First Citizens BancShares Inc. (“BancShares”) (Nasdaq: FCNCA)
reported strong earnings for the first quarter of 2021. Key results
for the quarter ended March 31, 2021, are presented below:
FIRST QUARTER RESULTS |
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Q1 2021 |
Q1 2020 |
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Q1 2021 |
Q1 2020 |
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Q1 2021 |
Q1 2020 |
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Q1 2021 |
Q1 2020 |
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Q1 2021 |
Q1 2020 |
Net income (in millions) |
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Net income per share |
|
Net interest margin |
|
Return on average assets |
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Return on average equity |
$147.3 |
$57.2 |
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$14.53 |
$5.46 |
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2.80% |
3.55% |
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1.16% |
0.57% |
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14.70% |
6.34% |
FIRST QUARTER HIGHLIGHTS |
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Net income |
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Net income was $147.3 million for the first quarter of 2021, an
increase of $90.1 million, or by 157.7%, compared to the same
quarter in 2020. Net income per common share increased to $14.53
for the first quarter of 2021, from $5.46 per share for the same
quarter in 2020. |
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Return on average assets and equity |
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Return on average assets for the first quarter of 2021 was 1.16%,
up from 0.57% for the same quarter in 2020. Return on average
equity for the first quarter of 2021 was 14.70%, up from 6.34% for
the same quarter in 2020. |
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Net interest income and net interest margin |
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Net interest income was $339.7 million for the first quarter of
2021, an increase of $1.3 million, or by 0.4%, compared to the same
quarter in 2020. The taxable-equivalent net interest margin (“NIM”)
was 2.80% for the first quarter of 2021, down 75 basis points from
3.55% for the same quarter in 2020. |
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Provision for credit losses |
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The provision for credit losses was an $11.0 million credit during
the first quarter of 2021, compared to a $28.4 million expense
during the same quarter in 2020. The allowance for credit losses
(“ACL”) was $210.7 million at March 31, 2021, compared to $224.3
million at December 31, 2020, representing 0.63% and 0.68% of
loans, respectively. |
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Operating performance |
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Noninterest income was $136.6 million for the first quarter of
2021, an increase of $72.6 million, or by 113.5%, compared to the
same quarter in 2020. Noninterest expense was $295.9 million for
the first quarter of 2021, a decrease of $4.0 million, or by 1.3%,
compared to the same quarter in 2020. |
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Loans and credit quality |
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Total loans grew to $33.18 billion, an increase of $388.9 million,
or by 4.8% on an annualized basis, since December 31, 2020.
Excluding loans originated under the Small Business Administration
Paycheck Protection Program (“SBA-PPP”), total loans increased
$25.3 million, or by 0.3% on an annualized basis, since December
31, 2020. The net charge-off ratio was 0.03% for the first quarter
of 2021 compared to 0.10% for the same quarter in 2020. |
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Deposits |
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Total deposits grew to $47.33 billion, an increase of $3.90
billion, or by 36.4% on an annualized basis, since December 31,
2020, driven by organic growth, stimulus checks and SBA-PPP
fundings. |
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Capital |
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BancShares remained well capitalized with a total risk-based
capital ratio of 14.2%, a Tier 1 risk-based capital ratio of 12.0%,
a Common Equity Tier 1 ratio of 11.0% and a Tier 1 leverage ratio
of 7.8%. |
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MERGER WITH CIT
On October 15, 2020, BancShares entered into a
definitive merger agreement with CIT Group Inc. (“CIT”) through
which the companies plan to combine in an all-stock merger. The
transaction was approved by the North Carolina Commissioner of
Banks on February 5, 2021, as well as the shareholders of both
companies on February 9, 2021. We are continuing to work with other
regulators on remaining approvals and anticipate closing in
mid-2021 subject to the satisfaction of customary closing
conditions.
ONGOING COVID-19 RESPONSE
BancShares remains dedicated to serving our
customers and communities throughout the COVID-19 crisis. Our
branches have re-opened with enhanced safety protocols and our
corporate locations remain at limited occupancy as we navigate the
challenges of COVID-19.
During the first quarter of 2021 in the second
round of SBA-PPP, BancShares originated approximately 9,600 SBA-PPP
loans totaling $1.1 billion. We recorded $30.9 million of interest
and fee income related to SBA-PPP loans for the quarter. As of
March 31, 2021, remaining net deferred fees on SBA-PPP loans were
$66.7 million.
