First Citizens Bancshares, Inc. · NASDAQ:FCNCA
First Citizens Bancshares — Q2 2025 Earnings Presentation
56 slides from First Citizens Bancshares's earnings presentation, Jul 25, 2025
Slide 1: First Citizens BancShares, Inc. Second Quarter 2025 Earnings Conference Call
First Citizens BancShares, Inc. Second Quarter 2025 Earnings Conference Call July 25, 2025
Slide 2: Agenda
2 Agenda Pages Section I – Second Quarter Overview & Strategic Priorities 4–6 Section II – Second 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 Loa
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: Second Quarter Overview & Strategic Priorities
Second Quarter Overview & Strategic Priorities Section I
Slide 5: Second Quarter 2025 Snapshot
5 Second Quarter 2025 Snapshot Key Highlights: Financial Results: ■ Delivered solid financial results driven by PPNR (1) Adjusted EPS (1) growth and positive credit performance. $44.78 ■ Capital and liquidity positions remained strong, with Adjusted ROE / ROA (1) the CET1 ratio (2) ending the quarte
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: Second Quarter 2025 Financial Results
Second Quarter 2025 Financial Results Section II
Slide 8: 2Q25 Financial Results - Takeaways
8 2Q25 Financial Results - Takeaways Deposits grew by $610 million or 0.4% EPS, ROE and ROA results exceeded our 1 expectations. 5 from the linked quarter, driven primarily by growth in the Direct Bank. Net interest income grew during the quarter Credit quality remained stable, with the NCO and head
Slide 9: Financial Highlights
9 Financial Highlights 2Q25 1Q25 2Q24 Reported Adjusted Reported Adjusted Reported Adjusted (Non-GAAP) (Non-GAAP) (Non-GAAP) EPS (basic and diluted) $ 42.36 $ 44.78 $ 34.47 $ 37.79 $ 47.54 $ 50.87 ROE 10.41 % 11.00 % 8.79 % 9.64 % 13.13 % 14.05 % ROTCE (non-GAAP) 10.69 11.30 9.04 9.91 13.53 14.48 RO
Slide 10: Quarterly Earnings Highlights
10 Quarterly Earnings Highlights ($ in millions) Increase (decrease) Reported 2Q25 vs 1Q25 2Q25 vs 2Q24 2Q25 1Q25 2Q24 $ % $ % Net interest income $ 1,695 $ 1,663 $ 1,821 $ 32 2.0 % $ (126) (6.9)% Noninterest income 678 635 639 43 6.7 39 6.2 Net revenue 2,373 2,298 2,460 75 3.3 (87) (3.5) Noninteres
Slide 11: Net interest income and margin
11 Net interest income and margin ($ in millions) $32 million & 0 bps s $41 million & 2 bp $1,821 $1,796 $1,709 $1,663 $1,695 $1,681 $1,695 $1,627 $1,588 $1,629 3.64% 3.53% 3.32% 3.36% 3.33% 3.26% 3.26% 3.16% 3.12% 3.14% 2Q24 3Q24 4Q24 1Q25 2Q25 2Q24 3Q24 4Q24 1Q25 2Q25 (1) (1) NII NIM NII, ex PAA (
Slide 12: NIM Rollforward
12 NIM Rollforward 1Q25 to 2Q25 (unchanged) 0.04% 0.01% 3.26% 3.26% (0.03)% (0.02)% 1Q25 Deposit rate Loan yield Debt rate / volume PAA 2Q25 2Q24 to 2Q25 (-38 bps) 0.29% 0.04% 3.64% (0.32)% 3.26% (0.14)% (0.11)% (0.06)% (0.06)% (0.02)% 2Q24 Deposit rate Investment Loan yield PAA Yield on FFS Deposit
Slide 13: Deposit Betas
13 Deposit Betas Up Cycle Down Cycle Terminal beta 63% 64% 61% 58% 56% 53% 47% 49% 46% 45% 46% 42% 37% 39% 34% 31% 30% 26% 23% 20% 16% 12% 1Q23 2Q23 3Q23 4Q23 1Q24 2Q24 3Q24 - Jul/ 3Q24 - Sep 4Q24 1Q25 2Q25 Aug Actual cumulative beta Actual cumulative beta IBD Total Deposits Highlights • Our total c
Slide 14: Noninterest income
14 Noninterest income ($ in millions) $699 $678 $639 $650 $635 $183 $165 $160 $176 $156 $479 $474 $516 $479 $513 2Q24 3Q24 4Q24 1Q25 2Q25 (1) Adjusted (Non-GAAP) Notable items Highlights 2Q25 vs 1Q25 2Q25 vs 2Q24 Noninterest income increased by $43 million. Noninterest income increased by $39 millio
