10-QPeriod: Q1 FY2025

FIRST CITIZENS BANCSHARES INC /DE/ Quarterly Report for Q1 Ended Mar 31, 2025

Filed May 9, 2025For Securities:FCNCAFCNCPFCNCBFCNCOFCNCN

Summary

First Citizens BancShares, Inc. (FCNCA) reported a net income of $483 million for the first quarter of 2025, a decrease from the $700 million recorded in the preceding quarter. This decline was primarily attributed to a significant increase in income tax expense, which rose to $168 million from $36 million in the linked quarter. Despite the dip in profitability, the bank demonstrated growth in its balance sheet. Total assets grew to $228.8 billion from $223.7 billion at the end of 2024, driven by an increase in total deposits to $159.3 billion from $155.2 billion. Loan and lease balances also saw a modest increase to $141.4 billion from $140.2 billion. The bank maintained strong capital ratios, with total risk-based capital at 15.23%, well above regulatory requirements. Management highlighted a strategic shift in segment reporting and the termination of a shared-loss agreement with the FDIC, which will not materially impact current financial statements. The company also continued its share repurchase program, buying back approximately $613 million of Class A common stock in the quarter.

Financial Highlights

35 data points
Beta

Revenue

$2.30B

Net Income

$483.00M

21.0% Net Margin

EPS (Diluted)

$34.47

Total Assets

$228.82B

Cash & Equivalents

$812.00M

Free Cash Flow

-$5.00M

Financial Statements
Beta
Revenue$2.30B
Net Income$483.00M
EPS (Basic)$34.47
EPS (Diluted)$34.47
Shares Outstanding (Basic)13.58M
Shares Outstanding (Diluted)13.58M

Key Highlights

  • 1Net income decreased by 32% quarter-over-quarter to $483 million, largely due to a significant increase in income tax expense.
  • 2Total assets increased by $5.1 billion to $228.8 billion, reflecting growth in deposits and investment securities.
  • 3Total deposits grew by $4.1 billion to $159.3 billion, with growth concentrated in the Direct Bank and General Bank segments.
  • 4Loans and leases increased by $1.1 billion to $141.4 billion, driven by growth in Commercial and SVB segments.
  • 5Net interest margin (NIM) compressed by 6 basis points to 3.26%, primarily due to a decline in asset yields and a shift in asset mix.
  • 6The bank maintained strong capital adequacy ratios, with Total Risk-Based Capital at 15.23% and CET1 ratio at 12.81%, well above regulatory minimums.
  • 7First Citizens BancShares repurchased approximately $613 million of its Class A common stock during the quarter under its authorized share repurchase program.

Frequently Asked Questions

The primary driver for the decrease in net income from $700 million in the linked quarter to $483 million in the current quarter was a significant increase in income tax expense, which rose to $168 million from $36 million in the previous quarter. This increase was largely due to a change in how state tax rates were applied following the SVBB Acquisition.

Total deposits increased by $4.1 billion to $159.3 billion. Growth was primarily driven by increases in savings deposits and noninterest-bearing deposits in the Direct Bank and General Bank segments, partially offset by declines in the Commercial Bank segment and certain SVB Commercial deposits.

The bank's loan portfolio quality remains stable, with the allowance for loan and lease losses (ALLL) at 1.19% of total loans, a slight decrease from 1.20% in the prior quarter. Nonaccrual loans increased slightly to $1.21 billion, but remained a small percentage of total loans. Management continues to monitor macroeconomic forecasts and specific loan portfolio trends.

The termination of the FDIC Shared-Loss Agreement, which occurred on April 7, 2025, will not have a material impact on the company's consolidated balance sheets or statements of income as there was no loss indemnification asset or true-up liability associated with it. However, it will result in a decrease in risk-weighted assets, which is expected to lower the company's regulatory capital ratios slightly in future periods.