First Citizens BancShares(FCNCA) - 2025 Q2 - Quarterly Report

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