UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 ____________________________________________________ FORM 10-K ____________________________________________________ | ☒ | Annual Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 | | --- | --- | | | For the fiscal year ended December 31, 2025 | | | or | | ☐ | Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 | | | Commission File Number: 001-16715 | First Citizens BancSh ...

Financial Performance - Net income available to common stockholders for Q4 2025 was $566 million, compared to $554 million in Q3 2025 and $685 million in Q4 2024[2] - Net income for the fourth quarter of 2025 was $648 million, an increase of 10.4% from $587 million in the previous quarter[9] - Net income (GAAP) for Q4 2025 was $580 million, a slight increase from $568 million in Q3 2025 but a decrease from $700 million in Q4 2024[18] - Adjusted net income (non-GAAP) for Q4 2025 was $648 million, compared to $587 million in Q3 2025 and $643 million in Q4 2024[18] - Annualized adjusted net income available to common stockholders for Q4 2025 was $2,515 million, an increase from $2,275 million in Q3 2025[19] Income and Expenses - Net interest income for Q4 2025 was $1,722 million, a slight decrease from $1,734 million in Q3 2025 and $1,709 million in Q4 2024[1] - Total noninterest income increased to $715 million in Q4 2025, up from $699 million in both Q3 2025 and Q4 2024[2] - Total noninterest expense rose to $1,572 million in Q4 2025, compared to $1,491 million in Q3 2025 and $1,517 million in Q4 2024[2] - Noninterest income for the fourth quarter of 2025 was $529 million, an increase of 2.1% from $518 million in the previous quarter[9] - Noninterest expense (GAAP) for Q4 2025 increased to $1,572 million from $1,491 million in Q3 2025 and $1,517 million in Q4 2024[18] Credit Losses and Provisions - Provision for credit losses decreased significantly to $54 million in Q4 2025 from $191 million in Q3 2025 and $155 million in Q4 2024[1] - The provision for loan and lease losses for the quarter was $59 million, significantly lower than $214 million in the previous quarter and $158 million a year ago[14] - Loan PAA (provision for credit losses) decreased to $59 million from $71 million, showing a reduction of 16.9%[21] Assets and Liabilities - Total loans and leases increased to $147,930 million at the end of Q4 2025, compared to $144,758 million at the end of Q3 2025 and $140,221 million at the end of Q4 2024[1] - Total deposits decreased to $161,578 million in Q4 2025 from $163,190 million in Q3 2025 but increased from $155,229 million in Q4 2024[1] - Total assets as of December 31, 2025, were $229,698 million, a decrease of 1.7% from $233,488 million on September 30, 2025[3] - Total assets (GAAP) as of December 31, 2025, were $229,698 million, down from $233,488 million as of September 30, 2025[20] - Total deposits as of December 31, 2025, were $161,578 million, a slight decrease from $163,190 million on September 30, 2025[3] Efficiency and Ratios - The efficiency ratio for Q4 2025 was 64.53%, compared to 61.27% in Q3 2025 and 63.01% in Q4 2024[1] - The adjusted efficiency ratio (non-GAAP) improved to 60.79% from 56.78% in the previous quarter, indicating better cost management[21] - Return on average assets (ROA) for Q4 2025 was 0.99%, slightly up from 0.98% in Q3 2025 but down from 1.25% in Q4 2024[1] - Adjusted ROA (non-GAAP) for Q4 2025 was 1.10%, compared to 1.01% in Q3 2025 and 1.14% in Q4 2024[19] Stockholders' Equity - Stockholders' equity increased to $22,238 million as of December 31, 2025, compared to $21,986 million on September 30, 2025[3] - Stockholders' equity at the end of December 31, 2025, was $22,197 million, slightly down from $22,291 million at September 30, 2025, and $22,598 million a year ago[15] Interest and Yield - Total interest-earning assets for the three months ended December 31, 2025, were $213,294 million, generating net interest income of $1,722 million, with a net interest margin of 3.20%[15] - Average interest-earning assets increased to $213,294 million from $211,042 million, representing a growth of 1.1%[21] - Interest income on loans was $2,290 million, slightly down from $2,300 million in the prior quarter, reflecting a decrease of 0.4%[21] - The net interest spread for the twelve months ended December 31, 2025, was 2.46%, compared to 2.62% for the previous year[16]

Financial Performance - Net income for the three months ended September 30, 2025, was $568 million, down from $639 million in the same period of 2024, a decline of 11.1%[15]. - Net income for the nine months ended September 30, 2025, was $1,626 million, a decrease from $2,077 million in the same period of 2024[22]. - Total revenue for the nine months ended September 30, 2025, was $7,104 million, an increase from $7,350 million in the same period of 2024, indicating a decline of about 3.4%[201]. - Basic earnings per common share for the three months ended September 30, 2025, was $43.08, down from $43.42 in 2024, and for the nine months ended September 30, 2025, it was $119.70 compared to $140.27 in 2024[174]. Asset and Deposit Growth - Total assets increased to $233,488 million as of September 