First Citizens BancShares Inc (FCNCA)

History and Background

First Citizens BancShares, Inc. traces its roots back to 1898 with the founding of the Bank of Smithfield in North Carolina. Over the years, it grew through strategic acquisitions and organic expansion, becoming one of the largest family-controlled banks in the U.S.

Core Business Areas

• Commercial Banking: Provides a wide range of lending, deposit, and treasury management services to businesses of all sizes.
• Consumer Banking: Offers deposit accounts, loans, and investment services to individual customers.
• Wealth Management: Provides financial planning, investment management, and trust services to high-net-worth individuals and families.

Leadership and Structure

Frank Holding, Jr. serves as Chairman and CEO. The bank operates with a traditional hierarchical structure typical of a large financial institution.

Key Offerings

• Commercial Loans: Provides term loans, lines of credit, and other financing solutions to businesses. Market share data is difficult to pinpoint precisely, but First Citizens is a significant player in its geographic markets. Competitors include Truist, Bank of America, and Wells Fargo.
• Deposit Accounts: Offers checking, savings, and money market accounts to consumers and businesses. Again, market share data is hard to get precisely, but First Citizens is known for its competitive rates and customer service. Competitors include Chase, Wells Fargo, and local credit unions.
• Wealth Management Services: Offers financial planning, investment management, and trust services to high-net-worth individuals and families. Competitors include Morgan Stanley, Goldman Sachs, and other regional wealth management firms.

Industry Overview

The banking industry is currently facing a challenging environment due to rising interest rates, increased regulatory scrutiny, and competition from fintech companies.

Positioning

First Citizens is positioned as a strong regional bank with a focus on relationship banking and personalized service. Its competitive advantages include its strong capital base and experienced management team.

Total Addressable Market (TAM)

The TAM for banking services is enormous, encompassing all individuals and businesses that require financial products and services. First Citizens is focusing on steady, targeted growth within this TAM, primarily in its core markets.

Key Competitors

• BOH
• HBAN
• RF
• KEY
• CMA

Competitive Landscape

First Citizens competes with a mix of large national banks and smaller regional players. Its advantages include its strong capital base and relationship-focused banking model.

CIT Group

• Year: 2022
• Acquisition Price (USD millions): 2200
• Strategic Rationale: Expanded First Citizens' commercial banking footprint and added new products and services.

Historical Growth: First Citizens has demonstrated consistent growth in assets, loans, and deposits over the past decade.

Future Projections: Analysts expect First Citizens to continue to grow at a steady pace, driven by organic growth and strategic acquisitions.

Recent Initiatives: Recent initiatives include the acquisition of CIT Group, expansion into new markets, and investments in digital banking technologies.

First Citizens is a financially sound and well-managed regional bank with a focus on relationship banking. Its acquisition of CIT Group strengthened its commercial banking capabilities. Key areas for growth include digital banking and wealth management, but threats are Fintech, interest rates, and regulations. Overall, First Citizens demonstrates strength and stability.

Data Sources:

• Company Filings (10-K, 10-Q)
• Analyst Reports
• Financial News Outlets
• MarketWatch.com
• Yahoo Finance
• SEC.gov

Disclaimers:

The information provided is for informational purposes only and should not be considered financial advice. Market share data is approximate and may vary depending on the source.