First Citizens Q1 2020 Earnings Report
Key Takeaways
First Citizens BancShares reported a net income of $57.2 million for Q1 2020, a decrease of 48.7% compared to Q1 2019. The results were impacted by a decline in fair value in the equity securities portfolio and additional provision expense for the potential impact of COVID-19.
Net income totaled $57.2 million, a decrease of 48.7% compared to the same quarter in 2019.
Net interest income was $338.4 million, an increase of 5.6% compared to the same quarter in 2019.
Total loans grew to $29.24 billion, an increase of 5.0% on an annualized basis since December 31, 2019.
Total deposits grew to $35.35 billion, an increase of 10.7% on an annualized basis since December 31, 2019.
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First Citizens Revenue by Segment
Forward Guidance
The company is focused on assisting associates, customers, and communities through the coronavirus crisis, while strategically focusing on the long-term and maintaining a strong financial position.
Positive Outlook
- Branches remain operational with safety protocols.
- Early withdrawal penalties on certificates of deposit are being waived.
- 90-day payment deferrals are offered for qualified borrowers with no late fees.
- Access to funds is increased through traditional lending products and special unsecured loans.
- Participation in the Small Business Administration Paycheck Protection Program (SBA-PPP).
Challenges Ahead
- The full impact of COVID-19 may defer a full understanding.
- Extensions have been concentrated in industries impacted the most by the pandemic.
- Social distancing requirements had an immediate impact on the dental and medical industries.
- Fluctuations in interest rates could affect accuracy of forward-looking statements.
- Actions of government regulators could affect accuracy of forward-looking statements.