First Citizens BancShares Reports Second Quarter 2025 Earnings, Announces Additional Share Repurchase Plan

Core Viewpoint - First Citizens BancShares, Inc. reported solid financial results for the second quarter of 2025, highlighting revenue growth, strong capital and liquidity positions, and a commitment to returning capital to shareholders through share repurchases [2][4]. Financial Highlights - Net income for Q2 2025 was $575 million, up from $483 million in Q1 2025, with net income available to common stockholders at $561 million, or $42.36 per share, an increase of $93 million from the previous quarter [4]. - Adjusted net income for the current quarter was $607 million, compared to $528 million in the linked quarter, with adjusted net income available to common stockholders at $593 million, or $44.78 per share, an increase of $80 million from the previous quarter [5]. Net Interest Income and Margin - Net interest income totaled $1.70 billion for the current quarter, an increase of $32 million from the linked quarter, with net interest income excluding purchase accounting accretion (PAA) at $1.63 billion, up $41 million [6]. - Net interest margin (NIM) was 3.26% for both the current and linked quarters, while NIM excluding PAA was 3.14%, an increase from 3.12% in the linked quarter [9]. Noninterest Income and Expense - Noninterest income was $678 million, an increase of $43 million from the linked quarter, primarily due to fair value changes in customer derivative positions [9]. - Noninterest expense was $1.50 billion, a slight increase from $1.49 billion in the linked quarter, with adjusted noninterest expense at $1.28 billion [9]. Balance Sheet Summary - Loans and leases totaled $141.27 billion, a decrease of $89 million from the previous quarter, with declines in the SVB Commercial segment [9]. - Total investment securities were $43.35 billion, a decrease of $973 million since March 31, 2025 [9]. - Deposits totaled $159.94 billion, an increase of $610 million, with significant growth in the SVB Commercial segment and corporate deposits [9]. Provision for Credit Losses and Credit Quality - Provision for credit losses totaled $115 million, down from $154 million in the linked quarter, with net charge-offs at $119 million, representing 0.33% of average loans [12]. - Nonaccrual loans increased to $1.32 billion, or 0.93% of loans, primarily due to one credit in the SVB Commercial segment [12]. Capital and Liquidity - Capital ratios were well above regulatory requirements, with total risk-based capital at 14.25% and Tier 1 risk-based capital at 12.63% [12]. - Liquid assets were $63.62 billion, an increase from $62.79 billion in the previous quarter, indicating a strong liquidity position [13]. Share Repurchase Program - The company repurchased 338,959 shares for $613 million during the current quarter and announced an additional share repurchase plan of up to $4.0 billion [2][12]. - From the inception of the 2024 Share Repurchase Program, the company has repurchased 1,456,283 shares for $2.89 billion, representing 10.77% of Class A common shares outstanding [12].