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, reflecting a year-over-year decline[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] - The efficiency ratio for Q4 2025 was 64.53%, up from 61.27% in Q3 2025 and 63.01% in Q4 2024, indicating increased operational costs relative to income[1] - 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] Loans and Deposits - The total loans and leases increased to $147,930 million at the end of Q4 2025, up from $144,758 million in Q3 2025 and $140,221 million in Q4 2024[1] - The 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 loans and leases increased to $147,930 million as of December 31, 2025, up 2.0% from $144,758 million on September 30, 2025[9] - Total deposits as of December 31, 2025, were $161,578 million, a slight decrease from $163,190 million on September 30, 2025[3] - Total deposits at the end of December 31, 2025, were $161,578 million, a decrease of 1% from $163,190 million at September 30, 2025, and an increase of 4% from $155,229 million at December 31, 2024[14] Asset Management - 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) at the end of Q4 2025 were $229,698 million, down from $233,488 million at the end of Q3 2025[19] - Total assets as of December 31, 2025, were $233,432 million, an increase from $230,529 million at September 30, 2025, and $223,706 million at December 31, 2024[15] Credit Quality - 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 allowance for loan and lease losses decreased to $1,566 million, down from $1,652 million in the previous quarter[9] - Nonaccrual loans at period end decreased to $1,307 million, resulting in a nonaccrual loan ratio of 0.88%, down from 0.97% in the previous quarter and up from 0.84% a year ago[14] - Net charge-offs for the three months ended December 31, 2025, were $143 million, with a net charge-off ratio of 0.39%, compared to 0.65% in the previous quarter and 0.46% a year ago[14] - The provision for loan and lease losses for the three months ended December 31, 2025, was $59 million, significantly lower than $214 million in the previous quarter[14] Earnings Per Share - The diluted earnings per common share (EPS) for Q4 2025 was $45.81, compared to $43.08 in Q3 2025 and $49.21 in Q4 2024[2] - Basic earnings per common share for the fourth quarter of 2025 were $51.27, up from $44.62 in the previous quarter[9] Margins and Ratios - The return on average common equity (ROE) for Q4 2025 was 10.66%, an increase from 10.26% in Q3 2025 but a decrease from 12.56% in Q4 2024[1] - ROA for Q4 2025 was 0.99%, slightly up from 0.98% in Q3 2025 but down from 1.25% in Q4 2024[19] - Adjusted ROA (non-GAAP) for Q4 2025 was 1.10%, compared to 1.01% in Q3 2025 and 1.14% in Q4 2024[19] - The net interest margin for the twelve months ended December 31, 2025, was 3.25%, compared to 3.54% for the previous year[16] - Net interest margin (NIM) (GAAP) decreased to 3.20% from 3.26% in the prior quarter, showing a decline of 0.06 percentage points[21]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 ____________________________________________________ FORM 10-Q ____________________________________________________ ☒ Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the quarterly period ended September 30, 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 BancShares, Inc. (Exact name of Registran ...

[Summary Financial Data & Key Metrics](index=1&type=section&id=Summary%20Financial%20Data%20%26%20Key%20Metrics) This section provides an overview of the company's financial performance, per share information, key ratios, balance sheet items, capital ratios, and asset quality metrics [Results of Operations](index=1&type=section&id=Results%20of%20Operations) The company experienced a decline in net interest income and net income for both the three and nine months ended September 30, 2025, compared to the prior year. Provision for credit losses significantly increased, impacting profitability. Noninterest income showed growth, while noninterest expense also rose | Metric | Three Months Ended Sep 30, 2025 (Millions of USD) | Three Months Ended Sep 30, 2024 (Millions of USD) | Nine Months Ended Sep 30, 2025 (Millions of USD) | Nine Months Ended Sep 30, 2024 (Millions of USD) | | :----------------------------------- | :---------------------------------------------- | :---------------------------------------------- | :--------------------------------------------- | :--------------------------------------------- | | 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 earnings per common share (EPS) and adjusted diluted EPS saw declines year-over-year for both the quarter and nine-month periods. Book value and tangible book value per common share increased sequentially and 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 | | :----------------------------------- | :------------------------------ | :------------------------------ | :----------------------------- | :----------------------------- | | 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 such as Return on Average Assets (ROA) and Return on Average Common Equity (ROE) declined year-over-year. The efficiency ratio worsened, indicating higher operating costs relative to revenue, while Net Interest Margin (NIM) also compressed | 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. The loan to deposit ratio slightly decreased, while noninterest-bearing deposits remained a significant portion of total deposits | Metric | Sep 30, 2025 (Millions of USD) | Jun 30, 2025 (Millions of USD) | Sep 30, 2024 (Millions of USD) | | :----------------------------------- | :----------------------------- | :----------------------------- | :----------------------------- | | 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 million (4.37%)** year-over-year to **$144,758 million**[1](index=1&type=chunk) - Total deposits increased by **$11,616 million (7.66%)** year-over-year to **$163,190 million**[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, though they remain above regulatory minimums. These ratios are preliminary pending regulatory filings | 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. The Allowance for Loan and Lease Losses (ALLL) to loans ratio decreased | 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)](index=2&type=section&id=Income%20Statement%20(unaudited)) This section details the company's revenues, expenses, and net income for the three and nine months ended September 30, 2025, highlighting changes in interest income, noninterest income, and expenses [Interest Income and Expense](index=2&type=section&id=Interest%20Income%20and%20Expense) Total interest income decreased year-over-year for both the three and nine-month periods, primarily driven by lower interest on loans and deposits at banks. Total interest expense also decreased, leading to a decline in net interest income | Metric | Three Months Ended Sep 30, 2025 (Millions of USD) | Three Months Ended Sep 30, 2024 (Millions of USD) | Nine Months Ended Sep 30, 2025 (Millions of USD) | Nine Months Ended Sep 30, 2024 (Millions of USD) | | :----------------------------------- | :---------------------------------------------- | :---------------------------------------------- | :--------------------------------------------- | :--------------------------------------------- | | Interest and fees on loans | $2,300 | $2,430 | $6,806 | $7,206 | | Interest on investment securities | $433 | $358 | $1,266 | $970 | | Interest on deposits at banks | $265 | $350 | $766 | $1,176 | | Total interest income | $2,998 | $3,138 | $8,838 | $9,352 | | Deposits interest expense | $911 | $1,004 | $2,698 | $2,907 | | Borrowings interest expense | $353 | $338 | $1,048 | $1,011 | | Total interest expense | $1,264 | $1,342 | $3,746 | $3,918 | | Net interest income | $1,734 | $1,796 | $5,092 | $5,434 | - Total interest income decreased by **$140 million (4.46%)** in Q3 2025 compared to Q3 2024, and by **$514 million (5.50%)** for the nine months ended September 30, 2025, year-over-year[2](index=2&type=chunk) - Net interest income declined by **$62 million (3.45%)** in Q3 2025 compared to Q3 2024, and by **$342 million (6.29%)** for the nine months ended September 30, 2025, year-over-year[2](index=2&type=chunk) [Noninterest Income](index=2&type=section&id=Noninterest%20Income) Noninterest income showed a positive trend, increasing year-over-year for both the quarter and nine-month periods, driven by growth in rental income on operating lease equipment, lending-related fees, and client investment fees | Metric | Three Months Ended Sep 30, 2025 (Millions of USD) | Three Months Ended Sep 30, 2024 (Millions of USD) | Nine Months Ended Sep 30, 2025 (Millions of USD) | Nine Months Ended Sep 30, 2024 (Millions of USD) | | :----------------------------------- | :---------------------------------------------- | :---------------------------------------------- | :--------------------------------------------- | :--------------------------------------------- | | Rental income on operating lease equipment | $273 | $262 | $815 | $776 | | Lending-related fees | $67 | $67 | $202 | $189 | | Deposit fees and service charges | $61 | $57 | $178 | $172 | | Client investment fees | $58 | $55 | $163 | $159 | | Total noninterest income | $699 | $650 | $2,012 | $1,916 | - Total noninterest income increased by **$49 million (7.54%)** in Q3 2025 compared to Q3 2024, and by **$96 million (5.01%)** for the nine months ended September 30, 2025, year-over-year[2](index=2&type=chunk) [Noninterest Expense](index=2&type=section&id=Noninterest%20Expense) Total