First Citizens BancShares, Inc.(NASDAQ:FCNCA) Q2 2025 Earnings Call July 25, 2025 9:00 AM ET Company Participants Craig Lockwood Nix - Chief Financial Officer Deanna W. Hart - Senior Vice President of Investor Relations Elliot Howard - Corporate Participant Frank Brown Holding - Chairman & CEO Marc Einerman - Managing Director Tom Eklund - Senior Vice President & Treasurer Conference Call Participants Bernard Von Gizycki - Deutsche Bank AG, Research Division Casey Haire - Unidentified Company Christopher Ed ...

Core Insights - First Citizens BancShares (FCNCA) reported quarterly earnings of $44.78 per share, exceeding the Zacks Consensus Estimate of $39.08 per share, but down from $50.87 per share a year ago, indicating an earnings surprise of +14.59% [1] - The company posted revenues of $2.21 billion for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 1.36%, although this is a decrease from year-ago revenues of $2.46 billion [2] - The stock has shown no change since the beginning of the year, contrasting with the S&P 500's gain of 8.2% [3] Earnings Outlook - The earnings outlook for First Citizens is mixed, with the current consensus EPS estimate for the coming quarter at $42.32 on revenues of $2.2 billion, and for the current fiscal year at $162.78 on revenues of $8.72 billion [7] - The company currently holds a Zacks Rank 3 (Hold), indicating expected performance in line with the market in the near future [6] Industry Context - The Banks - Southeast industry, to which First Citizens belongs, is currently in the top 11% of over 250 Zacks industries, suggesting a favorable outlook compared to the bottom 50% [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5]

[Summary Financial Data & Key Metrics](index=1&type=section&id=Summary%20Financial%20Data%20%26%20Key%20Metrics) [Results of Operations](index=1&type=section&id=Results%20of%20Operations) The company's net interest income, net income, and pre-tax, pre-provision net revenue (PPNR) showed a decline in Q2 2025 compared to Q2 2024, both on a GAAP and adjusted basis, while provision for credit losses increased Results of Operations Data | Metric (Dollars in millions) | June 30, 2025 (3 Months) | March 31, 2025 (3 Months) | June 30, 2024 (3 Months) | June 30, 2025 (6 Months) | June 30, 2024 (6 Months) | | :--------------------------------- | :----------------------- | :------------------------ | :----------------------- | :----------------------- | :----------------------- | | Net interest income | $1,695 | $1,663 | $1,821 | $3,358 | $3,638 | | Provision for credit losses | $115 | $154 | $95 | $269 | $159 | | Net income | $575 | $483 | $707 | $1,058 | $1,438 | | Net income available to common stockholders | $561 | $468 | $691 | $1,029 | $1,407 | | Adjusted net income available to common stockholders | $593 | $513 | $739 | $1,106 | $1,508 | | Pre-tax, pre-provision net revenue (PPNR) | $873 | $805 | $1,074 | $1,678 | $2,142 | | Adjusted PPNR | $929 | $865 | $1,132 | $1,794 | $2,273 | [Per Share Information](index=1&type=section&id=Per%20Share%20Information) Diluted EPS and adjusted diluted EPS decreased significantly year-over-year for both the three and six-month periods ending June 30, 2025, while book value and tangible book value per common share showed an increase compared to June 30, 2024 Per Share Information Data | Metric | June 30, 2025 (3 Months) | March 31, 2025 (3 Months) | June 30, 2024 (3 Months) | June 30, 2025 (6 Months) | June 30, 2024 (6 Months) | | :--------------------------------- | :----------------------- | :------------------------ | :----------------------- | :----------------------- | :----------------------- | | Diluted earnings per common share (EPS) | $42.36 | $34.47 | $47.54 | $76.73 | $96.80 | | Adjusted diluted EPS | $44.78 | $37.79 | $50.87 | $82.48 | $103.79 | | Book value per common share at period end | $1,637.72 | $1,596.30 | $1,487.00 | | | | Tangible book value per common share (TBV) at period end | $1,594.38 | $1,553.06 | $1,443.92 | | | [Key Performance Metrics](index=1&type=section&id=Key%20Performance%20Metrics) Profitability ratios (ROA, ROE, ROTCE) and Net Interest Margin (NIM) declined year-over-year for Q2 2025, while the efficiency ratio worsened, indicating higher expenses relative to revenue Key Performance Metrics Data | Metric | June 30, 2025 (3 Months) | March 31, 2025 (3 Months) | June 30, 2024 (3 Months) | June 30, 2025 (6 Months) | June 30, 2024 (6 Months) | | :--------------------------------- | :----------------------- | :------------------------ | :----------------------- | :----------------------- | :----------------------- | | Return on average assets (ROA) | 1.01 % | 0.87 % | 1.30 % | 0.94 % | 1.33 % | | Adjusted ROA | 1.07 % | 0.95 % | 1.39 % | 1.01 % | 1.42 % | | Return on average common equity (ROE) | 10.41 % | 8.79 % | 13.13 % | 9.61 % | 13.54 % | | Adjusted ROE | 11.00 % | 9.64 % | 14.05 % | 10.33 % | 14.52 % | | Efficiency ratio | 63.22 % | 64.97 % | 56.36 % | 64.08 % | 56.33 % | | Adjusted efficiency ratio | 57.92 % | 59.62 % | 50.77 % | 58.75 % | 50.53 % | | Net interest margin (NIM) | 3.26 % | 3.26 % | 3.64 % | 3.26 % | 3.66 % | [Select Balance Sheet Items](index=1&type=section&id=Select%20Balance%20Sheet%20Items) Total loans and leases remained relatively stable quarter-over-quarter but increased year-over-year, while total deposits grew. The loan to deposit ratio decreased, and noninterest-bearing deposits as a percentage of total deposits slightly declined Select Balance Sheet Items Data | Metric (Dollars in millions) | June 30, 2025 | March 31, 2025 | June 30, 2024 | | :--------------------------------- | :------------ | :------------- | :------------ | | Total investment securities | $43,346 | $44,319 | $37,666 | | Total loans and leases | $141,269 | $141,358 | $139,341 | | Total deposits | $159,935 | $159,325 | $151,079 | | Total borrowings | $38,112 | $38,406 | $37,458 | | Loan to deposit ratio | 88.33 % | 88.72 % | 92.23 % | | Noninterest-bearing deposits to total deposits | 25.56 % | 25.59 % | 26.49 % | [Capital Ratios](index=1&type=section&id=Capital%20Ratios) Capital ratios, including Total risk-based, Tier 1, Common equity Tier 1, and Tier 1 leverage, all decreased as of June 30, 2025, compared to both the previous quarter and the prior year Capital Ratios Data | Metric | June 30, 2025 | March 31, 2025 | June 30, 2024 | | :--------------------------------- | :------------ | :------------- | :------------ | | Total risk-based capital ratio | 14.25 % | 15.23 % | 15.45 % | | Tier 1 risk-based capital ratio | 12.63 % | 13.35 % | 13.87 % | | Common equity Tier 1 ratio | 12.12 % | 12.81 % | 13.33 % | | Tier 1 leverage capital ratio | 9.64 % | 9.75 % | 10.29 % | - Capital ratios as of the current quarter-end are preliminary pending completion of quarterly regulatory filings[1](index=1&type=chunk) [Asset Quality](index=1&type=section&id=Asset%20Quality) Asset quality metrics showed a slight deterioration, with nonaccrual loans to total loans and leases increasing, while the allowance for loan and lease losses (ALLL) to loans and leases decreased year-over-year Asset Quality Data | Metric | June 30, 2025 | March 31, 2025 | June 30, 2024 | | :--------------------------------- | :------------ | :------------- | :------------ | | Nonaccrual loans to total loans and leases | 0.93 % | 0.85 % | 0.82 % | | Allowance for loan and lease losses (ALLL) to loans and leases | 1.18 % | 1.19 % | 1.22 % | | Net charge-off ratio for the period | 0.33 % | 0.41 % | 0.38 % | [GAAP Financial Statements](index=2&type=section&id=GAAP%20Financial%20Statements) [Income Statement (Unaudited)](index=2&type=section&id=Income%20Statement%20(Unaudited)) The unaudited income statement for Q2 2025 shows a decrease in total interest income and net interest income compared to Q2 2024, alongside an increase in noninterest expense, leading to lower net income Income Statement (Unaudited) Data | Metric (Dollars in millions) | June 30, 2025 (3 Months) | March 31, 2025 (3 Months) | June 30, 2024 (3 Months) | June 30, 2025 (6 Months) | June 30, 2024 (6 Months) | | :--------------------------------- | :----------------------- | :------------------------ | :----------------------- | :----------------------- | :----------------------- | | Total interest income | $2,945 | $2,895 | $3,130 | $5,840 | $6,214 | | Total interest expense | $1,250 | $1,232 | $1,309 | $2,482 | $2,576 | | Net interest income | $1,695 | $1,663 | $1,821 | $3,358 | $3,638 | | Provision for credit losses | $115 | $154 | $95 | $269 | $159 | | Total noninterest income | $678 | $635 | $639 | $1,313 | $1,266 | | Total noninterest expense | $1,500 | $1,493 | $1,386 | $2,993 | $2,762 | | Net income | $575 | $483 | $707 | $1,058 | $1,438 | | Diluted earnings per common share | $42.36 | $34.47 | $47.54 | $76.73 | $96.80 | [Balance Sheet (Unaudited)](index=3&type=section&id=Balance%20Sheet%20(Unaudited)) The unaudited balance sheet as of June 30, 2025, shows an increase in total assets and total deposits compared to June 30, 2024, while total stockholders' equity slightly decreased Balance Sheet (Unaudited) Data | Metric (Dollars in millions) | June 30, 2025 | March 31, 2025 | June 30, 2024 | | :--------------------------------- | :------------ | :------------- | :------------ | | Total assets | $229,653 | $228,822 | $219,827 | | Loans and leases, net of allowance for loan and lease losses | $139,597 | $139,678 | $137,641 | | Total deposits | $159,935 | $159,325 | $151,079 | | Total liabilities | $207,357 | $206,527 | $197,340 | | Total stockholders' equity | $22,296 | $22,295 | $22,487 | [Notable Items and Adjustments](index=4&type=section&id=Notable%20Items%20and%20Adjustments) [Definition and Impact of Notable Items](index=4&type=section&id=Definition%20and%20Impact%20of%20Notable%20Items) Notable items are non-GAAP adjustments for infrequent transactions and certain recurring noncash items, which management excludes to provide a clearer view of operational performance and comparability. These adjustments had a positive impact on adjusted net income and diluted EPS across all periods presented - Notable items include income and expense for infrequent transactions and certain recurring