With respect to the first round of SBA-PPP, we
began accepting and processing applications for forgiveness during
the third quarter of 2020. We have received approximately 12,000
forgiveness decisions from the SBA to date, representing over $1.4
billion in forgiveness payments. BancShares originated
approximately 23,000 loans during round one totaling $3.2
billion.
Through March 31, 2021, approximately 98% of all
COVID-19 related loan extensions have begun repayment. Delinquency
trends among loans entering repayment are in line with the
remainder of the portfolio, and we have not seen significant
declines in overall credit quality.
During 2020, we recorded $36.1 million in
reserve build due to uncertainty surrounding COVID-19 and its
potential impact on our credit portfolio. Improved macroeconomic
factors used as inputs into our ACL models and continued low net
charge-offs during the first quarter of 2021 resulted in a
provision credit of $11.0 million driven primarily by a $13.7
million reserve release.
NET INTEREST INCOME
Net interest income was $339.7 million for the
first quarter of 2021, an increase of $1.3 million, or by 0.4%,
compared to the same quarter in 2020. This was primarily due to
interest and fee income on SBA-PPP loans, organic loan growth and
lower rates paid on interest-bearing deposits, partially offset by
a decline in the yield on interest-earning assets. SBA-PPP loans
contributed $30.9 million in interest and fee income during the
quarter. The taxable-equivalent NIM was 2.80% during the first
quarter of 2021, a decrease of 75 basis points from 3.55% for the
same quarter in 2020. The margin decline was primarily due to a
decrease in the yield on interest-earning assets and changes in
earning asset mix, partially offset by lower rates paid on
interest-bearing deposits and the yield on SBA-PPP loans. The
taxable-equivalent NIM declined 22 basis points from 3.02% in the
linked quarter primarily due to changes in earning asset mix and a
decline in the yield on interest-earning assets.
PROVISION FOR CREDIT LOSSES
Provision for credit losses was an $11.0 million
credit for the first quarter of 2021, compared to $28.4 million in
provision expense for the same quarter in 2020. The change was
driven primarily by a $13.7 million reserve release attributable to
continued low net charge-offs, strong credit performance, and
improvements in macroeconomic factors.
Total net charge-offs for the first quarter of
2021 were $2.7 million, a decrease from $7.5 million for the same
quarter in 2020 due to a lower volume of charge-offs and stable
recoveries. The net charge-off ratio was 0.03% for the first
quarter of 2021, compared to 0.10% for the same quarter in 2020.
Excluding the impact of SBA-PPP loans on average loan balances, the
net charge-off ratio was 0.04% for the first quarter of 2021.
NONINTEREST INCOME
Noninterest income was $136.6 million for the
first quarter of 2021, an increase of $72.6 million, or by 113.5%,
compared to $64.0 million for the same quarter in 2020. The largest
driver of this increase was a $67.4 million favorable change in the
fair market value adjustment on our marketable equity securities
portfolio. Mortgage income increased by $7.8 million due to
impairment of mortgage servicing rights recorded in the first
quarter of 2020 and subsequently reversed in the current quarter as
interest rates increased. Additionally, mortgage income increased
as we experienced higher production and sales volume. Wealth
management services increased by $5.8 million primarily due to
increases in advisory and transaction fees, assets under
management, and annuity fees. Realized gains on available for sale
securities decreased by $10.6 million. Service charges on deposits
decreased $4.9 million primarily due to elevated customer deposit
balances.
NONINTEREST EXPENSE
Noninterest expense was $295.9 million for the
first quarter of 2021, a decrease of $4.0 million, or by 1.3%,
compared to the same quarter in 2020. Other expense decreased by
$9.1 million driven by lower pension expense, a decrease in the
reserve for unfunded commitments and declining travel expenses due
to COVID-19. Processing fees paid to third parties increased by
$3.3 million as a result of continued investment in digital and
technological capabilities. Merger-related expenses increased by
$2.6 million driven by legal and consulting expenses related to the
pending merger with CIT.
INCOME TAXES
The effective tax rate was 23.0% for the first
quarter of 2021 compared to 22.8% for the same quarter in 2020.
LOANS AND DEPOSITS
At March 31, 2021, loans totaled $33.18
billion, an increase of $388.9 million, or by 4.8% on an annualized
basis, since December 31, 2020. Of this growth, $363.6 million was
related to SBA-PPP loans. Excluding SBA-PPP loans, total loans
increased $25.3 million, or by 0.3% on an annualized basis, since
December 31, 2020.