noninterest expense increased year-over-year for both periods, primarily due to higher personnel costs, equipment expense, and marketing expense, partially offset by lower acquisition-related expenses | Metric | Three Months Ended Sep 30, 2025 (Millions of USD) | Three Months Ended Sep 30, 2024 (Millions of USD) | Nine Months Ended Sep 30, 2025 (Millions of USD) | Nine Months Ended Sep 30, 2024 (Millions of USD) | | :----------------------------------- | :---------------------------------------------- | :---------------------------------------------- | :--------------------------------------------- | :--------------------------------------------- | | Personnel cost | $817 | $788 | $2,445 | $2,277 | | Equipment expense | $137 | $128 | $404 | $368 | | Marketing expense | $33 | $20 | $97 | $52 | | Acquisition-related expenses | $28 | $46 | $108 | $148 | | Total noninterest expense | $1,491 | $1,456 | $4,484 | $4,218 | - Total noninterest expense increased by **$35 million (2.40%)** in Q3 2025 compared to Q3 2024, and by **$266 million (6.31%)** for the nine months ended September 30, 2025, year-over-year[2](index=2&type=chunk) - Personnel cost increased by **$29 million (3.68%)** in Q3 2025 compared to Q3 2024, and by **$168 million (7.38%)** for the nine months ended September 30, 2025, year-over-year[2](index=2&type=chunk) [Net Income and EPS](index=2&type=section&id=Net%20Income%20and%20EPS) Net income and diluted EPS declined year-over-year for both the three and nine-month periods, reflecting the combined impact of lower net interest income, higher provision for credit losses, and increased noninterest expenses | Metric | Three Months Ended Sep 30, 2025 (Millions of USD) | Three Months Ended Sep 30, 2024 (Millions of USD) | Nine Months Ended Sep 30, 2025 (Millions of USD) | Nine Months Ended Sep 30, 2024 (Millions of USD) | | :----------------------------------- | :---------------------------------------------- | :---------------------------------------------- | :--------------------------------------------- | :--------------------------------------------- | | Income before income taxes | $751 | $873 | $2,160 | $2,856 | | Income tax expense | $183 | $234 | $534 | $779 | | Net income | $568 | $639 | $1,626 | $2,077 | | Diluted earnings per common share | $43.08 | $43.42 | $119.70 | $140.26 | - Net income decreased by **$71 million (11.11%)** in Q3 2025 compared to Q3 2024, and by **$451 million (21.71%)** for the nine months ended September 30, 2025, year-over-year[2](index=2&type=chunk) - Diluted EPS decreased by **$0.34 (0.78%)** in Q3 2025 compared to Q3 2024, and by **$20.56 (14.66%)** for the nine months ended September 30, 2025, year-over-year[2](index=2&type=chunk) [Balance Sheet (unaudited)](index=3&type=section&id=Balance%20Sheet%20(unaudited)) This section presents the company's financial position at period end, detailing assets, liabilities, and stockholders' equity, highlighting year-over-year changes [Assets](index=3&type=section&id=Assets) Total assets increased year-over-year, primarily driven by growth in investment securities available for sale and loans and leases, net of allowance. Interest-earning deposits at banks saw a slight decrease | Metric | Sep 30, 2025 (Millions of USD) | Jun 30, 2025 (Millions of USD) | Sep 30, 2024 (Millions of USD) | | :----------------------------------- | :----------------------------- | :----------------------------- | :----------------------------- | | Interest-earning deposits at banks | $24,798 | $26,184 | $25,640 | | Investment securities available for sale | $34,963 | $33,060 | $28,190 | | Investment securities held to maturity | $10,051 | $10,189 | $10,391 | | Loans and leases, net of allowance for loan and lease losses | $143,106 | $139,597 | $137,017 | | Total assets | $233,488 | $229,653 | $220,567 | - Total assets increased by **$12,921 million (5.86%)** from **$220,567 million** at September 30, 2024, to **$233,488 million** at September 30, 2025[3](index=3&type=chunk) - Investment securities available for sale increased by **$6,773 million (24.02%)** year-over-year[3](index=3&type=chunk) [Liabilities](index=3&type=section&id=Liabilities) Total liabilities increased year-over-year, primarily driven by growth in total deposits and total borrowings. Both noninterest-bearing and interest-bearing deposits contributed to the overall deposit growth | Metric | Sep 30, 2025 (Millions of USD) | Jun 30, 2025 (Millions of USD) | Sep 30, 2024 (Millions of USD) | | :----------------------------------- | :----------------------------- | :----------------------------- | :----------------------------- | | Noninterest-bearing deposits | $42,752 | $40,879 | $39,396 | | Interest-bearing deposits | $120,438 | $119,056 | $112,178 | | Total deposits | $163,190 | $159,935 | $151,574 | | Total borrowings | $38,675 | $38,112 | $37,161 | | Total liabilities | $211,502 | $207,357 | $197,739 | - Total deposits increased by **$11,616 million (7.66%)** from **$151,574 million** at September 30, 2024, to **$163,190 million** at September 30, 2025[3](index=3&type=chunk) - Total borrowings increased by **$1,514 million (4.07%)** year-over-year[3](index=3&type=chunk) [Stockholders' Equity](index=3&type=section&id=Stockholders'%20Equity) Total stockholders' equity decreased year-over-year, primarily due to a reduction in additional paid-in capital, partially offset by an increase in retained earnings | Metric | Sep 30, 2025 (Millions of USD) | Jun 30, 2025 (Millions of USD) | Sep 30, 2024 (Millions of USD) | | :----------------------------------- | :----------------------------- | :----------------------------- | :----------------------------- | | Preferred stock | $881 | $881 | $881 | | Additional paid in capital | $270 | $1,179 | $3,389 | | Retained earnings | $20,866 | $20,337 | $18,703 | | Total stockholders' equity | $21,986 | $22,296 | $22,828 | - Total stockholders' equity decreased by **$842 million (3.69%)** from **$22,828 million** at September 30, 2024, to **$21,986 million** at September 30, 2025[3](index=3&type=chunk) - Additional paid-in capital significantly decreased from **$3,389 million** in Q3 2024 to **$270 million** in Q3 2025[3](index=3&type=chunk) [Notable Items and Adjusted Income Statement](index=4&type=section&id=Notable%20Items%20and%20Adjusted%20Income%20Statement) This section analyzes the impact of notable items on financial performance, presenting adjusted income statements to provide a clearer view of core operational results [Impact of Notable Items](index=4&type=section&id=Impact%20of%20Notable%20Items) Notable items, which are infrequent transactions or certain recurring noncash items, had a positive impact on adjusted pre-tax income and adjusted net income for the periods presented. These adjustments primarily relate to rental income, depreciation, personnel costs, and acquisition-related expenses | Metric | Three Months Ended Sep 30, 2025 (Millions of USD) | Three Months Ended Sep 30, 2024 (Millions of USD) | Nine Months Ended Sep 30, 2025 (Millions of USD) | Nine Months Ended Sep 30, 2024 (Millions of USD) | | :----------------------------------- | :---------------------------------------------- | :---------------------------------------------- | :--------------------------------------------- | :--------------------------------------------- | | Impact of notable items on adjusted noninterest income | $(181) | $(176) | $(502) | $(485) | | Impact of notable items on adjusted noninterest expense | $(212) | $(227) | $(649) | $(667) | | Impact of notable items on adjusted pre-tax income | $31 | $51 | $147 | $182 | | Impact of notable items on adjusted net income | $19 | $36 | $96 | $137 | | Impact of notable items on adjusted diluted EPS | $1.54 | $2.45 | $7.33 | $9.45 | - Notable items include income and expense for infrequent transactions and certain recurring items that management believes should be excluded from adjusted measures to enhance understanding of operations and comparability[4](index=4&type=chunk) - Personnel cost notable items in Q3 2025 include impairment of internal use software under development[6](index=6&type=chunk) [Condensed Income Statements - Adjusted for Notable Items](index=5&type=section&id=Condensed%20Income%20Statements%20-%20Adjusted%20for%20Notable%20Items) The adjusted income statements, excluding notable items, show higher net income and EPS compared to GAAP figures, reflecting management's view of core operational performance. Despite adjustments, adjusted net income and EPS still declined year-over-year | Metric | Three Months Ended Sep 30, 2025 (Millions of USD) | Three Months Ended Sep 30, 2024 (Millions of USD) | Nine Months Ended Sep 30, 2025 (Millions of USD) | Nine Months Ended Sep 30, 2024 (Millions of USD) | | :----------------------------------- | :---------------------------------------------- | :---------------------------------------------- | :--------------------------------------------- | :--------------------------------------------- | | Adjusted net interest income | $1,734 | $1,796 | $5,092 | $5,434 | | Adjusted noninterest income | $518 | $474 | $1,510 | $1,431 | | Adjusted noninterest expense | $1,279 | $1,229 | $3,835 | $3,551 | | Adjusted net income | $587 | $675 | $1,722 | $2,214 | | Adjusted diluted earnings per common share | $44.62 | $45.87 | $127.03 | $149.71 | - Adjusted net income decreased by **$88 million (13.04%)** in Q3 2025 compared to Q3 2024, and by **$492 million (22.22%)** for the nine months ended September 30, 2025, year-over-year[9](index=9&type=chunk) - Adjusted diluted EPS decreased