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