First Citizens BancShares Q4 2024: Diverging Views on Loan Growth, NII, and M&A Strategy

Strong Financial Performance:
- First Citizens BancShares reported adjusted earnings per share of $45.10, exceeding expectations, with loan and deposit growth across all segments.
- The growth was driven by strong performance in business, commercial, and SVB segments, despite a muted pace of investment for most of the year.

Capital and Liquidity Management:
- The company repurchased an additional 3.5% of its Class A common stock in the fourth quarter, bringing total repurchases since the inception of the plan to 6.44%.
- This was part of an ongoing strategy to optimize capital position and support balance sheet growth.

Deposit Growth and Optimization:
- Deposits were up $3.7 billion or 2.4% sequentially, with growth across all segments, especially notable in the direct bank and SVB Commercial segments.
- The company plans to shift a high-yielding SVB Commercial deposit product off-balance sheet, aiming to enhance liquidity and reduce total deposit interest expense.

Credit Quality and Loss Forecasts:
- Net charge-offs were up slightly by 4 basis points over the third quarter, aligned with expectations.
- The company anticipates first quarter net charge-offs to remain relatively stable, despite continued stress in investor-dependent and office portfolios.

Outlook for 2025:
- The company projects first quarter loans in the $140 billion to $142 billion range, driven by growth in Commercial Banking and SVB Commercial segments.
- The outlook includes expectations for modest loan growth, deposit gathering, and strategic balance sheet optimization while managing potential regulatory changes.