#USA #Raleigh #Q4 2025 #First Citizens BancShares #Frank Holding

First Citizens BancShares Reports Impressive Earnings for Q4 2025

On January 23, 2026, First Citizens BancShares, Inc. (Nasdaq: FCNCA) shared its financial achievements for the fourth quarter of 2025. Chairman and CEO Frank B. Holding, Jr. noted that the company showcased robust return metrics while maintaining a stable credit quality and achieving considerable loan growth. This growth was led primarily by their Global Fund Banking services. The firm also announced a significant return of $900 million in capital to stockholders via share repurchases, alongside a prepayment of $2.5 billion on the Purchase Money Note, signifying their robust capital and liquidity positioning.

Acquisition of BMO Branches

In a strategic move to expand its footprint in the U.S., First Citizens Bank, a wholly-owned subsidiary of BancShares, is set to acquire 138 branches from BMO Bank, located across the Midwest, Great Plains, and West regions. This transaction, valued as a step towards boosting their market presence, is expected to involve the assumption of approximately $5.7 billion in deposits and the acquisition of about $1.1 billion in loans. The deal is projected to finalize in the latter half of 2026, pending necessary regulatory approvals and customary closing conditions.

Financial Highlights

In Q4 2025, BancShares reported a net income of $580 million, representing a slight increase from $568 million in the third quarter of the same year. The net income available to common shareholders reached $566 million, translating to $45.81 per share. Adjusted net income for the current quarter was reported at $648 million, up from $587 million in the previous quarter. Notably, the bank experienced a net interest income of $1.72 billion, indicating a decrease of $12 million from the previous quarter, largely attributed to lower interest rates affecting loan yields.

Segment Reporting Expansion

During this quarter, BancShares expanded the composition of its Commercial Bank segment, integrating SVB Commercial, which had previously operated as a separate segment. Adjustments to prior period segment financials were made to reflect this change.

Loan Performance and Credit Quality

BancShares provided a provision for credit losses totaling $54 million for the current quarter, a notable decline from $191 million recorded in the linked quarter. This outcome was driven by reduced net charge-offs. The firm reported net charge-offs of $143 million, which represented a decrease of $91 million compared to the previous quarter.

Capital and Liquidity Status

The capital ratios at BancShares remained well above regulatory requirements, with their total risk-based capital standing at 13.71% and Tier 1 leverage ratios at 9.29% as of December 31, 2025. During this quarter, the company successfully repurchased 479,470 shares of its Class A common stock for a total of $900 million, demonstrating its commitment to returning value to shareholders. Furthermore, liquid assets accounted for $56.01 billion at the end of the quarter, underscoring a strong liquidity position.

Conclusion

BancShares looks forward to 2026 with optimism, supported by its robust financial metrics and strategic growth initiatives. As the company prepares for its upcoming earnings call, stakeholders remain enthusiastic about its performance trajectory and future prospects.