First Citizens Bancshares, Inc. · NASDAQ:FCNCA
First Citizens Bancshares — Q1 2025 Earnings Presentation
56 slides from First Citizens Bancshares's earnings presentation, Apr 24, 2025
Slide 1: First Quarter 2025 Earnings Conference Call
First Citizens BancShares, Inc. First Quarter 2025 Earnings Conference Call April 24, 2025
Slide 2: Agenda
2 Agenda Pages Section I – First Quarter Overview & Strategic Priorities 4–6 Section II – First Quarter 2025 Financial Results 7 – 26 Financial Highlights 8–9 Earnings Highlights 10 Net interest income, margin and betas 11 – 13 Noninterest income and expense 14 – 15 Balance Sheet Highlights 16 Loans
Slide 3: Important Notices
3 Important Notices Forward Looking Statements This presentation contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 regarding the financial condition, results of operations, business plans, asset quality, future performance, and other str
Slide 4: First Quarter Overview & Strategic Priorities
First Quarter Overview & Strategic Priorities Section I
Slide 5: First Quarter 2025 Snapshot
5 First Quarter 2025 Snapshot Key Highlights: Financial Results: ■ Delivered return metrics aligned with our guidance. Adjusted EPS (1) ■ Loan growth was aligned with our expectations, while $37.79 deposit growth exceeded them. Adjusted ROE / ROA (1) ■ Terminated the FDIC Shared-Loss Agreement on Ap
Slide 6: 2025 Strategic Priorities
6 2025 Strategic Priorities Balance Client Talent & Operational Sheet Focus Culture Efficiency Optimization • Expand and grow • Attract, retain and • Enhance processes • Manage our balance our capabilities and develop associates and systems to sheet prudently to products while who align with our red
Slide 7: First Quarter 2025 Financial Results
First Quarter 2025 Financial Results Section II
Slide 8: 1Q25 Financial Results - Takeaways
8 1Q25 Financial Results - Takeaways While NII and NIM declined during the quarter, Deposits grew by $4.1 billion or by 2.6% they were aligned with our expectations. The over the linked quarter exceeding our 1 pace of declines in NII and NIM moderated 4 guidance, driven primarily by growth in the fr
Slide 9: Financial Highlights
9 Financial Highlights 1Q25 4Q24 1Q24 Reported Adjusted Reported Adjusted Reported Adjusted (Non-GAAP) (Non-GAAP) (Non-GAAP) Diluted EPS $ 34.47 $ 37.79 $ 49.21 $ 45.10 $ 49.26 $ 52.92 ROE 8.79 % 9.64 % 12.56 % 11.51 % 13.97 % 15.01 % ROTCE (non-GAAP) 9.04 9.91 12.92 11.84 14.42 15.50 ROA 0.87 0.95
Slide 10: Quarterly Earnings Highlights
10 Quarterly Earnings Highlights ($ in millions) Increase (decrease) Reported 1Q25 vs. 4Q24 1Q25 vs. 1Q24 1Q25 4Q24 1Q24 $ % $ % Net interest income $ 1,663 $ 1,709 $ 1,817 $ (46) (2.7)% $ (154) (8.5)% Noninterest income 635 699 627 (64) (9.3) 8 1.3 Net revenue 2,298 2,408 2,444 (110) (4.6) (146) (6
Slide 11: Net interest income and margin
11 Net interest income and margin ($ in millions) $(46) million & (-6 bps) $(39) million & (-4 bps) $1,817 $1,821 $1,796 $1,709 $1,663 $1,658 $1,681 $1,695 $1,627 $1,588 3.67% 3.64% 3.53% 3.32% 3.35% 3.36% 3.33% 3.26% 3.16% 3.12% 1Q24 2Q24 3Q24 4Q24 1Q25 1Q24 2Q24 3Q24 4Q24 1Q25 (1) (1) NII NIM NII,
Slide 12: NIM Rollforward
12 NIM Rollforward 4Q24 to 1Q25 (-6 bps) 3.32% 0.13% 0.03% 3.26% (0.13)% (0.04)% (0.03)% (0.01)% (0.01)% 4Q24 Deposit rate Investment Loan yield FFS yield Deposit Earning asset PAA 1Q25 yield volume mix 1Q24 to 1Q25 (-41 bps) 0.16% 0.08% 0.02% 0.20% 3.67% (0.31)% 3.26% (0.31)% (0.16)% (0.09)% 1Q24 D
Slide 13: Deposit Betas
