2023-05-10 08:17:07 ET
First Citizens Bancshares ( NASDAQ: FCNCA ) shares jumped 4.3% in Wednesday premarket trading after the North Carolina-based regional bank reported its first quarterly results that included its acquisition of Silicon Valley Bank deposits and certain of SVB's liabilities.
In the earnings report, the bank's deposits increased during the quarter, even when excluding the Silicon Valley Bank deposits. Its loan book also climbed, helped by the SVB acquisition.
Q1 net income of $9.52B , or $653.64 per share, jumped from $243M, or $16.67 per share, including a preliminary gain of $9.82B related to the SVB acquisition and well as a number of items.
On a non-GAAP basis, Q1 EPS slipped to $20.09 from $20.94 in the prior quarter and increased from $18.95 in the year-ago quarter.
Deposits totaled $140.1B as of March 31, 2023, up $50.6B during the quarter, primarily from SVB segment deposits of $49.3B as of March 31. The remaining $1.26B increase came from a $2.32B increase in time deposits and a $1.3B increase in savings account balances. Those were partly offset by a $914M decrease in money market deposits, a $472M decrease in checking with interest accounts, and a $817M decline in noninterest bearing deposits driven by a reduction in commercial deposit balances.
Noninterest-bearing deposits represented 39.0% of total deposits as of March 31, 2023 vs. 27.9% at Dec. 31, 2022. The cost of average total deposits was 1.24% for Q1, rising 46 basis points from Q4 2022.
Loans totaled $138.3B at March 31, 2023, an increase of $67.5B from Dec. 31, 2022, primarily due to SVB segment loans of $66.2B. The remaining $1.3B increase came from various businesses, including Mortgage, Commercial Services, Real Estate Finance, and Retail Services. The yield on loans was 5.57% for Q1 vs. 5.10% in Q4 2022.
Conference call at 9:00 AM ET.
Earlier, First Citizens BancShares ( FCNCA ) non-GAAP EPS of $20.09 beats by $7.58, revenue of $11.11B beats by $9.92B
More about First Citizens:
- Pure Momentum — Charting New Highs and Support Ahead
- First Citizens Bank double upgraded to Buy at UBS due to SVB takeover
- Additional Credit Risk Might Force Its Stock Price Back Down
- First Citizens BancShares stock surges on Silicon Valley Bank deal
For further details see:
First Citizens Bancshares stock rises after Q1 results reflect SVB benefits