First Citizens BancShares Inc (FCNCA, Financial) released its earnings report for the third quarter ended September 30, 2023, on October 26, 2023. The company reported solid financial results, marked by strong revenue growth and disciplined expense management. The company's integration efforts with Silicon Valley Bridge Bank (SVB) continued to progress, and its capital and liquidity positions remained solid due to strong earnings performance and a continued focus on core deposit gathering.
Financial Highlights
Net income for the third quarter of 2023 was $752 million, compared to $682 million for the second quarter of 2023. Net income available to common stockholders for the third quarter of 2023 was $737 million, or $50.67 per diluted common share, a $70 million increase from $667 million, or $45.87 per diluted common share, in the second quarter of 2023. Adjusted net income available to common stockholders was $813 million, or $55.92 per diluted common share, a $48 million increase from $765 million, or $52.60 per diluted common share, in the second quarter of 2023.
Balance Sheet Summary
Loans totaled $133.20 billion at the end of Q3 2023, an increase of $187 million compared to $133.02 billion as of the end of Q2 2023. Deposits totaled $146.23 billion at the end of Q3 2023, an increase of $5.07 billion compared to $141.16 billion as of the end of Q2 2023. Total investment securities were $26.82 billion at the end of Q3 2023, an increase of $4.65 billion compared to $22.17 billion as of the end of Q2 2023.
Provision for Credit Losses and Credit Quality
Provision for credit losses totaled $192 million for the third quarter compared to $151 million in the second quarter, an increase of $41 million. Net charge-offs totaled $176 million, representing 0.53% of average loans, compared to $157 million, or 0.47% of average loans, during the second quarter. Nonaccrual loans were $899 million, or 0.68% of average loans, at the end of Q3 2023, compared to $929 million, or 0.70% of average loans, at the end of Q2 2023.
Capital and Liquidity
First Citizens BancShares Inc (FCNCA, Financial)'s capital position remains strong and capital ratios are well above regulatory requirements. The estimated total risk-based capital, Tier 1 risk-based capital, Common equity Tier 1 risk-based capital, and Tier 1 leverage ratios were 15.64%, 13.82%, 13.23%, and 9.72%, respectively, at the end of Q3 2023. The company's liquidity position also remains strong as liquid assets were $57.02 billion at the end of Q3 2023 compared to $53.42 billion at the end of Q2 2023.
Explore the complete 8-K earnings release (here) from First Citizens BancShares Inc for further details.