13 Deposit Betas Up Cycle Down Cycle Terminal beta 63% 64% 61% 58% 53% 47% 49% 46% 45% 46% 42% 37% 34% 31% 30% 26% 23% 20% 16% 12% 1Q23 2Q23 3Q23 4Q23 1Q24 2Q24 3Q24 - Jul/ 3Q24 - Sep 4Q24 1Q25 Aug Actual cumulative beta Actual cumulative beta IBD Total Deposits Highlights • Our total cumulative dep
Slide 14: Noninterest income
14 Noninterest income ($ in millions) $699 $627 $639 $650 $635 $183 $149 $160 $176 $156 $478 $479 $474 $516 $479 1Q24 2Q24 3Q24 4Q24 1Q25 (1) Adjusted (Non-GAAP) Notable items Highlights 1Q25 vs 4Q24 1Q25 vs 1Q24 Noninterest income decreased by $64 million. Noninterest income increased by $8 million
Slide 15: Noninterest expense
15 Noninterest expense ($ in millions) $1,517 $1,493 $1,456 $1,376 $1,386 $249 $216 $227 $222 $218 $1,229 $1,268 $1,277 $1,154 $1,168 1Q24 2Q24 3Q24 4Q24 1Q25 (1) Adjusted (Non-GAAP) Notable items Highlights 1Q25 vs 4Q24 1Q25 vs 1Q24 Noninterest expense decreased by $24 million. Noninterest expense
Slide 16: Balance Sheet Highlights
16 Balance Sheet Highlights ($ in millions, except per share data) Increase (decrease) 1Q25 vs 4Q24 (1) 1Q25 vs 1Q24 (1) SELECT PERIOD END BALANCES 1Q25 4Q24 1Q24 $ % $ % Interest-earning deposits at banks $ 24,692 $ 21,364 $ 30,792 $ 3,328 63.2 % $ (6,100) (19.8)% Investment securities 44,319 44,09
Slide 17: Loans and Leases
17 Loans and Leases ($ in millions, period end balances) Highlights $139,341 $140,221 $141,358 $138,695 $135,370 1Q25 vs 4Q24 $39,117 $37,374 $37,818 $37,098 • Total loans increased $1.1 billion or by 0.8% $37,042 sequentially (3.3% annualized). The increase in loans was driven by a $733 million inc
Slide 18: 1Q25 Loans and Leases Composition
18 1Q25 Loans and Leases Composition ($ in billions, period end balances) Class Segment Commercial Bank: Commercial Finance ($20.1) Real Estate Finance ($8.2) 2% Equipment Finance ($5.9) 9% 14% Commercial mortgage ($38.6) 27% 27% Commercial Services - Factoring ($2.7) Commercial and industrial ($33.
Slide 19: Deposits
19 Deposits ($ in millions, period end balances) $159,325 Highlights $155,229 $149,609 $151,079 $151,574 1Q25 vs. 4Q24 • Total deposits increased $4.1 billion or by $40,767 2.6% sequentially (10.7% annualized), $38,633 $39,276 $40,016 $39,396 driven by a $3.1 billion increase in the Direct Bank, a $
Slide 20: 1Q25 Deposit Composition
20 1Q25 Deposit Composition (period end balances, $ in billions, except average account size) Type Segment General Bank: Branch Network, Wealth & Other ($66.2) Money market & savings ($83.5) 8% 1% Community Association Banking ($8.1) 14% 28% Commercial Bank: Noninterest-bearing demand ($40.8) 41% Co
Slide 21: SVB Commercial Segment Trends
21 SVB Commercial Segment Trends While challenging market conditions continued, execution remained strong. ($ in billions) Total client funds (EOP) Total client funds (Avg) ((1) 1% $0.6 billion or 0.6% $2.1 billion or 2. $94.9 $98.8 $99.4 $97.3 $99.4 $92.8 $93.6 $92.3 $93.0 $93.6 36.5 37.0 $36.7 $35
Slide 22: Funding Mix
22 Funding Mix ($ in millions) Period End Balances Increase (decrease) 1Q25 vs. 1Q25 vs. 1Q25 4Q24 3Q24 2Q24 1Q24 4Q24 1Q24 Total deposits $ 159,325 80.6 % $ 155,229 80.7 % $ 151,574 80.3 % $ 151,079 80.1 % $ 149,609 79.9 % $ 4,096 $ 9,716 Securities sold under customer repurchase agreements 450 0.2
Slide 23: Credit Quality Trends and Allowance
23 Credit Quality Trends and Allowance ($ in millions) Net charge-offs & NCO ratio Provision for credit losses $160 $155 $154 $145 $144 $132 $117 $103 $95 0.42% 0.46% 0.41% 0.38% $64 0.31% 0.31% 0.35% 0.37% 0.39% 0.41% 1Q24 2Q24 3Q24 4Q24 1Q25 1Q24 2Q24 3Q24 4Q24 1Q25 NCO $ QTD NCO ratio YTD NCO rat
