First Citizens BancShares(FCNCA) - 2025 Q3 - Quarterly Report

Financial Performance - Net income for the three months ended September 30, 2025, was $568 million, a decrease of 11.1% compared to $639 million for the same period in 2024[15]. - Total revenue for the three months ended September 30, 2025, was $2,433 million, a slight decrease from $2,446 million in the same period of 2024, representing a decline of about 0.5%[200]. - Net income for the nine months ended September 30, 2025, was $1,626 million, a decrease from $2,077 million in the same period of 2024, representing a decline of approximately 21.7%[22]. - Basic earnings per common share for the nine months ended September 30, 2025, was $119.70, down from $140.27 in 2024, representing a decline of 14.6%[174]. - The company reported total noninterest expense of $1,491 million for the three months ended September 30, 2025, compared to $1,456 million for the same period in 2024, reflecting an increase of about 2.4%[200]. Income and Expenses - Total interest income decreased to $2,998 million for Q3 2025, down 4.5% from $3,138 million in Q3 2024[15]. - Noninterest income increased to $699 million for Q3 2025, up 7.5% from $650 million in Q3 2024[15]. - Net interest income after provision for credit losses was $1,543 million for Q3 2025, down 8.1% from $1,679 million in Q3 2024[15]. - Total noninterest income for the nine months ended September 30, 2025, was $2,012 million, up from $1,916 million in the same period of 2024, indicating an increase of approximately 5%[201]. - The company’s income before income taxes for the three months ended September 30, 2025, was $751 million, down from $873 million in the same period of 2024, representing a decrease of approximately 13.9%[200]. Assets and Liabilities - Total assets increased to $233,488 million as of September 30, 2025, up from $223,720 million at December 31, 2024, representing a growth of 7.9%[13]. - Total liabilities increased to $211,502 million as of September 30, 2025, up from $201,492 million at December 31, 2024, reflecting a growth of 5.5%[13]. - The company’s total stockholders' equity at September 30, 2025, was $21,986 million, a decrease from $22,828 million at September 30, 2024[20]. - Total deposits grew to $163,190 million as of September 30, 2025, an increase of 5.8% from $155,229 million at December 31, 2024[13]. Credit Losses and Provisions - Provision for credit losses rose to $191 million in Q3 2025, compared to $117 million in Q3 2024, indicating a 63.2% increase[15]. - The provision for credit losses increased to $460 million for the nine months ended September 30, 2025, compared to $276 million in 2024, indicating a rise of 66.5%[22]. - The provision for loan and lease losses for the three months ended September 30, 2025, was $214 million, an increase of 74% compared to $123 million for the same period in 2024[102]. Investment Securities - As of September 30, 2025, total investment securities amounted to $43.911 billion, with an amortized cost of $45.316 billion, reflecting gross unrealized losses of $1.783 billion[41]. - The total investment securities available for sale amounted to $34,963 million as of September 30, 2025, with $13,781 million in U.S. Treasury securities[141]. - The total net unrealized losses on investment securities available for sale as of September 30, 2025, were $541 million, compared to $843 million at December 31, 2024[49]. Loans and Leases - Total loans and leases increased to $144.758 billion as of September 30, 2025, compared to $140.221 billion at December 31, 2024, reflecting a growth of approximately 3.6%[55]. - The total commercial loans increased to $116.428 billion as of September 30, 2025, from $111.993 billion at December 31, 2024, marking a growth of approximately 4.1%[55]. - Nonaccrual loans totaled $1,406 million as of September 30, 2025, compared to $1,184 million at December 31, 2024[61]. - The total for global fund banking loans was $31,615 million, with a pass classification of $29,516 million[70]. Shareholder Actions - Cash dividends declared for common shares were $5.85 per share for the nine months ended September 30, 2025, compared to $4.92 per share in 2024, reflecting an increase of 18.9%[22]. - The company repurchased 1,098,992 shares of Class A common stock for $2,148 million during the nine months ended September 30, 2025[22]. - As of September 30, 2025, the total common stock outstanding decreased to 11,613,444 shares from 12,070,794 shares as of June 30, 2025, reflecting a repurchase of 457,350 shares[168]. Tax and Regulatory - The global effective income tax rate for the three months ended September 30, 2025, was 24.4%, a decrease from 26.8% in 2024, primarily due to increased tax credits and reduced state and local tax rates[175]. - The effective tax rate may vary from the forecasted rate due to changes in factors such as the mix of domestic and international earnings and adjustments to valuation allowances[176]. Risk Management - BancShares is exposed to litigation risk from legal actions arising from normal business activities, with damages claimed in various amounts[211]. - The company is also exposed to litigation risk related to prior business activities of banks from which assets were acquired and liabilities assumed[211].