First Citizens BancShares Reports Fourth Quarter 2022 Earnings
RALEIGH, N.C., Jan. 26, 2023 /PRNewswire/ -- First Citizens BancShares, Inc. ("BancShares") (NASDAQ: FCNCA) reported earnings for the fourth quarter and year-to-date period ended December 31, 2022.
Chairman and CEO Frank B. Holding, Jr. commented on the financial results for the quarter and year ended December 31, 2022: "First Citizens delivered solid financial results in 2022 marked by strong top line growth, low credit losses and well controlled expenses. Since the completion of our merger with CIT on January 3, 2022, we have successfully integrated our two companies and are now focused on capitalizing on opportunities to create positive operating leverage by growing revenues and optimizing our operations. We continued to execute on our capital strategy in the fourth quarter, completing our stock repurchase plan while still exceeding our CET 1 target. Looking ahead, we believe that we will have the ability to resume share buybacks in the second half of this year. We have also remained diligent in positioning ourselves to meet the regulatory requirements of a new large financial institution."
Holding added: "We are pleased with the performance of our lines of business during the year, achieving robust loan growth in the General Bank and in Industry Verticals and Business Capital within the Commercial Bank. Despite a challenging environment for deposits driven by unprecedented quantitative tightening, we experienced modest growth in noninterest checking accounts and only experienced a slight decline in deposits during the year. During the fourth quarter, deposits grew at an annualized rate of 8.4% driven by growth in our Direct Bank."
Holding concluded: "While we acknowledge concerns in the broader economy, and although we experienced an increase in nonaccrual loans during the fourth quarter, overall credit quality remains strong, and we are not seeing signs of significant loan portfolio deterioration. We enter 2023 with solid capital and liquidity positions and we believe that we are well positioned to continue to build customer relationships and grow our balance sheet profitably. And last but not least, I want to thank all of our associates for working so hard in 2022 on merger integration and to support our stockholders, customers and communities."
FINANCIAL HIGHLIGHTS
For the fourth quarter, net income available to common stockholders was $243 million, or $16.67 per diluted common share, compared to $303 million, or $19.25 per diluted common share in the third quarter of 2022. Fourth quarter results were impacted by the strategic decision to exit $1.2 billion of Bank Owned Life Insurance policies. The surrender of the policies resulted in a tax charge of $55 million. Favorable market conditions prompted us to exit this long-term, illiquid asset and, as we receive proceeds from the surrender, it increases our capital and liquidity positions while at the same time allowing us to invest in highly liquid assets at higher yields. During the fourth quarter, we repurchased 472,586 shares of Class A common stock for a total cost of $398 million. For the year, we repurchased 1,500,000 shares of Class A common stock for a total cost of $1.2 billion.
Fourth quarter adjusted net income available to common stockholders was $306 million, or $20.94 per diluted common share, as compared to $326 million, or $20.77 per diluted common share in the third quarter. The following bullets highlight significant changes in the components of net income and adjusted net income between the third and fourth quarters (see the supporting tables for a reconciliation of GAAP net income to adjusted net income):
Net interest income - Reported
- Net interest income totaled $802 million compared to $795 million in the third quarter. The $7 million increase was primarily due to a higher yield on earning assets and loan growth, partially offset by higher funding costs and average balances.
- Net interest margin was 3.36%, a decrease of 4 basis points compared to the third quarter. The yield on earning assets increased by 49 basis points while the cost of funding them increased by 53 basis points. The cost of funding earning assets increased due to higher rates paid on interest-bearing deposits and borrowings as well as a mix shift between noninterest-bearing and interest-bearing deposits.
Noninterest income and expense - Reported
- Noninterest income totaled $429 million compared to $433 million in the third quarter, a decrease of $4 million. Rental income on operating lease equipment increased $5 million on a gross basis driven by continued improvement in utilization and a higher lease rate. Noninterest income from fee generating lines of business including service charges on deposit accounts, factoring and insurance commissions, card services and fee income and other service charges increased $8 million. Other noninterest income declined by $17 million, spread among various accounts.
- Noninterest expense totaled $760 million for both the third and fourth quarters. While the total was unchanged over the prior quarter, there was a $6 million increase in marketing costs related to the Direct Bank and a $3 million increase in net occupancy expense due to increased repairs and utilities costs. These were offset by a $4 million decline in maintenance and depreciation expense on operating lease equipment, a $4 million decline in merger-related expenses and a $1 million decline in other operating expenses spread among various accounts.
Noninterest income and expense - Adjusted
- Adjusted noninterest income totaled $290 million compared to $288 million in the third quarter, an increase of $2 million. The combination of higher rental income discussed above and a $4 million decline in depreciation and maintenance expense on operating lease equipment resulted in a $9 million increase in adjusted rental income on operating lease equipment. Noninterest income from fee generating lines of business including service charges on deposit accounts, factoring and insurance commissions, card services and fee income and other service charges increased $8 million. Other noninterest income declined by $15 million, spread among various accounts.
- Adjusted noninterest expense totaled $590 million compared to $577 million in the third quarter, an increase of $13 million primarily due to the $6 million increase in marketing costs related to the Direct Bank, the $3 million increase in net occupancy expense noted above and a $4 million increase in other operating expenses spread among various accounts.
Credit
- Provision for credit losses totaled $79 million compared to $60 million in the third quarter, an increase of $19 million. The increase was primarily due to an increase in net charge-offs and a reserve build in the quarter. The increase in allowance for credit losses over the prior quarter was due to changes in reserves on individually evaluated loans, loan growth and continued deterioration in the economic outlook, partially offset by a change in portfolio mix.
- Net charge-offs totaled $24 million or a ratio of 0.14% of average loans, compared to $18 million or a ratio of 0.10% of average loans during the third quarter.
- Nonaccrual loans as a percentage of total loans increased this quarter to 0.89% from 0.65%. The increase in nonaccrual loans was driven primarily by our non-owner occupied commercial real estate portfolio and more specifically related to general office exposure in the Commercial Bank segment.
Balance Sheet
- Loans totaled $70.8 billion, an increase of $1.0 billion, or 5.6% on an annualized basis due to strong growth in our branch network, Mortgage and Business Capital, partially offset by declines in Commercial Services and Real Estate Finance.
- Deposits totaled $89.4 billion, an increase of $1.9 billion, or 8.4% on an annualized basis. Interest-bearing deposits increased $3.5 billion driven primarily by the $2.5 billion of growth in the Direct Bank and the addition of $0.7 billion in brokered deposits.
