First Citizens BancShares Inc. reports developments for a U.S. super-regional banking company operating through First Citizens Bank, with business banking, branch banking, commercial lending, treasury and liquidity management, wealth-related services, and railcar leasing. News commonly covers earnings, loan and deposit trends, credit quality, capital returns, dividends on common and preferred stock, and debt or equity capital activity.
Company updates also follow First Citizens Bank’s commercial banking expansion, regional leadership appointments, and specialized lending through Silicon Valley Bank, a division serving technology, life science and healthcare, private equity, and venture capital clients. Recurring customer-finance announcements include warehouse credit, energy finance, and sector-focused banking services.
Small business owners exhibit strong growth optimism with nearly 80% feeling confident about the year ahead, according to the First Citizens Bank Small Business Forecast. This marks a 9% increase since September 2020, returning to pre-pandemic levels. Despite 40% citing COVID-19 as a concern, confidence in economic conditions also rose, with 61% optimistic about the upcoming year. However, perceived business success decreased from 71% to 61%.
First Citizens BancShares reported a strong Q1 2021, with net income soaring to $147.3 million, a 157.7% increase from $57.2 million in Q1 2020. Net income per share rose to $14.53 from $5.46. The bank achieved a 1.16% return on average assets, up from 0.57%, and a 14.70% return on average equity, compared to 6.34%. Total loans grew by 4.8% and deposits surged 36.4%. Noninterest income also saw a substantial increase of 113.5%, reaching $136.6 million.
The Board of Directors of First Citizens BancShares declared a quarterly dividend of 47 cents per share for Class A and Class B common stock, payable on May 28, 2021, to shareholders of record on May 14, 2021.
Additionally, a quarterly dividend on the 5.375% non-cumulative perpetual preferred stock, Series A, will be paid on June 15, 2021, to holders of record as of May 31, 2021.
Currently, there are 345,000 shares outstanding for Series A preferred stock under a deposit agreement.
First Citizens BancShares will release its first-quarter financial results on April 28, 2021, before U.S. market open. A conference call will follow on the same day at 9 a.m. Eastern Time to discuss the results. Participants can dial in using the provided numbers, with a conference ID of 8784208. The earnings presentation will be accessible on their investor relations website. First Citizens BancShares serves individuals and businesses through over 500 branches in 19 states and offers digital banking services.
First Citizens Bank has appointed Patrick Nolan as the new director of Investment Strategy. Nolan will oversee the bank's investment offerings, including portfolio construction and asset allocation. With nearly 25 years of experience, he previously worked at BlackRock and has authored significant research in investment strategy. Reporting to Chief Investment Officer Brent Ciliano, Nolan's role aims to enhance the bank’s investment strategies. First Citizens Bank, founded in 1898, is among the largest family-controlled banks in the U.S.
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First Citizens Bank has unveiled a new community benefits plan worth $16 billion aimed at supporting low- and moderate-income (LMI) communities over five years (2021-2025). This initiative follows the proposed merger with CIT Group, focusing on affordable housing, small business lending, and community development. Key allocations include $6.9 billion for community development initiatives, $5.9 billion for small business loans, and $3.2 billion for home mortgages targeting LMI and minority borrowers. The plan emerged from discussions with the National Community Reinvestment Coalition.
On February 9, 2021, First Citizens BancShares (NASDAQ: FCNCA) and CIT Group (NYSE: CIT) announced that both companies received shareholder approvals for their proposed merger. The merger, expected to finalize in Q2 2021 pending regulatory approvals, will result in the formation of the 20th largest bank in the U.S. based on assets. The leadership emphasized that the merger will leverage their unique strengths and create opportunities for stakeholders, including stockholders and customers.
First Citizens BancShares and CIT Group have received stockholder approval for their merger, paving the way for the completion of the transaction in Q2 2021. This merger will create the 20th largest bank in the U.S. based on assets. Both companies are optimistic about leveraging their unique attributes to provide benefits for stakeholders, including shareholders and customers. The merger is contingent upon regulatory approvals and customary closing conditions.
The Board of Directors of First Citizens BancShares declared a quarterly dividend of 47 cents per share on its Class A and Class B common stock, payable on April 5, 2021, with a record date of March 15, 2021. Additionally, a dividend on the 5.375% non-cumulative perpetual preferred stock, Series A, is set for March 15, 2021, for holders of record by February 28, 2021. As of December 31, 2020, the company had total assets of $49.96 billion.