30, 2025, up from $223,720 million at December 31, 2024, representing a growth of 7.9%[13]. - Total deposits reached $163,190 million as of September 30, 2025, up from $155,229 million at December 31, 2024, indicating an increase of 5.9%[13]. - Total loans and leases increased to $144.758 billion as of September 30, 2025, compared to $140.221 billion at December 31, 2024, reflecting a growth of approximately 3.8%[55]. Income and Expense Analysis - Net interest income for the three months ended September 30, 2025, was $1,734 million, a decrease of 3.5% from $1,796 million in the same period of 2024[15]. - Total noninterest income rose to $699 million for the three months ended September 30, 2025, compared to $650 million in the same period of 2024, marking an increase of 7.5%[15]. - Total noninterest expense increased to $1,491 million for the three months ended September 30, 2025, compared to $1,456 million in the same period of 2024, an increase of 2.4%[15]. Credit Losses and Provisions - Provision for credit losses increased to $191 million for the three months ended September 30, 2025, compared to $117 million in the same period of 2024, reflecting a rise of 63.2%[15]. - The provision for credit losses for the nine months ended September 30, 2025, was $460 million, compared to $276 million for the same period in 2024, representing an increase of approximately 66.7%[201]. Equity and Stockholder Information - Stockholders' equity decreased to $21,986 million as of September 30, 2025, from $22,228 million at December 31, 2024, a decline of 1.1%[13]. - The company repurchased 1,098,992 shares of Class A common stock for $2,148 million during the nine months ended September 30, 2025[22]. - Common stock outstanding as of September 30, 2025, is 11,613,444 shares for Class A and 1,005,185 shares for Class B, reflecting a decrease from 12,070,794 and 1,005,185 shares respectively as of June 30, 2025, due to repurchases[168]. Investment Securities - As of September 30, 2025, total investment securities amounted to $43.911 billion, with an amortized cost of $45.316 billion, reflecting gross unrealized losses of $1.783 billion[41]. - The total investment securities available for sale amounted to $34,963 million as of September 30, 2025, with corporate bonds valued at $250 million[141]. - The total unrealized losses on investment securities available for sale amounted to $541 million as of September 30, 2025, compared to $843 million at December 31, 2024[49]. Loan Portfolio and Quality - Total loans and leases as of September 30, 2025, amounted to $144,758 million, with a total past due of $897 million[61]. - Nonaccrual loans totaled $1,406 million as of September 30, 2025, compared to $1,184 million at December 31, 2024[61]. - The credit quality indicators for commercial loans are based on ongoing evaluations of individual borrowers, with a focus on criticized loans[62]. Segment Reporting - The General Bank segment provides a full suite of deposit products, loans, and wealth management services, generating revenue primarily from interest earned on loans and noninterest income from banking and advisory services[185][186]. - The Commercial Bank segment offers a range of lending and advisory services tailored to commercial and middle-market companies, with revenue primarily generated from interest and fees on loans[187][189]. - The company made changes to the composition of its reportable segments effective January 1, 2025, impacting the segment disclosures for 2024[182]. Legal and Regulatory Matters - The Parent Company and certain subsidiaries are defendants in legal actions with claims for damages arising from normal business activities[211]. - BancShares is exposed to litigation risk related to prior business activities of banks from which assets were acquired and liabilities assumed[211].

Summary Financial Data & Key Metrics This section provides a comprehensive overview of the company's summary financial data and key performance metrics [Results of Operations](index=1&type=section&id=Results%20of%20Operations) Net interest income and net income declined, due to higher credit loss provisions and rising noninterest expenses | Metric | Three Months Ended Sep 30, 2025 ($ millions) | Three Months Ended Sep 30, 2024 ($ millions) | Nine Months Ended Sep 30, 2025 ($ millions) | Nine Months Ended Sep 30, 2024 ($ millions) | | :----------------------------------- | :----------------------------------- | :----------------------------------- | :----------------------------------- | :----------------------------------- | | Net interest income | $1,734 | $1,796 | $5,092 | $5,434 | | Provision for credit losses | $191 | $117 | $460 | $276 | | Net income | $568 | $639 | $1,626 | $2,077 | | Net income available to common stockholders | $554 | $624 | $1,583 | $2,031 | | Noninterest income | $699 | $650 | $2,012 | $1,916 | | Noninterest expense | $1,491 | $1,456 | $4,484 | $4,218 | - Net interest income decreased by **$62 million (3.45%)** for the three months ended September 30, 2025, and by **$342 million (6.29%)** for the nine months ended September 30, 2025, compared to the prior year periods[1](index=1&type=chunk) - Provision for credit losses