Core Insights - Distalmotion and First Citizens Bank's Healthcare Equipment Finance group have launched a financing program aimed at providing hospitals and healthcare providers with lending and leasing solutions for Distalmotion's DEXTER® Robotic Surgery System [1][2]. Company Overview - Distalmotion is a leader in MedTech innovation, headquartered in Lausanne, Switzerland, with U.S. offices in Cleveland, Ohio [2]. - The DEXTER® Robotic Surgery System is designed to make robotic surgery accessible to more patients in outpatient settings, addressing the limitations of traditional soft tissue robots [2]. Financing Program Details - The collaboration between Distalmotion and First Citizens Bank aims to meet the demand for DEXTER® in the outpatient surgery market by offering flexible financing options [3]. - First Citizens Bank's Healthcare Equipment Finance group has extensive experience in healthcare banking and financing, which will support the growth of Distalmotion's innovative technology [4][5]. Market Context - The healthcare industry is increasingly shifting towards an outpatient delivery model, creating a need for financing solutions that cater to this fast-evolving sector [4]. - First Citizens Bank provides a range of lending and leasing solutions to equipment manufacturers and vendors supporting hospitals and ambulatory surgical centers across the U.S. [5].

Financial Performance - Net income for the three months ended June 30, 2025, was $575 million, down 18.7% from $707 million in the same period of 2024[15]. - Net income for the six months ended June 30, 2025, was $1,058 million, a decrease of 26.4% compared to $1,438 million for the same period in 2024[22]. - Total revenue for the six months ended June 30, 2025, was $4,671 million, an increase of 5.4% from $4,904 million in the same period of 2024[198]. - Net interest income for the three months ended June 30, 2025, was $1,695 million, a decrease of 6.9% compared to $1,821 million for the same period in 2024[15]. - Total noninterest income for the three months ended June 30, 2025, was $678 million, compared to $639 million in the same period of 2024, indicating an increase of 6.1%[197]. Assets and Liabilities - Total assets increased to $229.653 billion as of June 30, 2025, up from $223.720 billion at December 31, 2024, representing a growth of 2.0%[13]. - Total liabilities increased to $207.357 billion as of June 30, 2025, from $201.492 billion at December 31, 2024, an increase of 2.9%[13]. - Total stockholders' equity rose to $22.296 billion as of June 30, 2025, compared to $22.228 billion at December 31, 2024, reflecting a growth of 0.3%[13]. - The allowance for loan and lease losses was $1.672 billion as of June 30, 2025, slightly down from $1.676 billion at December 31, 2024[13]. Credit Losses and Provisions - Provision for credit losses increased to $115 million for the three months ended June 30, 2025, compared to $95 million in the same period of 2024, reflecting a rise of 21.1%[15]. - Provision for credit losses increased to $269 million in 2025 from $159 million in 2024, indicating a rise in expected credit losses[22]. - The provision for loan and lease losses for the three months ended June 30, 2025, was $111 million, an increase of 16.8% from $95 million in the same period of 2024[99]. Deposits and Loans - Total deposits rose to $159.935 billion as of June 30, 2025, compared to $155.229 billion at December 31, 2024, marking an increase of 3.5%[13]. - Total loans and leases as of June 30, 2025, reached $141.269 billion, an increase from $140.221 billion at December 31, 2024, indicating a growth of approximately 0.75%[56]. - Total commercial loans and leases amounted to $111,900 million as of June 30, 2025, with a total past due amount of $515 million, which is approximately 0.46% of total commercial loans[62]. - Total consumer loans reached $28,262 million, with a total past due amount of $213 million, representing about 0.75% of total consumer loans[62]. Investment Securities - The total investment securities available for sale amounted to $33,060 million as of June 30, 2025, with gross unrealized losses of $593 million[41]. - The total investment securities held to maturity was $8,888 million as of June 30, 2025, with gross unrealized losses of $1,320 million[41]. - The gross unrealized losses on investment securities available for sale totaled $593 million as of June 30, 2025, compared to $843 million at December 31, 2024, reflecting an improvement in the portfolio[49]. Shareholder Actions - Cash dividends declared for Class A common stock were $3.90 per share in 2025, compared to $3.28 per share in 2024[22]. - The company repurchased 641,642 shares of Class A common stock for $1,239 million during the six months ended June 30, 2025[22]. - The total outstanding common stock is 12,070,794 shares for Class A and 1,005,185 shares for Class B, reflecting a decrease of 338,959 shares for Class A since March 31, 2025[164]. Segment Reporting - The company updated its segment reporting in Q1 2025, transferring components from the SVB Commercial and General Bank segments to the Commercial Bank segment without adding or removing existing segments[29]. - The General Bank segment offers a full suite of deposit products and loans, generating revenue primarily from interest earned on loans and noninterest income from banking and advisory services[182]. - The Commercial Bank segment provides senior secured loans primarily to small and middle market companies, with revenue generated from interest and fees on loans[184]. Litigation and Risk - BancShares estimates an aggregate range of reasonably possible losses from litigation matters to be up to approximately $10 million in excess of established reserves and insurance[211]. - BancShares has established reserves for litigation when it is probable that a loss will occur and the amount can be reasonably estimated[210]. - The company is involved in various pending and threatened judicial, regulatory, and arbitration proceedings related to its normal business activities[209].