At March 31, 2021, deposits totaled $47.33
billion, an increase of $3.90 billion, or by 36.4% on an annualized
basis, since December 31, 2020, driven by organic growth, SBA-PPP
loan fundings and stimulus checks.
ALLOWANCE FOR CREDIT LOSSES
The ACL was $210.7 million at March 31,
2021, compared to $224.3 million at December 31, 2020. The ACL as a
percentage of total loans was 0.63% at March 31, 2021,
compared to 0.68% at December 31, 2020. The reduction was primarily
due to improved macroeconomic factors. Excluding SBA-PPP loans,
which have no associated ACL, the ACL as a percentage of total
loans was 0.69% as of March 31, 2021, compared to 0.74% as of
December 31, 2020.
NONPERFORMING ASSETS
Nonperforming assets, including nonaccrual loans
and other real estate owned, were $243.0 million, or 0.73% of total
loans and other real estate owned at March 31, 2021, compared
to $242.4 million or 0.74% at December 31, 2020. Excluding the
impact of SBA-PPP loans on average loan balances, the ratio of
total nonperforming assets to total loans, leases, and other real
estate owned was 0.80% as of March 31, 2021, and December 31,
2020.
CAPITAL TRANSACTIONS
During the first quarter of 2021, BancShares did
not repurchase any shares of Class A common stock compared to a
total of 349,390 shares of Class A common stock for $159.7 million
at an average cost per share of $457.10 for the same quarter in
2020. All Class A common stock repurchases completed in 2020 were
consummated under previously approved authorizations. Following the
expiration of our latest share repurchase authorization on July 31,
2020, share repurchase activity was suspended.
EARNINGS CALL DETAILS
First Citizens BancShares Inc. will host a
conference call to discuss the company's financial results on April
28, 2021, at 9 a.m. Eastern time.
To access this call, dial:
Domestic:International:Conference ID: |
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833-654-8257602-585-98698784208 |
The first quarter 2021 earnings presentation and
news release will be available on the company’s website at
www.firstcitizens.com/investor-relations.
After the conference call, you may access a
replay of the call through May 28, 2021, by dialing 855-859-2056
(domestic) or 404-537-3406 (international) with conference ID
8784208.
For investor inquiries, contact Deanna Hart,
Investor Relations, at 919-716-2137.
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 March 31,
2021, BancShares had total assets of $53.9 billion.
For more information, visit First Citizens’
website at firstcitizens.com. First Citizens Bank. Forever
First®.
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 as “anticipates,” “believes,” “estimates,” “expects,”
“predicts,” “forecasts,” “intends,” “plans,” “projects,” “targets,”
“designed,” “could,” “may,” “should,” “will,” “potential” or
“continue” or other similar words and expressions are intended to
identify these forward-looking statements. These forward-looking
statements are based on BancShares’ current expectations and
assumptions regarding BancShares’ business, the economy, and other
future conditions.
Because forward-looking statements relate to
future results and occurrences, they are subject to inherent risks,
uncertainties, changes in circumstances and other factors that are
difficult to predict. Many possible events or factors could affect
BancShares’ future financial results and performance and could
cause the actual results, performance or achievements of BancShares
to differ materially from any anticipated results expressed or