increased significantly by **$74 million (63.25%)** for the three months and **$184 million (66.67%)** for the nine months ended September 30, 2025, year-over-year[1](index=1&type=chunk) [Per Share Information](index=1&type=section&id=Per%20Share%20Information) Diluted and adjusted EPS declined year-over-year; book and tangible book value per share increased | Metric | Three Months Ended Sep 30, 2025 ($) | Three Months Ended Sep 30, 2024 ($) | Nine Months Ended Sep 30, 2025 ($) | Nine Months Ended Sep 30, 2024 ($) | | :----------------------------------- | :----------------------------------- | :----------------------------------- | :----------------------------------- | :----------------------------------- | | Diluted earnings per common share (EPS) | $43.08 | $43.42 | $119.70 | $140.26 | | Adjusted diluted EPS | $44.62 | $45.87 | $127.03 | $149.71 | | Book value per common share at period end | $1,672.54 | $1,547.81 | N/A | N/A | | Tangible book value per common share (TBV) at period end | $1,628.64 | $1,504.75 | N/A | N/A | - Diluted EPS decreased by **$0.34 (0.78%)** for the quarter and **$20.56 (14.66%)** for the nine months ended September 30, 2025, compared to the same periods in the prior year[1](index=1&type=chunk) - Book value per common share increased by **$124.73 (8.06%)** year-over-year to **$1,672.54** at September 30, 2025[1](index=1&type=chunk) [Key Performance Metrics](index=1&type=section&id=Key%20Performance%20Metrics) Key profitability ratios (ROA, ROE) and Net Interest Margin declined, with efficiency ratio worsening year-over-year | Metric | Three Months Ended Sep 30, 2025 | Three Months Ended Sep 30, 2024 | Nine Months Ended Sep 30, 2025 | Nine Months Ended Sep 30, 2024 | | :----------------------------------- | :------------------------------ | :------------------------------ | :----------------------------- | :----------------------------- | | Return on average assets (ROA) | 0.98 % | 1.15 % | 0.95 % | 1.27 % | | Adjusted ROA | 1.01 % | 1.22 % | 1.01 % | 1.35 % | | Return on average common equity (ROE) | 10.26 % | 11.30 % | 9.82 % | 12.73 % | | Efficiency ratio | 61.27 % | 59.49 % | 63.12 % | 57.38 % | | Net interest margin (NIM) | 3.26 % | 3.53 % | 3.26 % | 3.62 % | - ROA decreased from **1.15% to 0.98%** year-over-year for the quarter, and from **1.27% to 0.95%** for the nine-month period[1](index=1&type=chunk) - The efficiency ratio worsened to **61.27%** in Q3 2025 from **59.49%** in Q3 2024, and to **63.12%** for the nine months from **57.38%** in the prior year, indicating higher costs relative to revenue[1](index=1&type=chunk) [Select Balance Sheet Items at Period End](index=1&type=section&id=Select%20Balance%20Sheet%20Items%20at%20Period%20End) Total loans and leases, investment securities, and deposits all increased year-over-year, while the loan to deposit ratio slightly decreased | Metric | Sep 30, 2025 ($ millions) | Jun 30, 2025 ($ millions) | Sep 30, 2024 ($ millions) | | :----------------------------------- | :------------------------ | :------------------------ | :------------------------ | | Total investment securities | $45,124 | $43,346 | $38,663 | | Total loans and leases | $144,758 | $141,269 | $138,695 | | Total deposits | $163,190 | $159,935 | $151,574 | | Total borrowings | $38,675 | $38,112 | $37,161 | | Loan to deposit ratio | 88.71 % | 88.33 % | 91.50 % | | Noninterest-bearing deposits to total deposits | 26.20 % | 25.56 % | 25.99 % | - Total loans and leases grew by **$6.063 billion (4.37%)** year-over-year to **$144.758 billion**[1](index=1&type=chunk) - Total deposits increased by **$11.616 billion (7.66%)** year-over-year to **$163.190 billion**[1](index=1&type=chunk) [Capital Ratios at Period End](index=1&type=section&id=Capital%20Ratios%20at%20Period%20End) Capital ratios, including Total risk-based capital, Tier 1 risk-based capital, and Common equity Tier 1, decreased year-over-year | Metric | Sep 30, 2025 | Jun 30, 2025 | Sep 30, 2024 | | :----------------------------------- | :----------- | :----------- | :----------- | | Total risk-based capital ratio | 14.05 % | 14.25 % | 15.36 % | | Tier 1 risk-based capital ratio | 12.15 % | 12.63 % | 13.78 % | | Common equity Tier 1 ratio | 11.65 % | 12.12 % | 13.24 % | | Tier 1 leverage capital ratio | 9.34 % | 9.62 % | 10.17 % | - Common equity Tier 1 ratio decreased from **13.24%** in Q3 2024 to **11.65%** in Q3 2025[1](index=1&type=chunk) - Capital ratios for the current quarter-end are preliminary[1](index=1&type=chunk) [Asset Quality at Period End](index=1&type=section&id=Asset%20Quality%20at%20Period%20End) Asset quality metrics show a slight deterioration, with nonaccrual loans increasing and the net charge-off ratio rising significantly year-over-year | Metric | Sep 30, 2025 | Jun 30, 2025 | Sep 30, 2024 | | :----------------------------------- | :----------- | :----------- | :----------- | | Nonaccrual loans to total loans and leases | 0.97 % | 0.93 % | 0.90 % | | Allowance for loan and lease losses (ALLL) to loans and leases | 1.14 % | 1.18 % | 1.21 % | | Net charge-off ratio for the period | 0.65 % | 0.33 % | 0.42 % | - Nonaccrual loans to total loans and leases increased from **0.90%** in Q3 2024 to **0.97%** in Q3 2025[1](index=1&type=chunk) - The net charge-off ratio for the quarter more than doubled from **0.33%** in Q2 2025 to **0.65%** in Q3 2025, and increased from **0.42%** in Q3 2024[1](index=1&type=chunk) Income Statement (unaudited) This section presents the unaudited income statement, detailing interest income and expense, noninterest income, noninterest expense, and net income [Interest Income and Expense](index=2&type=section&id=Interest%20Income%20and%20Expense