Group 1: Vacation Savings Trends - A significant portion of Americans prioritize saving for vacations, with 33% indicating travel as their primary savings goal, surpassing savings for emergencies (30%), car purchases (26%), and home repairs (24%) [2][3] - The tradition of summer vacations remains strong, with 47% of all Americans planning to take a vacation this year, and this figure rises to 54% for Gen Z and 56% for Millennials [3][4] Group 2: Spending Patterns Among Younger Generations - Younger Americans, particularly Millennials and Gen Z, are not only more likely to plan vacations but also intend to spend more, with 41% of Millennials and 35% of Gen Z planning international travel compared to 26% of Gen X and 21% of Boomers [4] - A notable percentage of younger travelers plan to spend $5,000 or more on their trips, with 48% of Millennials and 44% of Gen Z indicating such spending [5] Group 3: Savings Strategies - Establishing a dedicated high-yield savings account can facilitate vacation savings, with suggestions for setting up recurring transfers to enhance savings [6][7] - CIT Bank offers high-yield savings accounts that can help individuals grow their vacation funds more effectively, with interest rates up to 10 times the national average [7]

Core Insights - AI companies are attracting significant venture capital, accounting for 58% of total VC investments and 36% of VC deals in 2025, but they are also experiencing higher cash burn rates and lower profit margins [1][2] Fundraising - US venture fund fundraising is projected to reach $56 billion in 2025, marking a 21% decline from 2024 and the lowest level since 2017 [6] - Mega-funds are increasingly dominating the market, with over 36% of conventional VC fund capital raised in the last three years going to funds of at least $1 billion, up from 20% six years ago [6] AI Burn Rate - The median Series A AI company burns $5 to generate $1 of new revenue, indicating higher burn multiples compared to other sectors, suggesting inefficient growth fueled by low-cost capital [6] IPO Activity - There were 10 US VC-backed tech IPOs in the first half of 2025, with potential for increased activity in the latter half of the year due to pent-up investor demand [6] Investor Dynamics - One-third of US VC investment is attributed to deals with the six largest funds, a significant increase from 10% in November 2024, primarily driven by large AI deals [6] Unicorn Performance - 72% of tech unicorns are achieving year-over-year growth, but only 21% are profitable, with 91% of non-growing unicorns depleting their cash reserves [6][7] Geographic Trends - New York is emerging as a fintech hub, with nearly 30% of local VC dollars allocated to the sector in 2024, more than double the national average [7] - Austin leads in consumer tech investments, while Denver has received 54% more VC dollars than the national average for climate tech [7]

Core Insights - Silicon Valley Bank (SVB) has partnered with Forge Securities LLC to provide clients with tailored private market liquidity management solutions [1][2] - The partnership aims to address the growing demand for secondary market liquidity as companies remain private longer, facilitating access to capital for scaling and offering liquidity options to employees [2] Group 1: Partnership Details - The referral partnership will enable SVB clients to access Forge's private liquidity solutions, which include managing cap tables and diversifying investor bases [1] - Forge provides a trusted trading platform, proprietary data, and custody services to assist companies and investors in navigating the private market [2][4] Group 2: Market Context - The need for flexible liquidity solutions is increasing, and this partnership is positioned as a response to that demand, supporting long-term growth for companies while meeting liquidity needs [2] - Forge's platform connects private companies with over 19,000 institutional investors looking to invest in private markets [4]

Core Insights - AI-related deal activity in the healthcare sector is thriving despite an overall decline in fundraising, with a 20% decrease in companies not leveraging AI [1][2] - Healthtech is leading AI investment, with AI-related deals doubling over the past 12 months, indicating a strong market trend [2] - China is emerging as a significant player in global biotech, with biopharma licensing deals reaching $3 billion in the first half of 2025, surpassing total spending in 2024 [3] AI Spotlight - Back-office applications are a major focus for AI investment, accounting for 44% of all AI investment in the first half of 2025, aimed at reducing administrative burdens [5] - Half of the funding for diagnostics/tools companies is directed towards those utilizing AI, highlighting the growing importance of AI in this sector [5] Investment by Sector - Healthtech raised a total of $8.2 billion in the first half of 2025, marking the strongest half since H1 2022, with Series B deal sizes reaching $40 million, the highest in five years [5] - In the diagnostics/tools sector, while deal activity has slowed, Series A median pre-money valuations and deal sizes reached five-year highs at $38 million and $14 million, respectively [5] - Medical device investments have remained consistent, totaling between $3 billion and $4 billion every half since 2022, although macroeconomic factors may pose risks [5] Biopharma Insights - Late-stage biopharma companies are favored, with median pre-money valuations for Series C+ at $247 million, compared to $46 million for Series A and $87 million for Series B startups [5]

Group 1 - The conference call is hosted by Deanna Hart, Head of Investor Relations, and includes key executives such as Frank Holding (Chairman & CEO) and Craig Nix (CFO) [2][3] - The purpose of the call is to provide business and financial updates for the second quarter of 2025, referencing an earnings call presentation available on the company's website [3] - Forward-looking statements will be made during the call, which are subject to risks and uncertainties that may lead to actual results differing from expectations [3][4] Group 2 - The presentation includes non-GAAP financial measures, with reconciliations to the most comparable GAAP measures provided in a specific section of the presentation [4]

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].