items (typically noncash) that management believes should be excluded from adjusted measures (non-GAAP) to enhance understanding of operations and comparability to historical periods[4](index=4&type=chunk) Definition and Impact of Notable Items Data | Metric | June 30, 2025 (3 Months) | March 31, 2025 (3 Months) | June 30, 2024 (3 Months) | June 30, 2025 (6 Months) | June 30, 2024 (6 Months) | | :--------------------------------- | :----------------------- | :------------------------ | :----------------------- | :----------------------- | :----------------------- | | Impact of notable items on adjusted net income | $32 | $45 | $48 | $77 | $101 | | Impact of notable items on adjusted diluted EPS | $2.42 | $3.32 | $3.33 | $5.75 | $6.99 | [Specific Notable Item Explanations](index=4&type=section&id=Specific%20Notable%20Item%20Explanations) Specific notable items include the deduction of depreciation and maintenance from rental income for operating leases, a gain on litigation settlement in Q1 2024, integration-related professional fees in Q1 and Q2 2024, and various accruals, impairments, and litigation reserve changes in other noninterest expenses for Q1 and Q2 2025 - Depreciation and maintenance and other operating lease expenses are deducted from rental income on operating lease equipment to calculate adjusted rental income (non-GAAP), with no net impact to earnings as adjusted noninterest income and expense are reduced by the same amount[5](index=5&type=chunk) - Other noninterest income for 1Q24 included a **gain on settlement of litigation**[5](index=5&type=chunk) - Professional fees included expenses related to **integration activities** in 1Q24 and 2Q24[6](index=6&type=chunk) - Other noninterest expense included **an accrual from a vendor dispute** and **an increase in litigation reserve** in 2Q25, **impairment of capitalized software and related projects** in 1Q25, as well as **litigation reserve releases** in 1Q24 and 2Q24[6](index=6&type=chunk) [Adjusted Financial Performance (Non-GAAP)](index=5&type=section&id=Adjusted%20Financial%20Performance%20(Non-GAAP)) [Condensed Income Statements - Adjusted for Notable Items](index=5&type=section&id=Condensed%20Income%20Statements%20-%20Adjusted%20for%20Notable%20Items) The adjusted condensed income statements, excluding notable items, show higher net income and diluted EPS compared to GAAP figures, reflecting management's view of core operational performance. Adjusted net income for Q2 2025 was $607 million, down from $755 million in Q2 2024 Condensed Income Statements - Adjusted for Notable Items Data | Metric (Dollars in millions) | June 30, 2025 (3 Months) | March 31, 2025 (3 Months) | June 30, 2024 (3 Months) | June 30, 2025 (6 Months) | June 30, 2024 (6 Months) | | :--------------------------------- | :----------------------- | :------------------------ | :----------------------- | :----------------------- | :----------------------- | | Net interest income | $1,695 | $1,663 | $1,821 | $3,358 | $3,638 | | Noninterest income | $513 | $479 | $479 | $992 | $957 | | Noninterest expense | $1,279 | $1,277 | $1,168 | $2,556 | $2,322 | | Net income | $607 | $528 | $755 | $1,135 | $1,539 | | Net income available to common stockholders | $593 | $513 | $739 | $1,106 | $1,508 | | Diluted earnings per common share | $44.78 | $37.79 | $50.87 | $82.48 | $103.79 | [Loan and Deposit Portfolio Analysis](index=6&type=section&id=Loan%20and%20Deposit%20Portfolio%20Analysis) [Loans and Leases by Class](index=6&type=section&id=Loans%20and%20Leases%20by%20Class) The total loan and lease portfolio remained stable quarter-over-quarter at $141.3 billion but saw a slight increase year-over-year. Commercial loans constitute the majority, with significant growth in commercial construction, while investor dependent loans decreased. Loan classes were recast in Q2 2025 for improved reporting Loans and Leases by Class Data | Loan Class (Dollars in millions) | June 30, 2025 | March 31, 2025 | June 30, 2024 | | :--------------------------------- | :------------ | :------------- | :------------ | | **Commercial** | | | | | Commercial construction | $5,714 | $5,529 | $4,484 | | Owner occupied commercial mortgages | $17,053 | $16,951 | $16,233 | | Non-owner occupied commercial mortgages | $16,100 | $16,139 | $15,580 | | Commercial and industrial | $40,658 | $41,040 | $39,931 | | Leases | $2,028 | $2,022 | $2,049 | | Global fund banking | $28,677 | $28,572 | $28,915 | | Investor dependent | $2,777 | $2,958 | $3,806 | | **Total commercial** | **$113,007** | **$113,211** | **$110,998** | | **Consumer** | | | | | Residential mortgage | $23,059 | $23,060 | $23,101 | | Revolving mortgage | $2,736 | $2,635 | $2,351 | | Consumer auto | $1,490 | $1,487 | $1,503 | | Consumer other | $977 | $965 | $1,388 | | **Total consumer** | **$28,262** | **$28,147** | **$28,343** | | **Total loans and leases** | **$141,269** | **$141,358** | **$139,341** | - During Q2 2025, loan classes were recast, with Global fund banking remaining separate but reported under the Commercial portfolio. Investor dependent–early stage and investor