Financial Performance - Net income for Q2 2025 was $575 million, down 18.7% from $707 million in Q2 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 comprehensive income for the six months ended June 30, 2025, was $1.389 billion, compared to $1.319 billion in the same period of 2024, reflecting an increase of 5.3%[17]. - Total revenue for the three months ended June 30, 2025, was $2,373 million, compared to $2,460 million for the same period in 2024, representing a decline of 3.5%[197]. - Total noninterest income for the three months ended June 30, 2025, was $678 million, compared to $639 million for the same period in 2024, 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 2.4%[13]. - 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]. - The total stockholders' equity at June 30, 2025, was $22,296 million, slightly down from $22,487 million at June 30, 2024[22]. - The total loans and leases as of June 30, 2025, reached $141.269 billion, an increase from $140.221 billion as of December 31, 2024, reflecting a growth of 0.75%[56]. - The balance of cash and due from banks at the end of the period was $889 million, an increase from $764 million at the end of June 2024[22]. Income and Expenses - Net interest income after provision for credit losses was $1.580 billion for Q2 2025, compared to $1.726 billion in Q2 2024, reflecting a decrease of 8.5%[15]. - Total noninterest expense increased to $1.500 billion in Q2 2025, up from $1.386 billion in Q2 2024, indicating a rise of 8.2%[15]. - 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]. - Provision for credit losses increased to $269 million in the first half of 2025, up from $159 million in the same period of 2024[22]. - Cash dividends declared for common shares were $3.90 per share in 2025, compared to $3.28 per share in 2024[22]. Loans and Credit Quality - Nonaccrual loans totaled $362 million as of June 30, 2025, compared to $303 million at December 31, 2024[62]. - The total commercial loans and leases reached $111.9 billion, with a total delinquency of $515 million[62]. - The total consumer loans reached $28.05 billion, with a total delinquency of $213 million[62]. - The total number of delinquent consumer loans was 5,676 million, with 90 days or greater past due loans amounting to $99 million[74]. - The total commercial loans modified during the six months ended June 30, 2024, had a weighted average term extension of 21 months and an interest rate reduction of 0.77%[87]. Investments and Securities - The company reported a net unrealized gain on securities available for sale of $89 million for Q2 2025, compared to a loss of $22 million in Q2 2024[17]. - As of June 30, 2025, total investment securities available for sale amounted to $33.381 billion, with a fair value of $33.060 billion, compared to $34.512 billion and $33.750 billion as of December 31, 2024, respectively[46]. - The total unrealized losses on investment securities available for sale as of June 30, 2025, were $593 million, compared to $843 million as of December 31, 2024[49]. - The total investment securities held to maturity amounted to $10.189 billion as of June 30, 2025, with a fair value of $8.888 billion, compared to $10.239 billion and $8.702 billion as of December 31, 2024[46]. - The fair value of loans held for sale was $123 million, with $83 million classified as Level 2 and $40 million as Level 3[152]. 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 generated revenue primarily from interest earned on loans and noninterest income from banking and advisory services[182][183]. - The Commercial Bank segment provides a range of lending services, primarily to small and middle market companies, with revenue generated from interest and fees on loans[184][186]. - The SVB Commercial segment focuses on providing financial solutions to commercial clients, generating revenue primarily from interest earned on loans and client investment fees[188][189]. - Noninterest expenses are allocated to segments, impacting the overall financial performance reported in the Corporate section[181]. Legal and Regulatory Matters - BancShares is involved in various legal actions with claims for damages arising from normal business activities, which may impact financial performance[208]. - The company cannot predict the outcome of litigation matters with confidence, particularly those in early stages or with indeterminate damages[210]. - BancShares has established reserves for litigation when loss contingencies are probable and estimable[210]. - 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]. - The credit risk related to standby letters of credit is similar to extending loans, and these letters are collateralized when necessary[205].

