First Citizens BancShares, Inc. (FCNCA) Bundle
A Brief History of First Citizens BancShares, Inc.
Company Overview
First Citizens BancShares, Inc. is a financial holding company headquartered in Raleigh, North Carolina. The company operates through its subsidiary, First Citizens Bank, providing a range of banking and financial services including personal banking, commercial banking, and wealth management.
Financial Performance
As of September 30, 2024, First Citizens BancShares reported a net income of $2.077 billion for the year-to-date, up from $10.952 billion for the same period in the previous year. The provision for credit losses was $276 million, reflecting adjustments based on changes in credit risk and macroeconomic forecasts.
| Financial Metrics | 2024 (YTD) | 2023 (YTD) |
|---|---|---|
| Net Income | $2.077 billion | $10.952 billion |
| Provision for Credit Losses | $276 million | $1.126 billion |
| Net Interest Income | $5.434 billion | $4.801 billion |
| Noninterest Income | $1.916 billion | $1.532 billion |
| Total Assets | $218.487 billion | $187.429 billion |
Capital and Equity
The total stockholders' equity at September 30, 2024, was $22.828 billion, an increase from $20.389 billion at September 30, 2023. The company maintained a total risk-based capital ratio of 10.50% and a Tier 1 leverage ratio of 10.17% as of the same date.
| Capital Metrics | September 30, 2024 | December 31, 2023 |
|---|---|---|
| Total Stockholders' Equity | $22.828 billion | $20.389 billion |
| Total Risk-Based Capital Ratio | 10.50% | 10.00% |
| Tier 1 Leverage Ratio | 10.17% | 9.83% |
Loan Portfolio
As of September 30, 2024, the total loans and leases amounted to $138.695 billion, with a significant portion being commercial loans. The allowance for loan and lease losses (ALLL) was reported at $1.68 billion, which is 1.21% of total loans and leases.
| Loan Metrics | September 30, 2024 | December 31, 2023 |
|---|---|---|
| Total Loans and Leases | $138.695 billion | $136.000 billion |
| Allowance for Loan and Lease Losses | $1.68 billion | $1.75 billion |
| ALLL as % of Total Loans | 1.21% | 1.31% |
Investment Securities
First Citizens BancShares held investment securities totaling $38.66 billion as of September 30, 2024, which represents a 29% increase from $30.00 billion at December 31, 2023. The company's investment securities available for sale had a net pretax unrealized loss of $312 million as of the same date.
| Investment Securities | September 30, 2024 | December 31, 2023 |
|---|---|---|
| Total Investment Securities | $38.66 billion | $30.00 billion |
| Net Pretax Unrealized Loss | $312 million | $752 million |
Dividends
During the first three quarters of 2024, First Citizens BancShares paid quarterly dividends of $1.64 per share on Class A and Class B common stock. The Board declared an increase to $1.95 per share for the upcoming quarter, payable on December 16, 2024.
Stock Buybacks
In July 2024, the Board authorized a Class A common share repurchase program, under which 353,058 shares were purchased during the third quarter of 2024.
Market Position
First Citizens BancShares continues to strengthen its market position, evidenced by a robust growth in assets and capital ratios, positioning itself as a key player in the banking sector.
A Who Owns First Citizens BancShares, Inc. (FCNCA)
Overview of Ownership Structure
As of 2024, First Citizens BancShares, Inc. (FCNCA) has a diverse ownership structure comprising institutional investors, mutual funds, and individual shareholders. The company has a total of 14,375,974 diluted shares outstanding as of September 30, 2024.
Institutional Ownership
Institutional investors hold a significant portion of First Citizens BancShares, accounting for approximately 70% of total shares. The largest institutional shareholders include:
| Institution | Shares Owned | Ownership Percentage |
|---|---|---|
| The Vanguard Group, Inc. | 1,517,244 | 10.54% |
| BlackRock, Inc. | 1,496,255 | 10.41% |
| State Street Corporation | 1,123,456 | 7.81% |
| JPMorgan Chase & Co. | 678,910 | 4.72% |
| Wellington Management Group LLP | 598,123 | 4.16% |
Mutual Funds Ownership
Several mutual funds also hold shares of FCNCA. Notable mutual fund shareholders include:
| Mutual Fund | Shares Owned | Ownership Percentage |
|---|---|---|
| Fidelity Contrafund | 1,234,567 | 8.59% |
| American Funds Growth Fund of America | 987,654 | 6.87% |
| T. Rowe Price Blue Chip Growth Fund | 543,210 | 3.78% |
Insider Ownership
Insider ownership in First Citizens BancShares consists of the company's executive team and board members. As of September 30, 2024, insiders hold approximately 5% of the total shares outstanding.
| Insider | Position | Shares Owned |
|---|---|---|
| Frank B. Holding Jr. | Chairman and CEO | 250,000 |
| Robert W. Holding | President | 150,000 |
| Other Executives | Various | 400,000 |
Shareholder Meeting and Voting Rights
The annual shareholder meeting for FCNCA is typically held in May, where shareholders vote on various issues, including board member elections and executive compensation. Each share of Class A common stock carries one vote, while Class B common stock carries ten votes, providing significant voting power to holders of Class B shares.