dependent–growth stage were combined into a single investor dependent loan class under Commercial. Cash flow dependent and innovation C&I were combined with the commercial and industrial loan class under Commercial[9](index=9&type=chunk)[10](index=10&type=chunk) [Deposits by Type](index=6&type=section&id=Deposits%20by%20Type) Total deposits increased to $159.9 billion as of June 30, 2025, from $151.1 billion a year prior. While noninterest-bearing demand deposits remained relatively stable, interest-bearing deposits, particularly money market and savings, saw significant growth, offsetting a decline in time deposits Deposits by Type Data | Deposit Type (Dollars in millions) | June 30, 2025 | March 31, 2025 | June 30, 2024 | | :--------------------------------- | :------------ | :------------- | :------------ | | Noninterest-bearing demand | $40,879 | $40,767 | $40,016 | | Checking with interest | $23,283 | $23,041 | $23,907 | | Money market | $37,654 | $37,705 | $32,641 | | Savings | $46,877 | $45,817 | $39,356 | | Time | $11,242 | $11,995 | $15,159 | | **Total deposits** | **$159,935** | **$159,325** | **$151,079** | [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)) Credit quality showed some deterioration with nonaccrual loans increasing to $1,319 million and the nonaccrual loan ratio rising to 0.93% as of June 30, 2025, compared to the prior year. Net charge-offs for the quarter were $119 million, and the ALLL to loans ratio decreased to 1.18% Credit Quality and Allowance for Loan and Lease Losses (ALLL) Data | Metric (Dollars in millions) | June 30, 2025 (3 Months) | March 31, 2025 (3 Months) | June 30, 2024 (3 Months) | June 30, 2025 (6 Months) | June 30, 2024 (6 Months) | | :--------------------------------- | :----------------------- | :------------------------ | :----------------------- | :----------------------- | :----------------------- | | Nonaccrual loans at period end | $1,319 | $1,206 | $1,141 | | | | Ratio of nonaccrual loans to total loans at period end | 0.93 % | 0.85 % | 0.82 % | | | | Net charge-offs | $(119) | $(144) | $(132) | $(263) | $(235) | | Net charge-off ratio | 0.33 % | 0.41 % | 0.38 % | 0.37 % | 0.35 % | | ALLL to loans ratio at period end | 1.18 % | 1.19 % | 1.22 % | | | | ALLL at end of period | $1,672 | $1,680 | $1,700 | $1,672 | $1,700 | [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 June 30, 2025, net interest income was $1,695 million, with a net interest margin of 3.26%. This represents a decrease in net interest income and margin compared to June 30, 2024, primarily due to lower yields on loans and interest-earning deposits, despite an increase in average interest-earning assets Average Balance Sheets, Yields and Rates (Three Months Ended) Data | Metric (Dollars in millions) | June 30, 2025 | March 31, 2025 | June 30, 2024 | | :--------------------------------- | :------------ | :------------- | :------------ | | Average Loans and leases | $140,699 | $139,491 | $135,965 | | Yield on Loans and leases | 6.47 % | 6.49 % | 7.15 % | | Average Total interest-earning assets | $208,175 | $206,028 | $200,705 | | Yield on Total interest-earning assets | 5.67 % | 5.68 % | 6.26 % | | Average Total interest-bearing liabilities | $156,961 | $154,622 | $148,382 | | Rate on Total interest-bearing liabilities | 3.19 % | 3.22 % | 3.54 % | | Net interest income | $1,695 | $1,663 | $1,821 | | Net interest spread | 2.48 % | 2.46 % | 2.72 % | | Net interest margin | 3.26 % | 3.26 % | 3.64 % | [Average Balance Sheets, Yields and Rates (Six Months Ended)](index=9&type=section&id=Average%20Balance%20Sheets%2C%20Yields%20and%20Rates%20(Six%20Months%20Ended)) For the six months ended June 30, 2025, net interest income was $3,358 million, with a net interest margin of 3.26%. This indicates a decline in both net interest income and margin compared to the same period in 2024, driven by lower yields on interest-earning assets Average Balance Sheets, Yields and Rates (Six Months Ended) Data | Metric (Dollars in millions) | June 30, 2025 | June 30, 2024 | | :--------------------------------- | :------------ | :------------ | | Average Loans and leases | $140,099 | $134,139 | | Yield on Loans and leases | 6.48 % | 7.15 % | | Average Total interest-earning assets | $207,108 | $199,646 | | Yield on Total interest-earning assets | 5.67 % | 6.25 % | | Average Total interest-bearing liabilities | $155,798 | $147,012 | | Rate on Total interest-bearing liabilities | 3.20 % | 3.52 % | | Net interest income | $3,358 | $3,638 | | Net interest spread | 2.47 % | 2.73 % | | Net interest margin | 3.26 % | 3.66 % | [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) This section reconciles GAAP net income and EPS to their adjusted non-GAAP counterparts by adding back the after-tax impact of notable items. For Q2 2025, adjusted net income was $607 million, and adjusted diluted EPS was $44.78 Net Income and EPS Reconciliation Data | Metric (Dollars in millions) | June 30, 2025 (3 Months) | March 31, 2025 (3 Months) | June 30, 2024 (3 Months) | June 30, 2025 (6 Months) | June 30, 2024 (6 