- Borrowings decreased $1.7 billion during the quarter, replaced by interest-bearing deposits to support our asset growth.
EARNINGS CALL DETAILS
BancShares will host a conference call and webcast to discuss the company's financial results on Thursday, January 26, 2023, at 9 a.m. Eastern time.
To access this call, dial:
United States: 1-844-200-6205
Canada: 1-833-950-0062
All other locations: 1-929-526-1599
Access code: 836216
The fourth quarter 2022 earnings presentation and this news release are available on the company's website at ir.firstcitizens.com, and the conference call will be webcast live at this same location.
A replay of the call will be available until Thursday, February 16, 2023, by calling 1-866-813-9403 (United States), 1-226-828-7578 (Canada) or +44-204-525-0658 (all other locations) and referencing access code 724723. A webcast archive of the conference call will be available through February 16, 2023, at ir.firstcitizens.com.
ABOUT FIRST CITIZENS BANCSHARES
First Citizens BancShares, Inc. (NASDAQ: FCNCA), a top 20 U.S. financial institution with more than $100 billion in assets, is the financial holding company for First-Citizens Bank & Trust Company ("First Citizens Bank"). First Citizens Bank helps personal, business, commercial and wealth clients build financial strength that lasts. Founded in 1898 and headquartered in Raleigh, N.C., First Citizens is the largest family-controlled bank in the United States, providing a unique legacy of strength, stability and long-term thinking that has spanned generations. First Citizens Bank offers an array of general banking services including a network of 500-plus branches in 22 states; commercial banking expertise delivering best-in-class lending, leasing and other financial services coast to coast; and a nationwide direct bank. Discover more at firstcitizens.com.
FORWARD-LOOKING STATEMENTS
This communication contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995 regarding the financial condition, results of operations, business plans and future performance of BancShares. Words such as "anticipates," "believes," "estimates," "expects," "predicts," "forecasts," "intends," "plans," "projects," "targets," "designed," "could," "may," "should," "will," "potential," "continue", "aims" or other similar words and expressions are intended to identify these forward-looking statements. These forward-looking statements are based on BancShares' current expectations and assumptions regarding BancShares' business, the economy, and other future conditions.
Because forward-looking statements relate to future results and occurrences, they are subject to inherent risks, uncertainties, changes in circumstances and other risk factors that are difficult to predict. Many possible events or factors could affect BancShares' future financial results and performance and could cause the actual results, performance or achievements of BancShares to differ materially from any anticipated results expressed or implied by such forward-looking statements. Such risks and uncertainties include, among others, general competitive, economic, political, geopolitical events (including the military conflict between Russia and Ukraine) and market conditions, the impacts of the global COVID-19 pandemic on BancShares' business and customers, the financial success or changing conditions or strategies of BancShares' customers or vendors, fluctuations in interest rates, actions of government regulators, including the recent and projected interest rate hikes by the Board of Governors of the Federal Reserve Board (the "Federal Reserve"), the potential impact of decisions by the Federal Reserve on BancShares' capital plans, adverse developments with respect to U.S. or global economic conditions, including the significant turbulence in the capital or financial markets, the impact of the current inflationary environment, the impact of implementation and compliance with current or proposed laws, regulations and regulatory interpretations, the availability of capital and personnel, the timing and authorization of any future repurchases of our Class A common under potential share repurchase programs and the failure to realize the anticipated benefits of BancShares' previous acquisition transaction(s), including the recently completed transaction with CIT, which acquisition risks include (1) disruption from the transaction, or recently completed mergers, with customer, supplier or employee relationships, (2) the possibility that the amount of the costs, fees, expenses and charges related to the transaction may be greater than anticipated, including as a result of unexpected or unknown factors, events or liabilities, (3) reputational risk and the reaction of the parties' customers to the transaction, (4) the risk that the cost savings and any revenue synergies from the transaction may not be realized or take longer than anticipated to be realized and (5) difficulties experienced in the integration of the businesses.
Except to the extent required by applicable laws or regulations, BancShares disclaims any obligation to update forward-looking statements or to publicly announce the results of any revisions to any of the forward-looking statements included herein to reflect future events or developments. Additional factors which could affect the forward-looking statements can be found in BancShares' Annual Report on Form 10-K for the fiscal year ended December 31, 2021, and its other filings with the Securities and Exchange Commission (the "SEC").
NON-GAAP MEASURES
Certain measures in this release and supporting tables, including those referenced as "Adjusted", are "Non-GAAP", meaning they are not presented in accordance with generally accepted accounting principles in the U.S. ("GAAP") and also are not codified in U.S. banking regulations currently applicable to BancShares. BancShares believes that Non-GAAP financial measures, when reviewed in conjunction with GAAP financial information, can provide transparency about or an alternative means of assessing its operating results and financial position to its investors, analysts and management. Non-GAAP measures should be considered a supplement to, and not a substitute for, financial measures prepared in accordance with GAAP. The Non-GAAP measures are reconciled to the most directly comparable GAAP measure, in the Non-GAAP reconciliation table(s) at the end of this earnings release, and notable items are summarized in a separate table.
