First Citizens BancShares Reports Impressive Second Quarter Earnings and New Share Repurchase Plan

First Citizens BancShares Showcases Strong Earnings in Q2 2025

First Citizens BancShares, Inc. (Nasdaq: FCNCA) has released its earnings report for the second quarter of 2025, revealing substantial financial growth and an aggressive new share repurchase strategy. Chairman and CEO Frank B. Holding, Jr. emphasized the impressive performance achieved through revenue growth and favorable credit results from their diverse asset portfolio.

In this quarter, the bank reported a remarkable net income of $575 million, which showcases a significant increase from $483 million reported in the previous quarter. Net income available to common stockholders rose to approximately $561 million, translating to $42.36 per common share—an increase of $93 million from the prior quarter's figures. Adjusted net income for this quarter also demonstrated an upward trend, reporting $607 million compared to $528 million in the first quarter of 2025.

Key Financial Metrics

The bank's earnings report reflects solid growth across several financial metrics. The net interest income reached $1.70 billion, a $32 million increase from the preceding quarter, driven primarily by higher interest earned on loans and deposits. Excluding purchase accounting accretion (PAA), the net interest income was $1.63 billion, with the net interest margin remaining stable at 3.26%.

In terms of noninterest income, BancShares reported $678 million, marking an increase from $635 million in the previous quarter due to a surge in other noninterest income segments. Meanwhile, noninterest expense only increased marginally, reaching $1.50 billion for the quarter.

Enhanced Shareholder Returns

Strengthening its commitment to shareholder value, the board approved an additional share repurchase plan for buying back up to $4.0 billion of current shares, following an earlier $3.5 billion plan initiated previously. This demonstrates BancShares' focus on long-lasting value creation and offering tangible returns to stockholders. During the current quarter, the bank successfully repurchased 338,959 shares for $613 million, further reflecting their robust capital and liquidity position.

The bank's proactive approach in securing its financial health is also evident through its capital ratios, which remain well above regulatory requirements, with total risk-based capital at 14.25% and Tier 1 ratios at 12.63%. The current liquidity position is strong, with liquid assets rising to $63.62 billion, affirming stability in its financial foundation.

Looking Forward

BancShares is poised to continue its upward trajectory, leveraging its diverse portfolio and solid leadership as it channels efforts into growth and innovation in banking services. The company plans to discuss these financial outcomes in a conference call at 9 a.m. Eastern Time on July 25, 2025, allowing analysts and investors to gain further insights into the company's future prospects and strategic initiatives.

Overall, the promising earnings report from First Citizens BancShares underscores their commitment to operational excellence and shareholder value, setting a strong course for future performance in a dynamic banking landscape.