implied by such forward-looking statements. Such risks and
uncertainties include, among others, the impacts of the global
COVID-19 pandemic on BancShares’ business and customers, the
financial success or changing conditions or strategies of
BancShares’ 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 BancShares’ previously announced acquisition transaction(s), the
failure to realize the anticipated benefits of BancShares’
previously announced acquisition transaction(s), and general
competitive, economic, political, and market conditions, as well as
risks related to the proposed transaction with CIT including, in
addition to those described above and among others, (1) the risk
that the cost savings, any revenue synergies and other anticipated
benefits of the proposed transaction may not be realized or may
take longer than anticipated to be realized, including as a result
of the impact of, or problems arising from, the integration of the
two companies or as a result of the condition of the economy and
competitive factors in areas where BancShares and CIT do business,
(2) disruption to BancShares’ and CIT’s businesses as a result of
the announcement and pendency of the proposed transaction and
diversion of management’s attention from ongoing business
operations and opportunities, (3) the occurrence of any event,
change or other circumstances that could give rise to the right of
one or both of the parties to terminate the definitive merger
agreement, (4) the risk that the integration of BancShares’ and
CIT’s operations will be materially delayed or will be more costly
or difficult than expected or that BancShares and CIT are otherwise
unable to successfully integrate their businesses, (5) the outcome
of any legal proceedings that may be or have been instituted
against BancShares and/or CIT, (6) the failure to obtain required
governmental approvals (and the risk that such approvals may result
in the imposition of conditions that could adversely affect the
combined company or the expected benefits of the proposed
transaction), (7) reputational risk and potential adverse reactions
of BancShares’ and/or CIT’s customers, suppliers, employees or
other business partners, including those resulting from the
announcement or completion of the proposed transaction, (8) the
failure of any of the closing conditions in the definitive merger
agreement to be satisfied on a timely basis or at all, (9) delays
in closing the proposed transaction, (10) the possibility that the
proposed transaction may be more expensive to complete than
anticipated, including as a result of unexpected factors or events,
(11) the dilution caused by BancShares’ issuance of additional
shares of its capital stock in connection with the proposed
transaction, (12) general competitive, economic, political and
market conditions, (13) other factors that may affect future
results of BancShares and CIT including changes in asset quality
and credit risk, the inability to sustain revenue and earnings
growth, changes in interest rates and capital markets, inflation,
customer borrowing, repayment, investment and deposit practices,
the impact, extent and timing of technological changes, capital
management activities, and other actions of the Federal Reserve
Board and legislative and regulatory actions and reforms, and (14)
the impact of the global COVID-19 pandemic on CIT’s business, the
parties’ ability to complete the proposed transaction and/or any of
the other foregoing risks.
Except to the extent required by applicable laws
