U.S. markets closed
  • S&P 500

    4,063.04
    -89.06 (-2.14%)
     
  • Dow 30

    33,587.66
    -681.50 (-1.99%)
     
  • Nasdaq

    13,031.68
    -357.75 (-2.67%)
     
  • Russell 2000

    2,135.14
    -71.85 (-3.26%)
     
  • Crude Oil

    65.72
    +0.44 (+0.67%)
     
  • Gold

    1,815.90
    -6.90 (-0.38%)
     
  • Silver

    27.64
    +0.41 (+1.50%)
     
  • EUR/USD

    1.2076
    -0.0076 (-0.63%)
     
  • 10-Yr Bond

    1.6950
    +0.0710 (+4.37%)
     
  • GBP/USD

    1.4057
    -0.0087 (-0.62%)
     
  • USD/JPY

    109.6600
    +1.0400 (+0.96%)
     
  • BTC-USD

    54,397.25
    -2,023.65 (-3.59%)
     
  • CMC Crypto 200

    1,473.58
    -90.26 (-5.77%)
     
  • FTSE 100

    7,004.63
    +56.64 (+0.82%)
     
  • Nikkei 225

    28,147.51
    -461.08 (-1.61%)
     

First Citizens BancShares Reports Earnings for Fourth Quarter 2019

  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.

RALEIGH, N.C., Jan. 28, 2020 (GLOBE NEWSWIRE) -- First Citizens BancShares Inc. (BancShares) (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