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First Citizens BancShares Reports First Quarter 2025 Earnings

First Citizens BancShares, Inc. (Nasdaq: FCNCA) has unveiled its earnings results for the first quarter of 2025, delivering a solid financial performance despite the challenges within the current economic environment. Chairman and CEO Frank B. Holding, Jr. highlighted the underlying strength of the company, showcasing growth across various segments, notably within the Commercial Bank and SVB Commercial sectors, as well as remarkable deposit increases.

Financial Overview

The company reported net income of $483 million for the first quarter, a decrease compared to $700 million in the preceding quarter. Notably, the net income available to common stockholders stood at $468 million or $34.47 per common share, a decline attributed primarily to a rise in income tax expenses; the previous quarter had benefitted from a one-time reduction in tax liabilities. Furthermore, the pre-tax income for Q1 2025 was reported at $651 million, down from $736 million in Q4 2024.

Adjusted earnings figures for the current quarter demonstrated similar trends, with net income reaching $528 million versus $643 million in Q4. This drop is reflective of the strategic decisions following the SVBB acquisition and changes in tax expense structures.

Net Interest Income Analysis

Net interest income came to $1.66 billion, slightly down $46 million from the previous quarter, with various factors at play influencing this shift. Interest income from loans saw a notable decline of $86 million, while interest income from investment securities rose by $37 million due to an increase in the average balance. As for net interest margin (NIM), it was recorded at 3.26%, an adjustment from the prior 3.32%, largely driven by declining yields in certain earning assets and shifts in funding composition.

Noninterest Income Examination

On the non-interest income front, the company realized $635 million versus $699 million in the fourth quarter—a reduction attributed to diminished fair value adjustments on marketable equity securities and a decrease in gains from various financial instruments. Conversely, adjusted noninterest income reached $479 million, reflecting the impacts of evolving market conditions on customer derivative positions.

Balance Sheet Highlights

As of March 31, 2025, total loans and leases had grown to $141.36 billion, with $1.14 billion in new loans largely driven by the Commercial Bank sector, especially in technology and healthcare segments. Deposits surged to $159.33 billion, representing a significant increase of $4.10 billion since the end of last year, driven by organic growth in both Direct Bank and Branch Network metrics. Noninterest-bearing deposits accounted for 25.6% of total deposits, marking a rise from 24.9% previously.

Credit Loss Provisions

In terms of credit quality, the provision for credit losses remained stable at $154 million, signaling strong management of risk exposure even amidst fluctuating macroeconomic forecasts. The net charge-offs registered at $144 million, equivalent to 0.41% of total average loans—indicating improved performance from the previous quarter's figures.

Capital and Liquidity Strength

BancShares emphasized its robust Capital position, with all capital ratios exceeding regulatory requirements. The company successfully returned $613 million of capital to shareholders through share repurchases, while maintaining substantial liquidity, with liquid assets totaling $62.79 billion.

In summation, First Citizens BancShares has entered the second quarter of 2025 while demonstrating a resilient financial standing and commitment to shareholder value creation, displaying clear growth trajectories in both lending and deposit activities. As they navigate market uncertainties, the company remains optimistic about future prospects and ongoing strategic initiatives.

Upcoming Earnings Call

To discuss these results in further detail, BancShares will host an earnings call on April 24, 2025, at 9 a.m. EDT, accessible via their official website. Investors and stakeholders are encouraged to participate and engage with management as they outline their vision for the coming periods.

About First Citizens BancShares

First Citizens BancShares is a leading financial institution in the US, managing assets exceeding $200 billion with a significant presence across the country. The company's long-standing legacy is built on trust, stability, and strategic foresight, delivering a wide range of banking solutions to meet the diverse needs of its customer base.