Slide 15: Noninterest expense
15 Noninterest expense ($ in millions) $1,517 $1,493 $1,500 $1,456 $1,386 $249 $216 $221 $227 $218 $1,168 $1,229 $1,268 $1,277 $1,279 2Q24 3Q24 4Q24 1Q25 2Q25 (1) Adjusted (Non-GAAP) Notable items Highlights 2Q25 vs 1Q25 2Q25 vs 2Q24 Noninterest expense increased by $7 million. Noninterest expense i
Slide 16: Balance Sheet Highlights
16 Balance Sheet Highlights ($ in millions, except per share data) Increase (decrease) 2Q25 vs 1Q25 (1) 2Q25 vs 2Q24 (1) SELECT PERIOD END BALANCES 2Q25 1Q25 2Q24 $ % $ % Interest-earning deposits at banks $ 26,184 $ 24,692 $ 25,361 $ 1,492 24.2 % $ 823 3.2 % Investment securities 43,346 44,319 37,6
Slide 17: Loans and Leases
17 Loans and Leases ($ in millions, period end balances) Highlights $139,341 $140,221 $141,358 $141,269 $138,695 2Q25 vs 1Q25 $39,117 $37,374 $37,818 $37,529 $37,098 • Total loans decreased $89 million or by 0.1% sequentially. The decrease in loans was driven by a $289 million (0.8%) decrease in SVB
Slide 18: 2Q25 Loans and Leases Composition
18 2Q25 Loans and Leases Composition ($ in billions, period end balances) Class Segment Commercial Bank: Commercial Finance ($20.1) Real Estate Finance ($8.3) 2%2% Equipment Finance ($6.0) 14% Commercial and industrial ($42.7) 18% 27% 30% Commercial Services - Factoring ($2.6) Commercial mortgage ($
Slide 19: Deposits
19 Deposits ($ in millions, period end balances) $159,325 $159,935 Highlights $155,229 $151,079 $151,574 2Q25 vs. 1Q25 • Total deposits increased $610 million or $40,767 $40,879 by 0.4% sequentially, driven by a $38,633 $40,016 $39,396 $941 million increase in the Direct Bank and a $778 million incr
Slide 20: 2Q25 Deposit Composition
20 2Q25 Deposit Composition ($ in billions, except average account size, period end balances) Type Segment General Bank: Branch Network, Wealth & Other ($65.5) 7% 1% Money market & savings ($84.5) Community Association Banking ($8.0) 14% 28% Commercial Bank: 41% Commercial Bank ($2.9) Noninterest-be
Slide 21: SVB Commercial Segment Trends
21 SVB Commercial Segment Trends ($ in billions) Total client funds (EOP) Total client funds (Avg) $2.3 billion or 2.3% $(2.1) billion or (2.1)% $98.8 $99.4 $101.7 $97.3 $99.4 $97.3 $94.9 $93.6 $93.0 $93.6 $36.5 37.0 37.8 $36.7 $35.6 $35.5 $35.8 $35.8 $34.2 $35.4 $59.1 $57.7 $62.3 $62.4 $63.9 $58.8
Slide 22: Funding Mix
22 Funding Mix ($ in millions) Period End Balances Increase (decrease) 2Q25 vs. 2Q25 vs. 2Q25 1Q25 4Q24 3Q24 2Q24 1Q25 2Q24 Total deposits $ 159,935 80.8 % $ 159,325 80.6 % $ 155,229 80.7 % $ 151,574 80.3 % $ 151,079 80.1 % $ 610 $ 8,856 Securities sold under customer repurchase agreements 471 0.2 4
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 $119 $117 $115 $95 0.42% 0.46% 0.41% 0.38% 0.33% 0.35% 0.37% 0.39% 0.41% 0.37% 2Q24 3Q24 4Q24 1Q25 2Q25 2Q24 3Q24 4Q24 1Q25 2Q25 NCO $ QTD NCO ratio YTD NCO ra
Slide 24: Allowance for loan and lease losses
24 Allowance for loan and lease losses ($ in millions) 1Q25 to 2Q25 $1,680 $31 $1,672 $(29) $(6) $(2) $(2) 1Q25 Credit quality Economic Loan volume Portfolio change Specific reserves 2Q25 outlook Highlights ALLL Coverage 3.5x 2Q25 vs 1Q25 3.2x 2.9x 2.9x 2.6x • ALLL decreased $8 million from the link
Slide 25: Capital
25 Capital Reported capital ratios (1) Capital ratio rollforward Risk-Based Capital Tier 1 15.45% 15.36% 15.23% Total Tier 1 CET1 Leverage 15.04% 13.87% 13.78% 14.25% December 31, 2024 15.04% 13.53% 12.99% 9.90% 13.53% 13.35% 12.63% March 31, 2025 15.23% 13.35% 12.81% 9.75% Net income 0.35% 0.35% 0.