Slide 24: Allowance for loan and lease losses
24 Allowance for loan and lease losses ($ in millions) 4Q24 to 1Q25 $1,676 $11 $6 $1,680 $15 $(16) $(12) 4Q24 Portfolio change Specific reserves Economic Credit quality Loan volume 1Q25 outlook Highlights ALLL Coverage 4.2x 1Q25 vs 4Q24 3.2x • ALLL increased $4 million compared to the linked quarter
Slide 25: Capital
25 Capital Risk-based capital ratios Capital ratio rollforward Risk-Based Capital Tier 1 15.66% 15.45% 15.36% 15.04% 15.23% 14.00% 13.87% 13.78% Total Tier 1 CET1 Leverage 13.53% 13.35% December 31, 2024 15.04% 13.53% 12.99% 9.90% Sub-debt issuance 0.46% 0.00% 0.00% 0.00% Net income 0.28% 0.28% 0.28
Slide 26: Share Repurchase Plan Update
26 Share Repurchase Plan Update In July 2024, we announced a plan to repurchase up to $3.5 billion of Class A common shares. We have completed 69% of the repurchase plan through 4/22/25 Highlights ($ in millions) • As of April 22, 2025, we have repurchased $3,500 8.91% of Class A common shares and 8
Slide 27: Financial Outlook
Financial Outlook Section III
Slide 28: Key Earnings Estimate Assumptions
28 Key Earnings Estimate Assumptions Metric 1Q25 2Q25 - Projected FY25 - Projected Loans and leases - EOP $141.4 billion $142 billion - $144 billion $144 billion - $147 billion Deposits - EOP $159.3 billion $158 billion - $161 billion $163 billion - $168 billion Zero to four 25 bps cuts in 2025; Int
Slide 29: Appendix
A First Citizens BancShares’ Appendix Section IV
Slide 30: Glossary of Abbreviations and Acronyms
30 Glossary of Abbreviations and Acronyms The following is a list of certain abbreviations and acronyms used throughout this document. AFS – Available for Sale IBD – Interest-Bearing Deposits ALLL – Allowance for Loan and Lease Losses ID – Investor Dependent AOCI – Accumulated Other Comprehensive In
Slide 31: BancShares Balance Sheets (unaudited)
31 BancShares Balance Sheets (unaudited) ($ in millions) Mar 31, 2025 Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 ASSETS Cash and due from banks $ 812 $ 814 $ 862 $ 764 $ 698 Interest-earning deposits at banks 24,692 21,364 25,640 25,361 30,792 Securities purchased under agreements to resell
Slide 32: BancShares Income Statements (unaudited)
32 BancShares Income Statements (unaudited) ($ in millions) 1Q25 4Q24 3Q24 2Q24 1Q24 INTEREST INCOME Interest and fees on loans $ 2,236 $ 2,322 $ 2,430 $ 2,422 $ 2,354 Interest on investment securities 414 377 358 330 282 Interest on deposits at banks 245 302 350 378 448 Total interest income 2,895
Slide 33: Noninterest income
33 Noninterest income ($ in millions) 1Q25 Change vs 4Q24 1Q25 4Q24 3Q24 2Q24 1Q24 $ % Rental income on operating lease equipment $ 270 $ 272 $ 262 $ 259 $ 255 $ (2) (1.2)% Lending-related fees 66 68 67 63 59 (2) (2.9) Deposit fees and service charges 58 58 57 57 58 — (0.5) Client investment fees 53
Slide 34: Noninterest expense
34 Noninterest expense ($ in millions) 1Q25 Change vs 4Q24 1Q25 4Q24 3Q24 2Q24 1Q24 $ % Depreciation on operating lease equipment $ 98 $ 101 $ 99 $ 98 $ 96 $ (3) (3.3)% Maintenance and other operating lease expenses 58 55 59 60 45 3 5.3 Personnel cost 818 801 788 745 744 17 2.1 Net occupancy expense
Slide 35: Loan Portfolios in Focus
35 Loan Portfolios in Focus ($ in billions, as of March 31, 2025) CRE Portfolio Composition Balance % of total loans Total Loans Multi-Family $ 4.5 3.2 % Medical Office 3.7 2.6 Industrial/Warehouse 3.6 2.6 General Office 2.4 1.7 Legacy-CIT Portfolio 0.8 0.6 Other 1.6 1.1 Retail 1.9 1.3 Healthcare 1.