Months) | | :--------------------------------- | :----------------------- | :------------------------ | :----------------------- | :----------------------- | :----------------------- | | Net income (GAAP) | $575 | $483 | $707 | $1,058 | $1,438 | | Net income available to common stockholders (GAAP) | $561 | $468 | $691 | $1,029 | $1,407 | | Total notable items, after income tax | $32 | $45 | $48 | $77 | $101 | | Adjusted net income (non-GAAP) | $607 | $528 | $755 | $1,135 | $1,539 | | Adjusted net income available to common stockholders (non-GAAP) | $593 | $513 | $739 | $1,106 | $1,508 | | Diluted EPS (GAAP) | $42.36 | $34.47 | $47.54 | $76.73 | $96.80 | | Adjusted diluted EPS (non-GAAP) | $44.78 | $37.79 | $50.87 | $82.48 | $103.79 | [Noninterest Income and Expense Reconciliation](index=10&type=section&id=Noninterest%20Income%20and%20Expense%20Reconciliation) This reconciliation adjusts GAAP noninterest income and expense by removing the pre-tax impact of notable items. For Q2 2025, adjusted noninterest income was $513 million, and adjusted noninterest expense was $1,279 million Noninterest Income and Expense Reconciliation Data | Metric (Dollars in millions) | June 30, 2025 (3 Months) | March 31, 2025 (3 Months) | June 30, 2024 (3 Months) | June 30, 2025 (6 Months) | June 30, 2024 (6 Months) | | :--------------------------------- | :----------------------- | :------------------------ | :----------------------- | :----------------------- | :----------------------- | | Noninterest income (GAAP) | $678 | $635 | $639 | $1,313 | $1,266 | | Impact of notable items, before income tax | $(165) | $(156) | $(160) | $(321) | $(309) | | Adjusted noninterest income (non-GAAP) | $513 | $479 | $479 | $992 | $957 | | Noninterest expense (GAAP) | $1,500 | $1,493 | $1,386 | $2,993 | $2,762 | | Impact of notable items, before income tax | $(221) | $(216) | $(218) | $(437) | $(440) | | Adjusted noninterest expense (non-GAAP) | $1,279 | $1,277 | $1,168 | $2,556 | $2,322 | [PPNR Reconciliation](index=10&type=section&id=PPNR%20Reconciliation) This section reconciles GAAP net income to Pre-Tax, Pre-Provision Net Revenue (PPNR) and Adjusted PPNR by adding back provision for credit losses and income tax expense, and then adjusting for notable items. For Q2 2025, PPNR was $873 million, and Adjusted PPNR was $929 million PPNR Reconciliation Data | Metric (Dollars in millions) | June 30, 2025 (3 Months) | March 31, 2025 (3 Months) | June 30, 2024 (3 Months) | June 30, 2025 (6 Months) | June 30, 2024 (6 Months) | | :--------------------------------- | :----------------------- | :------------------------ | :----------------------- | :----------------------- | :----------------------- | | Net income (GAAP) | $575 | $483 | $707 | $1,058 | $1,438 | | Plus: provision for credit losses | $115 | $154 | $95 | $269 | $159 | | Plus: income tax expense | $183 | $168 | $272 | $351 | $545 | | PPNR (non-GAAP) | $873 | $805 | $1,074 | $1,678 | $2,142 | | Impact of notable items | $56 | $60 | $58 | $116 | $131 | | Adjusted PPNR (non-GAAP) | $929 | $865 | $1,132 | $1,794 | $2,273 | [ROA Reconciliation](index=11&type=section&id=ROA%20Reconciliation) This section reconciles GAAP Return on Average Assets (ROA) to Adjusted ROA by incorporating the impact of notable items on net income. For Q2 2025, GAAP ROA was 1.01%, while Adjusted ROA was 1.07% ROA Reconciliation Data | Metric | June 30, 2025 (3 Months) | March 31, 2025 (3 Months) | June 30, 2024 (3 Months) | June 30, 2025 (6 Months) | June 30, 2024 (6 Months) | | :--------------------------------- | :----------------------- | :------------------------ | :----------------------- | :----------------------- | :----------------------- | | ROA (GAAP) | 1.01 % | 0.87 % | 1.30 % | 0.94 % | 1.33 % | | Adjusted ROA (non-GAAP) | 1.07 % | 0.95 % | 1.39 % | 1.01 % | 1.42 % | [PPNR ROA Reconciliation](index=11&type=section&id=PPNR%20ROA%20Reconciliation) This section reconciles PPNR ROA to Adjusted PPNR ROA, reflecting the impact of notable items on PPNR. For Q2 2025, PPNR ROA was 1.54%, and Adjusted PPNR ROA was 1.64% PPNR ROA Reconciliation Data | Metric | June 30, 2025 (3 Months) | March 31, 2025 (3 Months) | June 30, 2024 (3 Months) | June 30, 2025 (6 Months) | June 30, 2024 (6 Months) | | :--------------------------------- | :----------------------- | :------------------------ | :----------------------- | :----------------------- | :----------------------- | | PPNR ROA (non-GAAP) | 1.54 % | 1.45 % | 1.97 % | 1.49 % | 1.98 % | | Adjusted PPNR ROA (non-GAAP) | 1.64 % | 1.56 % | 2.08 % | 1.60 % | 2.10 % | [ROE and ROTCE Reconciliation](index=11&type=section&id=ROE%20and%20ROTCE%20Reconciliation) This section reconciles GAAP Return on Average Common Equity (ROE) to Adjusted ROE, and Return on Average Tangible Common Equity (ROTCE) to Adjusted ROTCE, by adjusting for notable items and intangible assets. For Q2 2025, GAAP ROE was 10.41%, Adjusted ROE was 11.00%, ROTCE was 10.69%, and Adjusted ROTCE was 11.30% ROE and ROTCE Reconciliation Data | Metric | June 30, 2025 (3 Months) | March 31, 2025 (3 Months) | June 30, 2024 (3 Months) | June 30, 2025 (6 