First Citizens BancShares delivered a solid Q2 2024 performance, underscored by resilient profitability, robust loan growth, and a strong capital position following the SVB acquisition. Net income of $707 million and EPS of $47.54 supported a return on equity of 14.05% and a ROA of 1.39%, with revenue of $3.707 billion and a gross margin of approximately 62.1%. The quarter benefited from attractive loan origination across General Bank, Commercial Bank and SVB Commercial segments, alongside continued core deposit growth and strategic cost control. Management signaled a disciplined capital plan, including a $3.5 billion share repurchase program designed to reduce the CET-1 ratio toward a 10.5% target by end-2025, while maintaining capacity for growth and regulatory readiness.
Management also highlighted ongoing SVB integration benefits, including deposit growth and scale efficiencies, the direct bank platform for core deposits, and additional hedging to manage asset sensitivity in a potentially lower-rate environment. As the macro backdrop evolves, FCNCA projects mid-to-high single-digit loan growth in 3Q24 and reiterates full-year NII guidance in the $7.2-$7.3 billion range, with NIM dynamics expected to be influenced by rate cuts, deposit costs, and accretion from the loan portfolio. While near-term lending momentum remains solid, the firm remains vigilant on CRE stress and venture-related exposure, emphasizing prudent credit risk management and reserve adequacy.