Financial Performance - Net interest income for Q2 2025 was $1,695 million, a decrease of 6.9% from $1,821 million in Q2 2024[1] - Net income available to common stockholders for Q2 2025 was $561 million, down 18.9% from $691 million in Q2 2024[2] - Diluted earnings per common share (EPS) for Q2 2025 was $42.36, a decrease of 11% compared to $47.54 in Q2 2024[2] - Net income for the second quarter of 2025 was $607 million, up from $528 million in the previous quarter but down from $755 million in the same quarter last year, indicating a year-over-year decline of 19.6%[8] - Basic earnings per common share for the second quarter of 2025 were $44.78, compared to $37.79 in the previous quarter and $50.87 in the same quarter last year, representing a year-over-year decline of 12.3%[8] - Net income (GAAP) for the three months ended June 30, 2025, was $575 million, an increase from $483 million in the same period last year, representing a 19.1% year-over-year growth[15] - Adjusted net income (non-GAAP) for the six months ended June 30, 2025, was $1,135 million, compared to $1,539 million for the same period in 2024, reflecting a decrease of 26.2%[15] Income and Expenses - Total noninterest income rose to $678 million in Q2 2025, compared to $639 million in Q2 2024, marking an increase of 6.1%[2] - Noninterest income for the second quarter of 2025 was $513 million, an increase from $479 million in the previous quarter and the same as in the same quarter last year[8] - Noninterest income (GAAP) for the three months ended June 30, 2025, was $678 million, up from $635 million in the previous quarter, indicating a 6.8% increase[15] - Adjusted noninterest income (non-GAAP) for the six months ended June 30, 2025, was $992 million, compared to $957 million for the same period in 2024, showing a growth of 3.7%[15] - Income tax expense for the three months ended June 30, 2025, was $183 million, up from $168 million year-over-year, an increase of 8.9%[18] - Adjusted income tax expense (non-GAAP) rose to $207 million from $183 million year-over-year, reflecting a growth of 13.1%[18] Asset Quality and Credit Losses - Provision for credit losses increased to $115 million in Q2 2025 from $95 million in Q2 2024, reflecting a rise of 21.1%[1] - The provision for loan and lease losses was $111 million, down from $148 million in the previous quarter, indicating a decrease of 25%[12] - Nonaccrual loans to total loans and leases increased to 0.93% in Q2 2025 from 0.82% in Q2 2024, indicating a decline in asset quality[1] - Nonaccrual loans increased to $1,319 million, up from $1,206 million in the previous quarter, representing a rise of 9.4%[12] - The ratio of nonaccrual loans to total loans at period end was 0.93%, compared to 0.85% in the previous quarter[12] - Net charge-offs for the quarter were $119 million, a decrease from $144 million in the previous quarter, reflecting a reduction of 17.4%[12] Deposits and Loans - Total deposits reached $159,935 million in Q2 2025, up from $151,079 million in Q2 2024, representing a growth of 5.9%[1] - Total loans and leases amounted to $141,269 million as of June 30, 2025, slightly down from $141,358 million in March 2025 but up from $139,341 million in June 2024, reflecting a year-over-year increase of 1.3%[9] - Total deposits reached $159,935 million, a slight increase from $159,325 million in March 2025 and a significant increase from $151,079 million in June 2024, marking a year-over-year growth of 5.9%[9] Capital and Efficiency - The efficiency ratio improved to 63.22% in Q2 2025 from 64.97% in Q1 2025, indicating better cost management[1] - The total risk-based capital ratio was 14.25% at the end of Q2 2025, down from 15.45% in Q2 2024[1] - Total stockholders' equity remained stable at $22,296 million as of June 30, 2025, compared to $22,295 million in March 2025 and $22,487 million in June 2024[3] - Stockholders' equity increased to $22,488 million, up from $22,457 million in the previous quarter, reflecting a growth of 0.14%[13] - Total equity to total assets (GAAP) ratio for the three months ended June 30, 2025, was 9.71%, slightly down from 9.74% in the previous quarter, suggesting a stable capital structure[17] Interest and Yield - The net interest margin remained stable at 3.26% for the quarter, unchanged from the previous quarter[13] - Average loans and leases for the six months ended June 30, 2025, were $140,099 million, with a yield of 6.48%, down from 7.15% in the same period last year[14] - Total interest-earning assets for the six months ended June 30, 2025, were $207,108 million, with a yield of 5.67%, compared to 6.25% in the same period last year[14] - Annualized net interest income for the six months ended June 30, 2025, was $6,800 million, compared to $7,322 million for the same period last year, a decrease of 7.1%[18] - Interest income on loans (GAAP) was $2,270 million, compared to $2,422 million for the same period last year, a decrease of 6.3%[18]