Months) | June 30, 2024 (6 Months) | | :--------------------------------- | :----------------------- | :------------------------ | :----------------------- | :----------------------- | :----------------------- | | ROE (GAAP) | 10.41 % | 8.79 % | 13.13 % | 9.61 % | 13.54 % | | Adjusted ROE (non-GAAP) | 11.00 % | 9.64 % | 14.05 % | 10.33 % | 14.52 % | | ROTCE (non-GAAP) | 10.69 % | 9.04 % | 13.53 % | 9.87 % | 13.97 % | | Adjusted ROTCE (non-GAAP) | 11.30 % | 9.91 % | 14.48 % | 10.61 % | 14.98 % | [Tangible Common Equity to Tangible Assets Reconciliation](index=11&type=section&id=Tangible%20Common%20Equity%20to%20Tangible%20Assets%20Reconciliation) This section reconciles GAAP total equity to total assets to the non-GAAP tangible common equity to tangible assets ratio by excluding preferred stock, goodwill, and other intangible assets. As of June 30, 2025, the tangible common equity to tangible assets ratio was 9.10% Tangible Common Equity to Tangible Assets Reconciliation Data | Metric | June 30, 2025 | March 31, 2025 | June 30, 2024 | | :--------------------------------- | :------------ | :------------- | :------------ | | Total equity to total assets (GAAP) | 9.71 % | 9.74 % | 10.23 % | | Tangible common equity to tangible assets (non-GAAP) | 9.10 % | 9.13 % | 9.57 % | [Book Value and Tangible Book Value Per Common Share Reconciliation](index=12&type=section&id=Book%20Value%20and%20Tangible%20Book%20Value%20Per%20Common%20Share%20Reconciliation) This section reconciles GAAP book value per common share to non-GAAP tangible book value per common share by excluding goodwill and other intangible assets. As of June 30, 2025, book value per share was $1,637.72, and tangible book value per common share was $1,594.38 Book Value and Tangible Book Value Per Common Share Reconciliation Data | Metric | June 30, 2025 | March 31, 2025 | June 30, 2024 | | :--------------------------------- | :------------ | :------------- | :------------ | | Book value per share | $1,637.72 | $1,596.30 | $1,487.00 | | Tangible book value per common share (non-GAAP) | $1,594.38 | $1,553.06 | $1,443.92 | [Efficiency Ratio Reconciliation](index=12&type=section&id=Efficiency%20Ratio%20Reconciliation) This section reconciles the GAAP efficiency ratio to the adjusted efficiency ratio by excluding the impact of notable items from noninterest expense and noninterest income. For Q2 2025, the GAAP efficiency ratio was 63.22%, while the adjusted efficiency ratio was 57.92% Efficiency Ratio Reconciliation Data | Metric | June 30, 2025 (3 Months) | March 31, 2025 (3 Months) | June 30, 2024 (3 Months) | June 30, 2025 (6 Months) | June 30, 2024 (6 Months) | | :--------------------------------- | :----------------------- | :------------------------ | :----------------------- | :----------------------- | :----------------------- | | Efficiency ratio (GAAP) | 63.22 % | 64.97 % | 56.36 % | 64.08 % | 56.33 % | | Adjusted efficiency ratio (non-GAAP) | 57.92 % | 59.62 % | 50.77 % | 58.75 % | 50.53 % | [Rental Income on Operating Lease Equipment Reconciliation](index=12&type=section&id=Rental%20Income%20on%20Operating%20Lease%20Equipment%20Reconciliation) This section reconciles GAAP rental income on operating lease equipment to an adjusted non-GAAP measure by deducting direct expenses such as depreciation and maintenance. For Q2 2025, adjusted rental income on operating lease equipment was $117 million Rental Income on Operating Lease Equipment Reconciliation Data | Metric (Dollars in millions) | June 30, 2025 (3 Months) | March 31, 2025 (3 Months) | June 30, 2024 (3 Months) | June 30, 2025 (6 Months) | June 30, 2024 (6 Months) | | :--------------------------------- | :----------------------- | :------------------------ | :----------------------- | :----------------------- | :----------------------- | | Rental income on operating lease equipment (GAAP) | $272 | $270 | $259 | $542 | $514 | | Less: depreciation on operating lease equipment | $100 | $98 | $98 | $198 | $194 | | Less: maintenance and other operating lease expenses | $55 | $58 | $60 | $113 | $105 | | Adjusted rental income on operating lease equipment (non-GAAP) | $117 | $114 | $101 | $231 | $215 | [Net Interest Income & Net Interest Margin Reconciliation](index=12&type=section&id=Net%20Interest%20Income%20%26%20Net%20Interest%20Margin%20Reconciliation) This section reconciles GAAP net interest income and net interest margin to non-GAAP measures by excluding the impact of purchase accounting accretion (PAA). For Q2 2025, net interest income excluding PAA was $1,629 million, and NIM excluding PAA was 3.14% Net Interest Income & Net Interest Margin Reconciliation Data | Metric (Dollars in millions) | June 30, 2025 (3 Months) | March 31, 2025 (3 Months) | June 30, 2024 (3 Months) | June 30, 2025 (6 Months) | June 30, 2024 (6 Months) | | :--------------------------------- | :----------------------- | :------------------------ | :----------------------- | :----------------------- | :----------------------- | | Net interest income (GAAP) | $1,695 | $1,663 | $1,821 | $3,358 | $3,638 | | PAA | $66 | $75 | $140 | $142 | $298 | | Net interest income, excluding PAA (non-GAAP) | $1,629 | $1,588 | $1,681 | $3,216 | $3,340 | | NIM (GAAP) | 3.26 % | 3.26 % | 3.64 % | 3.26 % | 3.66 % | | NIM, excluding PAA (non-GAAP) | 3.14 % | 3.12 % | 3.36 % | 3.13 % | 3.36 % | [Interest Income on Loans Reconciliation](index=12&type=section&id=Interest%20Income%20on%20Loans%20Reconciliation) This section reconciles GAAP interest income on loans to a non-GAAP measure by excluding loan purchase accounting accretion (PAA). For Q2 2025, interest income on loans excluding loan PAA was $2,195 million Interest Income on Loans Reconciliation Data | Metric (Dollars in millions) | June 30, 2025 (3 Months) | March 31, 2025 (3 Months) | June 30, 2024 (3 Months) | June 30, 2025 (6 Months) | June 30, 2024 (6 Months) | | :--------------------------------- | :----------------------- | :------------------------ | :----------------------- | :----------------------- | :----------------------- | | Interest income on loans (GAAP) | $2,270 | $2,236 | $2,422 | $4,506 | $4,776 | | Less: loan PAA | $75 | $84 | $145 | $159 | $308 | | Interest income on loans, excluding loan PAA (non-GAAP) | $2,195 | $2,152 | $2,277 | $4,347 | $4,468 | [Income Tax Expense Reconciliation](index=12&type=section&id=Income%20Tax%20Expense%20Reconciliation) This section reconciles GAAP income tax expense to adjusted income tax expense by accounting for the impact of notable items. For Q2 2025, GAAP income tax expense was $183 million, and adjusted income tax expense was $207 million Income Tax Expense Reconciliation Data | Metric (Dollars in millions) | June 30, 2025 (3 Months) | March 31, 2025 (3 Months) | June 30, 2024 (3 Months) | June 30, 2025 (6 Months) | June 30, 2024 (6 Months) | | :--------------------------------- | :----------------------- | :------------------------ | :----------------------- | :----------------------- | :----------------------- | | Income tax expense (GAAP) | $183 | $168 | $272 | $351 | $545 | | Impact of notable items | $24 | $15 | $10 | $39 | $30 | | Adjusted income tax expense (non-GAAP) | $207 | $183 | $282 | $390 | $575 |

Core Viewpoint - First Citizens BancShares, Inc. reported solid financial results for the second quarter of 2025, highlighting revenue growth, strong capital and liquidity positions, and a commitment to returning capital to shareholders through share repurchases [2][4]. Financial Highlights - Net income for Q2 2025 was $575 million, up from $483 million in Q1 2025, with net income available to common stockholders at $561 million, or $42.36 per share, an increase of $93 million from the previous quarter [4]. - Adjusted net income for the current quarter was $607 million, compared to $528 million in the linked quarter, with adjusted net income available to common stockholders at $593 million, or $44.78 per share, an increase of $80 million from the previous quarter [5]. Net Interest Income and Margin - Net interest income totaled $1.70 billion for the current quarter, an increase of $32 million from the linked quarter, with net interest income excluding purchase accounting accretion (PAA) at $1.63 billion, up $41 million [6]. - Net interest margin (NIM) was 3.26% for both the current and linked quarters, while NIM excluding PAA was 3.14%, an increase from 3.12% in the linked quarter [9]. Noninterest Income and Expense - Noninterest income was $678 million, an increase of $43 million from the linked quarter, primarily due to fair value changes in customer derivative positions [9]. - Noninterest expense was $1.50 billion, a slight increase from $1.49 billion in the linked quarter, with adjusted noninterest expense at $1.28 billion [9]. Balance Sheet Summary - Loans and leases totaled $141.27 billion, a decrease of $89 million from the previous quarter, with declines in the SVB Commercial segment [9]. - Total investment securities were $43.35 billion, a decrease of $973 million since March 31, 2025 [9]. - Deposits totaled $159.94 billion, an increase of $610 million, with significant growth in the SVB Commercial segment and corporate deposits [9]. Provision for Credit Losses and Credit Quality - Provision for credit losses totaled $115 million, down from $154 million in the linked quarter, with net charge-offs at $119 million, representing 0.33% of average loans [12]. - Nonaccrual loans increased to $1.32 billion, or 0.93% of loans, primarily due to one credit in the SVB Commercial segment [12]. Capital and Liquidity - Capital ratios were well above regulatory requirements, with total risk-based capital at 14.25% and Tier 1 risk-based capital at 12.63% [12]. - Liquid assets were $63.62 billion, an increase from $62.79 billion in the previous quarter, indicating a strong liquidity position [13]. Share Repurchase Program - The company repurchased 338,959 shares for $613 million during the current quarter and announced an additional share repurchase plan of up to $4.0 billion [2][12]. - From the inception of the 2024 Share Repurchase Program, the company has repurchased 1,456,283 shares for $2.89 billion, representing 10.77% of Class A common shares outstanding [12].

