Core Insights - First Citizens Bank has appointed Mike Spencer as Managing Director of Middle Market Banking in Atlanta to enhance its presence in Georgia and surrounding markets [1][2] - Spencer brings 30 years of industry experience and expertise in sectors such as manufacturing, wholesale, and distribution, which will contribute to the growth of First Citizens' middle market banking business [1] - The bank's middle market platform has been operational in Georgia since 2022, focusing on clients with revenues above $75 million [2] Company Overview - First Citizens Bank, headquartered in Raleigh, N.C., is a top 20 U.S. financial institution with over $200 billion in assets and is a member of the Fortune 500 [3] - The bank offers a comprehensive suite of banking services, including commercial banking, innovation banking, and wealth management [3] Recent Appointments - Erin McCaskill has been appointed as Director and Market Leader for First Citizens Wealth in Atlanta, indicating ongoing leadership expansion within the bank [2][6]

Core Insights - Dynapac North America LLC has entered into a vendor finance agreement with First Citizens Bank Equipment Finance to offer leasing and lending solutions for road construction equipment [1][3]. Company Overview - Dynapac, based in Fort Mill, South Carolina, is a global manufacturer specializing in road construction and compaction equipment, including asphalt rollers, pavers, and feeders. It is a subsidiary of the French Fayat Group [2]. Agreement Details - The new financing agreement aims to support Dynapac's dealer network and distributors in acquiring road-paving equipment, enhancing the efficiency and cost-effectiveness of road construction, maintenance, and repair operations [3]. - The collaboration is expected to provide flexible financing options for dealers and customers, facilitating the acquisition of necessary equipment for business growth [4]. Financial Services Overview - First Citizens Bank's Equipment Finance group focuses on empowering original equipment manufacturers and small to mid-size businesses by offering tailored equipment financing solutions through a comprehensive sales coverage model and advanced technology platforms [4].

Core Insights - First Citizens Bank's Healthcare Finance division provided $338 million in financing to Autumn Lake Healthcare for acquiring a real estate portfolio of 12 skilled nursing facilities in Maryland, comprising over 1,500 beds [1] Group 1: Company Overview - Autumn Lake Healthcare operates a network of 66 skilled nursing facilities with a total of over 8,200 beds across Connecticut, Maryland, New Jersey, Wisconsin, and West Virginia [2] - First Citizens Bank is a top 20 U.S. financial institution with over $200 billion in assets and is a member of the Fortune 500 [5] Group 2: Strategic Partnerships - Mark Schwartz, COO of Autumn Lake Healthcare, praised First Citizens Bank for their collaborative approach and understanding of the healthcare industry's unique challenges [3] - William Douglass, managing director at First Citizens Bank, expressed pride in supporting Autumn Lake Healthcare's acquisition, highlighting their status as premier providers in the skilled nursing sector [3] Group 3: Future Growth and Commitment - Mike Coiley, managing director at First Citizens' Healthcare Finance, emphasized the alignment of Autumn Lake Healthcare's dedication to high-quality care with First Citizens' mission to support impactful healthcare organizations [4] - First Citizens Healthcare Finance offers tailored financing and banking solutions to middle-market healthcare companies, focusing on growth capital needs [4]

Core Viewpoint - Shares of First Citizens BancShares (NASDAQ: FCNCA) have underperformed over the past year, losing approximately 14% of their value, even as the broader market has seen gains [1] Group 1 - The stock approached its April lows in recent weeks, indicating a continued decline despite market recovery [1] - The company has over fifteen years of experience in making contrarian bets based on macro views and stock-specific turnaround stories [1]

Group 1 - First Citizens BancShares (NASDAQ: FCNCA) shares have underperformed over the past year, losing approximately 14% of their value [1] - Recently, shares approached their April lows despite a general market surge [1] Group 2 - The article reflects a contrarian investment approach based on macro views and stock-specific turnaround stories [1]

Core Viewpoint - First Citizens BancShares (FCNCA) reported quarterly earnings of $44.62 per share, exceeding the Zacks Consensus Estimate of $41.51 per share, but down from $45.87 per share a year ago, indicating a mixed performance in earnings [1][2] Financial Performance - The company achieved revenues of $2.25 billion for the quarter ended September 2025, surpassing the Zacks Consensus Estimate by 1.57%, although this is a decrease from $2.45 billion in the same quarter last year [2] - Over the last four quarters, First Citizens has exceeded consensus EPS estimates four times and topped consensus revenue estimates three times [2] Stock Performance - First Citizens shares have declined approximately 17.5% year-to-date, contrasting with the S&P 500's gain of 13.9% [3] - The stock currently holds a Zacks Rank 3 (Hold), suggesting it is expected to perform in line with the market in the near future [6] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $43.85 on revenues of $2.22 billion, while for the current fiscal year, the estimate is $166.80 on revenues of $8.79 billion [7] - The trend of earnings estimate revisions prior to the earnings release was mixed, which may influence future stock performance [6] Industry Context - The Banks - Southeast industry, to which First Citizens belongs, is currently ranked in the top 20% of over 250 Zacks industries, indicating a favorable outlook compared to lower-ranked industries [8] - Another company in the same industry, Southern First (SFST), is expected to report quarterly earnings of $0.89 per share, reflecting a year-over-year increase of 64.8% [9]

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].