First Citizens BancShares (FCNCA) Q1 2025 earnings summary

Executive summary

• Reported solid Q1 2025 results with adjusted EPS of $37.79, strong loan and deposit growth, and stable credit quality, despite a 31% sequential decline in net income to $483 million due to higher tax expense and lower net interest income.

• Achieved loan growth in Commercial Bank and SVB Commercial segments, and strong deposit growth in Direct Bank, Branch Network, and Corporate segments.

• Maintained robust capital and liquidity, with CET1 ratio at 12.81% and total risk-based capital ratio at 15.23% as of March 31, 2025.

• Repurchased $613 million in Class A shares in Q1, totaling $2.4 billion since plan inception, with $1.22 billion remaining under the $3.5 billion program.

• Terminated the FDIC Shared-Loss Agreement related to the SVB acquisition in April 2025, reflecting confidence in the acquired portfolio and with no financial impact.

Financial highlights

• Adjusted net income was $528 million; adjusted ROE and ROA were 9.64% and 0.95%, respectively.

• Net interest income was $1.66 billion, down $46 million sequentially; net interest margin was 3.26%, with NIM ex-accretion at 3.12%.

• Noninterest income was $635 million, down $64 million sequentially; adjusted noninterest income was $479 million.

• Noninterest expense was $1.49 billion, a decrease of $24 million; adjusted noninterest expense rose $9 million to $1.28 billion.

• Net charge-offs were $144 million (0.41% of average loans), down from $160 million (0.46%) in the prior quarter.

Outlook and guidance

• FY25 loan growth projected to $144–$147 billion, with growth in Commercial Bank and SVB Commercial; deposit growth to $163–$168 billion.

• Net interest income expected at $6.55–$6.95 billion for FY25; adjusted noninterest expense at $5.05–$5.20 billion.

• Net charge-off ratio forecasted at 35–45 bps for FY25; effective tax rate 25–26%.

• Management expects higher interest expense on borrowings in Q2 2025 due to recent debt issuances.

• Guidance remains cautious amid macroeconomic and regulatory uncertainty.