Is First Citizens BancShares ($FCNCA) Quietly Engineering a Banking Empire No One Saw Coming?

It makes sense to review ROE and ROTCE together.

Here is FCNCA’s numbers:

FCNCA made a few acquisitions over the past 11 years but very little goodwill and intangibles were added. The ROE and ROTCE is added.

FCNCA ROTCE was around the 8% region. Then with acquisition and scale, it became 10%. Then 12-14% region.

Now this means that if FCNCA were to trade at 1 times tangible book value, your $1 earned from FCNCA that they use to buy back their stock is put into:

1. A business that is growing in scale.
2. Scaling up in efficiency.
3. Earning a consistent 12-14% a year.
4. That have this kind of ROTCE for a while already.

Now where are you going to buy a business like that?

Pages: 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37