3.97 |
|
% |
| INTEREST-BEARING
LIABILITIES |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Interest-bearing
deposits: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Checking with interest |
$ |
5,479,226 |
|
|
$ |
563 |
|
|
0.04 |
|
% |
$ |
5,328,855 |
|
|
$ |
500 |
|
|
0.04 |
|
% |
$ |
5,254,677 |
|
|
$ |
332 |
|
|
0.03 |
|
% |
|
Savings |
2,596,608 |
|
|
439 |
|
|
0.07 |
|
|
2,636,583 |
|
|
528 |
|
|
0.08 |
|
|
2,511,444 |
|
|
213 |
|
|
0.03 |
|
|
|
Money market accounts |
8,378,366 |
|
|
8,064 |
|
|
0.38 |
|
|
8,121,643 |
|
|
7,619 |
|
|
0.37 |
|
|
7,971,726 |
|
|
4,335 |
|
|
0.22 |
|
|
|
Time deposits |
3,513,432 |
|
|
13,367 |
|
|
1.51 |
|
|
3,523,658 |
|
|
13,090 |
|
|
1.47 |
|
|
2,599,498 |
|
|
4,179 |
|
|
0.64 |
|
|
| Total interest-bearing
deposits |
19,967,632 |
|
|
22,433 |
|
|
0.45 |
|
|
19,610,739 |
|
|
21,737 |
|
|
0.44 |
|
|
18,337,345 |
|
|
9,059 |
|
|
0.20 |
|
|
| Securities sold under customer
repurchase agreements |
495,804 |
|
|
479 |
|
|
0.38 |
|
|
533,371 |
|
|
542 |
|
|
0.40 |
|
|
572,442 |
|
|
419 |
|
|
0.29 |
|
|
| Other short-term
borrowings |
28,284 |
|
|
190 |
|
|
2.63 |
|
|
23,236 |
|
|
203 |
|
|
3.50 |
|
|
53,552 |
|
|
298 |
|
|
2.21 |
|
|
| Long-term borrowings |
467,223 |
|
|
3,822 |
|
|
3.20 |
|
|
384,047 |
|
|
3,411 |
|
|
3.51 |
|
|
319,410 |
|
|
2,915 |
|
|
3.58 |
|
|
| Total interest-bearing
liabilities |
$ |
20,958,943 |
|
|
$ |
26,924 |
|
|
0.51 |
|
|
$ |
20,551,393 |
|
|
$ |
25,893 |
|
|
0.50 |
|
|
$ |
19,282,749 |
|
|
$ |
12,691 |
|
|
0.26 |
|
|
| Interest rate spread |
|
|
|
|
3.41 |
|
% |
|
|
|
|
3.59 |
|
% |
|
|
|
|
3.71 |
|
% |
| Net interest income and net
yield on interest-earning assets |
|
|
$ |
328,045 |
|
|
3.62 |
|
% |
|
|
$ |
337,322 |
|
|
3.80 |
|
% |
|
|
$ |
321,804 |
|
|
3.82 |
|
% |
(1) Loans and leases include PCI and non-PCI
loans, nonaccrual loans and loans held for sale.
(2) Yields related to loans, leases and
securities exempt from both federal and state income taxes, federal
income taxes only, or state income taxes only are stated on a
taxable-equivalent basis assuming statutory federal income tax
rates of 21.0%, as well as state income tax rates of 3.4% for all
periods presented. The taxable-equivalent adjustment was $921, $897
and $922 for the three months ended December 31, 2019,
September 30, 2019 and December 31, 2018,
respectively.
|
Contact: |
Barbara Thompson |
| |
First Citizens BancShares |
| |
919.716.2716 |
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