Slide 26: Share Repurchase Plan Update
26 Share Repurchase Plan Update Class A Common Shares Outstanding Highlights 13,524,550 • Since announcing a share repurchase plan in July 2024, we have repurchased 11.50% of Class A common shares and 10.71% of (814,641) 11,969,071 total common shares that were outstanding (1) (740,838) as of June 3
Slide 27: Financial Outlook
Financial Outlook Section III
Slide 28: Key Earnings Estimate Assumptions
28 Key Earnings Estimate Assumptions Metric 2Q25 3Q25 - Projected FY25 - Projected Loans and leases - EOP $141.3 billion $141 billion - $144 billion $143 billion - $146 billion Deposits - EOP $159.9 billion $159 billion - $162 billion $161 billion - $166 billion Zero to two 25 bps cuts in 2H25; Inte
Slide 29: Appendix
A First Citizens BancShares’ Appendix Section IV
Slide 30: Glossary of Abbreviations and Acronyms
30 Glossary of Abbreviations and Acronyms The following is a list of certain abbreviations and acronyms used throughout this document. AFS – Available for Sale IBD – Interest-Bearing Deposits ALLL – Allowance for Loan and Lease Losses ID – Investor Dependent AOCI – Accumulated Other Comprehensive In
Slide 31: BancShares Balance Sheets (unaudited)
31 BancShares Balance Sheets (unaudited) ($ in millions) Jun 30, 2025 Mar 31, 2025 Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 ASSETS Cash and due from banks $ 889 $ 812 $ 814 $ 862 $ 764 Interest-earning deposits at banks 26,184 24,692 21,364 25,640 25,361 Securities purchased under agreements to resell
Slide 32: BancShares Income Statements (unaudited)
32 BancShares Income Statements (unaudited) ($ in millions) 2Q25 1Q25 4Q24 3Q24 2Q24 INTEREST INCOME Interest and fees on loans $ 2,270 $ 2,236 $ 2,322 $ 2,430 $ 2,422 Interest on investment securities 419 414 377 358 330 Interest on deposits at banks 256 245 302 350 378 Total interest income 2,945
Slide 33: Noninterest income
33 Noninterest income ($ in millions) 2Q25 Change vs 1Q25 2Q25 1Q25 4Q24 3Q24 2Q24 $ % Rental income on operating lease equipment $ 272 $ 270 $ 272 $ 262 $ 259 $ 2 1.0 % Lending-related fees 69 66 68 67 63 3 5.2 Deposit fees and service charges 59 58 58 57 57 1 3.2 Client investment fees 52 53 54 55
Slide 34: Noninterest expense
34 Noninterest expense ($ in millions) 2Q25 Change vs 1Q25 2Q25 1Q25 4Q24 3Q24 2Q24 $ % Depreciation on operating lease equipment $ 100 $ 98 $ 101 $ 99 $ 98 $ 2 0.8 % Maintenance and other operating lease expenses 55 58 55 59 60 (3) (3.3) Personnel cost 810 818 801 788 745 (8) (1.0) Net occupancy ex
Slide 35: Loan Portfolios in Focus
35 Loan Portfolios in Focus ($ in billions, as of June 30, 2025) CRE Portfolio Composition % of total Balance loans Multi-Family $ 5.2 3.6 % Medical Office 3.8 2.7 Industrial/Warehouse 3.7 2.6 General Office 2.2 1.6 Commercial Bank 0.9 0.7 General Bank 1.3 0.9 Retail 1.7 1.2 Healthcare 1.3 0.9 Total
Slide 36: General Office CRE Portfolio
36 General Office CRE Portfolio (as of June 30, 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 Metric