Dollars in millions, except per share data | ||||||
BancShares | BancShares | BancShares | BancShares | BancShares | ||
QTD | QTD | QTD | YTD | YTD | ||
Summary Financial Data & Key Metrics | 12/31/22 | 9/30/22 | 12/31/21 | 12/31/22 | 12/31/21 | |
Results of Operations: | ||||||
Net interest income | $ | 802 | 795 | 357 | 2,946 | 1,390 |
Provision (benefit) for credit losses | 79 | 60 | (5) | 645 | (37) | |
Net interest income after provision for credit losses | 723 | 735 | 362 | 2,301 | 1,427 | |
Noninterest income | 429 | 433 | 114 | 2,136 | 508 | |
Noninterest expense | 760 | 760 | 323 | 3,075 | 1,234 | |
Income before income taxes | 392 | 408 | 153 | 1,362 | 701 | |
Income tax expense | 135 | 93 | 30 | 264 | 154 | |
Net income | 257 | 315 | 123 | 1,098 | 547 | |
Preferred stock dividends | 14 | 12 | 4 | 50 | 18 | |
Net income available to common stockholders | $ | 243 | 303 | 119 | 1,048 | 529 |
Adjusted net income available to common stockholders(1) | 306 | 326 | 126 | 1,201 | 509 | |
Pre-tax, pre-provision net revenue (PPNR)(1) | 471 | 468 | 148 | 2,007 | 664 | |
Per Share Information: | ||||||
Diluted earnings per common share (EPS) | $ | 16.67 | 19.25 | 12.09 | 67.40 | 53.88 |
Adjusted diluted earnings per common share (EPS)(1) | 20.94 | 20.77 | 12.82 | 77.24 | 51.88 | |
Book value per common share | 605.36 | 597.75 | 447.95 | 605.36 | 447.95 | |
Tangible book value per common share (TBV)(1) | 571.89 | 564.97 | 410.74 | 571.89 | 410.74 | |
Key Performance Metrics: | ||||||
Return on average assets (ROA) | 0.93 % | 1.16 % | 0.84 % | 1.01 % | 1.00 % | |
Adjusted ROA(1) | 1.15 | 1.24 | 0.89 | 1.15 | 0.96 | |
PPNR ROA(1) | 1.70 | 1.72 | 1.01 | 1.84 | 1.21 | |
Adjusted PPNR ROA(1) | 1.81 | 1.86 | 1.08 | 1.64 | 1.16 | |
Return on average common equity (ROE) | 11.05 | 12.49 | 10.96 | 11.15 | 12.84 | |
Adjusted ROE(1) | 13.89 | 13.47 | 11.63 | 12.78 | 12.36 | |
Return on average tangible common equity (ROTCE)(1) | 11.70 | 13.17 | 12.00 | 11.78 | 14.12 | |
Adjusted ROTCE(1) | 14.71 | 14.20 | 12.72 | 13.50 | 13.60 | |
Efficiency ratio | 61.74 | 61.91 | 68.52 | 60.50 | 64.98 | |
Adjusted efficiency ratio(1) | 54.08 | 53.32 | 66.31 | 56.40 | 65.11 | |
Net interest margin (NIM)(2) | 3.36 | 3.40 | 2.58 | 3.14 | 2.66 | |
Select Balance Sheet Items at Period End: | ||||||
Total investment securities | $ | 19,369 | 18,841 | 13,110 | 19,369 | 13,110 |
Total loans and leases | 70,781 | 69,790 | 32,372 | 70,781 | 32,372 | |
Total operating lease equipment, net | 8,156 | 7,984 | — | 8,156 | — | |
Total deposits | 89,408 | 87,553 | 51,406 | 89,408 | 51,406 | |
Total borrowings | 6,645 | 8,343 | 1,784 | 6,645 | 1,784 | |
Loan to deposit ratio | 79.17 % | 79.71 % | 62.97 % | 79.17 % | 62.97 % | |
Noninterest-bearing deposits to total deposits | 27.87 % | 30.37 % | 41.64 % | 27.87 % | 41.64 % | |
Capital Ratios at Period End: (3) | ||||||
Total risk-based capital ratio | 13.18 % | 13.46 % | 14.35 % | 13.18 % | 14.35 % | |
Tier 1 risk-based capital ratio | 11.06 | 11.36 | 12.47 | 11.06 | 12.47 | |
Common equity Tier 1 ratio | 10.08 | 10.37 | 11.50 | 10.08 | 11.50 | |
Tier 1 leverage capital ratio | 9.06 | 9.31 | 7.59 | 9.06 | 7.59 | |
Asset Quality at Period End: | ||||||
Nonaccrual loans to total loans and leases | 0.89 % | 0.65 % | 0.37 % | 0.89 % | 0.37 % | |
Allowance for credit losses (ACL) to loans and leases | 1.30 | 1.26 | 0.55 | 1.30 | 0.55 | |
Net charge-off ratio | 0.14 | 0.10 | -0.01 | 0.12 | 0.03 | |
(1) Denotes a non-GAAP measure. Refer to the non-GAAP reconciliation subsequently included in these materials for a reconciliation to the most directly comparable GAAP measure. "Adjusted" items exclude the impact of Notable Items. | ||||||
(2) Calculated net of average credit balances of factoring clients. | ||||||
(3) Capital ratios for the current quarter are preliminary pending completion of quarterly regulatory filings. | ||||||
Dollars in millions, except share and per share data | ||||||
BancShares | BancShares | BancShares | BancShares | BancShares | ||
QTD | QTD | QTD | YTD | YTD | ||
Income Statement (unaudited) | 12/31/22 | 9/30/22 | 12/31/21 | 12/31/22 | 12/31/21 | |
Interest income | ||||||
Interest and fees on loans | $ | 892 | 785 | 328 | 2,953 | 1,295 |
Interest on investment securities | 92 | 90 | 39 | 354 | 145 | |
Interest on deposits at banks | 56 | 31 | 4 | 106 | 11 | |
Total interest income | 1,040 | 906 | 371 | 3,413 | 1,451 | |
Interest expense | ||||||
Deposits | 176 | 78 | 8 | 335 | 33 | |
Borrowings | 62 | 33 | 6 | 132 | 28 | |
Total interest expense | 238 | 111 | 14 | 467 | 61 | |
Net interest income | 802 | 795 | 357 | 2,946 | 1,390 | |
Provision (benefit) for credit losses | 79 | 60 | (5) | 645 | (37) | |
Net interest income after provision for credit losses | 723 | 735 | 362 | 2,301 | 1,427 | |
Noninterest income | ||||||
Rental income on operating lease equipment | 224 | 219 | — | 864 | — | |
Fee income and other service charges | 45 | 44 | 11 | 163 | 42 | |
Wealth management services | 35 | 35 | 33 | 142 | 129 | |
Service charges on deposit accounts | 23 | 21 | 26 | 100 | 95 | |
Factoring commissions | 26 | 24 | — | 104 | — | |