by **$1.25 (2.72%)** in Q3 2025 compared to Q3 2024, and by **$22.68 (15.15%)** for the nine months ended September 30, 2025, year-over-year[9](index=9&type=chunk) [Loan and Deposit Portfolio Details](index=6&type=section&id=Loan%20and%20Deposit%20Portfolio%20Details) This section provides a detailed breakdown of the company's loan and deposit portfolios, highlighting changes in composition and growth trends [Loans and Leases by Class](index=6&type=section&id=Loans%20and%20Leases%20by%20Class) The total loan and lease portfolio grew year-over-year, primarily driven by increases in commercial construction, owner-occupied commercial mortgages, and global fund banking loans. Certain loan classes were recast in Q2 2025 for reporting purposes | Loan Class | Sep 30, 2025 (Millions of USD) | Jun 30, 2025 (Millions of USD) | Sep 30, 2024 (Millions of USD) | | :----------------------------------- | :----------------------------- | :----------------------------- | :----------------------------- | | Commercial construction | $5,926 | $5,714 | $4,924 | | Owner occupied commercial mortgages | $17,232 | $17,053 | $16,372 | | Commercial and industrial | $41,172 | $40,658 | $40,043 | | Global fund banking | $31,615 | $28,677 | $27,114 | | Total commercial | $116,428 | $113,007 | $110,113 | | Total consumer | $28,330 | $28,262 | $28,582 | | Total loans and leases | $144,758 | $141,269 | $138,695 | - Total loans and leases increased by **$6,063 million (4.37%)** year-over-year to **$144,758 million**[11](index=11&type=chunk) - Global fund banking loans showed significant growth, increasing by **$4,501 million (16.60%)** year-over-year[11](index=11&type=chunk) - During Q2 2025, loan classes were recast: Global fund banking is now under Commercial portfolio[11](index=11&type=chunk)[12](index=12&type=chunk) - Investor dependent–early stage and investor dependent–growth stage were combined into a single investor dependent loan class under Commercial portfolio[11](index=11&type=chunk)[12](index=12&type=chunk) - Cash flow dependent and innovation C&I were combined with the commercial and industrial loan class under Commercial portfolio[11](index=11&type=chunk)[12](index=12&type=chunk) [Deposits by Type](index=6&type=section&id=Deposits%20by%20Type) Total deposits increased year-over-year, with growth observed across noninterest-bearing demand, checking with interest, money market, and savings deposits. Time deposits, however, decreased | Deposit Type | Sep 30, 2025 (Millions of USD) | Jun 30, 2025 (Millions of USD) | Sep 30, 2024 (Millions of USD) | | :----------------------------------- | :----------------------------- | :----------------------------- | :----------------------------- | | Noninterest-bearing demand | $42,752 | $40,879 | $39,396 | | Checking with interest | $23,731 | $23,283 | $23,216 | | Money market | $38,718 | $37,654 | $34,574 | | Savings | $46,915 | $46,877 | $40,259 | | Time | $11,074 | $11,242 | $14,129 | | Total deposits | $163,190 | $159,935 | $151,574 | - Total deposits increased by **$11,616 million (7.66%)** year-over-year to **$163,190 million**[13](index=13&type=chunk) - Savings deposits showed the largest absolute growth, increasing by **$6,656 million (16.53%)** year-over-year[13](index=13&type=chunk) - Time deposits decreased by **$3,055 million (21.62%)** year-over-year[13](index=13&type=chunk) [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)) This section assesses the company's asset quality, focusing on nonaccrual loans, charge-offs, and the adequacy of the allowance for loan and lease losses [Nonaccrual Loans and Ratios](index=7&type=section&id=Nonaccrual%20Loans%20and%20Ratios) Nonaccrual loans continued to increase both sequentially and year-over-year, leading to a higher ratio of nonaccrual loans to total loans, indicating a deterioration in asset quality | Metric | Sep 30, 2025 (Millions of USD) | Jun 30, 2025 (Millions of USD) | Sep 30, 2024 (Millions of USD) | | :----------------------------------- | :----------------------------- | :----------------------------- | :----------------------------- | | Nonaccrual loans at period end | $1,406 | $1,319 | $1,244 | | Ratio of nonaccrual loans to total loans at period end | 0.97 % | 0.93 % | 0.90 % | - Nonaccrual loans increased by **$162 million (13.02%)** year-over-year to **$1,406 million** at September 30, 2025[15](index=15&type=chunk) - The ratio of nonaccrual loans to total loans increased from **0.90%** in Q3 2024 to **0.97%** in Q3 2025[15](index=15&type=chunk) [Charge-offs and Recoveries](index=7&type=section&id=Charge-offs%20and%20Recoveries) Net charge-offs significantly increased both sequentially and year-over-year, with the net charge-off ratio rising sharply, indicating higher loan losses | Metric | Three Months Ended Sep 30, 2025 (Millions of USD) | Three Months Ended Sep 30, 2024 (Millions of USD) | Nine Months Ended Sep 30, 2025 (Millions of USD) | Nine Months Ended Sep 30, 2024 (Millions of USD) | | :----------------------------------- | :---------------------------------------------- | :---------------------------------------------- | :--------------------------------------------- | :--------------------------------------------- | | Charge-offs | $(256) | $(177) | $(567) | $(464) | | Recoveries | $22 | $32 | $70 | $84 | | Net charge-offs | $(234) | $(145) | $(497) | $(380) | | Net charge-off ratio | 0.65 % | 0.42 % | 0.47 % | 0.37 % | - Net charge-offs increased by **$89 million (61.38%)** in Q3 2025 compared to Q3 2024, and by **$117 million (30.79%)** for the nine months ended September 30, 2025, year-over-year[15](index=15&type=chunk) - The net charge-off ratio increased from **0.42%** in Q3 2024 to **0.65%** in Q3 2025[15](index=15&type=chunk) [Allowance for Loan and Lease Losses (ALLL)](index=7&type=section&id=Allowance%20for%20Loan%20and%20Lease%20Losses%20(ALLL)) The Allowance for Loan and Lease Losses (ALLL) decreased year-over-year, despite an increase in the provision for loan and lease losses, due to higher net charge-offs | Metric | Sep 30, 2025 (Millions of USD) | Jun 30, 2025 (Millions of USD) | Sep 30, 2024 (Millions of USD) | | :----------------------------------- | :----------------------------- | :----------------------------- | :----------------------------- | | ALLL to loans ratio at period end | 1.14 % | 1.18 % | 1.21 % | | ALLL at end of period | $1,652 | $1,672 | $1,678 | | Provision for loan and lease losses | $214 | $111 | $123 | - ALLL at the end of the period decreased by **$26 million (1.55%)** year-over-year to **$1,652 million**[15](index=15&type=chunk) - Provision for loan and lease losses increased by **$91 million (73.98%)** in Q3 2025 compared to Q3 2024[15](index=15&type=chunk) [Average Balance Sheets, Yields and Rates](index=8&type=section&id=Average%20Balance%20Sheets%2C%20Yields%20and%20Rates) This section presents average balances for interest-earning assets and interest-bearing liabilities, along with their corresponding yields and rates, and analyzes net interest income, spread, and margin [Average Interest-Earning Assets and Yields](index=8&type=section&id=Average%20Interest-Earning%20Assets%20and%20Yields) Average interest-earning assets increased year-over-year, primarily driven by growth in loans and investment securities. However, the overall yield on interest-earning assets decreased, contributing to lower net interest income | Metric | Q3 2025 Average Balance (Millions of USD) | Q3 2025 Yield/Rate | Q3 2024 Average Balance (Millions of USD) | Q3 2024 Yield/Rate | | :----------------------------------- | :---------------------------------------- | :----------------- | :---------------------------------------- | :----------------- | | Loans and leases | $141,785 | 6.44 % | $137,602 | 7.03 % | | Investment securities | $44,827 | 3.83 % | $38,189 | 3.70 % | | Interest-earning deposits at banks | $24,146 | 4.36 % | $26,167 | 5.33 % | | Total interest-earning assets | $211,042 | 5.64 % | $202,199 | 6.18 % | - Average total interest-earning assets increased by **$8,843 million (4.37%)** year-over-year in Q3 2025[16](index=16&type=chunk) - The yield on total interest-earning assets decreased from **6.18%** in Q3 2024 to **5.64%** in Q3 2025[16](index=16&type=chunk) [Average Interest-Bearing Liabilities and Rates](index=8&type=section&id=Average%20Interest-Bearing%20Liabilities%20and%20Rates) Average interest-bearing liabilities increased year-over-year, driven by growth in deposits and borrowings. The overall cost of interest-bearing liabilities decreased, but not enough to offset the decline in asset yields | Metric | Q3 2025 Average Balance (Millions of USD) | Q3 2025 Yield/Rate | Q3 2024 Average Balance (Millions of USD) | Q3 2024 Yield/Rate | | :----------------------------------- | :---------------------------------------- | :----------------- | :---------------------------------------- | :----------------- | | Total interest-bearing deposits | $120,575 | 3.00 % | $112,446 | 3.55 % | | Total borrowings | $38,258 | 3.70 % | $37,448 | 3.61 % | | Total interest-bearing liabilities | $158,833 | 3.16 % | $149,894 | 3.57 % | - Average total interest-bearing liabilities increased by **$8,939 million (5.96%)** year-over-year in Q3 2025[16](index=16&type=chunk) - The rate on total interest-bearing liabilities decreased from **3.57%** in Q3 2024 to **3.16%** in Q3 2025[16](index=16&type=chunk) [Net Interest Income, Spread, and Margin](index=8&type=section&id=Net%20Interest%20Income%2C%20Spread%2C%20and%20Margin) Net interest income, net interest spread, and net interest margin all decreased year-over-year