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.
First Citizens BancShares reported strong Q4 2020 earnings, with net income of $138.1 million, up 35.5% from Q4 2019. Net income per share increased to $13.59. The net interest margin declined to 3.02%, down 57 basis points year-over-year, with total net interest income at $358.7 million, a 9.7% increase. Total loans grew to $32.79 billion, and deposits increased by 26.1% to $43.43 billion. Despite a slight rise in provision for credit losses due to COVID-19 concerns, credit quality remained stable.
First Citizens BancShares, Inc. will report its fourth quarter and full-year financial results on January 26, 2021, after market close. A conference call to discuss these results is scheduled for January 27, 2021, at 9 a.m. ET. Investors can access the call via domestic number 833-654-8257 or international 602-585-9869, using conference ID 7488743. Earnings presentation and news will be available on the company’s website.
First Citizens Bank has appointed David Biliter as the president of its registered broker-dealer, First Citizens Investor Services, Inc. (FCIS). With over 30 years in the industry, he will oversee management, technology, and client experience for FCIS, which manages $10.1 billion in assets and employs about 176 associates, including 72 registered advisors. Biliter previously held key positions at Arvest Wealth Management and other firms. His expertise is expected to enhance FCIS's service capabilities, benefiting clients across the bank's extensive branch network.
First Citizens Bank released its sixth annual Small Business Forecast, highlighting optimism among small business owners about the economy despite challenges from the pandemic. 66% of respondents remain optimistic about long-term economic prospects, similar to pre-pandemic levels. However, confidence in near-term conditions has declined to 57% from 66% in 2019. The report also notes that 67% of businesses were negatively impacted by COVID-19, but 69% are confident in growth for 2021, with 44% planning to hire more employees. The survey reflects varying confidence levels by state.
First Citizens Bank is encouraging donations to Teen Cancer America (TCA) this holiday season through December 31, 2020. TCA aims to improve cancer care for teens and young adults, who often lack specialized treatment facilities. The bank has already contributed over $3 million towards TCA's initiatives since 2015. Donations will help establish specialized programs and create supportive environments in hospitals across the Southeast. The program addresses a significant gap in oncology care for the 13-24 age group, enhancing their overall hospital experience.
First Citizens Bank has successfully completed the conversion of Gwinnett Community Bank in Duluth, GA, as of November 9, 2020. This transition aligns Gwinnett customer accounts with First Citizens products, enhancing access to a broader range of financial services. Three branches formerly under Gwinnett's name have been rebranded to First Citizens locations. Chairman and CEO Frank B. Holding Jr. expressed confidence in providing exceptional service to the new clients while reinforcing their commitment to growth in Georgia. First Citizens Bank is a leading family-controlled bank in the U.S., with approximately $48.67 billion in assets.
The Board of Directors of First Citizens BancShares declared a quarterly dividend of 47 cents per share on Class A and Class B common stock, payable on January 4, 2021. Shareholders of record will be those listed by December 14, 2020. Additionally, a quarterly dividend on the 5.375% non-cumulative perpetual preferred stock, Series A, was announced, set for payment on December 15, 2020, to holders of record as of November 30, 2020. As of September 30, 2020, BancShares reported total assets of $48.67 billion.
First Citizens BancShares reported strong financial results for Q3 2020, achieving a net income of $142.7 million, a 14.3% increase from Q3 2019. The net income per share rose to $14.03. Total net interest income reached $353.7 million, up 5.1%, while the net interest margin decreased to 3.06%. Total loans grew 18.3% to $32.85 billion, and deposits increased 30.3% to $42.25 billion. The bank completed a merger agreement with CIT Group, expected to finalize in H1 2021.
The merger between First Citizens BancShares and CIT Group creates the 19th largest bank in the U.S., with over $100 billion in assets and a target of +50% earnings per share accretion. The merger combines First Citizens' low-cost retail deposit franchise and CIT's national commercial lending expertise, enhancing growth and profitability. Shareholders can expect approximately 61% ownership for First Citizens and 39% for CIT. The merger aims for a strong capital position and improved customer service through technology investments, with closing anticipated in H1 2021.
First Citizens BancShares and CIT Group have announced a definitive all-stock merger of equals, creating the 19th largest bank in the U.S. This transformative partnership combines First Citizens' low-cost deposit franchise with CIT's national commercial lending expertise, enhancing stockholder value. CIT shareholders will receive 0.0620 shares of First Citizens common stock per CIT share. The merger is expected to deliver over 50% EPS accretion and 30% tangible book value accretion. The combined company will operate under the First Citizens name and be headquartered in Raleigh, N.C.