Slide 36: General Office CRE Portfolio
36 General Office CRE Portfolio (as of March 31, 2025) Portfolio Characteristics • Evolving macroeconomic and social conditions (including the shift to more hybrid General Office work arrangements) have resulted in changing demands for office property and stress within our portfolio. Portfolio Metri
Slide 37: SVB Investor Dependent Portfolio
37 SVB Investor Dependent Portfolio (as of March 31, 2025) Portfolio Characteristics Portfolio Metrics • Early Stage - Loans to development-stage innovation companies Early Stage Growth Stage with $0-5 million in revenues. • Growth Stage - Loans to mid and later-stage innovation companies Loan balan
Slide 38: Estimated Liquidity Available for Uninsured Deposits
38 Estimated Liquidity Available for Uninsured Deposits ($ in millions) March 31, 2025 December 31, 2024 March 31, 2024 Liquid assets: Available cash $ 23,769 $ 20,545 $ 30,027 High-quality liquid securities 39,018 38,794 29,304 Total liquid assets (a) $ 62,787 $ 59,339 $ 59,331 Contingent sources:
Slide 39: Debt Securities Overview
39 Debt Securities Overview ($ in millions, period end balances) (1) 1Q25 (1) Duration in Carrying value (2) % of Portfolio Yield (3) years AFS Portfolio U.S. Treasury $ 13,150 30 % 4.33 % 1.1 Government agency 69 — 3.65 0.3 Residential mortgage-backed securities 16,605 38 4.22 3.4 Commercial mortga
Slide 40: Average Balances and Yields
40 Average Balances and Yields ($ in millions) Change vs. 1Q25 4Q24 1Q24 4Q24 1Q24 Avg. Income / Yield / Avg. Income / Yield / Avg. Income / Yield / Avg. Income / Yield / Avg. Income / Yield / Balance Expense Rate Balance Expense Rate Balance Expense Rate Balance Expense Rate Balance Expense Rate Lo
Slide 41: General Bank Segment
41 General Bank Segment ($ in millions) Increase (decrease) 1Q25 vs. 4Q24 1Q25 vs. 1Q24 Earnings Summary 1Q25 4Q24 3Q24 2Q24 1Q24 $ % $ % Net interest income $ 788 $ 777 $ 760 $ 730 $ 684 $ 11 1.4 % $ 104 15.2 % Total noninterest income 164 166 149 152 145 (2) (1.1) 19 13.2 Total revenue 952 943 909
Slide 42: Commercial Bank Segment
42 Commercial Bank Segment ($ in millions) Increase (decrease) 1Q25 vs. 4Q24 1Q25 vs. 1Q24 Earnings Summary 1Q25 4Q24 3Q24 2Q24 1Q24 $ % $ % Net interest income $ 293 $ 307 $ 305 $ 311 $ 300 $ (14) (4.7)% $ (7) (2.5)% Rental income on operating lease equipment 56 55 57 58 57 1 (0.4) (1) (2.2) Less:
Slide 43: SVB Commercial Segment
43 SVB Commercial Segment ($ in millions) Increase (decrease) 1Q25 vs. 4Q24 1Q25 vs. 1Q24 Earnings Summary 1Q25 4Q24 3Q24 2Q24 1Q24 $ % $ % Net interest income $ 493 $ 544 $ 560 $ 553 $ 523 $ (51) (9.4)% $ (30) (5.8)% Total noninterest income 132 137 137 134 134 (5) (3.8) (2) (1.5) Total revenue 625
Slide 44: Rail Segment
44 Rail Segment ($ in millions) Increase (decrease) 1Q25 vs. 4Q24 1Q25 vs. 1Q24 Earnings Summary 1Q25 4Q24 3Q24 2Q24 1Q24 $ % $ % Net interest expense $ 52 $ 50 $ 48 $ 45 $ 43 $ 2 2.5 % $ 9 19.9 % Rental income on operating lease equipment 214 217 205 201 198 (3) (1.4) 16 8.1 Less: depreciation on o
Slide 45: Corporate
45 Corporate ($ in millions) Increase (decrease) 1Q25 vs. 4Q24 1Q25 vs. 1Q24 Earnings Summary 1Q25 4Q24 3Q24 2Q24 1Q24 $ % $ % Net interest income $ 141 $ 131 $ 219 $ 272 $ 353 $ 10 7.7 % $ (212) (60.1)% Total noninterest income (2) 17 21 15 6 (19) (109.2) (8) (125.9) Total revenue 139 148 240 287 3
Slide 46: Purchase accounting marks