Financial Performance - Net income for Q1 2025 was $483 million, a decline of 33.9% from $731 million in Q1 2024[18]. - Total revenue for the company reached $2.298 billion in Q1 2025, up from $2.444 billion in Q1 2024, indicating a decrease of 6% year-over-year[199][200]. - Earnings per common share (diluted) decreased to $34.47 in Q1 2025 from $49.26 in Q1 2024, a decline of 30.1%[16]. - The company reported a net income of $483 million for Q1 2025, a decrease from $731 million in Q1 2024, which is a decline of 34%[199][200]. - The global effective income tax rate for BancShares decreased to 25.8% for the three months ended March 31, 2025, from 27.2% in the same period of 2024, primarily due to a reduction in state and local income tax rates[176]. Asset and Deposit Growth - Total assets increased to $228,822 million as of March 31, 2025, up from $223,720 million at December 31, 2024, representing a growth of 2.4%[14]. - Total deposits increased to $159,325 million as of March 31, 2025, up from $155,229 million at December 31, 2024, reflecting a growth of 1.3%[14]. - Total loans and leases reached $141,358 million as of March 31, 2025, compared to $140,221 million at December 31, 2024, reflecting an increase in commercial loans[62]. - Total loans and leases amounted to $202 million with a total modification percentage of 0.15%[91]. Credit Quality and Losses - Provision for credit losses rose to $154 million in Q1 2025, compared to $64 million in Q1 2024, indicating a significant increase of 140.6%[16]. - Nonaccrual loans without related allowance for loan and lease losses (ALLL) totaled $419 million as of March 31, 2025, compared to $303 million at December 31, 2024, indicating a significant increase of 38.3%[66]. - The provision for loan and lease losses for the three months ended March 31, 2025, was $148 million, compared to $93 million for the same period in 2024, indicating a 59% increase year-over-year[106]. - The total amount of other real estate owned (OREO) and repossessed assets was $105 million as of March 31, 2025, up from $64 million at December 31, 2024, representing a 64.1% increase[66]. Investment and Securities - Total investment securities available for sale amounted to $33,900 million as of March 31, 2025, with gross unrealized losses of $660 million[47]. - The fair value of investment securities available for sale was $33,900 million as of March 31, 2025, with a carrying value of the same amount[158]. - The total unrealized loss on securities available for sale was $345 million as of March 31, 2025, compared to $584 million as of December 31, 2024, showing a reduction of approximately 41%[173]. - The total carrying value of investment securities pledged as collateral increased to $4.07 billion as of March 31, 2025, up from $3.94 billion at December 31, 2024[58]. Legal and Regulatory Matters - BancShares is currently involved in various legal actions related to its normal business activities, with damages claimed in unspecified amounts[211]. - The company faces litigation risks associated with prior business activities of acquired banks, which may impact its financial position[212]. - BancShares is subject to ongoing judicial, regulatory, and arbitration proceedings, which may affect its operations and financial results[212]. - The company may respond to subpoenas and document requests related to these legal matters, indicating potential operational disruptions[212]. Shareholder Actions - The company repurchased 302,683 shares of Class A common stock during the quarter, impacting the equity structure[20]. - The weighted average common shares outstanding decreased from 14,533,302 in Q1 2024 to 13,575,231 in Q1 2025, reflecting a reduction of about 7%[175]. - The company declared preferred stock dividends of $15 million for both the first quarter of 2025 and 2024, indicating stable dividend payments[175]. Segment Performance - The General Bank segment provides a full suite of deposit products and loans, generating revenue primarily from interest earned on loans and noninterest income from banking and advisory services[186]. - The Commercial Bank segment focuses on lending and advisory services to small and middle market companies, with revenue generated from interest and fees on loans, as well as noninterest income from capital market fees[189]. - Net interest income for the Commercial segment was $788 million for the three months ended March 31, 2025, compared to $684 million for the same period in 2024, representing a 15.2% increase[199].

Financial Performance - Net interest income for Q1 2025 was $1,663 million, a decrease of 9% from $1,817 million in Q1 2024[1] - Net income available to common stockholders decreased to $468 million in Q1 2025, down 35% from $716 million in Q1 2024[2] - Diluted earnings per common share (EPS) for Q1 2025 was $34.47, a decline of 30% compared to $49.26 in Q1 2024[2] - Adjusted net income for Q1 2025 was $528 million, down from $643 million in Q4 2024, representing a decrease of 17.9%[10] - Net income (GAAP) for Q1 2025 was $483 million, down from $700 million in Q4 2024 and $731 million in Q1 2024[14] - Adjusted net income (non-GAAP) for Q1 2025 was $528 million, compared to $643 million in Q4 2024 and $784 million in Q1 2024[14] Credit Losses and Provisions - Provision for credit losses increased to $154 million in Q1 2025 from $64 million in Q1 2024, reflecting a significant rise in credit loss expectations[1] - The provision for credit losses increased to $154 million in Q1 2025, compared to $155 million in Q4 2024, indicating a slight decrease of 0.6%[10] - The total allowance for loan and lease losses (ALLL) at the end of Q1 2025 was $1.680 billion, slightly up from $1.676 billion at the end of Q4 2024[11] Deposits and Loans - Total deposits increased to $159,325 million in Q1 2025, up from $149,609 million in Q1 2024, indicating strong customer retention[3] - Total loans and leases rose to $141,358 million in Q1 2025, compared to $135,370 million in Q1 2024, showing growth in lending activities[3] - Total loans and leases increased to $141.358 billion as of March 31, 2025, up from $140.221 