Financial Performance - Net income for Q2 2025 was $575 million, down 18.7% from $707 million in Q2 2024[15]. - Net income for the six months ended June 30, 2025, was $1,058 million, a decrease of 26.4% compared to $1,438 million for the same period in 2024[22]. - Total comprehensive income for the six months ended June 30, 2025, was $1.389 billion, compared to $1.319 billion in the same period of 2024, reflecting an increase of 5.3%[17]. - Total revenue for the three months ended June 30, 2025, was $2,373 million, compared to $2,460 million for the same period in 2024, representing a decline of 3.5%[197]. - Total noninterest income for the three months ended June 30, 2025, was $678 million, compared to $639 million for the same period in 2024, an increase of 6.1%[197]. Assets and Liabilities - Total assets increased to $229.653 billion as of June 30, 2025, up from $223.720 billion at December 31, 2024, representing a growth of 2.4%[13]. - Total deposits rose to $159.935 billion as of June 30, 2025, compared to $155.229 billion at December 31, 2024, marking an increase of 3.5%[13]. - The total stockholders' equity at June 30, 2025, was $22,296 million, slightly down from $22,487 million at June 30, 2024[22]. - The total loans and leases as of June 30, 2025, reached $141.269 billion, an increase from $140.221 billion as of December 31, 2024, reflecting a growth of 0.75%[56]. - The balance of cash and due from banks at the end of the period was $889 million, an increase from $764 million at the end of June 2024[22]. Income and Expenses - Net interest income after provision for credit losses was $1.580 billion for Q2 2025, compared to $1.726 billion in Q2 2024, reflecting a decrease of 8.5%[15]. - Total noninterest expense increased to $1.500 billion in Q2 2025, up from $1.386 billion in Q2 2024, indicating a rise of 8.2%[15]. - The allowance for loan and lease losses was $1.672 billion as of June 30, 2025, slightly down from $1.676 billion at December 31, 2024[13]. - Provision for credit losses increased to $269 million in the first half of 2025, up from $159 million in the same period of 2024[22]. - Cash dividends declared for common shares were $3.90 per share in 2025, compared to $3.28 per share in 2024[22]. Loans and Credit Quality - Nonaccrual loans totaled $362 million as of June 30, 2025, compared to $303 million at December 31, 2024[62]. - The total commercial loans and leases reached $111.9 billion, with a total delinquency of $515 million[62]. - The total consumer loans reached $28.05 billion, with a total delinquency of $213 million[62]. - The total number of delinquent consumer loans was 5,676 million, with 90 days or greater past due loans amounting to $99 million[74]. - The total commercial loans modified during the six months ended June 30, 2024, had a weighted average term extension of 21 months and an interest rate reduction of 0.77%[87]. Investments and Securities - The company reported a net unrealized gain on securities available for sale of $89 million for Q2 2025, compared to a loss of $22 million in Q2 2024[17]. - As of June 30, 2025, total investment securities available for sale amounted to $33.381 billion, with a fair value of $33.060 billion, compared to $34.512 billion and $33.750 billion as of December 31, 2024, respectively[46]. - The total unrealized losses on investment securities available for sale as of June 30, 2025, were $593 million, compared to $843 million as of December 31, 2024[49]. - The total investment securities held to maturity amounted to $10.189 billion as of June 30, 2025, with a fair value of $8.888 billion, compared to $10.239 billion and $8.702 billion as of December 31, 2024[46]. - The fair value of loans held for sale was $123 million, with $83 million classified as Level 2 and $40 million as Level 3[152]. Segment Reporting - The company updated its segment reporting in Q1 2025, transferring components from the SVB Commercial and General Bank segments to the Commercial Bank segment without adding or removing existing segments[29]. - The General Bank segment offers a full suite of deposit products and generated revenue primarily from interest earned on loans and noninterest income from banking and advisory services[182][183]. - The Commercial Bank segment provides a range of lending services, primarily to small and middle market companies, with revenue generated from interest and fees on loans[184][186]. - The SVB Commercial segment focuses on providing financial solutions to commercial clients, generating revenue primarily from interest earned on loans and client investment fees[188][189]. - Noninterest expenses are allocated to segments, impacting the overall financial performance reported in the Corporate section[181]. Legal and Regulatory Matters - BancShares is involved in various legal actions with claims for damages arising from normal business activities, which may impact financial performance[208]. - The company cannot predict the outcome of litigation matters with confidence, particularly those in early stages or with indeterminate damages[210]. - BancShares has established reserves for litigation when loss contingencies are probable and estimable[210]. - BancShares estimates an aggregate range of reasonably possible losses from litigation matters to be up to approximately $10 million in excess of established reserves and insurance[211]. - The credit risk related to standby letters of credit is similar to extending loans, and these letters are collateralized when necessary[205].
FIRST CITIZENS(FCNCO) - 2025 Q2 - Quarterly Report