46 Purchase accounting marks ($ in millions) March 31, 2025 December 31, 2024 September 30, 2024 June 30, 2024 March 31, 2024 Loans and leases (including off-balance sheet exposure) (1) Beginning balance - unamortized fair value mark $ (1,644) $ (1,746) $ (1,857) $ (2,005) $ (2,173) Other — 12 4 3 5
Slide 47: Non-GAAP Reconciliations
Non-GAAP Reconciliations Section V
Slide 48: Notable Items
48 Notable Items (1) ($ in millions, except per share data) 1Q25 4Q24 3Q24 2Q24 1Q24 (2) (7) Rental income on operating lease equipment $ (156) $ (152) $ (158) $ (158) $ (141) Realized gain on sale of investment securities, net — (2) (4) — — Fair value adjustment on marketable equity securities, net
Slide 49: Non-GAAP Reconciliations
49 Non-GAAP Reconciliations ($ in millions, except share and per share data) Non-GAAP Reconciliations 1Q25 4Q24 3Q24 2Q24 1Q24 Net income and EPS Net income (GAAP) a $ 483 700 639 707 731 Preferred stock dividends 15 15 15 16 15 Net income available to common stockholders (GAAP) b 468 685 624 691 71
Slide 50: Non-GAAP Reconciliations
50 Non-GAAP Reconciliations ($ in millions) Non-GAAP Reconciliations 1Q25 4Q24 1Q24 PPNR Net income (GAAP) a $ 483 700 731 Plus: provision for credit losses 154 155 64 Plus: income tax expense 168 36 273 PPNR (non-GAAP) l $ 805 891 1,068 Impact of notable items 60 66 73 Adjusted PPNR (non-GAAP) m $
Slide 51: Non-GAAP Reconciliations
51 Non-GAAP Reconciliations ($ in millions) Non-GAAP Reconciliations 1Q25 4Q24 1Q24 ROE and ROTCE Annualized net income available to common stockholders s = b annualized $ 1,898 2,727 2,880 Annualized adjusted net income available to common stockholders t = e annualized $ 2,081 2,499 3,094 Average s
Slide 52: Non-GAAP Reconciliations
52 Non-GAAP Reconciliations ($ in millions, except share and per share data) Non-GAAP Reconciliations 1Q25 4Q24 3Q24 2Q24 1Q24 Book value and tangible book value per common share Common shares outstanding at period end bb 13,414,938 13,717,621 14,179,208 14,529,735 14,529,735 Book value per share x/
Slide 53: Non-GAAP Reconciliations
53 Non-GAAP Reconciliations ($ in millions, except share and per share data) Non-GAAP Reconciliations 1Q25 4Q24 3Q24 2Q24 1Q24 Noninterest Income and Noninterest Expense: Commercial Bank Segment Noninterest income (GAAP) $ 125 156 136 135 140 Less: depreciation on operating lease equipment 44 44 47
Slide 54: Non-GAAP Reconciliations
54 Non-GAAP Reconciliations ($ in millions) Non-GAAP Reconciliations 1Q25 4Q24 3Q24 2Q24 1Q24 PPNR: General Bank Segment Segment net income (GAAP) $ 253 286 202 252 201 Plus: provision for credit losses 46 22 55 37 21 Plus: income tax expense 88 92 99 92 79 PPNR (non-GAAP) $ 387 400 356 381 301 PPNR
Slide 55: Non-GAAP Reconciliations
55 Non-GAAP Reconciliations ($ in millions) Non-GAAP Reconciliations 1Q25 4Q24 3Q24 2Q24 1Q24 Total Risk Based Capital Ratio Total risk based capital ratio (GAAP) 15.23 % Less: impact of FDIC Shared-Loss Agreement 0.74 Adjusted total risk based capital ratio (non-GAAP) 14.49 % CET1 Capital Ratio CET
Slide 56: Non-GAAP Reconciliations
56 Non-GAAP Reconciliations ($ in millions) Non-GAAP Reconciliations 1Q25 4Q24 3Q24 2Q24 1Q24 Income tax expense Income tax expense (GAAP) $ 168 36 234 272 273 Impact of notable items (1) 15 123 15 10 20 Adjusted income tax expense (non-GAAP) $ 183 159 249 282 293 Note: Certain items above do not pr
First Citizens BancShares — Q1 2025 Earnings Presentation on 6ix