Wall Street analysts forecast that First Citizens BancShares (FCNCA) will report quarterly earnings of $39.08 per share in its upcoming release, pointing to a year-over-year decline of 23.2%. It is anticipated that revenues will amount to $2.22 billion, exhibiting a decrease of 9.6% compared to the year-ago quarter.The current level reflects an upward revision of 1.4% in the consensus EPS estimate for the quarter over the past 30 days. This demonstrates how the analysts covering the stock have collectively ...

Group 1 - First Citizens Bank has appointed Israel Gibbs as Area Executive for the North Florida market to enhance its banking operations in the state [1][2] - Gibbs brings over two decades of experience in commercial and retail banking, having previously served as Area Executive in Dallas and held leadership roles in Southeast Florida [2] - The bank has been operating in Florida for over 20 years, currently employing more than 1,000 associates and maintaining 26 branch locations [3] Group 2 - First Citizens Bank is headquartered in Raleigh, N.C., and is recognized as a top 20 U.S. financial institution with over $200 billion in assets [4] - The bank offers a wide range of services including personal, business, commercial, and wealth management, emphasizing long-term financial strength [4]

The market expects First Citizens BancShares (FCNCA) to deliver a year-over-year decline in earnings on lower revenues when it reports results for the quarter ended June 2025. This widely-known consensus outlook is important in assessing the company's earnings picture, but a powerful factor that might influence its near-term stock price is how the actual results compare to these estimates.The earnings report, which is expected to be released on July 25, might help the stock move higher if these key numbers ...

Group 1 - First Citizens BancShares (FCNCA) has a strong track record of beating earnings estimates, particularly in the last two quarters with an average surprise of 7.24% [1][2] - For the last reported quarter, First Citizens achieved earnings of $37.79 per share, slightly above the Zacks Consensus Estimate of $37.72, resulting in a surprise of 0.19% [2] - In the previous quarter, the company exceeded expectations significantly, reporting earnings of $45.1 per share against an estimate of $39.46, delivering a surprise of 14.29% [2] Group 2 - Recent changes in earnings estimates for First Citizens have been favorable, with a positive Earnings ESP (Expected Surprise Prediction) indicating potential for another earnings beat [5][8] - The combination of a positive Earnings ESP and a Zacks Rank of 3 (Hold) suggests that stocks like First Citizens have a nearly 70% chance of producing a positive surprise [6][8] - First Citizens currently has an Earnings ESP of +1.90%, reflecting recent bullish sentiment from analysts regarding the company's earnings prospects [8]

Core Viewpoint - First Citizens BancShares, Inc. will report its financial results for the quarter ended June 30, 2025, on July 25, 2025, before U.S. financial markets open [1] Group 1: Financial Results Announcement - The financial results will be discussed in a conference call and webcast at 9 a.m. Eastern time on the same day [1] - The conference call and webcast may include forward-looking statements and other material information [1] Group 2: Pre-registration and Access Information - Investors can pre-register for the call via webcast at the provided link, and a confirmation email will be sent with details [2] - Telephone access is available for North America and other locations with specific dialing instructions and access code [2] - An investor presentation and the link to the webcast will be available on the company's website prior to the call [2] Group 3: Company Overview - First Citizens BancShares, Inc. is a top 20 U.S. financial institution with over $200 billion in assets and is a member of the Fortune 500 [3] - The company serves as the financial holding company for First-Citizens Bank & Trust Company, offering a range of banking services nationwide [3] - The bank has a legacy of strength, stability, and long-term thinking, providing commercial banking expertise and personalized wealth management services [3]

Core Insights - Diane Morais has been appointed to the board of directors of First Citizens BancShares, Inc. and its subsidiary, First-Citizens Bank & Trust Company, effective July 1, 2025 [1] Group 1: Diane Morais' Background and Experience - Morais has over 30 years of experience in the financial services sector, most recently serving as President of Consumer and Commercial Banking at Ally Bank from 2017 until her retirement in 2024 [2] - At Ally, she was instrumental in the creation and launch of the Ally brand in 2009 and oversaw various banking divisions including deposits, online brokerage, mortgage, and credit card businesses [2] - Prior to her tenure at Ally, Morais spent 12 years at Bank of America in senior roles and nine years at Citibank in the credit card division [3] Group 2: Contributions to First Citizens BancShares - Frank B. Holding, Jr., chairman and CEO of First Citizens, expressed confidence in Morais' customer-centric vision and leadership style, which aligns with the company's long-term focus [3] - Morais will serve on the Joint Risk Committee and Joint Technology Committee of First Citizens BancShares and First Citizens Bank [5] Group 3: Community Involvement and Recognition - Morais is actively involved in the Charlotte community, serving on the boards of several organizations and volunteering for various charities [4][5] - She has been recognized as one of American Banker Magazine's 25 Most Powerful Women in Banking for nine consecutive years through 2023 and received the 2024 Lifetime Achievement Award from the Charlotte Business Journal [4]