First Citizens BancShares Inc (FCNCA) Q3 2024 Earnings Call Highlights: Strong EPS Amid Loan ...

GuruFocus.com10-25

Adjusted Earnings Per Share: $45.87 Net Interest Margin: 3.53%, excluding accretion income 3.33% Share Repurchase: 350,000 shares for approximately $700 million Return on Equity (ROE): 11.94% Return ...

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Share Repurchase: 350,000 shares for approximately $700 million. Deposit Growth: Increased by $495 million, 0.3% sequentially. Full Year Net Interest Income Guidance: $7.1 billion to $7.2 billion. Full Year Adjusted Noninterest Income Guidance: $1.89 billion to $1.91 billion. Full Year Adjusted Noninterest Expense Guidance: $4.764 billion to $4.79 billion. GuruFocus has detected 3 Warning Sign with FCNCA.For the complete transcript of the earnings call, please refer to the full earnings call transcript.First Citizens BancShares Inc  reported strong financial results with adjusted earnings per share of $45.87.The company maintained a resilient net interest margin despite declines in accretion income.Capital and liquidity positions remained strong, providing a source of strength for the company.Adjusted noninterest expenses increased by approximately 5%, primarily due to higher personnel costs and professional fees.","collect":0,"end_time":0,"defaultTopTitle":"yahoo.com","property":["earning"],"viewcount":null,"language":"en","relate_stocks":{"FCNCO":"First Citizens BancShares, Inc","FCNCA":"第一公民银行股份","FCNCP":"First Citizens BancShares, Inc."},"translate_title":"First Citizens BancShares Inc(FCNCA)2024年第三季度收益看涨期权亮点：贷款中每股收益强劲……","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"FCNCA":1,"FCNCO":0.9,"FCNCP":0.9},"content_text":"Adjusted Earnings Per Share: $45.87\nNet Interest Margin: 3.53%, excluding accretion income 3.33%\nShare Repurchase: 350,000 shares for approximately $700 million\nReturn on Equity (ROE): 11.94%\nReturn on Assets (ROA): 1.2%\nEfficiency Ratio: 50%\nNet Charge-Off Ratio: 42 basis points\nAllowance Ratio: 1.21%\nLoan Portfolio: Decreased by $646 million sequentially\nDeposit Growth: Increased by $495 million, 0.3% sequentially\nCET1 Capital Ratio: 13.24%\nFull Year Net Interest Income Guidance: $7.1 billion to $7.2 billion\nFull Year Adjusted Noninterest Income Guidance: $1.89 billion to $1.91 billion\nFull Year Adjusted Noninterest Expense Guidance: $4.764 billion to $4.79 billion\nTax Rate Guidance: 27% to 28%\n\n\nWarning! GuruFocus has detected 3 Warning Sign with FCNCA.\n\nRelease Date: October 24, 2024\nFor the complete transcript of the earnings call, please refer to the full earnings call transcript.\n Positive Points \n\nFirst Citizens BancShares Inc (NASDAQ:FCNCA) reported strong financial results with adjusted earnings per share of $45.87.\nThe company maintained a resilient net interest margin despite declines in accretion income.\nThere was continued deposit growth, with commercial balances up modestly over the prior quarter.\nThe company successfully repurchased over 350,000 shares of Class A common stock, totaling approximately $700 million.\nCapital and liquidity positions remained strong, providing a source of strength for the company.\n\n Negative Points \n\nLoans declined during the quarter, primarily due to a reduction in the Global Fund Banking portfolio.\nNet charge-offs increased modestly, with concentrations in the general office investor-dependent and small-ticket leasing portfolios.\nAdjusted noninterest income was down modestly, driven by changes in the fair value of customer derivative positions.\nAdjusted noninterest expenses increased by approximately 5%, primarily due to higher personnel costs and professional fees.\nThe company anticipates continued stress in the commercial real estate and investor-dependent portfolios, with elevated losses expected into 2025.\n\n Q & A Highlights \nQ: Referring to the SVB decline in the quarter, what are your thoughts on the next couple of quarters regarding loan growth as rates go down? A: Craig Nix, CFO, explained that as the market recovers, loans and deposits in SVB are expected to grow. Lower rates could be a catalyst for growth, and the decline was mainly due to payoffs towards the end of the quarter. Average loan balances were higher than the previous quarter, indicating no structural issues.\nQ: Can you comment on the pace of client additions in the SVB business during the third quarter? A: Mark, an unidentified company representative, noted that while he didn't have specific statistics, new client acquisition continued positively despite the downturn in target markets. Clients are returning, and the company remains encouraged by this trend.\nQ: Regarding the net interest income guide, how should we think about accretion income going forward? A: Craig Nix, CFO, stated that accretion income is expected to continue declining as shorter-term loans pay off. The contribution from accretion will decrease, with the fourth quarter expected to see around $90 million in accretion income.\nQ: Could you clarify the split between floating and variable rate loans? A: Craig Nix, CFO, mentioned that the total loan portfolio is approximately 64% variable and 36% fixed. The majority of loans are tied to market rates like SOFR.\nQ: How do you see deposit flows picking up as we move into 2025? A: An unidentified company representative highlighted that a substantial amount of capital is waiting to be invested, and recent rate cuts could help unstack the market. While the exact timing is uncertain, the company remains well-positioned for when investment activity picks up.\nFor the complete transcript of the earnings call, please refer to the full earnings call transcript.This article first appeared on \nGuruFocus.","kind":null,"is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"0","news_tag":"","news_rank":0,"symbols":[],"gpt_button":1},"commentList":[],"isCommentEnd":true,"newsSizeData":{"likeSize":0,"commentSize":0,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"deviceId":"web-server-community-laohu8-v3","version":"4.29.1","shortVersion":"4.29.1","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/2478067653"}