First Citizens BancShares (FCNCA) Q3 2024 earnings summary

Executive summary

• Q3 2024 net income was $639 million, down 10% sequentially, with adjusted EPS of $45.87; adjusted net income was $675 million, and adjusted ROE/ROA were 11.94%/1.22%.

• Over 350,000 Class A shares repurchased for $700 million in Q3, representing 2.61% of Class A shares; total repurchase as of October 22 reached $969.4 million, about 28% of the $3.5 billion plan.

• Deposit base remained stable, with growth in General Bank and modest increase in SVB Commercial balances; deposits grew 1.3% annualized to $151.57B.

• Loans declined in SVB Commercial due to higher repayments, but General and Commercial Bank segments saw solid growth; average loan outstandings increased over Q2.

• NIM was resilient at 3.53% despite headwinds; asset quality remained solid with a slight increase in net charge-off ratio to 0.42%.

Financial highlights

• Net interest income for Q3 was $1.80B, down $25M sequentially; adjusted noninterest income was $474M, down $5M; adjusted noninterest expense rose $61M to $1.23B.

• Net charge-offs for Q3 were $145M (0.42% ratio); allowance for loan losses at 1.21%.

• Net income available to common stockholders was $624M, down 9.7% from Q2 and 15.3% from Q3 2023.

• Noninterest income for Q3 was $650M, up 2% sequentially; noninterest expense for Q3 was $1.46B, up 5% sequentially.

• CET1 capital ratio at 13.24%, total risk-based capital at 15.36%, and Tier 1 leverage at 10.17%.

Outlook and guidance

• Loans and leases projected at $138–$140B for Q4 and FY24; deposits expected at $150–$153B.

• Net interest income for FY24 guided to $7.08–$7.18B; NIM expected to remain pressured by lower accretion and higher deposit costs.

• Net charge-off ratio expected at 40–50 bps in Q4 and 37–40 bps for FY24.

• Adjusted noninterest income for 2024 expected at $1.89–$1.91B; adjusted noninterest expense at $4.76–$4.79B.

• Effective tax rate expected at 27–28%.