billion at the end of Q4 2024, a growth of 0.8%[11] - Total deposits reached $159.325 billion as of March 31, 2025, an increase from $155.229 billion at the end of Q4 2024, representing a growth of 2.7%[11] Operational Efficiency - The efficiency ratio for Q1 2025 was 64.97%, an increase from 56.30% in Q1 2024, indicating higher operational costs relative to income[1] - Adjusted efficiency ratio improved to 59.62% from 50.29% year-over-year, indicating better operational efficiency[18] Asset and Capital Position - The total risk-based capital ratio improved slightly to 15.23% in Q1 2025 from 15.04% in Q4 2024, indicating a stronger capital position[3] - Total assets increased to $225,449 million in Q1 2025 from $223,706 million in Q4 2024 and $216,081 million in Q1 2024[12] Interest Income and Margins - Net interest income after provision for credit losses was $1.509 billion for Q1 2025, compared to $1.554 billion in Q4 2024, a decrease of 2.9%[10] - Net interest income decreased to $1,663 million from $1,817 million year-over-year, a decline of 8.5%[18] - Total interest-earning assets amounted to $206,028 million in Q1 2025, with a yield of 5.68%, down from 5.83% in Q4 2024[12] - NIM (GAAP) decreased to 3.26% from 3.67% year-over-year, showing a decline in net interest margin[18] Tax and Income Expenses - Effective tax rate (GAAP) increased to 25.82% from 27.20% year-over-year, reflecting changes in tax obligations[18] - Adjusted effective tax rate (non-GAAP) was 25.71%, compared to 27.18% year-over-year, indicating a slight improvement[18] - Income tax expense increased significantly to $168 million from $36 million year-over-year, highlighting a notable change in tax liabilities[18] Shareholder Metrics - Common shares outstanding at period end decreased to 13,414,938 from 14,529,735 year-over-year[18] - Book value per share increased to $1,596.30 from $1,443.03 year-over-year, reflecting a growth of 10.6%[18]

Financial Performance and Assets - As of December 31, 2024, BancShares had total consolidated assets of $223.72 billion[16] - As of December 31, 2024, BancShares employed approximately 17,475 staff, indicating a strong workforce to support its operations[37] - BancShares maintains a nationwide digital banking platform, the Direct Bank, which is now reported under the Corporate segment[30] - The company has expanded its geographic footprint, operating branches in 20 states as of December 31, 2024[35] - The total risk-based capital ratio required under Basel III is 10.50%, with a minimum of 8.00%[60] - As of December 31, 2024, the Regulatory Capital Ratios of the Parent Company and FCB exceeded the applicable Basel III requirements and PCA well capitalized thresholds[58] Mergers and Acquisitions - On March 27, 2023, BancShares acquired substantially all loans and certain other assets of Silicon Valley Bridge Bank, enhancing its market presence[25] - The merger with CIT Group Inc. was completed on January 3, 2022, further expanding BancShares' service offerings[26] - BancShares must obtain regulatory approval for mergers and acquisitions, with limitations on market share post-acquisition[69] - The SVBB Acquisition has expanded BancShares' business lines and geographic scope, but also presents challenges in managing new operations and associated costs[119] Regulatory Compliance and Risk Management - BancShares is subject to regulation by multiple authorities, including the FDIC and the Federal Reserve, impacting its operational framework[45] - BancShares is required to maintain an enterprise-wide risk management system commensurate with its size and complexity[62] - The company is subject to enhanced liquidity risk management requirements as a Category IV banking organization, which includes maintaining sufficient capital and liquidity[198] - Regulatory compliance is critical, as failure to meet enhanced capital adequacy and liquidity requirements could adversely affect the company's financial condition[203] - The company is subject to enhanced prudential standards as a Category IV banking organization due to having over $100 billion in total consolidated assets[213] Community Investment and Development - BancShares is committed to invest $16 billion over five years in community development, including $3.2 billion for home loans to low- and moderate-income borrowers, $5.9 billion for small business lending, and $6.9 billion for community development lending[80] - FCB has an additional commitment of $6.5 billion for community benefits, including $2.25 billion in small business lending and $3.6 billion in CRA development lending[81] Operational and Market Risks - The company faces significant competition from various financial service providers, which may impact its market share and profitability[120] - The company is required to maintain adequate liquidity levels as a Category IV banking organization, with failure to do so potentially resulting in regulatory risks[112] - Economic uncertainty may reduce demand for the company's products and services, impacting loan volumes, fee income, and overall net income[125] - The company faces increased funding costs if competitors raise deposit rates, potentially leading to a loss of lower-cost funding sources[122] - The rise of digital assets and alternative financial transaction methods poses significant competition for traditional banking services, with a notable increase in consumer preference for these options[123] Cybersecurity and Operational Risks - Cybersecurity threats are a persistent risk, requiring significant resources