or regulations, BancShares disclaims any obligation to update such
factors or to publicly announce the results of any revisions to any
of the forward-looking statements included herein to reflect future
events or developments. Further information regarding BancShares
and factors which could affect the forward-looking statements
contained herein can be found in BancShares’ Annual Report on Form
10-K for the fiscal year ended December 31, 2020 and its other
filings with the Securities and Exchange Commission.
CONSOLIDATED FINANCIAL
HIGHLIGHTS
|
Three months ended |
(Dollars in thousands, except share data; unaudited) |
March 31, 2021 |
|
December 31, 2020 |
|
March 31, 2020 |
SUMMARY OF OPERATIONS |
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|
|
|
Interest income |
$ |
355,323 |
|
|
$ |
376,876 |
|
|
$ |
369,559 |
|
Interest expense |
15,671 |
|
|
18,160 |
|
|
31,159 |
|
Net interest income |
339,652 |
|
|
358,716 |
|
|
338,400 |
|
Provision for credit losses |
(10,974 |
) |
|
5,403 |
|
|
28,355 |
|
Net interest income after provision for credit losses |
350,626 |
|
|
353,313 |
|
|
310,045 |
|
Noninterest income |
136,649 |
|
|
126,765 |
|
|
64,011 |
|
Noninterest expense |
295,926 |
|
|
305,373 |
|
|
299,971 |
|
Income before income taxes |
191,349 |
|
|
174,705 |
|
|
74,085 |
|
Income taxes |
44,033 |
|
|
36,621 |
|
|
16,916 |
|
Net income |
$ |
147,316 |
|
|
$ |
138,084 |
|
|
$ |
57,169 |
|
Preferred stock dividends |
4,636 |
|
|
4,636 |
|
|
— |
|
Net income available to common shareholders |
$ |
142,680 |
|
|
$ |
133,448 |
|
|
$ |
57,169 |
|
Net interest income, taxable equivalent |
$ |
340,271 |
|
|
$ |
359,370 |
|
|
$ |
339,174 |
|
PER COMMON SHARE DATA |
|
|
|
|
|
Net income |
$ |
14.53 |
|
|
$ |
13.59 |
|
|
$ |
5.46 |
|
Cash dividends on common shares |
0.47 |
|
|
0.47 |
|
|
0.40 |
|
Book value at period-end |
405.59 |
|
|
396.21 |
|
|
351.90 |
|
CONDENSED BALANCE SHEET |
|
|
|
|
|
Cash and due from banks |
$ |
410,495 |
|
|
$ |
362,048 |
|
|
$ |
454,220 |
|
Overnight investments |
7,588,757 |
|
|
4,347,336 |
|
|
688,518 |
|
Investment securities |
10,222,107 |
|
|
9,922,905 |
|
|
8,845,197 |
|
Loans and leases |
33,180,851 |
|
|
32,791,975 |
|
|
29,240,959 |
|
Allowance for credit losses |
(210,651 |
) |
|
(224,314 |
) |
|
(209,259 |
) |
Other assets |
2,717,047 |
|
|
2,757,730 |
|
|
2,574,818 |
|
Total assets |
$ |
53,908,606 |
|
|
$ |
49,957,680 |
|
|
$ |
41,594,453 |
|
Deposits |
$ |
47,330,997 |
|
|
$ |
43,431,609 |
|
|
$ |
35,346,711 |
|
Other liabilities |
2,256,209 |
|
|
2,296,803 |
|
|
2,290,222 |
|
Shareholders’ equity |
4,321,400 |
|
|
4,229,268 |
|
|
3,957,520 |
|
Total liabilities and shareholders’ equity |
$ |
53,908,606 |
|
|
$ |
49,957,680 |
|
|
$ |
41,594,453 |
|
SELECTED PERIOD AVERAGE BALANCES |
|
|
|
|
Total assets |
$ |
51,409,634 |
|
|
$ |
49,557,803 |
|
|
$ |
40,648,806 |
|
Investment securities |
9,757,650 |
|
|
9,889,124 |
|
|
7,453,159 |
|
Loans and leases |
33,086,656 |
|
|
32,964,390 |
|
|
29,098,101 |
|
Interest-earning assets |
48,715,279 |
|
|
46,922,823 |
|
|
38,004,341 |
|
Deposits |
44,858,198 |
|
|
43,123,312 |
|
|
34,750,061 |
|
Interest-bearing liabilities |
27,898,525 |
|
|
26,401,222 |
|
|
23,153,777 |
|
Common shareholders' equity |
3,935,267 |
|
|
3,786,158 |
|
|
3,625,975 |
|
Shareholders' equity |
$ |
4,275,204 |
|
|
$ |
4,126,095 |
|
|
$ |
3,682,634 |
|
Common shares outstanding |
9,816,405 |
|
|
9,816,405 |
|
|
10,473,119 |
|
SELECTED RATIOS |
|
|
|
|
|
Annualized return on average assets |
1.16 |
