Core Insights - A wave of positive third-quarter 2025 earnings reports has boosted markets, with several major companies exceeding analyst expectations, while ongoing geopolitical developments, particularly concerning Ukraine and Russia, remain a significant focus [2]. Strong Q3 Earnings Performance Across Sectors - Hasbro (HAS) reported adjusted EPS of $1.68, beating the estimated $1.63, with revenue of $1.39 billion surpassing the forecast of $1.34 billion. The company raised its full-year adjusted EBITDA guidance to $1.24 billion to $1.26 billion from $1.17 billion to $1.20 billion, driven by growth in its Wizards of the Coast and Digital Gaming segments [3][10]. - Honeywell (HON) posted adjusted EPS of $2.82, significantly higher than the estimated $2.57, with quarterly revenue of $10.41 billion exceeding the $10.15 billion estimate. The company updated its full-year sales outlook to between $40.78 billion and $40.98 billion and adjusted EPS to $10.60 to $10.70 [4][10]. - First Citizens BancShares (FCNCA) announced adjusted EPS of $44.62, outperforming the $41.74 estimate, with net interest income of $1.73 billion above the $1.71 billion estimate and a net interest margin of 3.26%, slightly higher than the estimated 3.24% [5][10]. - TransUnion (TRU) reported adjusted net income of $216 million against an estimate of $204.3 million, with Q3 EPS of $0.49 and adjusted EPS of $1.10 versus an estimate of $1.04. Revenue for the quarter was $1,170 million, exceeding the $1,133 million estimate [6]. - CenterPoint Energy (CNP) reported adjusted EPS of $0.50, surpassing the $0.44 estimate, and reaffirmed its full-year adjusted EPS guidance of $1.75 to $1.77. PG&E (PCG) announced Q3 adjusted core EPS of $0.50, beating the estimated $0.43, and maintained its full-year adjusted EPS forecast between $1.49 and $1.51 [7]. - Atlas Copco reported Q3 adjusted EBIT of SEK 8,862 million, exceeding the estimate of SEK 8,677 million, with revenue of SEK 41,621 million slightly above the estimated SEK 41,333 million [8]. - Dow (DOW) reported Q3 adjusted EPS of -$0.19, better than the estimated -$0.29, but net sales of $9,973 million fell short of the estimated $10,185 million [9][10]. Tesla's Capital Expenditures and Geopolitical Landscape - Tesla (TSLA) recognized $238 million in expenses within its automotive segment during Q3, primarily due to charges for supercomputer assets, contract terminations, and employee terminations. The company expects full-year capital expenditures to be around $9.00 billion [11][10]. - On the geopolitical front, Ukrainian President Volodymyr Zelenskiy urged EU leaders to enhance Ukraine's long-range capabilities to counteract Russia, while Russia's Rosatom CEO warned that deteriorating Russia-U.S. relations could impact uranium supplies [12].

[Executive Summary & Key Financial Highlights](index=1&type=section&id=Executive%20Summary%20%26%20Key%20Financial%20Highlights) [Summary Financial Data](index=1&type=section&id=Summary%20Financial%20Data) The company reported a decrease in net interest income and net income for both the three and nine months ended September 30, 2025, compared to the prior year. Provision for credit losses increased significantly, impacting profitability. Adjusted net income also saw a decline | Metric | Three Months Ended Sep 30, 2025 | Three Months Ended Sep 30, 2024 | Change (YoY) | Nine Months Ended Sep 30, 2025 | Nine Months Ended Sep 30, 2024 | Change (YoY) | | :--------------------------------- | :------------------------------ | :------------------------------ | :----------- | :----------------------------- | :----------------------------- | :----------- | | Net interest income | $1,734 | $1,796 | -3.45% | $5,092 | $5,434 | -6.30% | | Provision for credit losses | $191 | $117 | +63.25% | $460 | $276 | +66.67% | | Net income | $568 | $639 | -11.11% | $1,626 | $2,077 | -21.71% | | Net income available to common stockholders | $554 | $624 | -11.22% | $1,583 | $2,031 | -22.06% | | Adjusted net income available to common stockholders | $573 | $660 | -13.18% | $1,679 | $2,168 | -22.55% | [Per Share Information](index=1&type=section&id=Per%20Share%20Information) Diluted EPS and Adjusted diluted EPS decreased year-over-year for both the three and nine-month periods ended September 30, 2025. Book value and tangible book value per common share increased compared to September 30, 2024 | Metric | Sep 30, 2025 | Jun 30, 2025 | Sep 30, 2024 | Change (YoY) | | :--------------------------------- | :----------- | :----------- | :----------- | :----------- | | Diluted earnings per common share (3M) | $43.08 | $42.36 | $43.42 | -0.78% | | Adjusted diluted EPS (3M) | $44.62 | $44.78 | $45.87 | -2.72% | | Diluted earnings per common share (9M) | $119.70 | N/A | $140.26 | -14.66% | | Adjusted diluted EPS (9M) | $127.03 | N/A | $149.71 | -15.15% | | Book value per common share at period end | $1,672.54 | $1,637.72 | $1,547.81 | +8.06% | | Tangible book value per common share (TBV) at period end | $1,628.64 | $1,594.38 | $1,504.75 | +8.23% | [Key Performance Metrics](index=1&type=section&id=Key%20Performance%20Metrics) Key profitability ratios such as Return on Average Assets (ROA), Return on Average Common Equity (ROE), and Return on Average Tangible Common Equity (ROTCE) all declined year-over-year. The efficiency ratio worsened, while Net Interest Margin (NIM) also decreased | Metric | Three Months Ended Sep 30, 2025 | Three Months Ended Sep 30, 2024 | Change (YoY) | Nine