First Citizens BancShares, Inc. (FCNCA) Q1 2023 Earnings Call Transcript

For the period ending March 31, 2023

May 10, 2023 9:00 a.m. ET

Prepared Remarks

Questions and Answers

Call Participants

Prepared Remarks:

Operator

Ladies and gentlemen, thank you for standing by and welcome to the First Citizens BancShares First Quarter 2023 Earnings Conference Call. [Operator Instructions] As a reminder, today's conference is being recorded.

I would now like to introduce the host of this conference call, Ms. Deanna Hart, Senior Vice President of Investor Relations. You may begin.

Deanna Hart

Good morning, everyone. Thank you for joining our first quarter earnings call. Our Chairman and Chief Executive Officer, Frank Holding; our President, Peter Bristow; and our Chief Financial Officer, Craig Nix will provide an update on the FCB acquisition, our first quarter and 2023 outlook.

During the call, we will be referencing our investor presentation which you can find on our website. Our comments will include forward-looking statements, which are subject to risks and uncertainties that may cause our results to differ materially from expectations. We assume no obligation to update such statements. These risks are outlined for your review on Page 3.

We will also be referencing non-GAAP financial measures. Reconciliations of these measures against the most directly comparable GAAP measures are found in Section 8 of the presentation. First Citizens is not responsible for and does not edit nor guarantee the accuracy of our earnings teleconference transcripts provided by a third party.

I will now turn it over to Frank.

Frank Holding

Thank you, Deanna, and good morning, everyone.

Starting on Page 5. We announced another quarter of solid financial results. As you know, we're our TBV focus company and we're pleased that the acquisition of SVB resulted in 112% TBV accretion on the acquisition date and 106% after the CECL adjustments. This transaction meaningfully boosted our capital base providing us with an even more solid foundation to continue growing profitably while delivering long-term value to our shareholders.

Since the acquisition, we have had meaningful engagement with key SVB leaders and clients reinforcing that FCB and SVB have commonalities that guide us including deep commitments to our clients and people and to the communities we serve. The CIT merger included many unique businesses and we have successfully integrated those into our business model. So we are confident with this recent experience that we'll be able to -- they will enable us to incorporate SVB as well.

We've long believed that direct communications with our clients and associates are essential. And to that end, I'd like to briefly touch on some recent departures that have been reported. As with any combination of discounts, some level of associate turnover in deposit and client churn is expected.