First Citizens BancShares (FCNCA) Q4 2024 earnings summary

Executive summary

• Delivered strong Q4 2024 results with adjusted EPS of $45.10, robust loan and deposit growth across all segments, and stable credit quality.

• Achieved adjusted ROE of 11.51% and adjusted ROA of 1.14%, maintaining solid capital and liquidity positions with CET1 at 12.99%.

• Repurchased $963 million in Class A shares in Q4, totaling $1.8 billion since plan inception (6.44% of Class A shares).

• Appointed Matt Snow to the Board and a new Audit Committee member, adding financial services expertise.

• Supported communities affected by wildfires and hurricanes through donations and relief efforts.

Financial highlights

• Q4 adjusted net income was $628 million, with net income at $700 million; adjusted EPS was $45.10, and net interest income totaled $1.71 billion.

• Net interest margin was 3.32%, down 21 bps sequentially; adjusted noninterest income rose 9% sequentially, driven by strong Rail and commercial segment performance.

• Adjusted noninterest expense increased 3.1% sequentially, mainly due to higher personnel and technology costs.

• Net charge-off ratio was 0.46%, up from 0.42% in Q3, but down from 0.53% in Q4 2023.

• CET1 capital ratio ended Q4 at 12.99%, with total liquidity of $59.34 billion.

Outlook and guidance

• FY25 guidance: loans expected at $144–$147 billion, deposits at $154–$157 billion, and net interest income of $6.6–$7.0 billion.

• Net charge-off ratio projected at 35–45 bps for FY25; adjusted noninterest income of $1.95–$2.05 billion and expense of $5.05–$5.20 billion.

• Adjusted efficiency ratio to remain in upper 50% range for 2025, with a long-term goal in the mid-50s.

• Effective tax rate expected at 25.0–26.0%.

• Forward-looking statements highlight risks from economic, regulatory, and geopolitical factors, and ongoing industry volatility.