Months Ended Sep 30, 2025 | Nine Months Ended Sep 30, 2024 | Change (YoY) | | :--------------------------------- | :------------------------------ | :------------------------------ | :----------- | :----------------------------- | :----------------------------- | :----------- | | Return on average assets (ROA) | 0.98% | 1.15% | -0.17 pp | 0.95% | 1.27% | -0.32 pp | | Adjusted ROA | 1.01% | 1.22% | -0.21 pp | 1.01% | 1.35% | -0.34 pp | | Return on average common equity (ROE) | 10.26% | 11.30% | -1.04 pp | 9.82% | 12.73% | -2.91 pp | | Adjusted ROE | 10.62% | 11.94% | -1.32 pp | 10.43% | 13.59% | -3.16 pp | | Efficiency ratio | 61.27% | 59.49% | +1.78 pp | 63.12% | 57.38% | +5.74 pp | | Net interest margin (NIM) | 3.26% | 3.53% | -0.27 pp | 3.26% | 3.62% | -0.36 pp | [Select Balance Sheet Items at Period End](index=1&type=section&id=Select%20Balance%20Sheet%20Items%20at%20Period%20End) Total loans and leases, total deposits, and total borrowings increased year-over-year as of September 30, 2025. The loan to deposit ratio decreased, while noninterest-bearing deposits remained a significant portion of total deposits | Metric | Sep 30, 2025 | Jun 30, 2025 | Sep 30, 2024 | Change (YoY) | | :--------------------------------- | :----------- | :----------- | :----------- | :----------- | | Total investment securities | $45,124 | $43,346 | $38,663 | +16.72% | | Total loans and leases | $144,758 | $141,269 | $138,695 | +4.37% | | Total deposits | $163,190 | $159,935 | $151,574 | +7.67% | | Total borrowings | $38,675 | $38,112 | $37,161 | +4.07% | | Loan to deposit ratio | 88.71% | 88.33% | 91.50% | -2.79 pp | | Noninterest-bearing deposits to total deposits | 26.20% | 25.56% | 25.99% | +0.21 pp | [Capital Ratios at Period End](index=1&type=section&id=Capital%20Ratios%20at%20Period%20End) All reported capital ratios, including Total risk-based capital, Tier 1 risk-based capital, Common equity Tier 1, and Tier 1 leverage capital, decreased year-over-year as of September 30, 2025 | Metric | Sep 30, 2025 | Jun 30, 2025 | Sep 30, 2024 | Change (YoY) | | :-------------------------- | :----------- | :----------- | :----------- | :----------- | | Total risk-based capital ratio | 14.05% | 14.25% | 15.36% | -1.31 pp | | Tier 1 risk-based capital ratio | 12.15% | 12.63% | 13.78% | -1.63 pp | | Common equity Tier 1 ratio | 11.65% | 12.12% | 13.24% | -1.59 pp | | Tier 1 leverage capital ratio | 9.34% | 9.62% | 10.17% | -0.83 pp | [Asset Quality at Period End](index=1&type=section&id=Asset%20Quality%20at%20Period%20End) Asset quality metrics show an increase in nonaccrual loans to total loans and leases, and a higher net charge-off ratio for the three and nine months ended September 30, 2025, compared to the prior year. The Allowance for Loan and Lease Losses (ALLL) to loans and leases ratio decreased | Metric | Sep 30, 2025 | Jun 30, 2025 | Sep 30, 2024 | Change (YoY) | | :--------------------------------- | :----------- | :----------- | :----------- | :----------- | | Nonaccrual loans at period end | $1,406 | $1,319 | $1,244 | +13.02% | | Ratio of nonaccrual loans to total loans at period end | 0.97% | 0.93% | 0.90% | +0.07 pp | | Net charge-offs (3M) | $(234) | $(119) | $(145) | +61.38% | | Net charge-off ratio (3M) | 0.65% | 0.33% | 0.42% | +0.23 pp | | Net charge-offs (9M) | $(497) | N/A | $(380) | +30.79% | | Net charge-off ratio (9M) | 0.47% | N/A | 0.37% | +0.10 pp | | ALLL to loans ratio at period end | 1.14% | 1.18% | 1.21% | -0.07 pp | | Provision for loan and lease losses (3M) | $214 | $111 | $123 | +73.98% | | Provision for loan and lease losses (9M) | $473 | N/A | $311 | +52.09% | | ALLL at end of period | $1,652 | $1,672 | $1,678 | -1.55% | [Detailed Financial Statements](index=2&type=section&id=Detailed%20Financial%20Statements) [Income Statement (GAAP)](index=2&type=section&id=Income%20Statement%20(GAAP)) For the three months ended September 30, 2025, total interest income decreased by 4.46% year-over-year, while total interest expense decreased by 5.89%. Net interest income declined by 3.45%. Noninterest income increased by 7.54%, but noninterest expense rose by 2.40%. The provision for credit losses saw a substantial increase of 63.25%, leading to an 11.11% decrease in net income | Metric | Three Months Ended Sep 30, 2025 | Three Months Ended Sep 30, 2024 | Change (YoY) | Nine Months Ended Sep 30, 2025 | Nine Months Ended Sep 30, 2024 | Change (YoY) | | :--------------------------------- | :------------------------------ | :------------------------------ | :----------- | :----------------------------- | :----------------------------- | :----------- | | Total interest income | $2,998 | $3,138 | -4.46% | $8,838 | $9,352 | -5.50% | | Total interest expense | $1,264 | $1,342 | -5.89% | $3,746 | $3,918 | -4.39% | | Net interest income | $1,734 | $1,796 | -3.45% | $5,092 | $5,434 | -6.30% | | Provision for credit losses | $191 | $117 | +63.25% | $460 | $276 | +66.67% | | Noninterest income | $699 | $650 | +7.54% | $2,012 | $1,916 | +5.01% | | Noninterest expense | $1,491 | $1,456 | +2.40% | $4,484 | $4,218 | +6.30% | | Income before income taxes | $751 | $873 | -13.97% | $2,160 | $2,856 | -24.37% | | Net income | $568 | $639 | -11.11% | $1,626 | $2,077 | -21.71% | | Diluted earnings per common share | $43.08 | $43.42 | -0.78% | $119.70 | $140.26 | -14.66% | [Balance Sheet (GAAP)](index=3&type=section&id=Balance%20Sheet%20(GAAP)) As of September 30, 2025, total assets increased by 5.86% year-over-year, driven