NASDAQ$FCNCA

First Citizens BancShares Inc. · Q1 2022 earnings

Q1 2022 earnings · · Investor relations

Briefing

First Citizens BancShares reported solid first quarter results driven by the merger with CIT Group Inc. and organic growth.

First Citizens BancShares reported net income to common shareholders of $264 million, or $16.70 per common share, for the first quarter of 2022. The results were significantly impacted by the merger with CIT Group Inc. The company remains focused on integrating CIT and is committed to achieving cost savings from the merger.

  • Completed merger with CIT Group Inc. in Q1, creating immediate accretion to tangible book value per share of over 40%.
  • Net income to common shareholders was $264 million, or $16.70 per common share.
  • Net interest income was $649 million, benefiting from loan and investment growth and the redemption of legacy CIT debt.
  • Total loans were $65.5 billion and total deposits grew to $91.6 billion.

Headline financials

Total Revenue

$1.5B

Previous: $476M+214.7%
EPS (adj)

$18.95

Previous: $14.53+30.4%
Net Interest Margin

2.7%

Previous: 2.8%-2.5%
Net Charge-Off Ratio

0.1%

Previous: 0.0%+200.0%
Tier 1 Capital Ratio

12.4%

Previous: 12.0%+3.3%
CET1 Ratio

11.3%

Previous: 11.0%+3.1%
Total Risk-Based Capital

14.5%

Previous: 14.2%+1.8%
Capital Expenditures

-$241M

Previous: -$23.5M-923.6%
Free Cash Flow

$30M

Previous: $124M-75.8%
Net Income

$271M

Previous: $147M+84.0%
Operating Income

$181M

Previous: $226M-19.9%
Gross Profit

$991M

Previous: $468M+111.9%
Cash & Equivalents

$9.81B

Previous: $410M+2289.3%
Total Assets

$109B

Previous: $53.9B+101.4%
Stock-Based Comp

$12M

No prior period

Revenue & EPS history

First Citizens · Revenue · Quarterly

$1.5B

Q1 2022+214.7%vs Q1 2021
Beat estimate in 4 of 8 quarters(50%)
ActualEstimate

Revenue by segment

First Citizens · $402M total across 2 segments · Q1 2020

  • Net Interest
    $338M
  • Non-Interest
    $64M

Forward guidance

The company expects to realize ongoing financial benefits from the merger with CIT and remains confident in its ability to execute on its previously communicated $250 million in total cost savings by the end of 2023.

Tailwinds

  • Confident in ability to execute on $250 million in cost savings by end of 2023.
  • Positive momentum in card, merchant, wealth and rail lines of business.
  • Credit quality remained strong and net charge-offs remained low.
  • Strong capital and liquidity levels.
  • Resuming share repurchases in the second half of this year.

Headwinds

  • Merger with CIT has integration risks including disruption from the transaction with customer, supplier or employee relationships
  • Costs, fees, expenses and charges related to the transaction may be greater than anticipated, as a result of unexpected or unknown factors, events or liabilities
  • Reputational risk and the reaction of the parties’ customers to the transaction
  • The cost savings and any revenue synergies from the transaction may not be realized or take longer than anticipated to be realized
  • Difficulties experienced in the integration of the businesses.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2022

Historical avgQ1 2022

+1.1%

Avg return

Earnings day

+1.8%

Avg return

5 days after

+5.2%

Avg return

30 days after

66%

42 / 64 earnings

Positive

+15.3%

Q3 2020

Best reaction

-9.6%

Q3 2024

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-3.5%-3.1%-2.6%
Q4 2025-8.5%-10.1%-8.5%
Q3 2025+0.3%+0.8%+7.2%
Q2 2025+1.1%-0.2%+3.7%
Q1 2025+1.1%+1.2%+2.8%
Q3 2024-9.6%-6.8%+13.0%
Q2 2024+13.3%+14.3%+8.2%
Q1 2024+7.0%+2.9%+8.6%
Q4 2023+5.1%+6.9%+8.7%
Q3 2023+3.6%+6.1%+10.3%
Q2 2023+3.4%+4.7%-3.7%
Q1 2023+12.8%+15.7%+17.5%
Q4 2022-3.2%-2.2%-7.0%
Q3 2022-5.5%-4.9%-4.9%
Q2 2022+5.1%+6.7%+13.0%
Q1 2022+3.1%+6.0%+11.9%
Q4 2021-4.9%-3.8%-3.5%
Q3 2021-2.1%+0.3%-1.0%
Q2 2021+4.5%+11.5%+17.9%
Q1 2021-2.9%-2.1%-2.8%
Q4 2020-6.5%-5.1%+20.6%
Q3 2020+15.3%+25.7%+53.6%
Q2 2020+4.3%+4.2%-2.1%
Q1 2020+8.5%+3.4%+13.0%
Q4 2019+0.6%+1.5%-9.3%
Q3 2019+0.4%-0.2%+4.8%
Q2 2019+2.2%-2.5%-2.9%
Q1 2019-0.6%+1.7%-5.8%
Q4 2018-1.0%-0.2%+6.4%
Q3 2018-0.7%-1.5%+0.2%
Q2 2018-1.1%-1.2%+15.9%
Q1 2018+2.4%+4.4%+5.2%
Q4 2017+0.8%-4.6%-4.1%
Q3 2017+6.8%+4.1%+5.8%
Q2 2017-2.8%-3.1%-8.8%
Q1 2017+3.6%+1.0%-3.7%
Q4 2016+3.1%-0.4%-1.2%
Q3 2016-1.8%-1.0%+21.7%
Q2 2016-1.1%-1.5%+4.9%
Q1 2016-0.0%
Q2 2015+1.4%
Q4 2015+2.2%
Q3 2015+7.0%
Q1 2015+0.2%
Q4 2014+0.3%
Q2 2014+0.3%
Q3 2014-0.5%
Q1 2014+1.1%
Q4 2013+0.3%
Q2 2013+0.3%
Q3 2013+4.8%
Q1 2013+1.3%
Q2 2012-2.3%
Q4 2012-2.3%
Q3 2012+1.7%
Q1 2012+0.7%
Q4 2011+2.2%
Q3 2011-0.5%
Q2 2011+1.2%
Q1 2011+0.7%
Q4 2010+0.0%
Q3 2010-5.1%
Q2 2010+1.3%
Q1 2010+4.0%

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