First Citizens BancShares Reports $2.21 Billion Net Income for Fiscal Year 2025

**First Citizens BancShares Reports Annual Financial Results**

First Citizens BancShares, Inc. (FCNCA) reported net income of $2.21 billion for the fiscal year ending December 31, 2025, a decrease of 21% compared to $2.78 billion in the previous year. The decline was attributed to lower net interest income (NII), increased noninterest expenses, and a higher provision for credit losses, partially offset by higher noninterest income and lower income tax expenses. Earnings per diluted common share were $165.24, down from $189.41 in the prior year. The company's return on average assets also decreased to 0.96% from 1.26% in the previous fiscal year.

NII decreased by 5% to $6.81 billion, while the net interest margin (NIM) fell by 29 basis points to 3.25%. These declines were primarily due to lower yields on loans, reduced average balances and yields on interest-earning deposits at banks, and decreased purchase accounting accretion (PAA). Noninterest income increased by 4% to $2.73 billion, driven by higher rental income on operating lease equipment, wealth management services, and international fees. However, noninterest expenses rose by 6% to $6.06 billion, mainly due to increased personnel costs, marketing expenses, and equipment expenses.

Strategic developments during the year included the announcement of an agreement to acquire 138 branches from BMO Bank N.A., expected to close in the second half of 2026. The company also continued its share repurchase program, repurchasing approximately $3.03 billion of its Class A common stock during the year. Additionally, the company issued 7.000% non-cumulative perpetual preferred stock, series D, for a total of $500 million in November 2025, and 6.625% non-cumulative perpetual preferred stock, series E for a total of $400 million in February 2026. The company also prepaid $2.49 billion of the Purchase Money Note in December 2025, resulting in a $9 million loss on extinguishment of debt.

Key operational developments included a 6% increase in total loans and leases to $147.93 billion, driven by growth in the Commercial Bank segment. Total deposits increased by 4% to $161.58 billion, with growth in Corporate, General Bank, and Commercial Bank segments. The allowance for loan and lease losses (ALLL) decreased to $1.57 billion, resulting in an ALLL reserve release of $110 million. As of December 31, 2025, the company employed 18,141 individuals. The company's ability to attract, retain, and develop associates is critical to its success.

Looking ahead, First Citizens BancShares will focus on client relationships, talent management, operational efficiency, and balance sheet optimization. The company expects to continue managing its capital and liquidity prudently while navigating evolving market conditions and regulatory requirements. The company is also monitoring the potential impact of proposed regulatory changes, including the Basel III Endgame and fair access laws.