First Citizens BancShares (FCNCA) Q2 2024 earnings summary

Executive summary

• Q2 2024 delivered strong loan and deposit growth, peer-leading returns, and robust capital and liquidity positions, with stable credit quality and controlled expenses.

• Net income for Q2 2024 was $707M, down 3% from Q1, with EPS of $47.54; adjusted EPS was $50.87.

• Board approved a $3.5B share repurchase plan, to be executed over 4-5 quarters starting Q3 2024.

• Included in the Fortune 500 for the first time, underscoring its status as a premier U.S. financial institution.

Financial highlights

• Net interest income for Q2 2024 was $1.82B, up $4M sequentially; net interest margin was 3.64%, down 3 bps from Q1.

• Adjusted ROE/ROA were 14.05%/1.39%; return on average equity was 12.62%.

• Loans grew by $4B (11.8% annualized), led by SVB Commercial and General Bank; total loans at $139.34B.

• Deposits grew at a 4% annualized rate to $151.08B, with strong core deposit growth in key segments.

• CET1 ratio ended at 13.33%; loan-to-deposit ratio at 92.23%; allowance for loan and lease losses at 1.22%.

Outlook and guidance

• Expect high single-digit annualized loan growth in Q3, with full-year loans ending at $143B-$146B.

• Deposits projected at $152B-$154B in Q3 and $153B-$155B for the year.

• Net interest income for 2024 guided to $7.2B-$7.3B; net charge-off ratio expected at 35-45 bps in Q3 and 35-40 bps for the year.

• Adjusted non-interest income for 2024 expected at $1.85B-$1.9B; adjusted non-interest expense at $4.65B-$4.7B.

• Tax rate expected at 27%-28% for Q3 and full year.