Slide 37: SVB Investor Dependent Portfolio
37 SVB Investor Dependent Portfolio (as of June 30, 2025) Portfolio Characteristics Portfolio Metrics • Early Stage - Loans to development-stage innovation companies Early Stage Growth Stage with $0-5 million in revenues. • Growth Stage - Loans to mid and later-stage innovation companies Loan balanc
Slide 38: Estimated Liquidity Available for Uninsured Deposits
38 Estimated Liquidity Available for Uninsured Deposits ($ in millions) June 30, 2025 March 31, 2025 June 30, 2024 Liquid assets: Available cash $ 25,332 $ 23,769 $ 24,480 High-quality liquid securities 38,284 39,018 32,427 Total liquid assets (a) $ 63,616 $ 62,787 $ 56,907 Contingent sources: FDIC
Slide 39: Debt Securities Overview
39 Debt Securities Overview ($ in millions, period end balances) (1) 2Q25 (1) Duration in Carrying value (2) % of Portfolio Yield (3) years AFS Portfolio U.S. Treasury $ 12,170 28 % 4.29 % 1.0 Government agency 60 — 3.94 0.3 Residential mortgage-backed securities 16,924 39 4.22 3.3 Commercial mortga
Slide 40: Average Balances and Yields
40 Average Balances and Yields ($ in millions) Change vs. 2Q25 1Q25 2Q24 1Q25 2Q24 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) 2Q25 vs 1Q25 2Q25 vs 2Q24 Earnings Summary 2Q25 1Q25 4Q24 3Q24 2Q24 $ % $ % Net interest income $ 824 $ 788 $ 777 $ 760 $ 730 $ 36 4.7 % $ 94 12.9 % Total noninterest income 164 164 166 149 152 — — 12 8.0 Total revenue 988 952 943 909 882 3
Slide 42: Commercial Bank Segment
42 Commercial Bank Segment ($ in millions) Increase (decrease) 2Q25 vs 1Q25 2Q25 vs 2Q24 Earnings Summary 2Q25 1Q25 4Q24 3Q24 2Q24 $ % $ % Net interest income $ 299 $ 293 $ 307 $ 305 $ 311 $ 6 2.3 % $ (12) (3.5)% Rental income on operating lease equipment 54 56 55 57 58 (2) (2.2) (4) (4.7) Less: dep
Slide 43: SVB Commercial Segment
43 SVB Commercial Segment ($ in millions) Increase (decrease) 2Q25 vs 1Q25 2Q25 vs 2Q24 Earnings Summary 2Q25 1Q25 4Q24 3Q24 2Q24 $ % $ % Net interest income $ 490 $ 493 $ 544 $ 560 $ 553 $ (3) (0.5)% $ (63) (11.4)% Total noninterest income 130 132 137 137 134 (2) (1.2) (4) (2.8) Total revenue 620 6
Slide 44: Rail Segment
44 Rail Segment ($ in millions) Increase (decrease) 2Q25 vs 1Q25 2Q25 vs 2Q24 Earnings Summary 2Q25 1Q25 4Q24 3Q24 2Q24 $ % $ % Net interest expense $ 53 $ 52 $ 50 $ 48 $ 45 $ 1 3.9 % $ 8 18.1 % Rental income on operating lease equipment 218 214 217 205 201 4 1.8 17 8.2 Less: depreciation on operati
Slide 45: Corporate
45 Corporate ($ in millions) Increase (decrease) 2Q25 vs 1Q25 2Q25 vs 2Q24 Earnings Summary 2Q25 1Q25 4Q24 3Q24 2Q24 $ % $ % Net interest income $ 135 $ 141 $ 131 $ 219 $ 272 $ (6) (4.6)% $ (137) (50.5)% Total noninterest income 11 (2) 17 21 15 13 (753.7) (4) (28.7) Total revenue 146 139 148 240 287
Slide 46: Purchase accounting marks