Cardholder services, net | 26 | 25 | 22 | 102 | 87 | |
Merchant services, net | 8 | 8 | 7 | 35 | 33 | |
Insurance commissions | 13 | 11 | 4 | 47 | 16 | |
Realized gain on sale of investment securities available for sale, net | — | — | — | — | 33 | |
Fair value adjustment on marketable equity securities, net | 2 | (2) | 3 | (3) | 34 | |
Bank-owned life insurance | 7 | 8 | 1 | 32 | 3 | |
Gain on sale of leasing equipment, net | 2 | 2 | — | 15 | — | |
Gain on acquisition | — | — | — | 431 | — | |
Gain on extinguishment of debt | — | 1 | — | 7 | — | |
Other noninterest income | 18 | 37 | 7 | 97 | 36 | |
Total noninterest income | 429 | 433 | 114 | 2,136 | 508 | |
Noninterest expense | ||||||
Depreciation on operating lease equipment | 88 | 87 | — | 345 | — | |
Maintenance and other operating lease expenses | 47 | 52 | — | 189 | — | |
Salaries and benefits | 352 | 351 | 193 | 1,396 | 759 | |
Net occupancy expense | 50 | 47 | 30 | 194 | 117 | |
Equipment expense | 55 | 55 | 30 | 216 | 119 | |
Professional fees | 13 | 13 | 7 | 57 | 20 | |
Third-party processing fees | 26 | 27 | 16 | 103 | 60 | |
FDIC insurance expense | 5 | 5 | 4 | 31 | 14 | |
Marketing | 21 | 15 | 3 | 53 | 10 | |
Merger-related expenses | 29 | 33 | 9 | 231 | 29 | |
Intangible asset amortization | 6 | 5 | 3 | 23 | 12 | |
Other noninterest expense | 68 | 70 | 28 | 237 | 94 | |
Total noninterest expense | 760 | 760 | 323 | 3,075 | 1,234 | |
Income before income taxes | 392 | 408 | 153 | 1,362 | 701 | |
Income tax expense | 135 | 93 | 30 | 264 | 154 | |
Net income | $ | 257 | 315 | 123 | 1,098 | 547 |
Preferred stock dividends | 14 | 12 | 4 | 50 | 18 | |
Net income available to common stockholders | $ | 243 | 303 | 119 | 1,048 | 529 |
Basic earnings per common share | $ | 16.69 | 19.27 | 12.09 | 67.47 | 53.88 |
Diluted earnings per common share | $ | 16.67 | 19.25 | 12.09 | 67.40 | 53.88 |
Weighted average common shares outstanding (basic) | 14,590,387 | 15,711,976 | 9,816,405 | 15,531,924 | 9,816,405 | |
Weighted average common shares outstanding (diluted) | 14,607,426 | 15,727,993 | 9,816,405 | 15,549,944 | 9,816,405 | |
Dollars in millions | ||||
BancShares | BancShares | BancShares | ||
Balance Sheet (unaudited) | 12/31/22 | 9/30/22 | 12/31/21 | |
Assets | ||||
Cash and due from banks | $ | 518 | 481 | 338 |
Interest-earning deposits at banks | 5,025 | 6,172 | 9,115 | |
Investment in marketable equity securities | 95 | 92 | 98 | |
Investment securities available for sale | 8,995 | 9,088 | 9,203 | |
Investment securities held to maturity | 10,279 | 9,661 | 3,809 | |
Assets held for sale | 60 | 21 | 99 | |
Loans and leases | 70,781 | 69,790 | 32,372 | |
Allowance for credit losses | (922) | (882) | (178) | |
Loans and leases, net of allowance for credit losses | 69,859 | 68,908 | 32,194 | |
Operating lease equipment, net | 8,156 | 7,984 | — | |
Premises and equipment, net | 1,456 | 1,410 | 1,233 | |
Goodwill | 346 | 346 | 346 | |
Other intangible assets | 140 | 145 | 19 | |
Other assets | 4,369 | 5,002 | 1,855 | |
Total assets | $ | 109,298 | 109,310 | 58,309 |
Liabilities | ||||
Deposits: | ||||
Noninterest-bearing | $ | 24,922 | 26,587 | 21,405 |
Interest-bearing | 64,486 | 60,966 | 30,001 | |
Total deposits | 89,408 | 87,553 | 51,406 | |
Credit balances of factoring clients | 995 | 1,147 | — | |
Borrowings: | ||||
Short-term borrowings | 2,186 | 3,128 | 589 | |
Long-term borrowings | 4,459 | 5,215 | 1,195 | |
Total borrowings | 6,645 | 8,343 | 1,784 | |
Other liabilities | 2,588 | 2,434 | 381 | |
Total liabilities | 99,636 | 99,477 | 53,571 | |
Stockholders' equity | ||||
Preferred stock | 881 | 881 | 340 | |
Common stock: | ||||
Class A - $1 par value | 14 | 14 | 9 | |
Class B - $1 par value | 1 | 1 | 1 | |
Additional paid in capital | 4,109 | 4,506 | — | |
Retained earnings | 5,392 | 5,160 | 4,378 | |
Accumulated other comprehensive loss | (735) | (729) | 10 | |
Total stockholders' equity | 9,662 | 9,833 | 4,738 | |
Total liabilities and stockholders' equity | $ | 109,298 | 109,310 | 58,309 |
Dollars in millions, except share per share data | ||||||||||||
BancShares | BancShares | BancShares | BancShares | BancShares | ||||||||
QTD | QTD | QTD | YTD | YTD | ||||||||
Notable Items (1) | 12/31/22 | 9/30/22 | 12/31/21 | 12/31/22 | 12/31/21 | |||||||
Noninterest income | ||||||||||||
Rental income on operating lease equipment (2) | $ | (135) | (139) | — | (534) | — | ||||||
Realized gain on sale of investment securities available for sale, net | — | — | — | — | (33) | |||||||
Fair value adjustment on marketable equity securities, net | (2) | 2 | (3) | 3 | (34) | |||||||
Gain on sale of leasing equipment, net | (2) | (2) | — | (15) | — | |||||||
Gain on acquisition | — | — | — | (431) | — | |||||||
Gain on extinguishment of debt | — | (1) | — | (7) | — | |||||||
Other noninterest income (3) | — | (5) | — | (11) | — | |||||||
Impact on adjusted noninterest income | (139) | (145) | (3) | (995) | (67) | |||||||
Noninterest expense | ||||||||||||
Depreciation on operating lease equipment (2) | (88) | (87) | — | (345) | — | |||||||