primarily by growth in investment securities available for sale and loans and leases. Total deposits grew by 7.67%, with interest-bearing deposits increasing more significantly than noninterest-bearing deposits. Total liabilities increased by 6.96%, while total stockholders' equity decreased by 3.69% due to a reduction in additional paid-in capital | Metric | Sep 30, 2025 | Jun 30, 2025 | Sep 30, 2024 | Change (YoY) | | :--------------------------------- | :----------- | :----------- | :----------- | :----------- | | Total assets | $233,488 | $229,653 | $220,567 | +5.86% | | Interest-earning deposits at banks | $24,798 | $26,184 | $25,640 | -3.13% | | Investment securities available for sale | $34,963 | $33,060 | $28,190 | +24.02% | | Loans and leases | $144,758 | $141,269 | $138,695 | +4.37% | | Total deposits | $163,190 | $159,935 | $151,574 | +7.67% | | Noninterest-bearing deposits | $42,752 | $40,879 | $39,396 | +8.52% | | Interest-bearing deposits | $120,438 | $119,056 | $112,178 | +7.36% | | Total borrowings | $38,675 | $38,112 | $37,161 | +4.07% | | Total liabilities | $211,502 | $207,357 | $197,739 | +6.96% | | Total stockholders' equity | $21,986 | $22,296 | $22,828 | -3.69% | [Notable Items and Adjusted Financials](index=4&type=section&id=Notable%20Items%20and%20Adjusted%20Financials) [Impact of Notable Items](index=4&type=section&id=Impact%20of%20Notable%20Items) Notable items, which include infrequent transactions and certain recurring noncash items, had a positive impact on adjusted pre-tax income and net income for the periods presented. The impact on adjusted noninterest income and expense was negative, as these items are typically excluded to enhance comparability | Metric | Three Months Ended Sep 30, 2025 | Three Months Ended Sep 30, 2024 | Change (YoY) | Nine Months Ended Sep 30, 2025 | Nine Months Ended Sep 30, 2024 | Change (YoY) | | :--------------------------------- | :------------------------------ | :------------------------------ | :----------- | :----------------------------- | :----------------------------- | :----------- | | Impact of notable items on adjusted noninterest income | $(181) | $(176) | +2.84% | $(502) | $(485) | +3.51% | | Impact of notable items on adjusted noninterest expense | $(212) | $(227) | -6.61% | $(649) | $(667) | -2.70% | | Impact of notable items on adjusted pre-tax income | $31 | $51 | -39.22% | $147 | $182 | -19.23% | | Impact of notable items on adjusted net income | $19 | $36 | -47.22% | $96 | $137 | -29.93% | | Impact of notable items on adjusted diluted EPS | $1.54 | $2.45 | -37.00% | $7.33 | $9.45 | -22.43% | - Notable items are defined as income and expense for infrequent transactions and certain recurring items (typically noncash) that management believes should be excluded from adjusted measures to enhance understanding of operations and comparability to historical periods[4](index=4&type=chunk) - Personnel cost includes impairment of internal use software under development in Q3 2025. Other noninterest expense includes an accrual from a vendor dispute and an increase in litigation reserve in Q2 2025, and impairment of capitalized software in Q1 2025[6](index=6&type=chunk) [Adjusted Income Statement (Non-GAAP)](index=5&type=section&id=Adjusted%20Income%20Statement%20(Non-GAAP)) The adjusted income statement, excluding notable items, shows a similar trend to the GAAP statement with declines in net interest income and net income year-over-year. However, the adjusted figures present a slightly better performance in terms of net income and EPS compared to their GAAP counterparts, reflecting the removal of certain negative impacts | Metric | Three Months Ended Sep 30, 2025 | Three Months Ended Sep 30, 2024 | Change (YoY) | Nine Months Ended Sep 30, 2025 | Nine Months Ended Sep 30, 2024 | Change (YoY) | | :--------------------------------- | :------------------------------ | :------------------------------ | :----------- | :----------------------------- | :----------------------------- | :----------- | | Net interest income | $1,734 | $1,796 | -3.45% | $5,092 | $5,434 | -6.30% | | Provision for credit losses | $191 | $117 | +63.25% | $460 | $276 | +66.67% | | Noninterest income | $518 | $474 | +9.28% | $1,510 | $1,431 | +5.52% | | Noninterest expense | $1,279 | $1,229 | +4.07% | $3,835 | $3,551 | +8.00% | | Income before income taxes | $782 | $924 | -15.37% | $2,307 | $3,038 | -24.08% | | Net income | $587 | $675 | -12.90% | $1,722 | $2,214 | -22.22% | | Net income available to common stockholders | $573 | $660 | -13.18% | $1,679 | $2,168 | -22.55% | | Diluted earnings per common share | $44.62 | $45.87 | -2.72% | $127.03 | $149.71 | -15.15% | [Loan, Deposit, and Credit Quality Analysis](index=6&type=section&id=Loan%2C%20Deposit%2C%20and%20Credit%20Quality%20Analysis) [Loans and Leases by Class](index=6&type=section&id=Loans%20and%20Leases%20by%20Class) Total loans and leases increased by 4.37% year-over-year to $144,758 million as of September 30, 2025. Commercial loans, particularly Global fund banking and Commercial construction, showed significant growth, while Investor dependent loans decreased. Consumer loans remained relatively stable | Loan Class | Sep 30, 2025 | Jun 30, 2025 | Sep 30, 2024 | Change (YoY) | | :--------------------------------- | :----------- | :----------- | :----------- | :----------- | | Commercial construction | $5,926 | $5,714 | $4,924 | +20.35% | | Owner occupied commercial mortgages | $17,232 | $17,053 | $16,372 | +5.25% | | Non-owner occupied commercial mortgages | $15,645 | $16,100 | $16,078 | -2.69% | | Commercial and industrial | $41,172 | $40,658 | $40,043 | +2.82% | | Global fund banking | $31,615 | $28,677 | $27,114 | +16.60% | | Investor dependent | $2,772 | $2,777 | $3,562 | -22.20% | | Total commercial | $116,428 | $113,007 | $110,113 | +5.73% | | Total consumer | $28,330 | $28,262 | $28,582 | -0.88% | | Total loans and leases | $144,758 | $141,269 | $138,695 | +4.37% | - During Q2 2025, loan classes from the SVB portfolio were recast to the Commercial portfolio. Global fund banking remained separate but under Commercial. Investor dependent–early stage and growth stage were combined into a single investor dependent class under Commercial. Cash flow dependent and innovation C&I were combined with the commercial and industrial loan class under Commercial[11](index=11&type=chunk)[12](index=12&type=chunk) [Deposits by Type](index=6&type=section&id=Deposits%20by%20Type) Total deposits increased by 7.67% year-over-year to $163,190 million as of September 30, 2025. Savings and Money market deposits showed strong growth, while Time deposits experienced a significant decrease | Deposit Type | Sep 30, 2025 | Jun 30, 2025 | Sep 30, 2024 | Change (YoY) | | :-------------------------- | :----------- | :----------- | :----------- | :----------- | | Noninterest-bearing demand | $42,752 | $40,879 | $39,396 | +8.52% | | Checking with interest | $23,731 | $23,283 | $23,216 | +2.22% | | Money market | $38,718 | $37,654 | $34,574 | +11.99% | | Savings | $46,915 | $46,877 | $40,259 | +16.53% | | Time | $11,074 | $11,242 | $14,129 | -21.55% | | Total deposits | $163,190 | $159,935 | $151,574 | +7.67% | [Credit Quality and Allowance for Loan and Lease Losses (ALLL)](index=7&type=section&id=Credit%20Quality%20and%20Allowance%20for%20Loan%20and%20Lease%20Losses%20(ALLL)) Nonaccrual loans increased by 13.02% year-over-year, and the ratio of nonaccrual loans to total loans rose to 0.97% as of September 30, 2025. Net charge-offs significantly increased for both the three and nine-month periods, leading to a higher net charge-off ratio. The ALLL to loans ratio decreased, while the provision for loan and lease losses increased | Metric | Sep 30, 2025 | Jun 30, 2025 | Sep 30, 2024 | Change (YoY) | | :--------------------------------- | :----------- | :----------- | :----------- | :----------- | | Nonaccrual loans at period end | $1,406 | $1,319 | $1,244 | +13.02% | | Ratio of nonaccrual loans to total loans at period end | 0.97% | 0.93% | 0.90% | +0.07 pp | | Net charge-offs (3M) | $(234) | $(119) | $(145) | +61.38% | | Net charge-off ratio (3M) | 0.65% | 0.33% | 0.42% | +0.23 pp | | Net charge-offs (9M) | $(497) | N/A | $(380) | +30.79% | | Net charge-off ratio (9M) | 0.47% | N/A | 0.37% | +0.10 pp | | ALLL to loans ratio at period end | 1.14% | 1.18% | 1.21% | -0.07 pp | | Provision for loan and lease losses (3M) | $214 | $111 | $123 | +73.98% | | Provision for loan and lease losses (9M) | $473 | N/A | $311 | +52.09% | | ALLL at end of period | $1,652 | $1,672 | $1,678 | -1.55% | [Net Interest Income and Margin Analysis](index=8&type=section&id=Net%20Interest%20Income%20and%20Margin%20Analysis) [Average Balance Sheets, Yields and Rates (Three Months Ended)](index=8&type=section&id=Average%20Balance%20Sheets%2C%20Yields%20and%20Rates%20(Three%20Months%20Ended)) For the three months ended September 30, 2025, average interest-earning assets increased by 4.37% year-over-year, but the overall yield decreased. Average interest-bearing liabilities also increased, while the cost of interest-bearing deposits decreased. Net interest income declined, and both net interest spread and net interest margin compressed | Metric | Sep 30, 2025 | Sep 30, 2024 | Change (YoY) | | :--------------------------------- | :----------- | :----------- | :----------- | | Average interest-earning assets | $211,042 | $202,199 | +4.37% | | Yield on total interest-earning assets | 5.64% | 6.18% | -0.54 pp | | Average interest-bearing deposits | $120,575 | $112,446 | +7.23% | | Cost of total interest-bearing deposits | 3.00% | 3.55% | -0.55 pp | | Average total borrowings | $38,258 | $37,448 | +2.16% | | Cost of total borrowings | 3.70% | 3.61% | +0.09 pp | | Net interest income | $1,734 | $1,796 | -3.45% | | Net interest spread | 2.48% | 2.61% | -0.13 pp | | Net interest margin | 3.26% | 3.53% | -0.27 pp | [Average Balance Sheets, Yields and Rates (Nine Months Ended)](index=9&type=section&id=Average%20Balance%20Sheets%2C%20Yields%20and%20Rates%20(Nine%20Months%20Ended)) For the nine months ended September 30, 2025, average interest-earning assets increased by 3.96% year-over-year, but the overall yield decreased. Average interest-bearing liabilities increased, while the cost of interest-bearing deposits decreased. Net interest income declined, and both net interest spread and net interest margin compressed significantly | Metric | Sep 30, 2025 | Sep 30, 2024 | Change (YoY) | | :--------------------------------- | :----------- | :----------- | :----------- | | Average interest-earning assets | $208,432 | $200,503 | +3.96% | | Yield on total interest-earning assets | 5.66% | 6.22% | -0.56 pp | | Average interest-bearing deposits | $118,806 | $110,478 | +7.54% | | Cost of total interest-bearing deposits | 3.04% | 3.51% | -0.47 pp | | Average total borrowings | $38,015 | $37,502 | +1.37% | | Cost of total borrowings | 3.67% | 3.59% | +0.08 