for both the three and nine-month periods, reflecting the challenging interest rate environment and changes in asset/liability mix | Metric | Three Months Ended Sep 30, 2025 (Millions of USD) | Three Months Ended Sep 30, 2024 (Millions of USD) | Nine Months Ended Sep 30, 2025 (Millions of USD) | Nine Months Ended Sep 30, 2024 (Millions of USD) | | :----------------------------------- | :---------------------------------------------- | :---------------------------------------------- | :--------------------------------------------- | :--------------------------------------------- | | Net interest income | $1,734 | $1,796 | $5,092 | $5,434 | | Net interest spread | 2.48 % | 2.61 % | 2.47 % | 2.69 % | | Net interest margin | 3.26 % | 3.53 % | 3.26 % | 3.62 % | - Net interest income decreased by **$62 million (3.45%)** in Q3 2025 compared to Q3 2024, and by **$342 million (6.29%)** for the nine months ended September 30, 2025, year-over-year[16](index=16&type=chunk)[17](index=17&type=chunk) - Net interest margin decreased from **3.53%** in Q3 2024 to **3.26%** in Q3 2025, and from **3.62% to 3.26%** for the nine-month period[16](index=16&type=chunk)[17](index=17&type=chunk) [Non-GAAP Reconciliations](index=10&type=section&id=Non-GAAP%20Reconciliations) This section provides detailed reconciliations of GAAP financial measures to non-GAAP adjusted figures, offering insights into core operational performance by excluding notable items [Net Income and EPS Reconciliations](index=10&type=section&id=Net%20Income%20and%20EPS%20Reconciliations) This section reconciles GAAP net income and EPS to adjusted (non-GAAP) figures by adding back the after-tax impact of notable items. Adjusted metrics consistently show higher values than their GAAP counterparts, but still reflect year-over-year declines | Metric | Three Months Ended Sep 30, 2025 (Millions of USD) | Three Months Ended Sep 30, 2024 (Millions of USD) | Nine Months Ended Sep 30, 2025 (Millions of USD) | Nine Months Ended Sep 30, 2024 (Millions of USD) | | :----------------------------------- | :---------------------------------------------- | :---------------------------------------------- | :--------------------------------------------- | :--------------------------------------------- | | Net income (GAAP) | $568 | $639 | $1,626 | $2,077 | | Impact of notable items, after income tax | $19 | $36 | $96 | $137 | | Adjusted net income (non-GAAP) | $587 | $675 | $1,722 | $2,214 | | Diluted EPS (GAAP) | $43.08 | $43.42 | $119.70 | $140.26 | | Adjusted diluted EPS (non-GAAP) | $44.62 | $45.87 | $127.03 | $149.71 | - Adjusted net income for Q3 2025 was **$587 million**, **$19 million** higher than GAAP net income, due to notable items[18](index=18&type=chunk) - Adjusted diluted EPS for Q3 2025 was **$44.62**, **$1.54** higher than GAAP diluted EPS[18](index=18&type=chunk) [Noninterest Income and Expense Reconciliations](index=10&type=section&id=Noninterest%20Income%20and%20Expense%20Reconciliations) This section details the pre-tax impact of notable items on noninterest income and expense, leading to adjusted noninterest income and expense figures. The adjustments generally reduce both income and expense, with a net positive impact on pre-tax income | Metric | Three Months Ended Sep 30, 2025 (Millions of USD) | Three Months Ended Sep 30, 2024 (Millions of USD) | Nine Months Ended Sep 30, 2025 (Millions of USD) | Nine Months Ended Sep 30, 2024 (Millions of USD) | | :----------------------------------- | :---------------------------------------------- | :---------------------------------------------- | :--------------------------------------------- | :--------------------------------------------- | | Noninterest income (GAAP) | $699 | $650 | $2,012 | $1,916 | | Impact of notable items (pre-tax) | $(181) | $(176) | $(502) | $(485) | | Adjusted noninterest income (non-GAAP) | $518 | $474 | $1,510 | $1,431 | | Noninterest expense (GAAP) | $1,491 | $1,456 | $4,484 | $4,218 | | Impact of notable items (pre-tax) | $(212) | $(227) | $(649) | $(667) | | Adjusted noninterest expense (non-GAAP) | $1,279 | $1,229 | $3,835 | $3,551 | - Adjusted noninterest income for Q3 2025 was **$518 million**, after a **$(181) million** impact from notable items[18](index=18&type=chunk) - Adjusted noninterest expense for Q3 2025 was **$1,279 million**, after a **$(212) million** impact from notable items[18](index=18&type=chunk) [PPNR Reconciliations](index=10&type=section&id=PPNR%20Reconciliations) Pre-tax, pre-provision net revenue (PPNR) and adjusted PPNR are presented as non-GAAP measures. Both PPNR and adjusted PPNR declined year-over-year, indicating a reduction in core operating profitability before credit losses and taxes | Metric | Three Months Ended Sep 30, 2025 (Millions of USD) | Three Months Ended Sep 30, 2024 (Millions of USD) | Nine Months Ended Sep 30, 2025 (Millions of USD) | Nine Months Ended Sep 30, 2024 (Millions of USD) | | :----------------------------------- | :---------------------------------------------- | :---------------------------------------------- | :--------------------------------------------- | :--------------------------------------------- | | PPNR (non-GAAP) | $942 | $990 | $2,620 | $3,132 | | Impact of notable items | $31 | $51 | $147 | $182 | | Adjusted PPNR (non-GAAP) | $973 | $1,041 | $2,767 | $3,314 | - PPNR decreased by **$48 million (4.85%)** in Q3 2025 compared to Q3 2024, and by **$512 million (16.35%)** for the nine months ended September 30, 2025, year-over-year[18](index=18&type=chunk) - Adjusted PPNR decreased by **$68 million (6.53%)** in Q3 2025 compared to Q3 2024, and by **$547 million (16.51%)** for the nine months ended September 30, 2025, year-over-year[18](index=18&type=chunk) [ROA Reconciliations](index=11&type=section&id=ROA%20Reconciliations) This section reconciles GAAP Return on Average Assets (ROA) to adjusted ROA and PPNR ROA to adjusted PPNR ROA. All ROA metrics showed a year-over-year decline, reflecting reduced profitability relative to assets | Metric | Three Months Ended Sep 30, 2025 | Three Months Ended Sep 30, 2024 | Nine Months Ended Sep 30, 2025 | Nine Months Ended Sep 30, 2024 | | :----------------------------------- | :------------------------------ | :------------------------------ | :----------------------------- | :----------------------------- | | ROA (GAAP) | 0.98 % | 1.15 % | 0.95 % | 1.27 % | | Adjusted ROA (non-GAAP) | 1.01 % | 1.22 % | 1.01 % | 1.35 % | | PPNR ROA (non-GAAP) | 1.62 % | 1.79 % | 1.54 % | 1.91 % | | Adjusted PPNR ROA (non-GAAP) | 1.67 % | 1.88 % | 1.62 % | 2.03 % | - Adjusted ROA decreased from **1.22%** in Q3 2024 to **1.01%** in Q3 2025[20](index=20&type=chunk) - Adjusted PPNR ROA decreased from **1.88%** in Q3 2024 to **1.67%** in Q3 2025[20](index=20&type=chunk) [ROE and ROTCE Reconciliations](index=11&type=section&id=ROE%20and%20ROTCE%20Reconciliations) This section reconciles GAAP Return on Average Common Equity (ROE) and Return on Average Tangible Common Equity (ROTCE) to their adjusted non-GAAP counterparts. All equity-based profitability metrics showed a year-over-year decline, reflecting reduced returns to common shareholders | Metric | Three Months Ended Sep 30, 2025 | Three Months Ended Sep 30, 2024 | Nine Months Ended Sep 30, 2025 | Nine Months Ended Sep 30, 2024 | | :----------------------------------- | :------------------------------ | :------------------------------ | :----------------------------- | :----------------------------- | | ROE (GAAP) | 10.26 % | 11.30 % | 9.82 % | 12.73 % | | Adjusted ROE (non-GAAP) | 10.62 % | 11.94 % | 10.43 % | 13.59 % | | ROTCE (non-GAAP) | 10.53 % | 11.63 % | 10.09 % | 13.12 % | | Adjusted ROTCE (non-GAAP) | 10.91 % | 12.29 % | 10.71 % | 14.00 % | - Adjusted ROE decreased from **11.94%** in Q3 2024 to **10.62%** in Q3 2025[20](index=20&type=chunk) - Adjusted ROTCE decreased from **12.29%** in Q3 2024 to **10.91%** in Q3 2025[20](index=20&type=chunk) [Tangible Common Equity to Tangible Assets](index=11&type=section&id=Tangible%20Common%20Equity%20to%20Tangible%20Assets) The ratio of tangible common equity to tangible assets, a non-GAAP measure of capital strength, decreased year-over-year, indicating a slight reduction in the company's tangible capital base relative to its tangible assets | Metric | Sep 30, 2025 (Millions of USD) | Jun 30, 2025 (Millions of USD) | Sep 30, 2024 (Millions of USD) | | :----------------------------------- | :----------------------------- | :----------------------------- | :----------------------------- | | Tangible common equity (non-GAAP) | $20,551 | $20,848 | $21,336 | | Total assets (GAAP) | $233,488 | $229,653 | $220,567 | | Tangible assets (non-GAAP) | $232,934 | $229,086 | $219,956 | | Tangible common equity to tangible assets (non-GAAP) | 8.82 % | 9.10 % | 9.70 % | - Tangible common equity to tangible assets decreased from **9.70%** in Q3 2024 to **8.82%** in Q3 2025[20](index=20&type=chunk) [Book Value and Tangible Book Value Per Common Share](index=12&type=section&id=Book%20Value%20and%20Tangible%20Book%20Value%20Per%20Common%20Share) Both book value per share and tangible book value per common share increased year-over-year, reflecting growth in equity attributable to common shareholders despite the overall decline in total stockholders' equity | Metric | Sep 30, 2025 | Jun 30, 2025 | Sep 30, 2024 | | :----------------------------------- | :----------- | :----------- | :----------- | | Book value per share | $1,672.54 | $1,637.72 | $1,547.81 | | Tangible book value per common share (non-GAAP) | $1,628.64 | $1,594.38 | $1,504.75 | - Book