Maintenance and other operating lease expenses (2) | (47) | (52) | — | (189) | — | |||||||
Merger-related expenses | (29) | (33) | (9) | (231) | (29) | |||||||
Intangible asset amortization | (6) | (5) | (3) | (23) | (12) | |||||||
Other noninterest expense (4) | — | (6) | — | 18 | — | |||||||
Impact on adjusted noninterest expense | (170) | (183) | (12) | (770) | (41) | |||||||
CECL Day 2 provision and reserve for unfunded commitments | — | — | — | (513) | — | |||||||
Impact on adjusted pre-tax income | 31 | 38 | 9 | 288 | (26) | |||||||
Income tax impact (5) (6) | (32) | 15 | 2 | 135 | (6) | |||||||
Impact on adjusted net income | $ | 63 | 23 | 7 | 153 | (20) | ||||||
Impact on adjusted diluted EPS | $ | 4.27 | 1.52 | 0.73 | 9.84 | (2.00) | ||||||
(1) Notable items include income and expense for infrequent transactions and certain recurring items (typically noncash) that Management believes should be excluded from adjusted measures (non-GAAP) to enhance understanding of operations and comparability to historical periods. Management utilizes both GAAP and adjusted measures (non-GAAP) to analyze the Company's performance. Refer to the Non-GAAP reconciliation table(s) at the end of this earnings release for a reconciliation of Non-GAAP measures to the most directly comparable GAAP measures. | ||||||||||||
(2) Depreciation and maintenance and other operating lease expenses are reclassified from noninterest expense to a reduction of rental income on operating lease equipment. There is no net impact to earnings for this notable item as adjusted noninterest income and expense are reduced by the same amount. Adjusted rental income on operating lease equipment (non-GAAP) is net of depreciation and maintenance expense for operating lease equipment. Management believes this measure enhances comparability to banking peers, primarily due to the extent of our rail and other equipment rental activities. Refer to the Non-GAAP reconciliation table(s) at the end of this earnings release for a reconciliation of Non-GAAP measures to the most directly comparable GAAP measure. | ||||||||||||
(3) Primarily includes the following: 3Q22- contract settlement with a rail customer; YTD22- contract settlement with rail customer and gain on sale of other assets. | ||||||||||||
(4) Primarily includes the following: 3Q22- impairment of a call center facility; YTD22- impairment of a call center facility and termination of two post retirement benefit plans. | ||||||||||||
(5) Includes $55 million of tax expense related to the early surrender of BOLI policies. During 4Q22, management decided to early surrender $1.2 billion of BOLI policies. This triggered a taxable gain of $160 million and resulted in tax expense of $55 million. | ||||||||||||
(6) The income tax impact includes tax discrete items and changes in the estimated annualized effective tax rate. | ||||||||||||
Dollars in millions, except share and per share data | ||||||||||||
Condensed Income Statement (unaudited) - Adjusted for Notable Items (1) | BancShares | BancShares | BancShares | BancShares | BancShares | |||||||
QTD | QTD | QTD | YTD | YTD | ||||||||
12/31/22 | 9/30/22 | 12/31/21 | 12/31/22 | 12/31/21 | ||||||||
Interest income | $ | 1,040 | 906 | 371 | 3,413 | 1,451 | ||||||
Interest expense | 238 | 111 | 14 | 467 | 61 | |||||||
Net interest income | 802 | 795 | 357 | 2,946 | 1,390 | |||||||
Provision (benefit) for credit losses | 79 | 60 | (5) | 132 | (37) | |||||||
Net interest income after provision for credit losses | 723 | 735 | 362 | 2,814 | 1,427 | |||||||
Noninterest income | 290 | 288 | 111 | 1,141 | 441 | |||||||
Noninterest expense | 590 | 577 | 311 | 2,305 | 1,193 | |||||||
Income before income taxes | 423 | 446 | 162 | 1,650 | 675 | |||||||
Income tax expense | 103 | 108 | 32 | 399 | 148 | |||||||
Net income | $ | 320 | 338 | 130 | 1,251 | 527 | ||||||
Preferred stock dividends | 14 | 12 | 4 | 50 | 18 | |||||||
Net income available to common stockholders | $ | 306 | 326 | 126 | 1,201 | 509 | ||||||
Basic earnings per common share | $ | 20.97 | 20.79 | 12.82 | 77.33 | 51.88 | ||||||
Diluted earnings per common share | $ | 20.94 | 20.77 | 12.82 | 77.24 | 51.88 | ||||||
Weighted average common shares outstanding (basic) | 14,590,387 | 15,711,976 | 9,816,405 | 15,531,924 | 9,816,405 | |||||||
Weighted average common shares outstanding (diluted) | 14,607,426 | 15,727,993 | 9,816,405 | 15,549,944 | 9,816,405 | |||||||
(1) The GAAP income statements and notable items are included previously in this communication. The condensed adjusted income statements above (non-GAAP) exclude the impacts of notable items. Refer to the Non-GAAP reconciliation table(s) at the end of this earnings release for a reconciliation of Non-GAAP measures to the most directly comparable GAAP measure. | ||||||||||||
Dollars in millions | ||||
BancShares | BancShares | BancShares | ||
Loans & Leases by Class (end of period) | 12/31/22 | 9/30/22 | 12/31/21 | |
Loans & Leases by Class | ||||
Commercial | ||||
Commercial construction | $ | 2,804 | 2,752 | 1,238 |
Owner-occupied commercial mortgages | 14,473 | 14,053 | 12,099 | |