pp | | Net interest income | $5,092 | $5,434 | -6.30% | | Net interest spread | 2.47% | 2.69% | -0.22 pp | | Net interest margin | 3.26% | 3.62% | -0.36 pp | [Non-GAAP Reconciliations](index=10&type=section&id=Non-GAAP%20Reconciliations) [Net Income and EPS Reconciliation](index=10&type=section&id=Net%20Income%20and%20EPS%20Reconciliation) The reconciliation shows that adjusted net income and adjusted diluted EPS are consistently higher than their GAAP counterparts due to the exclusion of notable items. For the nine months ended September 30, 2025, adjusted net income was $1,722 million compared to GAAP net income of $1,626 million | Metric | Three Months Ended Sep 30, 2025 | Three Months Ended Sep 30, 2024 | Nine Months Ended Sep 30, 2025 | Nine Months Ended Sep 30, 2024 | | :--------------------------------- | :------------------------------ | :------------------------------ | :----------------------------- | :----------------------------- | | Net income (GAAP) | $568 | $639 | $1,626 | $2,077 | | Adjusted net income (non-GAAP) | $587 | $675 | $1,722 | $2,214 | | Net income available to common stockholders (GAAP) | $554 | $624 | $1,583 | $2,031 | | Adjusted net income available to common stockholders (non-GAAP) | $573 | $660 | $1,679 | $2,168 | | Diluted EPS (GAAP) | $43.08 | $43.42 | $119.70 | $140.26 | | Adjusted diluted EPS (non-GAAP) | $44.62 | $45.87 | $127.03 | $149.71 | [Noninterest Income and Expense Reconciliation](index=10&type=section&id=Noninterest%20Income%20and%20Expense%20Reconciliation) Adjusted noninterest income and expense are derived by excluding the impact of notable items from their GAAP counterparts. For the three months ended September 30, 2025, adjusted noninterest income was $518 million, lower than GAAP noninterest income of $699 million, while adjusted noninterest expense was $1,279 million, lower than GAAP noninterest expense of $1,491 million | Metric | Three Months Ended Sep 30, 2025 | Three Months Ended Sep 30, 2024 | Nine Months Ended Sep 30, 2025 | Nine Months Ended Sep 30, 2024 | | :--------------------------------- | :------------------------------ | :------------------------------ | :----------------------------- | :----------------------------- | | Noninterest income (GAAP) | $699 | $650 | $2,012 | $1,916 | | Adjusted noninterest income (non-GAAP) | $518 | $474 | $1,510 | $1,431 | | Noninterest expense (GAAP) | $1,491 | $1,456 | $4,484 | $4,218 | | Adjusted noninterest expense (non-GAAP) | $1,279 | $1,229 | $3,835 | $3,551 | [Pre-Tax, Pre-Provision Net Revenue (PPNR) Reconciliation](index=10&type=section&id=Pre-Tax%2C%20Pre-Provision%20Net%20Revenue%20(PPNR)%20Reconciliation) PPNR and Adjusted PPNR both show a decline year-over-year for the three and nine-month periods ended September 30, 2025. Adjusted PPNR consistently exceeds GAAP PPNR due to the exclusion of notable items | Metric | Three Months Ended Sep 30, 2025 | Three Months Ended Sep 30, 2024 | Nine Months Ended Sep 30, 2025 | Nine Months Ended Sep 30, 2024 | | :--------------------------------- | :------------------------------ | :------------------------------ | :----------------------------- | :----------------------------- | | PPNR (non-GAAP) | $942 | $990 | $2,620 | $3,132 | | Adjusted PPNR (non-GAAP) | $973 | $1,041 | $2,767 | $3,314 | [Return on Assets (ROA) Reconciliation](index=11&type=section&id=Return%20on%20Assets%20(ROA)%20Reconciliation) Both GAAP ROA and Adjusted ROA declined year-over-year for the three and nine-month periods ended September 30, 2025, reflecting lower net income relative to average assets. Adjusted ROA consistently remained slightly higher than GAAP ROA | Metric | Three Months Ended Sep 30, 2025 | Three Months Ended Sep 30, 2024 | Nine Months Ended Sep 30, 2025 | Nine Months Ended Sep 30, 2024 | | :--------------------------------- | :------------------------------ | :------------------------------ | :----------------------------- | :----------------------------- | | ROA (GAAP) | 0.98% | 1.15% | 0.95% | 1.27% | | Adjusted ROA (non-GAAP) | 1.01% | 1.22% | 1.01% | 1.35% | | PPNR ROA (non-GAAP) | 1.62% | 1.79% | 1.54% | 1.91% | | Adjusted PPNR ROA (non-GAAP) | 1.67% | 1.88% | 1.62% | 2.03% | [Return on Equity (ROE) and Return on Tangible Common Equity (ROTCE) Reconciliation](index=11&type=section&id=Return%20on%20Equity%20(ROE)%20and%20Return%20on%20Tangible%20Common%20Equity%20(ROTCE)%20Reconciliation) ROE and ROTCE, both GAAP and adjusted, decreased year-over-year for the three and nine-month periods ended September 30, 2025. Adjusted ROTCE consistently showed the highest return among these metrics, reflecting the exclusion of intangible assets | Metric | Three Months Ended Sep 30, 2025 | Three Months Ended Sep 30, 2024 | Nine Months Ended Sep 30, 2025 | Nine Months Ended Sep 30, 2024 | | :--------------------------------- | :------------------------------ | :------------------------------ | :----------------------------- | :----------------------------- | | ROE (GAAP) | 10.26% | 11.30% | 9.82% | 12.73% | | Adjusted ROE (non-GAAP) | 10.62% | 11.94% | 10.43% | 13.59% | | ROTCE (non-GAAP) | 10.53% | 11.63% | 10.09% | 13.12% | | Adjusted ROTCE (non-GAAP) | 10.91% | 12.29% | 10.71% | 14.00% | [Tangible Common Equity and Book Value Reconciliations](index=11&type=section&id=Tangible%20Common%20Equity%20and%20Book%20Value%20Reconciliations) Tangible common equity and tangible book value per common share increased year-over-year as of September 30, 2025. The tangible common