First Citizens BancShares Reports $483 Million Net Income in Q1 2025, Down 31%

First Citizens BancShares, Inc. reported a net income of $483 million for the first quarter of 2025, a decrease of 31% from $700 million in the previous quarter. The decline in profitability was attributed primarily to a significant increase in income tax expenses, which rose by $132 million compared to the prior quarter. Net income available to common stockholders was $468 million, down from $685 million in the fourth quarter of 2024. Earnings per diluted share also fell to $34.47 from $49.21 in the previous quarter.

The company's total assets increased to $228.82 billion as of March 31, 2025, up from $223.72 billion at the end of 2024. Total loans and leases rose to $141.36 billion, reflecting a 1% increase from $140.22 billion, driven by growth in commercial loans, particularly in the technology media and telecommunications sectors. Deposits also saw a 3% increase, reaching $159.33 billion, primarily due to growth in savings and noninterest-bearing deposits.

In terms of operational developments, First Citizens completed the issuance of $1.25 billion in debt during the quarter, which contributed to an increase in borrowings to $38.41 billion. The company also repurchased 302,683 shares of its Class A common stock for approximately $613 million, as part of its ongoing share repurchase program, which has a remaining capacity of $1.22 billion. Additionally, the company terminated its Shared-Loss Agreement with the FDIC, which had previously provided favorable risk-weighted asset assumptions.

The allowance for loan and lease losses (ALLL) stood at $1.68 billion, a slight increase from $1.68 billion at the end of 2024, reflecting modest deterioration in the macroeconomic outlook and increased loan volumes. The ALLL as a percentage of total loans was 1.19%, down from 1.20%. The company reported a net charge-off ratio of 0.41% for the quarter, indicating a decrease in charge-offs compared to the previous quarter.

Looking ahead, First Citizens remains focused on maintaining a strong liquidity position, with $62.79 billion in high-quality liquid assets. The company is also monitoring economic conditions, including potential impacts from changes in trade policies and interest rates, which could affect its financial performance. The management expressed confidence in its ability to navigate these challenges while continuing to pursue growth opportunities across its various business segments.