Non-owner-occupied commercial mortgages | 9,902 | 9,683 | 3,041 | |
Commercial and industrial | 24,105 | 24,288 | 5,937 | |
Leases | 2,171 | 2,184 | 271 | |
Total commercial | $ | 53,455 | 52,960 | 22,586 |
Consumer | ||||
Residential mortgage | $ | 13,309 | 12,910 | 6,088 |
Revolving mortgage | 1,951 | 1,923 | 1,818 | |
Consumer auto | 1,414 | 1,385 | 1,332 | |
Consumer other | 652 | 612 | 548 | |
Total consumer | $ | 17,326 | 16,830 | 9,786 |
Total loans and leases | $ | 70,781 | 69,790 | 32,372 |
Less: Allowance for credit losses | (922) | (882) | (178) | |
Total loans and leases, net of allowance for credit losses | $ | 69,859 | 68,908 | 32,194 |
BancShares | BancShares | BancShares | ||
Deposits by Type (end of period) | 12/31/22 | 9/30/22 | 12/31/21 | |
Noninterest-bearing demand | $ | 24,922 | 26,587 | 21,405 |
Checking with interest | 16,202 | 16,118 | 12,694 | |
Money market | 21,040 | 21,818 | 10,590 | |
Savings | 16,634 | 14,722 | 4,236 | |
Time | 10,610 | 8,308 | 2,481 | |
Total deposits | $ | 89,408 | 87,553 | 51,406 |
Dollars in millions | ||||||
BancShares | BancShares | BancShares | BancShares | BancShares | ||
QTD | QTD | QTD | YTD | YTD | ||
Credit Quality & Allowance | 12/31/22 | 9/30/22 | 12/31/21 | 12/31/22 | 12/31/21 | |
Nonaccrual loans | $ | 627 | 454 | 121 | 627 | 121 |
Ratio of nonaccrual loans to total loans | 0.89 % | 0.65 % | 0.37 % | 0.89 % | 0.37 % | |
Charge-offs | $ | 39 | 33 | 9 | 146 | 36 |
Recoveries | (15) | (15) | (9) | (67) | (26) | |
Net charge-offs | $ | 24 | 18 | — | 79 | 10 |
Net charge-off ratio | 0.14 % | 0.10 % | (0.01) % | 0.12 % | 0.03 % | |
Allowance for credit losses to loans ratio | 1.30 % | 1.26 % | 0.55 % | 1.30 % | 0.55 % | |
Allowance for credit losses - beginning | $ | 882 | 850 | 183 | 178 | 225 |
Initial PCD ACL | — | — | — | 272 | — | |
Day 2 provision, excluding provision for unfunded commitments | — | — | — | 454 | — | |
Provision (benefit) for credit losses | 64 | 50 | (5) | 97 | (37) | |
Net charge-offs | (24) | (18) | — | (79) | (10) | |
Allowance for credit losses - ending | $ | 922 | 882 | 178 | 922 | 178 |
Dollars in millions | |||||||||
Average Balance Sheet | BancShares QTD 12/31/22 | BancShares QTD 09/30/22 | BancShares QTD 12/31/21 | ||||||
Avg | Income/ | Yield/Rate | Avg | Income/ | Yield/Rate | Avg | Income/ | Yield/Rate | |
Loans and leases (1) (2) | $ 69,290 | $ 892 | 5.09 % | $ 67,733 | $ 785 | 4.58 % | $ 32,488 | $ 328 | 3.98 % |
Total investment securities | 18,876 | 92 | 1.95 | 19,119 | 90 | 1.88 | 11,424 | 39 | 1.39 |
Interest-earning deposits at banks | 6,193 | 56 | 3.60 | 5,685 | 31 | 2.17 | 10,690 | 4 | 0.15 |
Total interest-earning assets (2) | $ 94,359 | $ 1,040 | 4.36 % | $ 92,537 | $ 906 | 3.87 % | $ 54,602 | $ 371 | 2.69 % |
Operating lease equipment, net (including held for sale) | $ 8,049 | $ 7,981 | $ — | ||||||
Cash and due from banks | 500 | 489 | 337 | ||||||
Allowance for credit losses | (886) | (851) | (184) | ||||||
All other non-interest-earning assets | 7,770 | 7,831 | 3,361 | ||||||
Total assets | $ 109,792 | $ 107,987 | $ 58,116 | ||||||
Interest-bearing deposits: | |||||||||
Checking with interest | $ 15,985 | $ 13 | 0.24 % | $ 16,160 | $ 7 | 0.14 % | $ 11,994 | $ 2 | 0.05 % |
Money market | 21,200 | 60 | 1.13 | 22,993 | 32 | 0.55 | 10,358 | 3 | 0.09 |
Savings | 15,831 | 69 | 1.73 | 13,956 | 28 | 0.78 | 4,140 | — | 0.03 |
Time deposits | 9,516 | 34 | 1.42 | 8,436 | 11 | 0.54 | 2,517 | 3 | 0.62 |
Total interest-bearing deposits | 62,532 | 176 | 1.12 | 61,545 | 78 | 0.50 | 29,009 | 8 | 0.11 |
Borrowings: | |||||||||
Securities sold under customer repurchase agreements | 514 | — | 0.27 | 617 | 1 | 0.16 | 650 | 1 | 0.16 |
Short-term FHLB borrowings | 2,080 | 20 | 3.72 | 1,188 | 8 | 2.57 | — | — | — |
Short-term borrowings | 2,594 | 20 | 3.04 | 1,805 | 9 | 1.74 | 650 | 1 | 0.16 |
Federal Home Loan Bank borrowings | 2,818 | 28 | 3.85 | 1,784 | 11 | 2.45 | 645 | 1 | 1.28 |
Senior unsecured borrowings | 906 | 4 | 2.03 | 898 | 5 | 2.00 | — | — | — |
Subordinated debt | 1,051 | 9 | 3.38 | 1,054 | 8 | 3.21 | 497 | 3 | 3.34 |
Other borrowings | 25 | 1 | 6.57 | 67 | — | 4.51 | 75 | 1 | 1.25 |
Long-term borrowings | 4,800 | 42 | 3.42 | 3,803 | 24 | 2.59 | 1,217 | 5 | 2.12 |
Total borrowings | 7,394 | 62 | 3.28 | 5,608 | 33 | 2.32 | 1,867 | 6 | 1.44 |
Total interest-bearing liabilities | $ 69,926 | $ 238 | 1.35 % | $ 67,153 | $ 111 | 0.65 % | $ 30,876 | $ 14 | 0.19 % |
Noninterest-bearing deposits | $ 26,510 | $ 26,877 | $ 22,229 | ||||||
Credit balances of factoring clients | 1,174 | 1,089 | — | ||||||
Other noninterest-bearing liabilities | 2,561 | 2,369 | 378 | ||||||
Stockholders' equity | 9,621 | 10,499 | 4,633 | ||||||
Total liabilities and stockholders' equity | $ 109,792 | $ 107,987 | $ 58,116 | ||||||
Net interest income | $ 802 | $ 795 | $ 357 | ||||||
Net interest spread (2) | 3.01 % | 3.22 % | 2.50 % | ||||||
Net interest margin (2) | 3.36 % | 3.40 % | 2.58 % | ||||||
(1) Loans and leases include non-PCD and PCD loans, nonaccrual loans and held for sale. Interest income on loans and leases includes accretion income and loan fees. | |||||||||
