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Dec 31, 2020
First Citizens Q4 2020 Earnings Report
Reported strong earnings driven by net interest income and noninterest income growth.
Key Takeaways
First Citizens BancShares reported a net income of $138.1 million for Q4 2020, a 35.5% increase compared to Q4 2019. The increase was driven by growth in net interest income and noninterest income. Total loans and deposits also saw significant growth.
Net income increased by 35.5% compared to the same quarter in 2019, reaching $138.1 million.
Net interest income rose by 9.7% to $358.7 million, driven by loan growth and lower rates on interest-bearing liabilities.
Noninterest income increased by 21.4% to $126.8 million, boosted by fair value adjustments and mortgage income.
Total loans grew by 13.5% since December 31, 2019, reaching $32.79 billion, while total deposits increased by 26.1% to $43.43 billion.
First Citizens
First Citizens
Forward Guidance
First Citizens BancShares anticipates continued stability and growth, focusing on maintaining a strong capital and liquidity position while navigating the ongoing COVID-19 situation and working towards the merger with CIT Group Inc.
Positive Outlook
- Strong capital and liquidity position provides stability.
- Branches have re-opened with enhanced safety protocols.
- Over 97% of COVID-19 related loan extensions have begun repayment.
- Delinquency trends among loans entering repayment are in line with the remainder of the portfolio.
- Began accepting applications for new round of SBA-PPP loans in Q1 2021.
Challenges Ahead
- Corporate locations remain at limited occupancy due to current virus trends.
- Impacts of the SBA-PPP and payment extensions could be delaying signs of credit deterioration.
- Potential impact of slower economic activity and elevated unemployment due to COVID-19.
- Risk that the merger with CIT Group Inc. may face delays or not realize anticipated benefits.
- General competitive, economic, political and market conditions could impact future results.