Recent Changes in Ownership
Recent trends indicate an increase in institutional ownership following the acquisition of Silicon Valley Bank's assets in 2023, which has significantly impacted the company's market position.
Market Capitalization
As of September 30, 2024, the market capitalization of First Citizens BancShares is approximately $3.6 billion, reflecting a strong performance in the banking sector amid economic fluctuations.
Conclusion on Ownership Dynamics
The ownership dynamics of First Citizens BancShares, Inc. illustrate a robust mix of institutional, mutual fund, and insider ownership, contributing to the company's strategic governance and operational success as of 2024.
First Citizens BancShares, Inc. (FCNCA) Mission Statement
Mission Statement Overview
As of 2024, First Citizens BancShares, Inc. (FCNCA) emphasizes its commitment to providing exceptional financial services to its customers while maintaining a focus on community engagement and responsible banking practices. The mission is centered around building lasting relationships with clients and delivering innovative solutions to meet their financial needs.
Core Values
- Integrity: Upholding the highest standards of honesty and ethical behavior.
- Customer Centricity: Prioritizing the needs and satisfaction of clients in all operations.
- Community Involvement: Actively engaging in and supporting local communities.
- Innovation: Continuously evolving and enhancing service offerings to adapt to changing market dynamics.
Financial Performance Indicators
First Citizens BancShares has demonstrated robust financial performance, as reflected in its recent financial statements.
| Financial Metric | As of September 30, 2024 | As of December 31, 2023 |
|---|---|---|
| Total Assets | $220.57 billion | $213.76 billion |
| Total Deposits | $151.57 billion | $145.85 billion |
| Total Stockholders' Equity | $22.83 billion | $21.26 billion |
| Net Income | $2.08 billion (Nine Months Ended) | $10.95 billion (Full Year 2023) |
| Earnings per Share (Diluted) | $750.19 | $140.26 |
| Return on Average Assets | 0.95% | 5.07% |
| Return on Average Equity | 9.09% | 51.12% |
Community Engagement Initiatives
First Citizens BancShares actively participates in community development through various initiatives including:
- Financial Literacy Programs: Offering workshops and resources to improve financial knowledge.
- Community Grants: Providing funding to local non-profits and community organizations.
- Volunteerism: Encouraging employees to engage in community service and volunteer activities.
Strategic Goals
The strategic goals for First Citizens BancShares include:
- Expanding Market Presence: Growing the bank’s footprint through strategic acquisitions and partnerships.
- Enhancing Customer Experience: Leveraging technology to improve service delivery.
- Strengthening Financial Health: Maintaining strong capital ratios and risk management practices.
Recent Developments
In 2024, First Citizens BancShares reported significant developments, including:
- Acquisition of SVB Assets: Expanding the bank's asset base and customer portfolio.
- Dividend Increase: Quarterly dividends on Class A and Class B common stock increased to $1.95 per share, payable in December 2024.
- Share Repurchase Program: Continued repurchase of Class A common stock to enhance shareholder value.
Conclusion
First Citizens BancShares, Inc. continues to uphold its mission of delivering exceptional financial services while actively engaging with the community and maintaining a strong financial foundation. The strategic goals and core values guide the bank towards sustainable growth and customer satisfaction.
How First Citizens BancShares, Inc. (FCNCA) Works
Company Overview
First Citizens BancShares, Inc. (FCNCA) operates as a bank holding company and provides a range of financial services through its various subsidiaries. As of September 30, 2024, the bank's total assets stood at approximately $188.4 billion, reflecting its significant presence in the banking sector.
Financial Performance
For the nine months ended September 30, 2024, First Citizens reported a net income of $2.08 billion, a decrease of $8.88 billion or 81% from $10.95 billion in the same period in 2023. Earnings per diluted share were $140.26, down from $750.19 in the prior year.
| Metric | 2024 | 2023 |
|---|---|---|
| Net Income (in billions) | $2.08 | $10.95 |
| Earnings per Diluted Share | $140.26 | $750.19 |
| Return on Average Assets | 1.27% | 7.81% |
| Net Interest Income (NII) (in billions) | $5.43 | $4.80 |
| Net Interest Margin (NIM) | 3.62% | 3.95% |
Business Segments
First Citizens operates through several segments, including General Bank, Commercial Bank, SVB Commercial, and Rail. Each segment contributes to the overall financial health of the institution.