for protection and remediation efforts[143] - The effectiveness of the company's operational risk management relies heavily on the integrity of employees and their adherence to established controls[149] - Human vulnerabilities, including employee error and misconduct, pose significant operational risks, especially during periods of change such as mergers and acquisitions[150] - Cyberattacks may result in material losses, reputational damage, and regulatory fines, adversely affecting the company's financial condition[147] Interest Rate and Economic Sensitivity - Interest rate sensitivity is critical; changes in rates could adversely affect net interest income (NII) and net interest margin (NIM)[180] - Higher interest rates may increase interest expenses and reduce NIM, affecting the ability to originate new loans[182] - Economic conditions, including unemployment, real estate values, and inflation, could adversely affect the company's operations and financial condition[186] Compliance and Regulatory Changes - Compliance with consumer financial protection laws enforced by the CFPB may impact business operations and profitability[215] - Increased compliance costs due to regulatory changes could limit business opportunities and adversely affect financial condition[208] - Proposed regulations by federal banking agencies aim to enhance cyber risk management standards applicable to the company and its third-party service providers[209] Competition for Talent - The company faces competition in attracting and retaining qualified personnel, which is critical for executing growth and acquisition strategies[156] - Regulatory scrutiny over compensation practices may impact the company's ability to attract and retain key talent, potentially affecting its competitive position[160]

Financial Performance - Net income available to common stockholders for the year ended December 31, 2024, was $2,716 million, compared to $11,407 million in 2023, indicating a significant decline[1]. - Net income (GAAP) for Q4 2024 was $700 million, up from $639 million in Q3 2024 and $514 million in Q4 2023, representing a year-over-year increase of 36.1%[18]. - Adjusted net income (non-GAAP) for Q4 2024 was $643 million, compared to $675 million in Q3 2024 and $693 million in Q4 2023, indicating a decline of 7.2% year-over-year[18]. - Net income available to common stockholders for the year was $2,796 million, compared to $2,548 million in 2023, reflecting a growth of 9.7%[10]. Revenue and Income - Net interest income for Q4 2024 was $1,709 million, a decrease of 10.6% from $1,911 million in Q4 2023[1]. - Total noninterest income for Q4 2024 was $699 million, up 28.8% from $543 million in Q4 2023[2]. - Noninterest income for the fourth quarter of 2024 was $516 million, a 13.4% increase from $455 million in the same quarter of 2023[10]. - Net interest income for the year ended December 31, 2024, was $7,143 million, an increase of 6.4% compared to $6,712 million in 2023[10]. Asset and Liability Management - Total assets increased to $223,720 million as of December 31, 2024, up from $213,758 million a year earlier, representing a growth of 4.6%[3]. - Total loans and leases increased to $140,221 million as of December 31, 2024, compared to $133,302 million a year earlier[1]. - Total deposits reached $155,229 million as of December 31, 2024, an increase from $145,854 million in 2023[1]. - Total interest-earning assets increased to $204,779 million with a yield of 5.83%, compared to $202,199 million and a yield of 6.18% in the previous quarter[15]. Efficiency and Cost Management - The efficiency ratio improved to 63.01% in Q4 2024 from 60.80% in Q4 2023, indicating better cost management[1]. - Adjusted efficiency ratio improved to 56.98% in Q4 2024 from 48.00% in Q4 2023, indicating enhanced operational efficiency[20]. - Noninterest expense (GAAP) for Q4 2024 was $1,517 million, compared to $1,456 million in Q3 2024 and $1,492 million in Q4 2023, showing a year-over-year increase of 1.7%[18]. Credit Quality - Provision for credit losses increased to $155 million in Q4 2024 from $249 million in Q4 2023, reflecting improved asset quality[1]. - The provision for credit losses for the year was $431 million, down 34.6% from $659 million in 2023[10]. - Nonaccrual loans at period end decreased to $1,184 million from $1,244 million in the previous quarter, with a ratio of nonaccrual loans to total loans at 0.84%[14]. - Net charge-offs for the quarter were $160 million, resulting in a net charge-off ratio of 0.46%, compared to 0.42% in the previous quarter[14]. Capital and Equity - The total risk-based capital ratio at period end was 15.04%, down from 15.75% a year earlier, indicating a slight decrease in capital adequacy[1]. - The total stockholders' equity decreased to $22,228 million from $22,828 million in the previous quarter, a decline of 2.6%[3]. - Stockholders' equity at the end of the period was $22,598 million, compared to $22,851 million in the previous quarter[15]. Shareholder Metrics - The diluted earnings per common share (EPS) for Q4 2024 was $49.21, compared to $34.33 in Q4 2023, reflecting a strong performance[1]. - Basic earnings per common share for the year ended December 31, 2024, was $194.97, up from $175.37 in 2023, an increase of 11.3%[10]. - Common shares outstanding decreased to 13,717,621 in Q4 2024 from 14,520,118 in Q4 2023, reflecting a reduction of 5.5%[20]. - Book value per share increased to $1,556.16 in Q4 2024 from $1,403.12 in Q4 2023, reflecting a growth of 10.9% year-over-year[20].