First Citizens BancShares (FCNCA) Q2 2023 Earnings Call Transcript

For the period ending June 30, 2023

August 3, 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 Second Quarter 2023 Earnings Conference Call. [Operator Instructions] As a reminder, today's conference is being recorded.

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

Deanna Hart

Good morning, everyone. Welcome to our second quarter earnings call. Our Chairman and Chief Executive Officer, Frank Holding; President, Peter Bristow; and Chief Financial Officer, Craig Nix, will provide second quarter business and financial updates today. During the call, we will reference our investor presentation, which you can find on our website. Our comments will include forward-looking statements, which are subject to risks and uncertainties and that may cause our results to differ materially from expectations.

We assume no obligation to update such statements. These risks are outlined for you on Page 3. We will also reference non-GAAP financial measures. Reconciliations of these measures against the most directly comparable GAAP measures are found in Section 5 of the presentation. Finally, First Citizens is not responsible for and does not edit nor guarantee the accuracy of earnings transcripts provided by third parties.

I will now turn it over to Frank.

Frank Holding

Thank you, Deanna, and good morning, everyone. Before we get into second quarter results, I'd like to start by saying that the SVB acquisition is going very well, and we are pleased with our progress integrating SVB's clients and associates into First Citizens. I'm also pleased to announce that we've appointed Marc Cadieux, a 30-year veteran of SVB as President of SVB's Commercial Banking business. Based in the San Francisco Bay Area, Marc leads a team of more than 1,000 experienced and talented bankers nationwide who are dedicated to the innovation economy. And we are fortunate to have Marc as a part of the First Citizens senior leadership team.

Starting on Page 5. We've announced another quarter of solid financial results which were amplified by the SVB acquisition. We reported adjusted earnings per share of $52.60, exceeding our expectations. We delivered top quartile return metrics, generating an adjusted return on equity of 16.5% and return on assets of 1.5%. Our net interest margin expanded 69 basis points to 4.1%, and our adjusted efficiency ratio came in below 50% for this quarter. Deposits continue to be a huge focus for us, generated for us growing by 3.2% on an annualized basis.