% |
|
1.11 |
% |
|
0.57 |
% |
Annualized return on average equity |
14.70 |
|
|
14.02 |
|
|
6.34 |
|
Net yield on interest-earning assets (taxable equivalent) |
2.80 |
|
|
3.02 |
|
|
3.55 |
|
Total risk-based capital ratio |
14.2 |
|
|
13.8 |
|
|
13.7 |
|
Tier 1 risk-based capital ratio |
12.0 |
|
|
11.6 |
|
|
11.4 |
|
Common equity Tier 1 ratio |
11.0 |
|
|
10.6 |
|
|
10.4 |
|
Tier 1 leverage capital ratio |
7.8 |
|
|
7.9 |
|
|
9.0 |
|
|
ALLOWANCE FOR CREDIT LOSSES AND ASSET
QUALITY DISCLOSURES
|
Three months ended |
(Dollars in thousands, unaudited) |
March 31, 2021 |
|
December 31, 2020 |
|
March 31, 2020 |
ALLOWANCE FOR CREDIT LOSSES
(1) |
|
|
ACL at beginning of period |
$ |
224,314 |
|
|
$ |
223,936 |
|
|
$ |
225,141 |
|
Adoption of ASC 326 |
— |
|
|
— |
|
|
(37,924 |
) |
Initial PCD allowance on new acquisitions |
— |
|
|
— |
|
|
1,193 |
|
Provision for credit losses |
(10,974 |
) |
|
5,403 |
|
|
28,355 |
|
Net charge-offs of loans and leases: |
|
|
|
|
|
Charge-offs |
(8,563 |
) |
|
(9,848 |
) |
|
(14,261 |
) |
Recoveries |
5,874 |
|
|
4,823 |
|
|
6,755 |
|
Net charge-offs of loans and leases |
(2,689 |
) |
|
(5,025 |
) |
|
(7,506 |
) |
ACL at end of period |
$ |
210,651 |
|
|
$ |
224,314 |
|
|
$ |
209,259 |
|
ACL at end of period allocated to: |
|
|
|
|
|
PCD |
$ |
22,935 |
|
|
$ |
23,987 |
|
|
$ |
26,916 |
|
Non-PCD |
187,716 |
|
|
200,327 |
|
|
182,343 |
|
ACL at end of period |
$ |
210,651 |
|
|
$ |
224,314 |
|
|
$ |
209,259 |
|
Reserve for unfunded commitments |
$ |
11,571 |
|
|
$ |
12,814 |
|
|
$ |
10,512 |
|
SELECTED LOAN DATA |
|
|
|
|
|
Average loans and leases: |
|
|
|
|
|
PCD |
$ |
454,521 |
|
|
$ |
479,302 |
|
|
$ |
530,087 |
|
Non-PCD |
32,515,793 |
|
|
32,374,204 |
|
|
28,502,231 |
|
Loans and leases at period-end: |
|
|
|
|
|
PCD |
432,773 |
|
|
462,882 |
|
|
560,352 |
|
Non-PCD |
32,748,078 |
|
|
32,329,093 |
|
|
28,680,607 |
|
RISK ELEMENTS |
|
|
|
|
|
Nonaccrual loans and leases |
$ |
194,534 |
|
|
$ |
191,483 |
|
|
$ |
174,571 |
|
Other real estate owned |
48,512 |
|
|
50,890 |
|
|
55,707 |
|
Total nonperforming assets |
$ |
243,046 |
|
|
$ |
242,373 |
|
|
$ |
230,278 |
|
Accruing loans and leases 90 days or more past due |
$ |
7,377 |
|
|
$ |
5,862 |
|
|
$ |
2,970 |
|
RATIOS |
|
|
|
|
|
Net charge-offs (annualized) to average loans and leases |
0.03 |
% |
|
0.06 |
% |
|
0.10 |
% |
ACL to total loans and leases(2): |
|
|
|
|
|
PCD |
5.30 |
|
|
5.18 |
|
|
4.80 |
|
Non-PCD |
0.57 |
|
|
0.62 |
|
|
0.64 |
|
Total |
0.63 |
|
|
0.68 |
|
|
0.72 |
|
Ratio of total nonperforming assets to total loans, leases and
other real estate owned |
0.73 |
|
|
0.74 |
|
|
0.79 |
|
(1) BancShares recorded no ACL on investment
securities as of March 31, 2021, December 31, 2020, or March 31,
2020.(2) Loans originated in relation to the SBA-PPP do not have a
recorded ACL. As of March 31, 2021, the ratio of ACL to total
Non-PCD loans excluding SBA-PPP loans was 0.63% while the ratio of
ACL to total loans excluding SBA-PPP loans was 0.69%. As of
December 31, 2020, the ratio of ACL to total Non-PCD loans
excluding SBA-PPP loans was 0.67% while the ratio of ACL to total
loans excluding SBA-PPP loans was 0.74%
AVERAGE BALANCE AND NET INTEREST MARGIN
SUMMARY
|
Three months ended |
|
March 31, 2021 |
|
December 31, 2020 |
|
March 31, 2020 |
|
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) |
$ |
33,086,656 |
|
|
$ |
323,602 |
|
|
3.92 |
% |
|
$ |
32,964,390 |
|
|
$ |
345,300 |
|
|
4.12 |
% |
|
$ |
29,098,101 |
|
|
$ |
326,155 |
|
|
4.46 |
% |
