First Citizens BancShares Results Presentation Deck
Net interest income and margin (NIM)
($ in millions)
$795
3.42%
3Q22
$802
3.39%
4Q22
$850
First Citizens
BancShares
3.41%
1Q23
NII
3Q23 vs 2Q23
Net interest income increased by $29 million due to a $157 million increase in
interest income, partially offset by a $128 million increase in interest expense. The
change in net interest income was primarily due to the following:
$73 million increase in interest income on loans due to loan accretion ($32
million) and a higher yield, partially offset by a lower average balance,
$60 million increase in interest on investment securities due to a higher average
balance and yield,
$24 million increase in interest income on overnight investments due to a higher
yield, and a
Highlights
$66 million decrease in borrowing costs primarily due to the pay down of FHLB
borrowings, and a lower rate paid; partially offset by a
$194 million increase in interest expense on deposits due to deposit growth, and
a higher rate paid.
NIM contracted by 3 basis points from 4.10% to 4.07%. See the following page for a
rollforward of NIM between 2Q23 and 3Q23.
NIM
$1,961
4.10%
2Q23
$29 million & (-3 bps)
$1,990
4.07%
3Q23
3Q23 vs 3Q22
Net interest income increased by $1.2 billion due to a $2.2 billion increase in interest
income, partially offset by a $1.0 billion increase in interest expense. The change in net
interest income was primarily due to the following:
$1.6 billion increase in interest income on loans due to a higher average balance
and increased loan accretion ($263 million) both as a result of the SVB
acquisition, an increase in loan yield, and loan growth in the General Bank and
Commercial Bank,
$473 million increase in interest on overnight investments due to a higher yield
and higher average balance resulting from the SVB acquisition; partially offset by
a
$691 million increase in interest expense on deposits due to a higher average
balance resulting from the SVB acquisition, deposit growth, and a higher rate
paid, and a
$318 million increase in interest expense on borrowings primarily due to the
Purchase Money Note related to the SVB acquisition.
NIM expanded 65 basis points from 3.42% to 4.07%. See the following page for a
rollforward of NIM between 3Q22 and 3Q23.
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