equity to tangible assets ratio decreased, indicating a slight shift in asset composition or capital structure | Metric | Sep 30, 2025 | Jun 30, 2025 | Sep 30, 2024 | Change (YoY) | | :--------------------------------- | :----------- | :----------- | :----------- | :----------- | | Tangible common equity (non-GAAP) | $20,551 | $20,848 | $21,336 | -3.68% | | Tangible common equity to tangible assets (non-GAAP) | 8.82% | 9.10% | 9.70% | -0.88 pp | | Book value per share (GAAP) | $1,672.54 | $1,637.72 | $1,547.81 | +8.06% | | Tangible book value per common share (non-GAAP) | $1,628.64 | $1,594.38 | $1,504.75 | +8.23% | [Efficiency Ratio Reconciliation](index=12&type=section&id=Efficiency%20Ratio%20Reconciliation) Both the GAAP efficiency ratio and the adjusted efficiency ratio worsened (increased) year-over-year for the three and nine-month periods ended September 30, 2025, indicating higher expenses relative to revenue. The adjusted efficiency ratio consistently remained lower than the GAAP ratio | Metric | Three Months Ended Sep 30, 2025 | Three Months Ended Sep 30, 2024 | Nine Months Ended Sep 30, 2025 | Nine Months Ended Sep 30, 2024 | | :--------------------------------- | :------------------------------ | :------------------------------ | :----------------------------- | :----------------------------- | | Efficiency ratio (GAAP) | 61.27% | 59.49% | 63.12% | 57.38% | | Adjusted efficiency ratio (non-GAAP) | 56.78% | 54.15% | 58.08% | 51.72% | [Net Interest Income and Net Interest Margin Reconciliation](index=12&type=section&id=Net%20Interest%20Income%20and%20Net%20Interest%20Margin%20Reconciliation) Net interest income and Net Interest Margin (NIM), both GAAP and excluding Purchase Accounting Accretion (PAA), decreased year-over-year. The exclusion of PAA consistently resulted in a lower NIM, indicating that PAA contributed positively to the reported NIM | Metric | Three Months Ended Sep 30, 2025 | Three Months Ended Sep 30, 2024 | Nine Months Ended Sep 30, 2025 | Nine Months Ended Sep 30, 2024 | | :--------------------------------- | :------------------------------ | :------------------------------ | :----------------------------- | :----------------------------- | | Net interest income (GAAP) | $1,734 | $1,796 | $5,092 | $5,434 | | PAA | $61 | $101 | $202 | $399 | | Net interest income, excluding PAA (non-GAAP) | $1,673 | $1,695 | $4,890 | $5,035 | | NIM (GAAP) | 3.26% | 3.53% | 3.26% | 3.62% | | NIM, excluding PAA (non-GAAP) | 3.15% | 3.33% | 3.13% | 3.35% | [Income Tax Expense Reconciliation](index=12&type=section&id=Income%20Tax%20Expense%20Reconciliation) Adjusted income tax expense, which includes the impact of notable items, was higher than GAAP income tax expense for all periods presented. This indicates that notable items generally reduced the tax benefit or increased the tax liability | Metric | Three Months Ended Sep 30, 2025 | Three Months Ended Sep 30, 2024 | Nine Months Ended Sep 30, 2025 | Nine Months Ended Sep 30, 2024 | | :--------------------------------- | :------------------------------ | :------------------------------ | :----------------------------- | :----------------------------- | | Income tax expense (GAAP) | $183 | $234 | $534 | $779 | | Impact of notable items | $12 | $15 | $51 | $45 | | Adjusted income tax expense (non-GAAP) | $195 | $249 | $585 | $824 |

Core Insights - First Citizens BancShares reported solid financial performance in Q3 2025, with all operating segments showing growth in loans and deposits, particularly driven by SVB Commercial [2][5] - The company announced the acquisition of 138 BMO Bank branches, which is expected to enhance its liquidity and support strategic initiatives [2][3] Financial Performance - Net income for Q3 2025 was $568 million, a slight decrease from $575 million in Q2 2025, with net income available to common stockholders at $554 million or $43.08 per share [5] - Adjusted net income for the current quarter was $587 million, down from $607 million in the linked quarter, with adjusted net income available to common stockholders at $573 million or $44.62 per share [6] Net Interest Income and Margin - Net interest income was $1.73 billion, an increase of $39 million from the linked quarter, while net interest margin remained stable at 3.26% [8][9] - The yield on average interest-earning assets decreased to 5.64%, primarily due to lower loan yields [8] Noninterest Income and Expense - Noninterest income rose to $699 million, up from $678 million in the linked quarter, driven by gains on the sale of previously foreclosed assets [13] - Noninterest expense decreased to $1.49 billion, largely due to a decline in acquisition-related expenses [13] Balance Sheet Summary - Loans and leases increased to $144.76 billion, a growth of 2.5% from the previous quarter, with significant contributions from the SVB Commercial segment [13] - Total deposits reached $163.19 billion, reflecting a 2.0% increase, with noninterest-bearing deposits growing by 4.6% [13] Provision for Credit Losses and Credit Quality - Provision for credit losses totaled $191 million, up from $115 million in the linked quarter, with net charge-offs increasing to $234 million [12][14] - Nonaccrual loans rose to $1.41 billion, representing 0.97% of loans, indicating a slight increase in credit quality concerns [18] Capital and Liquidity - The company maintained strong capital ratios, with total risk-based capital at 14.05% and Tier 1 risk-based capital at 12.15% [18] - Liquid assets were $61.92 billion, down from $63.62 billion in the previous quarter, indicating a stable liquidity position [18]

