First Citizens BancShares Reports Q3 2025 Financial Results with $568 Million Net Income

First Citizens BancShares, Inc. reported its financial results for the third quarter of 2025, revealing a net income of $568 million, a decrease of 1% from $575 million in the previous quarter. The earnings per diluted common share were $43.08, up from $42.36 in the linked quarter. The decline in net income was attributed to a higher provision for credit losses, which rose to $191 million from $115 million in the prior quarter, partially offset by increases in net interest income and noninterest income. Net interest income for the quarter was $1.73 billion, a 2% increase from the previous quarter, driven by higher interest income on loans and investment securities.

Compared to the same period last year, net income decreased by 11% from $639 million, with net income available to common stockholders also down to $554 million from $624 million. The year-to-date net income was reported at $1.63 billion, a 22% decline from $2.08 billion in the prior year. The decrease in year-to-date earnings was primarily due to lower net interest income, higher noninterest expenses, and increased provisions for credit losses. The company’s net interest margin remained stable at 3.26%, while the provision for credit losses for the year-to-date period increased to $460 million from $276 million in the previous year.

In terms of strategic developments, First Citizens announced a significant acquisition plan on October 16, 2025, to acquire 138 branches from BMO Bank N.A., which will add approximately $5.7 billion in deposit liabilities and $1.1 billion in loans. This transaction is expected to close in mid-2026, pending regulatory approvals. Additionally, the company has been active in managing its capital structure, issuing $600 million in subordinated notes and redeeming $350 million in existing debt during the quarter.

Operationally, First Citizens reported total loans and leases of $144.76 billion as of September 30, 2025, reflecting a 3% increase from $140.22 billion at the end of 2024. The growth was driven by increases in the SVB Commercial segment, particularly in global fund banking. Deposits also rose to $163.19 billion, a 5% increase from $155.23 billion at the end of the previous year. The company maintained a strong capital position, with a total risk-based capital ratio of 14.05%, exceeding regulatory requirements.

Looking ahead, First Citizens remains focused on optimizing its deposit mix and managing interest rate risk, particularly in light of recent changes in the economic environment and interest rates. The company continues to monitor macroeconomic conditions and their potential impacts on credit quality and overall financial performance.