RALEIGH, N.C., July 25, 2025 /PRNewswire/ — First Citizens BancShares, Inc. (“BancShares”) (NASDAQ:FCNCA) reported earnings for the second quarter of 2025.
Chairman and CEO Frank B. Holding, Jr. said: “Our team delivered solid financial results in the second quarter through revenue growth and positive credit performance across our diverse portfolio. Capital and liquidity positions remained strong, enabling us to return an additional $613 million of capital to our stockholders through share repurchases during the quarter. Also, we are pleased to announce that our Board of Directors approved an additional share repurchase plan for the repurchase of up to $4.0 billion of our Class A common shares which will commence upon completion of the $3.5 billion share repurchase plan announced in July 2024. This reflects our commitments to long-term value creation and delivering returns to our stockholders. Lastly, I am pleased that we have strengthened our leadership and governance with the appointment of Diane Morais to our Board of Directors.”
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 second quarter of 2025 (“current quarter”) was $575 million compared to $483 million for the first quarter of 2025 (“linked quarter”). Net income available to common stockholders for the current quarter was $561 million, or $42.36 per common share, a $93 million increase from $468 million, or $34.47 per common share, in the linked quarter.
Adjusted net income for the current quarter was $607 million compared to $528 million for the linked quarter. Consistent with the prior quarter, acquisition-related expenses were the most significant difference between reported and adjusted net income. Adjusted net income available to common stockholders was $593 million, or $44.78 per common share, an $80 million increase from $513 million, or $37.79 per common share, in the linked quarter.
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. Net interest income related to PAA was $66 million compared to $75 million in the linked quarter, a decrease of $9 million. Net interest income, excluding PAA, was $1.63 billion compared to $1.59 billion in the linked quarter, an increase of $41 million, primarily due to the following:
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- Interest income on loans increased $34 million. Interest income on loans, excluding loan PAA, increased $43 million, mainly due to the impacts of a higher average balance and a higher day count.
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- Interest income on interest-earning deposits at banks increased $11 million, primarily due to a higher average balance and a higher day count.
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- Interest income on investment securities increased $5 million due to a higher average balance and a higher day count.
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- Interest expense on borrowings increased $17 million due to a higher average balance and rate paid as the issuances during the linked quarter of senior unsecured notes and subordinated notes were outstanding for the entire current quarter.
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- Interest expense on interest-bearing deposits increased $1 million as the impacts of a higher average balance and a higher day count were partially offset by a lower rate paid.
- Net interest margin (“NIM”) was 3.26% in both the current and linked quarters as the favorable impact of a lower rate paid on interest-bearing deposits was offset by the unfavorable impacts of a higher average balance of interest-bearing deposits and borrowings, a higher rate paid on borrowings, and lower PAA. NIM, excluding PAA, was 3.14% compared to 3.12% in the linked quarter.
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- The yield on average interest-earning assets was 5.67%, a decrease of 1 basis point from the linked quarter, mainly due to lower loan PAA.
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- The rate paid on average interest-bearing liabilities was 3.19%, a decrease of 3 basis points from the linked quarter, primarily due to a lower rate paid on interest-bearing deposits, partially offset by the impacts of a higher average balance of interest-bearing deposits, and a higher average balance and rate paid on borrowings.
NONINTEREST INCOME AND EXPENSE
- Noninterest income was $678 million compared to $635 million in the linked quarter, an increase of $43 million. Adjusted noninterest income was $513 million compared to $479 million in the linked quarter, an increase of $34 million. The increases in noninterest income and adjusted noninterest income were primarily the result of an increase in other noninterest income of $28 million, mainly attributable …