(2) The balance and rate presented is calculated net of average credit balances of factoring clients. | |||||||||
Note: Certain items above do not precisely recalculate as presented due to rounding. | |||||||||
Dollars in millions | |||||||
Average Balance Sheet | BancShares YTD 12/31/22 | BancShares YTD 12/31/21 | |||||
Avg | Income/ Expense | Yield/Rate | Avg | Income/ Expense | Yield/Rate | ||
Loans and leases (1) (2) | $ 66,634 | $ 2,953 | 4.41 % | $ 32,860 | $ 1,295 | 3.91 % | |
Total investment securities | 19,166 | 354 | 1.85 | 10,611 | 145 | 1.37 | |
Interest-earning deposits at banks | 7,726 | 106 | 1.38 | 8,349 | 11 | 0.13 | |
Total interest-earning assets(2) | $ 93,526 | $ 3,413 | 3.63 % | $ 51,820 | $ 1,451 | 2.78 % | |
Operating lease equipment, net (including held for sale) | $ 7,982 | $ — | |||||
Cash and due from banks | 512 | 350 | |||||
Allowance for credit losses | (875) | (202) | |||||
All other non-interest-earning assets | 7,788 | 3,015 | |||||
Total assets | $ 108,933 | $ 54,983 | |||||
Interest-bearing deposits: | |||||||
Checking with interest | $ 16,323 | $ 29 | 0.15 % | $ 11,258 | $ 6 | 0.05 % | |
Money market | 23,949 | 125 | 0.52 | 9,708 | 10 | 0.10 | |
Savings | 14,193 | 117 | 0.82 | 3,847 | 1 | 0.03 | |
Time deposits | 9,133 | 64 | 0.70 | 2,647 | 16 | 0.63 | |
Total interest-bearing deposits | 63,598 | 335 | 0.53 | 27,460 | 33 | 0.12 | |
Borrowings: | |||||||
Securities sold under customer repurchase agreements | 590 | 1 | 0.19 | 660 | 1 | 0.20 | |
Short-term FHLB borrowings | 824 | 28 | 3.30 | — | — | — | |
Short-term borrowings | 1,414 | 29 | 2.00 | 660 | 1 | 0.20 | |
Federal Home Loan Bank borrowings | 1,414 | 43 | 2.96 | 648 | 8 | 1.28 | |
Senior unsecured borrowings | 1,348 | 25 | 1.87 | — | — | — | |
Subordinated debt | 1,056 | 33 | 3.15 | 498 | 15 | 3.35 | |
Other borrowings | 64 | 2 | 3.22 | 80 | 4 | 1.23 | |
Long-term borrowings | 3,882 | 103 | 2.64 | 1,226 | 27 | 2.12 | |
Total borrowings | 5,296 | 132 | 2.47 | 1,886 | 28 | 1.45 | |
Total interest-bearing liabilities | $ 68,894 | $ 467 | 0.68 % | $ 29,346 | $ 61 | 0.21 % | |
Noninterest-bearing deposits | $ 26,318 | $ 20,798 | |||||
Credit balances of factoring clients | 1,153 | — | |||||
Other noninterest-bearing liabilities | 2,292 | 378 | |||||
Stockholders' equity | 10,276 | 4,461 | |||||
Total liabilities and stockholders' equity | $ 108,933 | $ 54,983 | |||||
Net interest income | $ 2,946 | $ 1,390 | |||||
Net interest spread (2) | 2.95 % | 2.57 % | |||||
Net interest margin (2) | 3.14 % | 2.66 % | |||||
(1) Loans and leases include non-PCD and PCD loans, nonaccrual loans and held for sale. Interest income on loans and leases includes accretion income and loan fees. | |||||||
(2) The balance and rate presented is calculated net of average credit balances of factoring clients. | |||||||
Note: Certain items above do not precisely recalculate as presented due to rounding. | |||||||
Dollars in millions, except share and per share data | ||||||||
BancShares | BancShares | BancShares | BancShares | BancShares | ||||
QTD | QTD | QTD | YTD | YTD | ||||
Non-GAAP Reconciliations | 12/31/22 | 9/30/22 | 12/31/21 | 12/31/22 | 12/31/21 | |||
Net income and EPS | ||||||||
Net income (GAAP) | a | $ | 257 | 315 | 123 | 1,098 | 547 | |
Preferred stock dividends | 14 | 12 | 4 | 50 | 18 | |||
Net income available to common stockholders (GAAP) | b | 243 | 303 | 119 | 1,048 | 529 | ||
Total notable items, after income tax | c | 63 | 23 | 7 | 153 | (20) | ||
Adjusted net income (non-GAAP) | d = (a+c) | 320 | 338 | 130 | 1,251 | 527 | ||
Adjusted net income available to common stockholders (non-GAAP) | e = (b+c) | $ | 306 | 326 | 126 | 1,201 | 509 | |
Weighted average common shares outstanding | ||||||||
Basic | f | 14,590,387 | 15,711,976 | 9,816,405 | 15,531,924 | 9,816,405 | ||
Diluted | g | 14,607,426 | 15,727,993 | 9,816,405 | 15,549,944 | 9,816,405 | ||
EPS (GAAP) | ||||||||
Basic | b/f | $ | 16.69 | 19.27 | 12.09 | 67.47 | 53.88 | |
Diluted | b/g | 16.67 | 19.25 | 12.09 | 67.40 | 53.88 | ||
Adjusted EPS (non-GAAP) | ||||||||
Basic | e/f | $ | 20.97 | 20.79 | 12.82 | 77.33 | 51.88 | |
Diluted | e/g | 20.94 | 20.77 | 12.82 | 77.24 | 51.88 | ||
Noninterest income and expense | ||||||||
Noninterest income | h | $ | 429 | 433 | 114 | 2,136 | 508 | |
Impact of notable items, before income tax | (139) | (145) | (3) | (995) | (67) | |||
Adjusted noninterest income | i | $ | 290 | 288 | 111 | 1,141 | 441 | |
Noninterest expense | j | $ | 760 | 760 | 323 | 3,075 | 1,234 | |
Impact of notable items, before income tax | (170) | (183) | (12) | (770) | (41) | |||
Adjusted noninterest expense | k | $ | 590 | 577 | 311 | 2,305 | 1,193 | |
Provision (benefit) for credit losses | ||||||||
Provision (benefit) for credit losses | $ | 79 | 60 | (5) | 645 | (37) | ||
Plus: Day 2 provision for credit losses | — | — | — | (513) | — | |||
Adjusted provision (benefit) for credit losses | $ | 79 | 60 | (5) | 132 | (37) | ||
PPNR | ||||||||
Net income (GAAP) | a | $ | 257 | 315 | 123 | 1,098 | 547 | |
Plus: | ||||||||
Provision (benefit) for credit losses | 79 | 60 | (5) | 645 | (37) | |||
