First Citizens BancShares(FCNCA) - 2025 Q4 - Annual Results

Financial Performance - 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] - 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[2] - Total noninterest income increased to $715 million in Q4 2025, up from $699 million in both Q3 2025 and Q4 2024[2] - Diluted earnings per common share (EPS) for Q4 2025 was $45.81, an increase from $43.08 in Q3 2025 but a decrease from $49.21 in Q4 2024[2] - Net income for the fourth quarter of 2025 was $648 million, a 10.4% increase 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 down 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] Credit Losses and Provisions - 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 provision for credit losses for the year ended December 31, 2025, was $514 million, compared to $431 million in 2024, reflecting a 19.3% increase[9] - The provision for loan and lease losses for the quarter was $59 million, significantly lower than $214 million in the previous quarter and $158 million a year ago[14] - Loan PAA (provision for credit losses) decreased to $59 million from $71 million, showing a reduction of 16.9%[21] Expenses and Efficiency - 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%, compared to 61.27% in Q3 2025 and 63.01% in Q4 2024[1] - The adjusted efficiency ratio (non-GAAP) improved to 60.79% from 56.78% in the previous quarter, indicating better cost management[21] Loans and Assets - Total loans and leases increased to $147,930 million at the end of Q4 2025, up from $144,758 million at the end of Q3 2025 and $140,221 million at the end of Q4 2024[1] - 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 loans and leases as of December 31, 2025, reached $147,930 million, up 2.0% from $144,758 million on September 30, 2025[9] - Total assets (GAAP) at the end of Q4 2025 were $229,698 million, down from $233,488 million at the end of Q3 2025[20] Capital and Equity - The total risk-based capital ratio at the end of Q4 2025 was 13.71%, down from 14.05% at the end of Q3 2025 and 15.04% at the end of Q4 2024[1] - Stockholders' equity increased to $22,238 million as of December 31, 2025, compared to $21,986 million on September 30, 2025, reflecting a growth of 1.1%[3] - Stockholders' equity at the end of December 31, 2025, was $22,197 million, slightly down from $22,291 million at September 30, 2025, and $22,598 million a year ago[15] Interest Income and Margin - Total interest-earning assets for the three months ended December 31, 2025, were $213,294 million, generating net interest income of $1,722 million, with a net interest margin of 3.20%[15] - Average interest-earning assets increased to $213,294 million from $211,042 million, marking a growth of 1.1%[21] - Interest income on loans was $2,290 million, slightly down from $2,300 million in the prior quarter, reflecting a decrease of 0.4%[21] - Net interest margin (NIM) (GAAP) decreased to 3.20% from 3.26% in the previous quarter, indicating a decline in profitability on interest-earning assets[21] Nonaccrual Loans - Nonaccrual loans to total loans and leases improved to 0.88% in Q4 2025 from 0.97% in Q3 2025 and 0.84% in Q4 2024[1] - 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]