value per share increased by **$124.73 (8.06%)** year-over-year to **$1,672.54**[21](index=21&type=chunk) - Tangible book value per common share increased by **$123.89 (8.23%)** year-over-year to **$1,628.64**[21](index=21&type=chunk) [Efficiency Ratio Reconciliations](index=12&type=section&id=Efficiency%20Ratio%20Reconciliations) The efficiency ratio and adjusted efficiency ratio both worsened year-over-year, indicating that the company is incurring more expenses relative to its revenue, even after accounting for notable items | Metric | Three Months Ended Sep 30, 2025 | Three Months Ended Sep 30, 2024 | Nine Months Ended Sep 30, 2025 | Nine Months Ended Sep 30, 2024 | | :----------------------------------- | :------------------------------ | :------------------------------ | :----------------------------- | :----------------------------- | | Efficiency ratio (GAAP) | 61.27 % | 59.49 % | 63.12 % | 57.38 % | | Adjusted efficiency ratio (non-GAAP) | 56.78 % | 54.15 % | 58.08 % | 51.72 % | - The GAAP efficiency ratio increased from **59.49%** in Q3 2024 to **61.27%** in Q3 2025[21](index=21&type=chunk) - The adjusted efficiency ratio increased from **54.15%** in Q3 2024 to **56.78%** in Q3 2025[21](index=21&type=chunk) [Rental Income on Operating Lease Equipment Reconciliations](index=12&type=section&id=Rental%20Income%20on%20Operating%20Lease%20Equipment%20Reconciliations) This section reconciles GAAP rental income on operating lease equipment to an adjusted non-GAAP figure by deducting direct expenses like depreciation and maintenance. Adjusted rental income showed a slight increase year-over-year | Metric | Three Months Ended Sep 30, 2025 (Millions of USD) | Three Months Ended Sep 30, 2024 (Millions of USD) | Nine Months Ended Sep 30, 2025 (Millions of USD) | Nine Months Ended Sep 30, 2024 (Millions of USD) | | :----------------------------------- | :---------------------------------------------- | :---------------------------------------------- | :--------------------------------------------- | :--------------------------------------------- | | Rental income on operating lease equipment (GAAP) | $273 | $262 | $815 | $776 | | Less: depreciation on operating lease equipment | $98 | $99 | $296 | $293 | | Less: maintenance and other operating lease expenses | $67 | $59 | $180 | $164 | | Adjusted rental income on operating lease equipment (non-GAAP) | $108 | $104 | $339 | $319 | - Adjusted rental income on operating lease equipment increased by **$4 million (3.85%)** in Q3 2025 compared to Q3 2024[21](index=21&type=chunk) [Net Interest Income & Net Interest Margin Reconciliations](index=12&type=section&id=Net%20Interest%20Income%20%26%20Net%20Interest%20Margin%20Reconciliations) This section reconciles GAAP net interest income and net interest margin to figures excluding purchase accounting accretion (PAA). Both adjusted metrics showed a year-over-year decline, indicating a compression in core net interest profitability | Metric | Three Months Ended Sep 30, 2025 (Millions of USD) | Three Months Ended Sep 30, 2024 (Millions of USD) | Nine Months Ended Sep 30, 2025 (Millions of USD) | Nine Months Ended Sep 30, 2024 (Millions of USD) | | :----------------------------------- | :---------------------------------------------- | :---------------------------------------------- | :--------------------------------------------- | :--------------------------------------------- | | Net interest income (GAAP) | $1,734 | $1,796 | $5,092 | $5,434 | | PAA | $61 | $101 | $202 | $399 | | Net interest income, excluding PAA (non-GAAP) | $1,673 | $1,695 | $4,890 | $5,035 | | NIM (GAAP) | 3.26 % | 3.53 % | 3.26 % | 3.62 % | | NIM, excluding PAA (non-GAAP) | 3.15 % | 3.33 % | 3.13 % | 3.35 % | - Net interest income, excluding PAA, decreased by **$22 million (1.30%)** in Q3 2025 compared to Q3 2024[21](index=21&type=chunk) - NIM, excluding PAA, decreased from **3.33%** in Q3 2024 to **3.15%** in Q3 2025[21](index=21&type=chunk) [Income Tax Expense Reconciliations](index=12&type=section&id=Income%20Tax%20Expense%20Reconciliations) This section reconciles GAAP income tax expense to adjusted income tax expense by including the tax impact of notable items. Adjusted income tax expense is generally higher than GAAP due to the positive impact of notable items on pre-tax income | Metric | Three Months Ended Sep 30, 2025 (Millions of USD) | Three Months Ended Sep 30, 2024 (Millions of USD) | Nine Months Ended Sep 30, 2025 (Millions of USD) | Nine Months Ended Sep 30, 2024 (Millions of USD) | | :----------------------------------- | :---------------------------------------------- | :---------------------------------------------- | :--------------------------------------------- | :--------------------------------------------- | | Income tax expense (GAAP) | $183 | $234 | $534 | $779 | | Impact of notable items | $12 | $15 | $51 | $45 | | Adjusted income tax expense (non-GAAP) | $195 | $249 | $585 | $824 | - Adjusted income tax expense for Q3 2025 was **$195 million**, **$12 million** higher than GAAP income tax expense[21](index=21&type=chunk)

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 ____________________________________________________ FORM 10-Q ____________________________________________________ (I.R.S. Employer ☒ Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the quarterly period ended June 30, 2025 Identification Number) 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 ...

[Summary Financial Data & Key Metrics](index=1&type=section&id=Summary%20Financial%20Data%20%26%20Key%20Metrics) This section summarizes key financial data, per share information, performance metrics, balance sheet items, capital ratios, and asset quality [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 | 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 | 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 | 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 | 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 | 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 | 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) This section presents the company's unaudited GAAP income statement and balance sheet, detailing financial performance and position for recent periods [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 | 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 | 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) This section defines notable items as non-GAAP adjustments and explains their specific impact on financial performance metrics [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) | 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 adjustments for operating lease expenses, a litigation settlement gain, integration-related professional fees, and various accruals, impairments, and litigation reserve changes - 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)) This section presents the company's financial performance adjusted for notable items, providing a non-GAAP view of core operational results [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 | 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) This section analyzes the composition and trends of the company's loan and lease portfolio by class and deposits by type [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 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 | 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[9](index=9&type=chunk)[10](index=10&type=chunk) - Investor dependent–early stage and investor dependent–growth stage were combined into a single investor dependent loan class under Commercial[9](index=9&type=chunk)[10](index=10&type=chunk) - 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 | 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)) This section details the company's credit quality metrics, including nonaccrual loans, net charge-offs, and the allowance for loan and lease losses | 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) This section analyzes the company's net interest income and net interest margin, including average balance sheets, yields, and rates for various periods [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 | 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 | 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) This section provides detailed reconciliations of GAAP financial measures to their corresponding non-GAAP adjusted counterparts [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 | 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 | 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 | 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% | 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% | 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% | 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% | 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 | 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% | 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 | 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% | 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 | 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 | 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 |

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 ____________________________________________________ FORM 10-Q ____________________________________________________ ☒ Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the quarterly period ended March 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 BancShares, Inc. (Exact name of Registrant as ...