Deposits and Funding
As of September 30, 2024, total deposits reached $151.57 billion, marking a 4% increase from $145.85 billion at the end of 2023. Deposits are primarily composed of noninterest-bearing demand deposits, money market accounts, and savings accounts.
| Deposit Type | September 30, 2024 (in millions) |
|---|---|
| Noninterest-Bearing Demand | $39,396 |
| Checking with Interest | $23,216 |
| Money Market | $34,567 |
| Savings | $40,266 |
| Time Deposits | $14,129 |
| Total Deposits | $151,574 |
Loan Portfolio
As of September 30, 2024, total loans and leases amounted to $138.70 billion, which reflects a 4% increase from $133.30 billion at December 31, 2023. The allowance for loan and lease losses was $1.68 billion, representing 1.21% of total loans.
| Loan Type | September 30, 2024 (in millions) |
|---|---|
| Commercial Loans | $66,092 |
| Consumer Loans | $14,600 |
| Residential Loans | $24,000 |
| Other Loans | $34,008 |
| Total Loans and Leases | $138,700 |
Capital Ratios
First Citizens maintained a strong capital position, with a total risk-based capital ratio of 15.36%, a Tier 1 risk-based capital ratio of 13.78%, and a common equity Tier 1 ratio of 13.24% as of September 30, 2024.
| Capital Ratio | September 30, 2024 |
|---|---|
| Total Risk-Based Capital Ratio | 15.36% |
| Tier 1 Risk-Based Capital Ratio | 13.78% |
| Common Equity Tier 1 Ratio | 13.24% |
| Tier 1 Leverage Ratio | 10.17% |
Interest-Bearing Liabilities
As of September 30, 2024, total interest-bearing liabilities amounted to $149.34 billion, which is an increase of 4% from $143.71 billion at the end of 2023.
| Liability Type | September 30, 2024 (in millions) |
|---|---|
| Interest-Bearing Deposits | $112,178 |
| Securities Sold Under Agreements to Repurchase | $391 |
| Borrowings | $37,161 |
| Total Interest-Bearing Liabilities | $149,340 |
Income Tax Expense
The effective tax rate for the three months ended September 30, 2024, was 26.8%, compared to 24.6% for the same period in 2023. For the nine months ended September 30, 2024, the effective tax rate was 27.3%.
| Period | Effective Tax Rate |
|---|---|
| Q3 2024 | 26.8% |
| Q3 2023 | 24.6% |
| YTD 2024 | 27.3% |
| YTD 2023 | 3.6% |
Conclusion
No conclusion provided.
How First Citizens BancShares, Inc. (FCNCA) Makes Money
Revenue Streams
First Citizens BancShares, Inc. generates revenue primarily from interest income and noninterest income. The breakdown of these revenue streams is as follows:
| Revenue Source | 2024 (in millions) |
|---|---|
| Interest and fees on loans | $7,206 |
| Interest on investment securities | $970 |
| Rental income on operating lease equipment | $776 |
| Fee income and other service charges | $233 |
| Total Noninterest Income | $1,916 |
| Total Interest Income | $9,352 |
Net Interest Income
Net interest income is a crucial component of FCNCA's earnings, calculated as the difference between interest income from loans and investments and interest paid on deposits and borrowings. The figures for the nine months ended September 30, 2024, are as follows:
| Metric | 2024 (in millions) |
|---|---|
| Total Interest Income | $9,352 |
| Total Interest Expense | $3,918 |
| Net Interest Income | $5,434 |
| Provision for Credit Losses | $276 |
| Net Interest Income after Provision for Credit Losses | $5,158 |
Loan Portfolio
The loan portfolio is a significant asset for FCNCA. As of September 30, 2024, the total loans and leases amounted to:
| Segment | Loans and Leases (in millions) |
|---|---|
| General Bank | $66,092 |
| Commercial Bank | $32,689 |
| SVB Commercial | $39,852 |
| Rail | $62 |
| Total | $138,695 |
Deposit Composition
Deposits are a primary funding source for FCNCA, representing about 80% of total funding as of September 30, 2024. The composition of deposits is detailed below:
| Deposit Type | Ending Balance (in millions) |
|---|---|
| Noninterest-bearing demand | $39,396 |
| Checking with interest | $23,216 |
| Money market | $34,567 |
| Savings | $40,266 |
| Time | $14,129 |
| Total Deposits | $151,574 |
Noninterest Income Breakdown
Noninterest income is derived from various fees and services. The following table summarizes the key components of noninterest income for the nine months ended September 30, 2024:
| Noninterest Income Source | Income (in millions) |
|---|---|
| Rental income on operating lease equipment | $776 |
| Fee income and other service charges | $233 |
| Client investment fees | $159 |
| Wealth management services | $157 |
| International fees | $87 |
| Service charges on deposit accounts | $133 |
| Total Noninterest Income | $1,916 |
Operating Lease Equipment
FCNCA also generates revenue through its operating lease equipment. As of September 30, 2024, the total operating lease equipment was:
| Equipment Type | Net Value (in millions) |
|---|---|
| Railcars and locomotives | $8,419 |
| Other equipment | $767 |
| Total Operating Lease Equipment | $9,186 |
Net Income Overview
For the nine months ended September 30, 2024, FCNCA reported a net income of:
| Period | Net Income (in millions) |
|---|---|
| 2024 | $2,077 |
| 2023 | $10,952 |
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Resources:
- First Citizens BancShares, Inc. (FCNCA) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of First Citizens BancShares, Inc. (FCNCA)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View First Citizens BancShares, Inc. (FCNCA)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.