Core Viewpoint - First Citizens BancShares (FCNCA) is expected to report a quarterly earnings per share (EPS) of $41.51, reflecting a year-over-year decline of 9.5%, with revenues projected at $2.22 billion, down 9.4% from the previous year [1]. Earnings Estimates - Over the past 30 days, the consensus EPS estimate has been adjusted upward by 0.3%, indicating a reassessment by analysts [2]. - Changes in earnings estimates are crucial for predicting investor reactions, as empirical studies show a strong correlation between earnings estimate revisions and short-term stock performance [3]. Key Financial Metrics - Analysts predict a 'Net Interest Margin' of 3.2%, down from 3.5% a year ago [4]. - The 'Efficiency Ratio' is expected to be 58.9%, compared to 59.5% in the previous year [5]. - 'Book value per share' is projected to reach $1661.88, up from $1547.81 a year ago [5]. - 'Average Balance - Total interest-earning assets' is forecasted at $210.22 billion, an increase from $200.50 billion in the same quarter last year [5]. Loan and Asset Projections - 'Nonaccrual loans at period end' are estimated at $1.31 billion, up from $1.24 billion a year ago [6]. - 'Total nonperforming assets' are expected to reach $1.41 billion, compared to $1.31 billion in the previous year [6]. Income Estimates - 'Net Interest Income' is projected at $1.71 billion, down from $1.80 billion in the same quarter last year [7]. - The consensus for 'Total Noninterest Income' stands at $534.97 million, compared to $650.00 million a year ago [7]. - 'Factoring commissions' are expected to be $18.03 million, down from $19.00 million last year [8]. - 'Cardholder services, net' is estimated at $41.81 million, slightly down from $42.00 million in the previous year [8]. Fee and Service Charges - 'Deposit fees and service charges' are projected at $59.83 million, up from $45.00 million a year ago [9]. - 'Merchant services, net' is expected to arrive at $13.07 million, compared to $12.00 million last year [9]. Stock Performance - Shares of First Citizens have shown a return of -5.6% over the past month, contrasting with the Zacks S&P 500 composite's +1.2% change [9].

Core Insights - The fintech sector is experiencing a positive outlook driven by increasing adoption of stablecoins and a relative stability in investments, cash burn, and profitability [1][3][2] Investment Trends - AI has accounted for 58% of VC investments in 2025, with AI-enabled fintech startups representing 30% of total VC investment [1] - Cryptocurrency-focused funds make up two-thirds of all fintech funds, with the total cryptocurrency market cap exceeding $4 trillion [2] Financial Performance - Median revenue for raising Series A capital among fintech companies is $4 million, which has increased 4 times from 2021 [7] - The median year-over-year change in cash burn is -12% as of Q2 2025, indicating ongoing efforts to reduce cash burn rates [7] - The percentage of fintech companies with positive net margins has increased from 8% to 22% since the end of 2022 [7] Mergers and Acquisitions - Fintech M&A activity is on track for a record year with over 200 announced deals, and the median sale price for disclosed transactions is approximately 4 times the total capital raised [7] - 49% of fintech M&A buyers are VC-backed companies, indicating a rise in VC-backed companies acquiring other fintechs [7] Valuation and IPO Trends - Valuations for companies raising Series A funding in 2025 have significantly increased, with seed stage valuations more than doubling since 2019 [7] - IPOs have averaged 10x revenue multiples since 2024, down from 30x for five fintech companies that went public in 2021 [7] - Venture capital investment in U.S. fintech unicorns is projected to reach $7 billion in 2025, a decline from $36 billion in 2021 [7]

Core Insights - The Healthtech sector is experiencing a significant shift towards AI-enabled provider operations, which accounted for 44% of overall Healthtech investment in 2025, marking the highest investment levels since 2022 [1][2] - A total of $5.5 billion has been invested in healthcare provider operations, with projections indicating a full-year investment of $8.25 billion, surpassing the previous record of $7.8 billion set in 2021 [1][6] - The focus of investment is shifting from clinical care to operational tools, as AI is utilized to enhance efficiency in healthcare delivery [1][4] Investment Trends - Provider operations have seen a dramatic increase in investment, rising from 19% of Healthtech investment four years ago to nearly 50% in 2025 [1][6] - Alternative care investment has decreased significantly, accounting for only 9% of Healthtech investment in 2025, down from 42% in 2021 [1][6] - The total expected investment in Healthtech by the end of 2025 is projected to reach $18.5 billion [6] M&A Activity - There have been 32 mergers and acquisitions (M&A) deals in provider operations in 2025, with consolidation becoming a key exit strategy for investors [6] - 52% of the deals in 2025 have involved AI technologies, indicating a strong trend towards integrating AI in Healthtech [6] Valuation Insights - Generalist investors have added a valuation premium of 22% to mega-deals, which represent 38% of total Healthtech investment this year [6] - Seed-stage AI valuations have increased by approximately 42% since 2021, reflecting growing confidence in AI solutions [6] Trust in AI - Physicians express a high level of trust in AI for work efficiency (75%), but show significant concern regarding patient privacy, with only 15% trusting AI in this aspect [6]