[Executive Summary & Key Financial Highlights](index=1&type=section&id=Executive%20Summary%20%26%20Key%20Financial%20Highlights) [Summary Financial Data & Key Metrics](index=1&type=section&id=Summary%20Financial%20Data%20%26%20Key%20Metrics) This section provides a high-level overview of the company's financial performance and key metrics for the three months ended March 31, 2025, compared to prior periods, covering results of operations, per share data, key performance ratios, select balance sheet items, capital ratios, and asset quality Key Financial Results (Three Months Ended) | Metric | March 31, 2025 | December 31, 2024 | March 31, 2024 | | :----------------------------------- | :------------- | :---------------- | :------------- | | Net interest income (Billions USD) | $1.663 | $1.709 | $1.817 | | Provision for credit losses (Millions USD) | $154 | $155 | $64 | | Net income available to common stockholders (Millions USD) | $468 | $685 | $716 | | Diluted earnings per common share (EPS) | $34.47 | $49.21 | $49.26 | | Return on average assets (ROA) | 0.87 % | 1.25 % | 1.36 % | | Net interest margin (NIM) | 3.26 % | 3.32 % | 3.67 % | Select Balance Sheet Items at Period End | Metric | March 31, 2025 | December 31, 2024 | March 31, 2024 | | :-------------------------- | :------------- | :---------------- | :------------- | | Total loans and leases (Billions USD) | $141.358 | $140.221 | $135.370 | | Total deposits (Billions USD) | $159.325 | $155.229 | $149.609 | | Total risk-based capital ratio | 15.23 % | 15.04 % | 15.66 % | | Nonaccrual loans to total loans and leases | 0.85 % | 0.84 % | 0.79 % | [Detailed Financial Statements](index=2&type=section&id=Detailed%20Financial%20Statements) [Income Statement (Unaudited)](index=2&type=section&id=Income%20Statement%20(unaudited)) This section presents the unaudited income statement for the three months ended March 31, 2025, December 31, 2024, and March 31, 2024, detailing interest income and expense, noninterest income and expense, provision for credit losses, and net income Income Statement Highlights (Three Months Ended) | Metric | March 31, 2025 | December 31, 2024 | March 31, 2024 | | :----------------------------------- | :------------- | :---------------- | :------------- | | Total interest income (Billions USD) | $2.895 | $3.001 | $3.084 | | Total interest expense (Billions USD) | $1.232 | $1.292 | $1.267 | | Net interest income (Billions USD) | $1.663 | $1.709 | $1.817 | | Provision for credit losses (Millions USD) | $154 | $155 | $64 | | Noninterest income (Millions USD) | $635 | $699 | $627 | | Noninterest expense (Billions USD) | $1.493 | $1.517 | $1.376 | | Net income available to common stockholders (Millions USD) | $468 | $685 | $716 | | Diluted earnings per common share | $34.47 | $49.21 | $49.26 | - Net interest income **decreased** by **$46 million** QoQ (**2.7%**) and **$154 million** YoY (**8.5%**)[2](index=2&type=chunk) - Provision for credit losses **remained stable** QoQ but significantly **increased** YoY from **$64 million** to **$154 million**[2](index=2&type=chunk) [Balance Sheet (Unaudited)](index=3&type=section&id=Balance%20Sheet%20(unaudited)) This section provides the unaudited balance sheet as of March 31, 2025, December 31, 2024, and March 31, 2024, outlining assets, liabilities, and stockholders' equity Balance Sheet Highlights (Period End) | Metric | March 31, 2025 | December 31, 2024 | March 31, 2024 | | :----------------------------------- | :------------- | :---------------- | :------------- | | Total assets (Billions USD) | $228.822 | $223.720 | $217.836 | | Loans and leases, net of ALLL (Billions USD) | $139.678 | $138.545 | $133.633 | | Total deposits (Billions USD) | $159.325 | $155.229 | $149.609 | | Noninterest-bearing deposits (Billions USD) | $40.767 | $38.633 | $39.276 | | Total borrowings (Billions USD) | $38.406 | $37.051 | $37.540 | | Total stockholders' equity (Billions USD) | $22.295 | $22.228 | $21.848 | - Total assets **increased** by **$5.1 billion** QoQ (**2.3%**) and **$11 billion** YoY (**5.0%**)[3](index=3&type=chunk) - Total deposits **increased** by **$4.1 billion** QoQ (**2.6%**) and **$9.7 billion** YoY (**6.5%**). Noninterest-bearing deposits saw a QoQ **increase** of **$2.1 billion**[3](index=3&type=chunk) [Average Balance Sheets, Yields and Rates](index=7&type=section&id=Average%20Balance%20Sheets%2C%20Yields%20and%20Rates) This section details the average balance sheets, yields, and rates for interest-earning assets and interest-bearing liabilities for the three months ended March 31, 2025, December 31, 2024, and March 31, 2024, providing insights into net interest spread and net interest margin Average Balances, Yields, and Rates (Three Months Ended) | Metric | March 31, 2025 | December 31, 2024 | March 31, 2024 | | :----------------------------------- | :------------- | :---------------- | :------------- | | Average Loans and leases (Billions USD) | $139.491 | $138.186 | $132.313 | | Yield on Loans and leases | 6.49 % | 6.69 % | 7.15 % | | Average Total interest-earning assets (Billions USD) | $206.028 | $204.779 | $198.587 | | Yield on Total interest-earning assets | 5.68 % | 5.83 % | 6.23 % | | Average Total interest-bearing liabilities (Billions USD) | $154.622 | $151.657 | $145.641 | | Rate on Total interest-bearing liabilities | 3.22 % | 3.39 % | 3.49 % | | Net interest spread | 2.46 % | 2.44 % | 2.74 % | | Net interest margin (NIM) | 3.26 % | 3.32 % | 3.67 % | - The yield on total interest-earning assets **decreased** by **15 basis points** QoQ, while the rate on total interest-bearing liabilities **decreased** by **17 basis points** QoQ[12](index=12&type=chunk) - Net interest margin (NIM) **declined** by **6 basis points** QoQ and **41 basis points** YoY[12](index=12&type=chunk) [Loan, Deposit, and Asset Quality Analysis](index=6&type=section&id=Loan%2C%20Deposit%2C%20and%20Asset%20Quality%20Analysis) [Loans and Leases by Class](index=6&type=section&id=Loans%20and%20Leases%20by%20Class) This section provides a breakdown of the loan and lease portfolio by commercial, consumer, and SVB segments at period end, highlighting changes in composition over time Loans and Leases by Class (End of Period) | Loan Class | March 31, 2025 | December 31, 2024 | March 31, 2024 | | :----------------------------------- | :------------- | :---------------- | :------------- | | Total commercial (Billions USD) | $72.540 | $71.799 | $67.601 | | Total consumer (Billions USD) | $28.147 | $28.228 | $27.923 | | Total SVB (Billions USD) | $40.671 | $40.194 | $39.846 | | Total loans and leases (Billions USD) | $141.358 | $140.221 | $135.370 | - Total loans and leases **increased** by **$1.1 billion** QoQ (**0.8%**) and **$6 billion** YoY (**4.4%**)[11](index=11&type=chunk) - Commercial loans **grew** by **$741 million** QoQ, primarily driven by commercial construction and owner-occupied commercial mortgages. SVB loans also **increased** by **$477 million** QoQ, mainly in global fund banking[11](index=11&type=chunk) [Deposits by Type](index=6&type=section&id=Deposits%20by%20Type) This section details the composition of deposits by type (noninterest-bearing, checking with interest, money market, savings, and time deposits) at period end, showing shifts in funding mix Deposits by Type (End of Period) | Deposit Type | March 31, 2025 | December 31, 2024 | March 31, 2024 | | :----------------------------------- | :------------- | :---------------- | :------------- | | Noninterest-bearing demand (Billions USD) | $40.767 | $38.633 | $39.276 | | Checking with interest (Billions USD) | $23.041 | $25.343 | $24.244 | | Money market (Billions USD) | $37.705 | $35.722 | $31.399 | | Savings (Billions USD) | $45.817 | $42.278 | $37.682 | | Time (Billions USD) | $11.995 | $13.253 | $17.008 | | Total deposits (Billions USD) | $159.325 | $155.229 | $149.609 | - Total deposits **increased** by **$4.1 billion** QoQ, with noninterest-bearing demand deposits **growing** by **$2.1 billion** and savings deposits **increasing** by **$3.5 billion**[11](index=11&type=chunk) - Time deposits continued their downward trend, **decreasing** by **$1.2 billion** QoQ[11](index=11&type=chunk) [Credit Quality and Allowance for Loan and Lease Losses (ALLL)](index=6&type=section&id=Credit%20Quality%20and%20Allowance%20for%20Loan%20and%20Lease%20Losses%20(ALLL)) This section provides key credit quality indicators, including nonaccrual loans, net charge-offs, and the allowance for loan and lease losses (ALLL) ratio, reflecting the health of the loan portfolio Credit Quality Metrics (Three Months Ended) | Metric | March 31, 2025 | December 31, 2024 | March 31, 2024 | | :----------------------------------- | :------------- | :---------------- | :------------- | | Nonaccrual loans at period end (Billions USD) | $1.206 | $1.184 | $1.074 | | Ratio of nonaccrual loans to total loans | 0.85 % | 0.84 % | 0.79 % | | Net charge-offs (Millions USD) | ($144) | ($160) | ($103) | | Net charge-off ratio | 0.41 % | 0.46 % | 0.31 % | | ALLL to loans ratio at period end | 1.19 % | 1.20 % | 1.28 % | | Provision for loan and lease losses (Millions USD) | $148 | $158 | $93 | - Nonaccrual