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FIRST CITIZENS BANCSHARES INC /DE/

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Business Summary

First Citizens BancShares, Inc. (BancShares) operates as a bank holding company, with its primary banking subsidiary, First-Citizens Bank & Trust Company (FCB), providing a broad range of financial services to individuals, businesses, and professionals across an extensive network of branches and offices, predominantly in the Southeast, Mid-Atlantic, Midwest, and Western United States . The company also operates a nationwide digital banking platform, the Direct Bank, offering deposit products to consumers . As of December 31, 2025, BancShares had total consolidated assets of $229.70 billion . The company has historically pursued growth through strategic mergers and acquisitions, including the acquisition of Silicon Valley Bridge Bank, N.A. (SVBB) in March 2023, and a pending acquisition of 138 branches from BMO Bank N.A. .

BancShares faces significant competition from national, regional, and local financial services providers, including other banks, credit unions, commercial finance companies, leasing companies, wealth management providers, private equity firms, private credit providers, hedge funds, insurance agencies, and mortgage companies . Non-bank financial entities, which are not subject to the same regulatory restrictions, intensify this competition . As of June 30, 2025, FCB was the third largest bank in North Carolina with an 11.8% deposit market share and the fourth largest in South Carolina with a 9.5% deposit market share . The two larger banks in North Carolina, Bank of America and Truist Bank, collectively held 63.1% of deposits, while the three larger banks in South Carolina, Bank of America, Wells Fargo, and Truist Bank, collectively held 39.1% of deposits .

The core business model of BancShares involves generating revenue through deposit products, loans, wealth management, private banking, leasing, capital markets, and advisory services . The company serves consumer clients, small and middle-market companies across various industries, private equity firms, venture capital firms, and commercial clients in innovation markets such as technology, life sciences, and healthcare . Revenue is a mix of interest income from loans, leases, and investments, and noninterest income from various fee-based services and rental income from operating lease equipment . The Direct Bank, a nationwide digital banking platform, primarily offers deposit products to consumers .

BancShares' reportable segments as of December 31, 2025, include the General Bank, the Commercial Bank, and Rail . The General Bank segment delivers services to individuals and businesses through its extensive branch network and digital channels, offering deposit products, loans (primarily business/commercial loans and residential mortgages), wealth management, private banking, and fee-based services . It also provides solutions to homeowner associations and property management companies . For the year ended December 31, 2025, the General Bank segment reported net income of $1.175 billion and total revenue of $3.963 billion . Loans and leases for this segment were $64.958 billion , and deposits were $74.796 billion at year-end 2025.

The Commercial Bank segment provides lending, leasing, capital markets, and other financial and advisory services, primarily to small and middle-market companies across various industries . It offers commercial deposit, liquidity management, and international products, along with a full suite of financial products and services to private equity firms, venture capital firms, and commercial clients in innovation markets . This segment also provides asset-based lending, factoring, receivables management, and secured financing services . For the year ended December 31, 2025, the Commercial Bank segment reported net income of $975 million and total revenue of $4.330 billion . Loans and leases for this segment were $82.910 billion , and deposits were $41.532 billion at year-end 2025.

The Rail segment is focused on providing equipment leasing and secured financing to railroads and shippers . For the year ended December 31, 2025, the Rail segment reported net income of $87 million and total revenue of $680 million . Operating lease equipment, net, for this segment was $8.882 billion at year-end 2025. The Corporate section includes financial information not allocated to the segments, such as investment securities, interest-earning deposits at banks, and interest expense for borrowings and Direct Bank deposits .

For the fiscal year ended December 31, 2025, BancShares reported net income of $2.206 billion , with net income available to common stockholders of $2.149 billion . Diluted earnings per common share were $165.24 . Total revenue, which is the sum of net interest income and noninterest income, was $9.541 billion . Net interest income was $6.814 billion , and noninterest income was $2.727 billion . Noninterest expense totaled $6.056 billion . The provision for credit losses was $514 million . As of December 31, 2025, total assets were $229.698 billion , total deposits were $161.578 billion , and total borrowings were $36.008 billion . The allowance for loan and lease losses (ALLL) was $1.566 billion , representing 1.06% of total loans . The total risk-based capital ratio was 13.71% , Tier 1 risk-based capital ratio was 11.91% , Common Equity Tier 1 (CET1) ratio was 11.15% , and Tier 1 leverage ratio was 9.29% .

Comparing the fiscal year 2025 to 2024, net income decreased by $571 million, or 21%, from $2.777 billion to $2.206 billion . Net interest income decreased by $329 million, or 5%, from $7.143 billion to $6.814 billion , primarily due to lower yields on loans, lower average balance and yields on interest-earning deposits at banks, and lower purchase accounting accretion or amortization (PAA), partially offset by a decline in the rate paid on interest-bearing deposits and a higher average balance of loans and investment securities . Noninterest income increased by $112 million, or 4%, from $2.615 billion to $2.727 billion , driven by increases in rental income on operating lease equipment ($48 million) , wealth management services ($18 million) , international fees ($17 million) , and deposit fees and service charges ($11 million) . Noninterest expense increased by $321 million, or 6%, from $5.735 billion to $6.056 billion , mainly due to higher personnel costs ($216 million) , marketing expense ($66 million) , equipment expense ($51 million) , and third-party processing fees ($38 million) . The provision for credit losses increased by $83 million, or 19%, from $431 million to $514 million . The ALLL decreased by $110 million from $1.676 billion at December 31, 2024, to $1.566 billion at December 31, 2025, mainly due to loan growth concentrated in capital call lines, elimination of reserves related to Hurricane Helene, a modest shift in scenario weighting, and improvements in economic outlook and credit quality .

