WS Investor
24 Apr 2025, 15:37
First Citizens BancShares Reports First Quarter 2025 Earnings
First Citizens BancShares reported net income of $483 million for Q1 2025, down from $700 million in the previous quarter. Net income available to common stockholders was $468 million, or $34.47 per share. The decline was primarily due to a $132 million increase in income tax expense. Pretax income fell to $651 million from $736 million.
Adjusted net income was $528 million, or $37.79 per share, down from $643 million, or $45.10 per share, in the prior quarter. The quarter included $42 million in acquisition-related expenses and $15 million in intangible asset amortization.
Net interest income totaled $1.66 billion, down $46 million, driven by declines in loan yields and deposit balances at banks. Net interest margin declined to 3.26% from 3.32%, with the margin excluding purchase accounting accretion at 3.12%.
Noninterest income fell $64 million to $635 million. Adjusted noninterest income declined by $37 million, mostly due to lower other income and asset write-downs. Noninterest expense was $1.49 billion, down $24 million, while adjusted noninterest expense rose $9 million.
Loans increased 3.3% annualized to $141.36 billion, driven by growth in the Commercial and SVB segments. Deposits rose by $4.1 billion to $159.33 billion, led by growth in the Direct Bank and Branch Network.
The provision for credit losses was $154 million, nearly flat from the prior quarter. Net charge-offs declined to $144 million. The allowance for loan losses stood at $1.68 billion, or 1.19% of total loans.
The bank repurchased $613 million of its stock and paid a $1.95 per share dividend. Capital ratios remain strong, with CET1 at 12.81% and total risk-based capital at 15.23%. Liquidity increased to $62.79 billion.
First Citizens expressed confidence in its capital position and long-term prospects, despite macroeconomic uncertainties.
First Citizens BancShares reported net income of $483 million for Q1 2025, down from $700 million in the previous quarter. Net income available to common stockholders was $468 million, or $34.47 per share. The decline was primarily due to a $132 million increase in income tax expense. Pretax income fell to $651 million from $736 million.
Adjusted net income was $528 million, or $37.79 per share, down from $643 million, or $45.10 per share, in the prior quarter. The quarter included $42 million in acquisition-related expenses and $15 million in intangible asset amortization.
Net interest income totaled $1.66 billion, down $46 million, driven by declines in loan yields and deposit balances at banks. Net interest margin declined to 3.26% from 3.32%, with the margin excluding purchase accounting accretion at 3.12%.
Noninterest income fell $64 million to $635 million. Adjusted noninterest income declined by $37 million, mostly due to lower other income and asset write-downs. Noninterest expense was $1.49 billion, down $24 million, while adjusted noninterest expense rose $9 million.
Loans increased 3.3% annualized to $141.36 billion, driven by growth in the Commercial and SVB segments. Deposits rose by $4.1 billion to $159.33 billion, led by growth in the Direct Bank and Branch Network.
The provision for credit losses was $154 million, nearly flat from the prior quarter. Net charge-offs declined to $144 million. The allowance for loan losses stood at $1.68 billion, or 1.19% of total loans.
The bank repurchased $613 million of its stock and paid a $1.95 per share dividend. Capital ratios remain strong, with CET1 at 12.81% and total risk-based capital at 15.23%. Liquidity increased to $62.79 billion.
First Citizens expressed confidence in its capital position and long-term prospects, despite macroeconomic uncertainties.