Investment securities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S. Treasury |
383,300 |
|
|
171 |
|
|
0.18 |
|
|
526,072 |
|
|
250 |
|
|
0.19 |
|
|
299,777 |
|
|
1,677 |
|
|
2.25 |
|
Government agency |
791,293 |
|
|
1,900 |
|
|
0.96 |
|
|
695,757 |
|
|
1,574 |
|
|
0.90 |
|
|
721,254 |
|
|
4,121 |
|
|
2.29 |
|
Mortgage-backed securities |
7,882,679 |
|
|
20,607 |
|
|
1.05 |
|
|
7,981,834 |
|
|
21,130 |
|
|
1.06 |
|
|
6,060,434 |
|
|
30,707 |
|
|
2.03 |
|
Corporate bonds |
602,883 |
|
|
7,742 |
|
|
5.14 |
|
|
591,780 |
|
|
7,657 |
|
|
5.18 |
|
|
205,504 |
|
|
2,477 |
|
|
4.82 |
|
Other investments |
97,495 |
|
|
472 |
|
|
1.96 |
|
|
93,681 |
|
|
600 |
|
|
2.55 |
|
|
166,190 |
|
|
678 |
|
|
1.64 |
|
Total investment securities |
9,757,650 |
|
|
30,892 |
|
|
1.27 |
|
|
9,889,124 |
|
|
31,211 |
|
|
1.26 |
|
|
7,453,159 |
|
|
39,660 |
|
|
2.13 |
|
Overnight investments |
5,870,973 |
|
|
1,448 |
|
|
0.10 |
|
|
4,069,309 |
|
|
1,019 |
|
|
0.10 |
|
|
1,453,081 |
|
|
4,518 |
|
|
1.25 |
|
Total interest-earning assets |
$ |
48,715,279 |
|
|
$ |
355,942 |
|
|
2.93 |
|
|
$ |
46,922,823 |
|
|
$ |
377,530 |
|
|
3.17 |
|
|
$ |
38,004,341 |
|
|
$ |
370,333 |
|
|
3.88 |
|
INTEREST-BEARING LIABILITIES |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing deposits: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Checking with interest |
$ |
10,746,225 |
|
|
$ |
1,409 |
|
|
0.05 |
% |
|
$ |
9,688,744 |
|
|
$ |
1,533 |
|
|
0.06 |
% |
|
$ |
8,188,983 |
|
|
$ |
1,701 |
|
|
0.08 |
% |
Savings |
3,461,780 |
|
|
299 |
|
|
0.04 |
|
|
3,230,625 |
|
|
306 |
|
|
0.04 |
|
|
2,593,869 |
|
|
285 |
|
|
0.04 |
|
Money market accounts |
9,008,391 |
|
|
2,508 |
|
|
0.11 |
|
|
8,529,816 |
|
|
3,242 |
|
|
0.15 |
|
|
7,016,587 |
|
|
9,109 |
|
|
0.52 |
|
Time deposits |
2,805,317 |
|
|
4,577 |
|
|
0.66 |
|
|
3,017,044 |
|
|
5,976 |
|
|
0.79 |
|
|
3,761,216 |
|
|
13,099 |
|
|
1.40 |
|
Total interest-bearing deposits |
26,021,713 |
|
|
8,793 |
|
|
0.14 |
|
|
24,466,229 |
|
|
11,057 |
|
|
0.18 |
|
|
21,560,655 |
|
|
24,194 |
|
|
0.45 |
|
Securities sold under customer repurchase agreements |
641,236 |
|
|
338 |
|
|
0.21 |
|
|
684,311 |
|
|
374 |
|
|
0.22 |
|
|
474,231 |
|
|
442 |
|
|
0.38 |
|
Other short-term borrowings |
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
157,759 |
|
|
804 |
|
|
2.02 |
|
Long-term borrowings |
1,235,576 |
|
|
6,540 |
|
|
2.12 |
|
|
1,250,682 |
|
|
6,729 |
|
|
2.13 |
|
|
961,132 |
|
|
5,719 |
|
|
2.35 |
|
Total interest-bearing liabilities |
$ |
27,898,525 |
|
|
$ |
15,671 |
|
|
0.23 |
|
|
$ |
26,401,222 |
|
|
$ |
18,160 |
|
|
0.27 |
|
|
$ |
23,153,777 |
|
|
$ |
31,159 |
|
|
0.54 |
|
Interest rate spread |
|
|
|
|
2.70 |
% |
|
|
|
|
|
2.90 |
% |
|
|
|
|
|
3.34 |
% |
Net interest income and net yield on interest-earning assets |
|
|
$ |
340,271 |
|
|
2.80 |
% |
|
|
|
$ |
359,370 |
|
|
3.02 |
% |
|
|
|
$ |
339,174 |
|
|
3.55 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Loans and leases include PCD and non-PCD
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% for all periods presented, as well as
state income tax rates of 3.3% for the three months ended
March 31, 2021, and 3.4% for the three months ended
December 31, 2020 and March 31, 2020. The
taxable-equivalent adjustment was $619 thousand, $654 thousand and
$774 thousand for the three months ended March 31, 2021,
December 31, 2020 and March 31, 2020, respectively.
Contact: |
|
Barbara ThompsonCorporate Communications919-716-2716 |
|
Deanna HartInvestor Relations919-716-2137 |
|
|
|
|
|
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