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Mar 31, 2022
First Citizens Q1 2022 Earnings Report
First Citizens BancShares reported solid first quarter results driven by the merger with CIT Group Inc. and organic growth.
Key Takeaways
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.
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.
Positive Outlook
- 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.
Challenges Ahead
- 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
Historical Earnings Impact
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Avg. Return Before/After Earnings
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