Income tax expense (benefit) | 135 | 93 | 30 | 264 | 154 | |||
PPNR (non-GAAP) | l | $ | 471 | 468 | 148 | 2,007 | 664 | |
Plus: total notable items, before income tax | 31 | 38 | 9 | (225) | (26) | |||
Adjusted PPNR (non-GAAP) | m | $ | 502 | 506 | 157 | 1,782 | 638 | |
Note: Certain items above do not precisely recalculate as presented due to rounding. | ||||||||
Dollars in millions, except share and per share data | ||||||||
BancShares | BancShares | BancShares | BancShares | BancShares | ||||
QTD | QTD | QTD | YTD | YTD | ||||
Non-GAAP Reconciliations (continued) | 12/31/22 | 9/30/22 | 12/31/21 | 12/31/22 | 12/31/21 | |||
ROA | ||||||||
Net income (GAAP) | a | $ | 257 | 315 | 123 | 1,098 | 547 | |
Annualized net income | n = a annualized | 1,020 | 1,250 | 488 | 1,098 | 547 | ||
Adjusted net income (non-GAAP) | d | 320 | 338 | 130 | 1,251 | 527 | ||
Annualized adjusted net income | p = d annualized | 1,270 | 1,341 | 516 | 1,251 | 527 | ||
Average assets | o | 109,792 | 107,987 | 58,116 | 108,933 | 54,983 | ||
ROA | n/o | 0.93 % | 1.16 % | 0.84 % | 1.01 % | 1.00 % | ||
Adjusted ROA | p/o | 1.15 % | 1.24 % | 0.89 % | 1.15 % | 0.96 % | ||
PPNR ROA | ||||||||
PPNR (non-GAAP) | l | $ | 471 | 468 | 148 | 2,007 | 664 | |
Annualized PPNR | q = l annualized | 1,868 | 1,858 | 589 | 2,007 | 664 | ||
Adjusted PPNR (non-GAAP) | m | 502 | 506 | 157 | 1,782 | 638 | ||
Annualized PPNR | r = m annualized | 1,992 | 2,009 | 622 | 1,782 | 638 | ||
PPNR ROA | q/o | 1.70 % | 1.72 % | 1.01 % | 1.84 % | 1.21 % | ||
Adjusted PPNR ROA | r/o | 1.81 % | 1.86 % | 1.08 % | 1.64 % | 1.16 % | ||
ROE and ROTCE | ||||||||
Annualized net income available to common stockholders | s = b annualized | $ | 964 | 1,202 | 472 | 1,048 | 529 | |
Annualized adjusted net income available to common stockholders | t = e annualized | $ | 1,214 | 1,293 | 500 | 1,201 | 509 | |
Average stockholders' equity (GAAP) | $ | 9,621 | 10,499 | 4,633 | 10,276 | 4,461 | ||
Less: average preferred stock | 881 | 881 | 340 | 878 | 340 | |||
Average common stockholders' equity (non-GAAP) | u | $ | 8,740 | 9,618 | 4,293 | 9,398 | 4,121 | |
Less: average goodwill | 346 | 346 | 350 | 346 | 350 | |||
Less: average other intangible assets | 143 | 148 | 21 | 156 | 25 | |||
Average tangible common equity (non-GAAP) | v | $ | 8,251 | 9,124 | 3,922 | 8,896 | 3,746 | |
ROE | s/u | 11.05 % | 12.49 % | 10.96 % | 11.15 % | 12.84 % | ||
Adjusted ROE | t/u | 13.89 % | 13.47 % | 11.63 % | 12.78 % | 12.36 % | ||
ROTCE | s/v | 11.70 % | 13.17 % | 12.00 % | 11.78 % | 14.12 % | ||
Adjusted ROTCE | t/v | 14.71 % | 14.20 % | 12.72 % | 13.50 % | 13.60 % | ||
Tangible common equity to tangible assets | ||||||||
Stockholders' equity (GAAP) | w | $ | 9,662 | 9,833 | 4,738 | 9,662 | 4,738 | |
Less: preferred stock | 881 | 881 | 340 | 881 | 340 | |||
Common equity (non-GAAP) | x | $ | 8,781 | 8,952 | 4,398 | 8,781 | 4,398 | |
Less: goodwill | 346 | 346 | 346 | 346 | 346 | |||
Less: other intangible assets | 140 | 145 | 19 | 140 | 19 | |||
Tangible common equity (non-GAAP) | y | $ | 8,295 | 8,461 | 4,033 | 8,295 | 4,033 | |
Total assets (GAAP) | z | 109,298 | 109,310 | 58,309 | 109,298 | 58,309 | ||
Tangible assets (non-GAAP) | aa | 108,812 | 108,819 | 57,944 | 108,812 | 57,944 | ||
Total equity to total assets | w/z | 8.84 % | 9.00 % | 8.13 % | 8.84 % | 8.13 % | ||
Tangible common equity to tangible assets (non-GAAP) | y/aa | 7.62 % | 7.78 % | 6.96 % | 7.62 % | 6.96 % | ||
Note: Certain items above do not precisely recalculate as presented due to rounding. | ||||||||
Dollars in millions, except share and per share data | ||||||||
BancShares | BancShares | BancShares | BancShares | BancShares | ||||
QTD | QTD | QTD | YTD | YTD | ||||
Non-GAAP Reconciliations (continued) | 12/31/22 | 9/30/22 | 12/31/21 | 12/31/22 | 12/31/21 | |||
Book value and tangible book value per common share | ||||||||
Common shares outstanding at period end | bb | 14,506,200 | 14,976,127 | 9,816,405 | 14,506,200 | 9,816,405 | ||
Book value per share | x/bb | $ | 605.36 | 597.75 | 447.95 | 605.36 | 447.95 | |
Tangible book value per share | y/bb | $ | 571.89 | 564.97 | 410.74 | 571.89 | 410.74 | |
Efficiency ratio | ||||||||
Net interest income | cc | $ | 802 | 795 | 357 | 2,946 | 1,390 | |
Efficiency ratio (GAAP) | j / (h + cc) | 61.74 % | 61.91 % | 68.52 % | 60.50 % | 64.98 % | ||
Adjusted efficiency ratio (non-GAAP) | k / (i + cc) | 54.08 % | 53.32 % | 66.31 % | 56.40 % | 65.11 % | ||
Rental income on operating lease equipment | ||||||||
Rental income on operating lease equipment | $ | 224 | 219 | — | 864 | — | ||
Less: | ||||||||
Depreciation on operating lease equipment | 88 | 87 | — | 345 | — | |||
Maintenance and other operating lease expenses | 47 | 52 | — | 189 | — | |||
Adjusted rental income on operating lease equipment | 89 | 80 | — | 330 | — | |||
Note: Certain items above do not precisely recalculate as presented due to rounding. | ||||||||
Contact: | Deanna Hart | Barbara Thompson |
Investor Relations | Corporate Communications | |
919-716-2137 | 919-716-2716 |
SOURCE First Citizens BancShares, Inc.
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