First Citizens BancShares Reports $575 Million Net Income in Q2 2025

First Citizens BancShares, Inc. reported a net income of $575 million for the second quarter of 2025, reflecting a 19% increase from $483 million in the previous quarter. The earnings per diluted share rose to $42.36, up from $34.47 in the linked quarter. The growth in net income was attributed to higher noninterest income, a decrease in the provision for credit losses, and increased net interest income, which totaled $1.70 billion, a 2% increase from the prior quarter. However, net income for the year-to-date period decreased by 27% compared to the same period last year, primarily due to lower net interest income and higher noninterest expenses.

The company’s total assets increased to $229.65 billion as of June 30, 2025, up from $223.72 billion at the end of 2024. Total loans and leases rose to $141.27 billion, a slight increase of 1% from $140.22 billion at year-end 2024. The growth was driven by the Commercial Bank segment, particularly in technology media and telecommunications and healthcare sectors. Deposits also grew by 3% to $159.94 billion, with significant contributions from the Corporate segment and the SVB Commercial segment, which saw increases of $3.51 billion and $1.27 billion, respectively.

In terms of operational metrics, the allowance for loan and lease losses (ALLL) stood at $1.67 billion, a decrease of $4 million from the end of 2024. The ALLL as a percentage of total loans was 1.18%, down from 1.20% at year-end 2024. The company reported a provision for credit losses of $115 million for the quarter, a decrease from $154 million in the previous quarter, indicating improved credit quality. Nonaccrual loans increased to $1.32 billion, primarily due to one significant credit in the commercial and industrial loan class.

Strategically, First Citizens BancShares has been active in share repurchase programs, having repurchased 338,959 shares of Class A common stock for approximately $613 million during the second quarter. The company also announced a new share repurchase program allowing for up to $4 billion in repurchases through December 31, 2026. Additionally, the company terminated its Shared-Loss Agreement with the FDIC, which had no impact on its financial statements, as it was determined that the likelihood of reaching the loss threshold was remote.

Looking ahead, the company remains focused on maintaining a strong liquidity position, with $63.62 billion in high-quality liquid assets as of June 30, 2025. The management is closely monitoring economic conditions, including the impact of recent changes in trade policies and interest rates, which could affect future performance. The company’s capital ratios remain strong, with a total risk-based capital ratio of 14.25%, exceeding regulatory requirements.