46 Purchase accounting marks ($ in millions) June 30, 2025 March 31, 2025 December 31, 2024 September 30, 2024 June 30, 2024 Loans and leases (including off-balance sheet exposure) (1) Beginning balance - unamortized fair value mark $ (1,561) $ (1,644) $ (1,746) $ (1,857) $ (2,005) Other 3 — 12 4 3
Slide 47: Non-GAAP Reconciliations
Non-GAAP Reconciliations Section V
Slide 48: Notable Items
48 Notable Items (1) ($ in millions, except per share data) 2Q25 1Q25 4Q24 3Q24 2Q24 (2) (7) Rental income on operating lease equipment $ (155) $ (156) $ (152) $ (158) $ (158) 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 2Q25 1Q25 4Q24 3Q24 2Q24 Net income and EPS Net income (GAAP) a $ 575 483 700 639 707 Preferred stock dividends 14 15 15 15 16 Net income available to common stockholders (GAAP) b 561 468 685 624 69
Slide 50: Non-GAAP Reconciliations
50 Non-GAAP Reconciliations ($ in millions) Non-GAAP Reconciliations 2Q25 1Q25 2Q24 PPNR Net income (GAAP) a $ 575 483 707 Plus: provision for credit losses 115 154 95 Plus: income tax expense 183 168 272 PPNR (non-GAAP) l $ 873 805 1,074 Impact of notable items 56 60 58 Adjusted PPNR (non-GAAP) m $
Slide 51: Non-GAAP Reconciliations
51 Non-GAAP Reconciliations ($ in millions) Non-GAAP Reconciliations 2Q25 1Q25 2Q24 ROE and ROTCE Annualized net income available to common stockholders s = b annualized $ 2,249 1,898 2,779 Annualized adjusted net income available to common stockholders t = e annualized $ 2,377 2,081 2,974 Average s
Slide 52: Non-GAAP Reconciliations
52 Non-GAAP Reconciliations ($ in millions, except share and per share data) Non-GAAP Reconciliations 2Q25 1Q25 4Q24 3Q24 2Q24 Book value and tangible book value per common share Common shares outstanding at period end bb 13,075,979 13,414,938 13,717,621 14,179,208 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 2Q25 1Q25 4Q24 3Q24 2Q24 Noninterest Income and Noninterest Expense: Commercial Bank Segment Noninterest income (GAAP) $ 152 125 156 136 135 Less: depreciation on operating lease equipment 44 44 44
Slide 54: Non-GAAP Reconciliations
54 Non-GAAP Reconciliations ($ in millions) Non-GAAP Reconciliations 2Q25 1Q25 4Q24 3Q24 2Q24 PPNR: General Bank Segment Segment net income (GAAP) $ 294 253 286 202 252 Plus: provision for credit losses 13 46 22 55 37 Plus: income tax expense 101 88 92 99 92 PPNR (non-GAAP) $ 408 387 400 356 381 PPN
Slide 55: Non-GAAP Reconciliations
55 Non-GAAP Reconciliations ($ in millions) Non-GAAP Reconciliations 2Q25 1Q25 4Q24 3Q24 2Q24 Total Risk Based Capital Ratio Total risk based capital ratio (GAAP) 14.25 % 15.23 % 15.04 % 15.36 % 15.45 % Less: impact of FDIC Shared-Loss Agreement — 0.74 0.77 0.85 0.98 Adjusted total risk based capita
Slide 56: Non-GAAP Reconciliations
56 Non-GAAP Reconciliations ($ in millions) Non-GAAP Reconciliations 2Q25 1Q25 4Q24 3Q24 2Q24 Income tax expense Income tax expense (GAAP) $ 183 168 36 234 272 Impact of notable items (1) 24 15 123 15 10 Adjusted income tax expense (non-GAAP) $ 207 183 159 249 282 Note: Certain items above do not pr
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