RALEIGH, N.C., Jan. 23, 2026 /PRNewswire/ — First Citizens BancShares, Inc. (“BancShares”) (NASDAQ:FCNCA) reported earnings for the fourth quarter of 2025.
Chairman and CEO Frank B. Holding, Jr. said: “We delivered solid return metrics in the fourth quarter while credit quality remained stable and we achieved strong loan growth, led by Global Fund Banking. We returned an additional $900 million of capital to our stockholders during the quarter through share repurchases and prepaid $2.5 billion of the Purchase Money Note. Our capital and liquidity positions remain strong. We are excited about our prospects for 2026.”
BMO BRANCH ACQUISITION
On October 16, 2025, First-Citizens Bank & Trust Company (“First Citizens Bank”), the wholly owned banking subsidiary of BancShares, announced that it had entered into an agreement to acquire 138 branches from BMO Bank N.A. (“BMO Bank”) located throughout the Midwest, Great Plains and West regions of the U.S. (the “BMO Branch Acquisition”). In connection with the BMO Branch Acquisition, First Citizens Bank expects to assume approximately $5.7 billion in deposits and acquire approximately $1.1 billion in loans. BancShares expects the transaction to close in the second half of 2026, subject to customary closing terms and conditions and regulatory approvals.
FINANCIAL HIGHLIGHTS
Measures referenced below “as adjusted” or “excluding PAA” (or purchase accounting accretion) are non-GAAP financial measures. Refer to the Financial Supplement available at ir.firstcitizens.com or www.sec.gov for a reconciliation of each non-GAAP measure to the most directly comparable GAAP measure.
Net income for the fourth quarter of 2025 (“current quarter”) was $580 million, compared to $568 million for the third quarter of 2025 (“linked quarter”). Net income available to common stockholders for the current quarter was $566 million, or $45.81 per common share, a $12 million increase from $554 million, or $43.08 per common share, in the linked quarter.
Adjusted net income for the current quarter was $648 million, compared to $587 million for the linked quarter. Adjusted net income available to common stockholders was $634 million, or $51.27 per common share, a $61 million increase from $573 million, or $44.62 per common share, in the linked quarter.
SEGMENT REPORTING UPDATE
During the current quarter, the composition of the Commercial Bank segment was expanded to include SVB Commercial, which was previously a separate segment, and prior period segment financial information was recast accordingly.
NET INTEREST INCOME AND MARGIN
- Net interest income was $1.72 billion for the current quarter, a decrease of $12 million from the linked quarter. Net interest income, excluding PAA, was $1.67 billion in both the current and linked quarters.
- Interest income on interest-earning deposits at banks decreased $39 million due to a lower average balance and a decline in yield.
- Interest income on loans decreased $10 million, mainly due to a decline in yield and a $12 million decrease in loan PAA, partially offset by the impact of a higher average balance. Interest income on loans, excluding loan PAA, increased $2 million.
- Interest income on investment securities decreased $9 million due to decreases in the average balance and yield.
- Interest expense on borrowings increased $4 million due to increases in the rate paid and the average balance.
- Interest expense on interest-bearing deposits decreased $50 million due to a lower rate paid, partially offset by the impact of a higher average balance.
- Net interest margin (“NIM”) was 3.20% compared to 3.26% in the linked quarter, a decrease of 6 basis points. NIM, excluding PAA, was 3.11%, compared to 3.15% in the linked quarter, a decrease of 4 basis points.
- The yield on average interest-earning assets was 5.48%, a decrease of 16 basis points from the linked quarter, mainly due to the following:
- A lower loan yield resulting from lower interest rates and a decline in loan PAA, partially offset by the impact of a higher average balance.
- A lower yield on interest-earning deposits at banks resulting from a decline in the federal funds rate, and a lower average balance.
- The rate paid on average interest-bearing liabilities was 3.03%, a decrease of 13 basis points from the linked quarter, primarily due to a lower rate paid on interest-bearing deposits, partially offset by the impact of a higher average balance of interest-bearing deposits.
- The yield on average interest-earning assets was 5.48%, a decrease of 16 basis points from the linked quarter, mainly due to the following:
NONINTEREST INCOME AND EXPENSE
- Noninterest income was $715 million, compared to $699 million in the linked quarter, an increase of $16 million. Adjusted noninterest income was $529 million, compared to $518 million in the linked quarter, an increase of $11 million. The increases in noninterest income and adjusted noninterest income were primarily due to an increase of $8 million in rental income on operating lease equipment ($7 million increase when adjusted for depreciation and maintenance expenses). Increases in wealth management services and international fees were partially offset by decreases in client investment fees and lending-related fees. Additionally, a $9 million loss on extinguishment of debt was recognized for the $2.5 billion partial prepayment of the Purchase Money Note.
- Noninterest expense was $1.57 billion, compared to $1.49 billion in the linked quarter, an increase of $81 million. Adjusted …