Core Viewpoint - BMO Financial Group is restructuring its U.S. branch network by selling 138 branches to First Citizens Bank and opening 150 new branches in markets with better growth potential, aiming to enhance profitability in the U.S. [1][9] Group 1: Branch Sale and Acquisition - BMO has agreed to sell 138 branches, approximately 13.7% of its total U.S. footprint, primarily located in the Midwest and Great Plains, to First Citizens Bank [1][9] - The sale requires regulatory approval and is expected to close in mid-2026 [2] - First Citizens will assume about $5.7 billion in deposits and purchase approximately $1.1 billion in loans as part of the acquisition [7] Group 2: New Branch Openings - BMO plans to open 150 new branches over the next five years, focusing on California and other markets where it can achieve greater density [2][3] - The company aims to deepen client relationships and enhance service delivery through this reallocation of resources [3] Group 3: Financial Performance Goals - BMO's goal is to improve its return on equity to 12% within the next three to five years, up from 8% as of July [4] - The bank's underperformance has been attributed to slower-than-expected revenue synergies from the acquisition of Bank of the West and muted loan demand in the U.S. [5] Group 4: First Citizens Bank's Strategy - First Citizens views the acquisition as a means to accelerate growth in new markets and strengthen its deposit franchise, which will enhance liquidity and support strategic initiatives [10] - The acquisition is seen as a creative move to reduce First Citizens' elevated loan-to-deposit ratio following its acquisition of Silicon Valley Bank [11]

Core Insights - First Citizens Bank has announced the acquisition of 138 branches from BMO Bank, expanding its presence in the Midwest, Great Plains, and West regions of the U.S. [1][2] - The transaction involves assuming approximately $5.7 billion in deposit liabilities and acquiring about $1.1 billion in loans [1][3] - The deal is expected to close by mid-2026, pending regulatory approvals [3] Company Expansion - The acquisition allows First Citizens Bank to enter new markets and enhance its client-centered approach [2] - The bank aims to improve its liquidity position and support strategic initiatives through the new deposit franchise [2] Transaction Details - The branches being acquired are located in several states, including North Dakota, South Dakota, Wyoming, Nebraska, Kansas, Missouri, Oklahoma, Idaho, and select branches in western Minnesota, eastern Oregon, and southern Illinois [1][3] - Legal and financial advisors for the transaction include Arnold & Porter Kaye Scholer LLP, Smith, Anderson, Blount, Dorsett, Mitchell & Jernigan, BMO Capital Markets, and Piper Sandler & Co. [4] Company Overview - First Citizens Bank is headquartered in Raleigh, N.C., and offers a wide range of banking services, including commercial banking and innovation banking [6] - The parent company, First Citizens BancShares, Inc., is a top 20 U.S. financial institution with over $200 billion in assets [6]

Group 1: Halloween Spending Trends - Nearly 79% of U.S. adults plan to celebrate Halloween in 2025, with an average spending of $420 per household [1][2] - Young Americans, particularly Gen Z (93%) and Millennials (87%), show the highest intent to celebrate, with spending averaging $622 for Gen Z households [3][4] - Households with children plan to spend an average of $652 on Halloween, significantly more than the $215 planned by those without children [5] Group 2: Costume and Candy Expenditures - Adults celebrating Halloween expect to spend an average of $58 on their own costumes and $87 on family costumes, with 33% planning to buy pet costumes averaging $22 [6][7] - Half of the adults celebrating Halloween plan to purchase pet costumes, spending an average of $50, which is more than double the national average [7] Group 3: Budgeting and Savings Recommendations - A majority of Halloween participants (57%) are willing to buy candy in bulk to save money, while only 24% would consider switching to less expensive candy [8] - Creating a dedicated fund for holiday expenses is recommended to manage spending effectively, with suggestions to use high-yield savings accounts for better financial planning [9][10]

Core Points - First Citizens BancShares, Inc. will report its financial results for the quarter ended September 30, 2025, before the U.S. financial markets open on October 23, 2025 [1] - A conference call and webcast to discuss the financial results will take place at 9 a.m. Eastern time on the same day [2] - The company is a top 20 U.S. financial institution with over $200 billion in assets and is a member of the Fortune 500 [4] Financial Reporting - The financial results will be available before the market opens on October 23, 2025 [1] - A replay of the conference call will be accessible on the company's website after the event [3] Company Overview - First Citizens BancShares is the financial holding company for First-Citizens Bank & Trust Company, headquartered in Raleigh, N.C. [4] - The bank offers a wide range of general banking services, including commercial banking, innovation banking, and wealth management [4]