loans **increased** slightly by **$22 million** QoQ, with the ratio to total loans **remaining relatively stable** at **0.85%**[11](index=11&type=chunk) - Net charge-offs **decreased** by **$16 million** QoQ, leading to a **lower** net charge-off ratio of **0.41%**[11](index=11&type=chunk) [Non-GAAP Reconciliations and Adjusted Performance](index=4&type=section&id=Non-GAAP%20Reconciliations%20and%20Adjusted%20Performance) [Notable Items Impact](index=4&type=section&id=Notable%20Items%20Impact) This section explains and quantifies the impact of "Notable Items" on GAAP financial measures, which are excluded from adjusted (non-GAAP) measures to enhance understanding of operations and comparability, including certain recurring noncash items and infrequent transactions Impact of Notable Items on Adjusted Measures (Three Months Ended) | Metric | March 31, 2025 | December 31, 2024 | March 31, 2024 | | :----------------------------------- | :------------- | :---------------- | :------------- | | Impact on adjusted noninterest income (Millions USD) | ($156) | ($183) | ($149) | | Impact on adjusted noninterest expense (Millions USD) | ($216) | ($249) | ($222) | | Impact on adjusted pre-tax income (Millions USD) | $60 | $66 | $73 | | Impact on adjusted net income (Millions USD) | $45 | ($57) | $53 | | Impact on adjusted diluted EPS | $3.32 | ($4.11) | $3.66 | - Notable items primarily include rental income and depreciation on operating lease equipment, acquisition-related expenses, and impairment of capitalized software[4](index=4&type=chunk)[5](index=5&type=chunk)[6](index=6&type=chunk) - The income tax impact for Q4 2024 includes a change in estimated state income tax rates after filing the first income tax returns that included the SVBB Acquisition[7](index=7&type=chunk) [Adjusted Income Statements](index=5&type=section&id=Adjusted%20Income%20Statements) This section presents condensed income statements adjusted for notable items, providing a non-GAAP view of the company's financial performance by excluding specific infrequent or non-cash transactions Adjusted Income Statement Highlights (Three Months Ended) | Metric | March 31, 2025 | December 31, 2024 | March 31, 2024 | | :----------------------------------- | :------------- | :---------------- | :------------- | | Adjusted noninterest income (Millions USD) | $479 | $516 | $478 | | Adjusted noninterest expense (Billions USD) | $1.277 | $1.268 | $1.154 | | Adjusted net income (Millions USD) | $528 | $643 | $784 | | Adjusted net income available to common stockholders (Millions USD) | $513 | $628 | $769 | | Adjusted diluted EPS | $37.79 | $45.10 | $52.92 | - Adjusted net income available to common stockholders **decreased** by **$115 million** QoQ (**18.3%**) and **$256 million** YoY (**33.3%**)[10](index=10&type=chunk) - Adjusted diluted EPS **decreased** by **$7.31** QoQ (**16.2%**) and **$15.13** YoY (**28.6%**)[10](index=10&type=chunk) [Non-GAAP Reconciliations of Key Metrics](index=8&type=section&id=Non-GAAP%20Reconciliations%20of%20Key%20Metrics) This section provides detailed reconciliations of various GAAP financial measures to their corresponding non-GAAP adjusted measures, offering a clearer view of underlying operational performance by excluding the impact of notable items [Net Income and EPS Reconciliation](index=8&type=section&id=Net%20Income%20and%20EPS%20Reconciliation) This sub-section reconciles GAAP net income and EPS to adjusted net income and EPS, showing the impact of notable items on these core profitability metrics Net Income and EPS Reconciliation (Three Months Ended) | Metric | March 31, 2025 | December 31, 2024 | March 31, 2024 | | :----------------------------------- | :------------- | :---------------- | :------------- | | Net income (GAAP) (Millions USD) | $483 | $700 | $731 | | Adjusted net income (non-GAAP) (Millions USD) | $528 | $643 | $784 | | Net income available to common stockholders (GAAP) (Millions USD) | $468 | $685 | $716 | | Adjusted net income available to common stockholders (non-GAAP) (Millions USD) | $513 | $628 | $769 | | Diluted EPS (GAAP) | $34.47 | $49.21 | $49.26 | | Adjusted diluted EPS (non-GAAP) | $37.79 | $45.10 | $52.92 | [Noninterest Income and Expense Reconciliation](index=8&type=section&id=Noninterest%20Income%20and%20Expense%20Reconciliation) This sub-section reconciles GAAP noninterest income and expense to adjusted noninterest income and expense, isolating the effects of notable items Noninterest Income and Expense Reconciliation (Three Months Ended) | Metric | March 31, 2025 | December 31, 2024 | March 31, 2024 | | :----------------------------------- | :------------- | :---------------- | :------------- | | Noninterest income (GAAP) (Millions USD) | $635 | $699 | $627 | | Adjusted noninterest income (non-GAAP) (Millions USD) | $479 | $516 | $478 | | Noninterest expense (GAAP) (Billions USD) | $1.493 | $1.517 | $1.376 | | Adjusted noninterest expense (non-GAAP) (Billions USD) | $1.277 | $1.268 | $1.154 | [PPNR Reconciliation](index=8&type=section&id=PPNR%20Reconciliation) This sub-section reconciles GAAP net income to Pre-Tax, Pre-Provision Net Revenue (PPNR) and Adjusted PPNR, providing a measure of profitability before taxes and credit losses, and excluding notable items PPNR Reconciliation (Three Months Ended) | Metric | March 31, 2025 | December 31, 2024 | March 31, 2024 | | :----------------------------------- | :------------- | :---------------- | :------------- | | PPNR (non-GAAP) (Millions USD) | $805 | $891 | $1.068 | | Adjusted PPNR (non-GAAP) (Millions USD) | $865 | $957 | $1.141 | [ROA Reconciliation](index=9&type=section&id=ROA%20Reconciliation) This sub-section reconciles GAAP Return on Average Assets (ROA) to Adjusted ROA and PPNR ROA, providing profitability metrics relative to assets, both on a GAAP and adjusted basis ROA Reconciliation (Three Months Ended) | Metric | March 31, 2025 | December 31, 2024 | March 31, 2024 | | :----------------------------------- | :------------- | :---------------- | :------------- | | ROA (GAAP) | 0.87 % | 1.25 % | 1.36 % | | Adjusted ROA (non-GAAP) | 0.95 % | 1.14 % | 1.46 % | | PPNR ROA (non-GAAP) | 1.45 % | 1.58 % | 1.99 % | | Adjusted PPNR ROA (non-GAAP) | 1.56 % | 1.70 % | 2.12 % | [ROE and ROTCE Reconciliation](index=9&type=section&id=ROE%20and%20ROTCE%20Reconciliation) This sub-section reconciles GAAP Return on Average Common Equity (ROE) to Adjusted ROE and Return on Average Tangible Common Equity (ROTCE), providing insights into profitability relative to equity, including tangible equity ROE and ROTCE Reconciliation (Three Months Ended) | Metric | March 31, 2025 | December 31, 2024 | March 31, 2024 | | :----------------------------------- | :------------- | :---------------- | :------------- | | ROE (GAAP) | 8.79 % | 12.56 % | 13.97 % | | Adjusted ROE (non-GAAP) | 9.64 % | 11.51 % | 15.01 % | | ROTCE (non-GAAP) | 9.04 % | 12.92 % | 14.42 % | | Adjusted ROTCE (non-GAAP) | 9.91 % | 11.84 % | 15.50 % | [Tangible Common Equity and Book Value Reconciliation](index=10&type=section&id=Tangible%20Common%20Equity%20and%20Book%20Value%20Reconciliation) This sub-section reconciles GAAP common equity and book value per share to tangible common equity and tangible book value per common share, providing a view of equity excluding goodwill and other intangible assets Tangible Common Equity and Book Value Reconciliation (Period End) | Metric | March 31, 2025 | December 31, 2024 | March 31, 2024 | | :----------------------------------- | :------------- | :---------------- | :------------- | | Tangible common equity (non-GAAP) (Billions USD) | $20.834 | $20.752 | $20.326 | | Tangible book value per common share (non-GAAP) | $1553.06 | $1512.77 | $1398.88 | | Tangible common equity to tangible assets (non-GAAP) | 9.13 % | 9.30 % | 9.36 % | [Efficiency Ratio Reconciliation](index=10&type=section&id=Efficiency%20Ratio%20Reconciliation) This sub-section reconciles the GAAP efficiency ratio to the adjusted efficiency ratio, providing a measure of operational efficiency excluding the impact of notable items Efficiency Ratio Reconciliation (Three Months Ended) | Metric | March 31, 2025 | December 31, 2024 | March 31, 2024 | | :----------------------------------- | :------------- | :---------------- | :------------- | | Efficiency ratio (GAAP) | 64.97 % | 63.01 % | 56.30 % | | Adjusted efficiency ratio (non-GAAP) | 59.62 % | 56.98 % | 50.29 % | [Rental Income on Operating Lease Equipment Reconciliation](index=10&type=section&id=Rental%20Income%20on%20Operating%20Lease%20Equipment%20Reconciliation) This sub-section reconciles GAAP rental income on operating lease equipment to adjusted rental income, by deducting direct expenses like depreciation and maintenance Rental Income on Operating Lease Equipment Reconciliation (Three Months Ended) | Metric | March 31, 2025 | December 31, 2024 | March 31, 2024 | | :----------------------------------- | :------------- | :---------------- | :------------- | | Rental income on operating lease equipment (Millions USD) | $270 | $272 | $255 | | Adjusted rental income on operating lease equipment (Millions USD) | $114 | $120 | $114 | [Net Interest Income & Net Interest Margin Reconciliation](index=10&type=section&id=Net%20Interest%20Income%20%26%20Net%20Interest%20Margin%20Reconciliation) This sub-section reconciles GAAP net interest income and net interest margin to figures excluding purchase accounting accretion (PAA), providing a view of core net interest performance Net Interest Income & NIM Reconciliation (Three Months Ended) | Metric | March 31, 2025 | December 31, 2024 | March 31, 2024 | | :----------------------------------- | :------------- | :---------------- | :------------- | | Net interest income (GAAP) (Billions USD) | $1.663 | $1.709 | $1.817 | | Net interest income, excluding PAA (non-GAAP) (Billions USD) | $1.588 | $1.627 | $1.658 | | NIM (GAAP) | 3.26 % | 3.32 % | 3.67 % | | NIM, excluding PAA (non-GAAP) | 3.12 % | 3.16 % | 3.35 % | | Loan PAA (Millions USD) | $84 | $90 | $163 | - Loan PAA **decreased** by **$6 million** QoQ and **$79 million** YoY, contributing to the changes in net interest income and NIM[18](index=18&type=chunk) [Income Tax Expense and Effective Tax Rate Reconciliation](index=10&type=section&id=Income%20Tax%20Expense%20and%20Effective%20Tax%20Rate%20Reconciliation) This sub-section reconciles GAAP income tax expense and effective tax rate to adjusted figures, accounting for the impact of notable items and discrete tax adjustments Income Tax Expense and Effective Tax Rate Reconciliation (Three Months Ended) | Metric | March 31, 2025 | December 31, 2024 | March 31, 2024 | | :----------------------------------- | :------------- | :---------------- | :------------- | | Income tax expense (GAAP) (Millions USD) | $168 | $36 | $273 | | Adjusted income tax expense (non-GAAP) (Millions USD) | $183 | $159 | $293 | | Effective tax rate (GAAP) | 25.82 % | 4.88 % | 27.20 % | | Adjusted effective tax rate (non-GAAP) | 25.71 % | 19.89 % | 27.18 % | - The adjusted effective tax rate for Q4 2024 was significantly **lower** at **19.89%**, primarily due to the impact of a change in estimated state income tax rates after filing the first income tax returns that included the SVBB Acquisition[18](index=18&type=chunk)

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 focus on human capital development[37]. - The company issued a five-year note of approximately $36.07 billion payable to the FDIC due March 2028, which may impact liquidity and funding strategies[194]. - The allowance for loan and lease losses (ALLL) may not be sufficient to cover actual credit losses, which could materially affect operating results[172]. - A significant portion of loans is concentrated in industries such as healthcare and technology, increasing vulnerability to economic downturns[174]. Mergers and Acquisitions - BancShares completed the acquisition of Silicon Valley Bridge Bank on March 27, 2023, enhancing its asset base and customer deposits[25]. - The company merged with CIT Group Inc. on January 3, 2022, further expanding its market presence[26]. - BancShares must obtain regulatory approval for mergers and acquisitions, with federal market share limitations capping control of deposits at 10% nationally and 30% in applicable states[69]. - The FDIC requires approval for mergers involving state-chartered banks not in the Federal Reserve System, with the current policy statement in effect until further notice[71]. - The company plans to continue organic growth while pursuing acquisition opportunities that align with its business strategies, although future acquisitions may face increased regulatory scrutiny[114]. Regulatory Compliance and Oversight - BancShares is subject to regulatory oversight by the FDIC, Federal Reserve, and other state regulators, impacting its operational framework[45]. - BancShares is classified as a Category IV banking organization under the Tailoring Rules, subject to enhanced prudential standards due to having more than $100 billion in consolidated assets[51]. - The Parent Company is not required to submit a resolution plan under the Dodd-Frank Act but must submit a full Resolution Plan to the FDIC under the Covered Insured Depository Institution rule[61]. - BancShares must maintain a compliance system that aligns with its asset size, risk profile, complexity, and activities, enhancing its risk management and compliance program post-acquisition[62]. - The company faces compliance risks due to the highly regulated nature of the financial services industry, which could result in reputational harm[112]. Capital and Liquidity Management - The total risk-based capital ratio must meet a minimum of 8.00%, with a capital conservation buffer of 2.50% to achieve a total requirement of 10.50%[60]. - BancShares is required to submit an annual capital plan and is subject to biennial supervisory stress testing under the Comprehensive Capital Analysis and Review (CCAR) process[55]. - The company is subject to enhanced liquidity risk management requirements as a Category IV banking organization, which could impact its ability to meet obligations[112]. - The company is well capitalized under current leverage and risk-based capital standards, but access to capital may be contingent on market conditions and credit ratings[201]. - Regulatory changes could impose additional capital adequacy and liquidity requirements, potentially affecting the company's financial condition and ability to pay dividends[203]. Competition and Market Environment - The financial services industry remains highly competitive, with BancShares facing challenges from both traditional and non-traditional financial service providers[32]. - The company faces significant competition from various financial service providers, which may impact its market share and profitability[120]. - The rise of digital asset transactions, including cryptocurrencies, poses competitive risks as consumers may choose alternative financial services over traditional banking[123]. - Disintermediation could result in the loss of fee income and customer deposits, adversely affecting the company's financial condition[124]. - A fragile economy may reduce demand for the company's products and services, impacting net income through fewer loans and deposits[125]. Risk Management - The company faces operational risks including potential cyberattacks and technology outages, which could adversely affect its business and financial condition[110]. - Credit risk management is crucial, as the allowance for credit losses may not be sufficient to absorb losses in the company's credit portfolios[111]. - The company is exposed to losses related to increasingly sophisticated fraud techniques, which could result in direct financial losses and reputational harm[161]. - Natural disasters and climate change pose risks to financial performance, particularly in regions where the company operates, necessitating effective disaster recovery planning[163]. - The ongoing geopolitical conflicts, particularly in Ukraine and the Middle East, have heightened cybersecurity risks for the company, with potential severe costs and disruptions to operations[144]. Technology and Cybersecurity - Cybersecurity threats necessitate significant resources for protective measures, and breaches could lead to legal and reputational harm[143]. - The company relies on third-party vendors for key business infrastructure, and failures could disrupt operations and harm customer relationships[166]. - Cyberattacks or information breaches could lead to material losses, reputational damage, and regulatory fines, adversely affecting financial performance[147]. - The company has not experienced material losses from cyber incidents to date, but future risks remain significant, with potential insurance coverage limitations[148]. - Rapid technological changes require the company to continuously evaluate and adapt its product offerings to remain competitive in the financial services industry[135]. Consumer Protection and Regulatory Changes - The CFPB has focused on eliminating "junk fees," leading FCB to eliminate NSF fees and reduce overdraft fees in response to regulatory scrutiny[89]. - FCB is required to comply with various consumer protection laws, including the Truth in Lending Act and the Equal Credit Opportunity Act, enforced by the CFPB[88]. - The company is under increased scrutiny regarding data privacy and security, with potential fines and litigation for non-compliance with evolving regulations[211]. - The company must adapt to changing privacy regulations, which could create new obligations and individual privacy rights[210]. - Regulatory changes could lead to increased compliance costs and limit the types of financial services offered by the company[208].

Dollars in millions, except per share data | | | | | Three Months Ended | | | | | Year Ended December 31, | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | Summary Financial Data & Key Metrics | | December 31, 2024 | | September 30, 2024 | | December 31, 2023 | | 2024 | | 2023 | | Results of Operations: | | | | | | | | | | | | Net interest income | $ | 1,709 | $ | 1,796 | $ | 1,911 | $ | 7,143 | $ | 6,712 | | Provision for credit losses | | 155 | | 117 | | 249 | | 431 | | 1,375 | | N ...