During 2025, BancShares authorized a new share repurchase program (2025 SRP) for up to $4.0 billion of Class A common stock through December 31, 2026, which commenced in September 2025 after the completion of the 2024 SRP . The company repurchased approximately $3.03 billion of Class A common stock in aggregate under both programs during 2025 . The Parent Company also issued $500 million of 7.000% non-cumulative perpetual preferred stock, Series D, on November 18, 2025 , and $400 million of 6.625% non-cumulative perpetual preferred stock, Series E, in February 2026 . Debt transactions included the prepayment of $2.49 billion of the Purchase Money Note in December 2025 , and the redemption of $350 million of 3.375% Fixed-to-Floating Rate Subordinated Notes due in 2030 on June 15, 2025 . New debt issuances in 2025 included $600 million of 5.600% Fixed Rate Reset Subordinated Notes due in 2035, $500 million of 5.231% Fixed-to-Floating Rate Senior Notes due in 2031, and $750 million of 6.254% Fixed-to-Fixed Rate Subordinated Notes due in 2040 . FCB also entered into an agreement to terminate the Shared-Loss Agreement with the FDIC on April 7, 2025 .

Business Outlook

Management's strategic priorities for the upcoming period center around client focus, talent and culture, operational efficiency, and balance sheet optimization . The company aims to expand and grow its capabilities and products while maintaining a client-first approach, attract, retain, and develop associates aligned with its long-term direction, optimize processes and systems to reduce organizational complexity and maximize productivity, and prudently manage its balance sheet to optimize funding and liquidity while driving core deposit growth and enhancing returns .

A major growth area for BancShares is through strategic mergers and acquisitions, with the pending BMO Branch Acquisition expected to close in the second half of 2026 . This acquisition involves FCB assuming approximately $5.7 billion in deposit liabilities and acquiring approximately $1.1 billion in loans from 138 branches located throughout the Midwest, Great Plains, and West regions of the U.S. . This transaction is subject to customary closing terms and conditions and regulatory approvals .

The company also anticipates growth through its Direct Bank, a nationwide digital banking platform, which saw deposit growth of $3.02 billion in 2025, primarily in savings accounts . The Commercial Bank segment, particularly in Global Fund Banking and other industry verticals like Technology Media and Telecommunications (TMT) and Healthcare, is also a focus for loan growth, having increased by $7.64 billion in 2025 .

Operationally, BancShares plans to continue streamlining systems to simplify its information technology operating environment and improve its data infrastructure . The company's NII Sensitivity simulations as of December 31, 2025, indicate an asset-sensitive interest rate risk profile, with potential exposure to forecasted earnings largely due to the composition of the balance sheet (primarily floating rate commercial loans and cash) and estimates of modest future deposit betas . Approximately 65% of loans have floating contractual reference rates, indexed primarily to SOFR and the U.S. prime rate . Deposit betas are modeled to average approximately 35%-40% over the twelve-month forecast horizon, including 50%-55% for interest-bearing non-maturity deposits .

Planned capital allocation includes a share repurchase program (2025 SRP) which allows BancShares to repurchase shares of its Class A common stock in an aggregate amount up to $4.0 billion through December 31, 2026 . As of February 13, 2026, the total capacity remaining under the 2025 SRP was $2.37 billion . The company also made additional prepayments of approximately $500 million on the Purchase Money Note in both January and February 2026 , and will continue to monitor the interest rate environment and FCB's collateral position to assess further voluntary prepayments .

Management explicitly flagged several structural headwinds and execution risks to its growth plan. The financial services industry is highly competitive and continues to evolve due to changes in regulation, technology, product delivery systems, consolidation, and the general market and economic climate . Non-bank financial entities, not subject to the same regulatory restrictions, can operate with greater flexibility and lower cost structures, intensifying competition . The process of "disintermediation," where consumers use alternative methods for financial transactions without involving banks, could result in the loss of fee income, customer deposits, and related income . The legal and regulatory environment for Artificial Intelligence (AI) is uncertain and rapidly evolving, potentially increasing compliance costs and the risk of non-compliance . Generative AI models may produce incorrect outputs, release confidential information, reflect biases, infringe intellectual property, or cause harm . Crypto-asset related activities also present unique risks, including market and liquidity risk, operational and cybersecurity risks, consumer protection requirements, and Anti-Money Laundering (AML) requirements .

Geographic, regulatory, and macro factors identified as constraints include the dynamic and uncertain tariff environment, which could lead to continuing uncertainty and volatility in U.S. and global financial markets and economic conditions . A U.S. government debt default, threatened default, or downgrade of sovereign credit ratings could adversely impact financial markets, interest rates, and economic conditions . The company is also subject to evolving regulatory, political, and social attention to climate change and related environmental sustainability matters, which could increase compliance costs and require significant operational changes .

Risk Factors

BancShares faces material macroeconomic risks, including unfavorable economic conditions, U.S. debt ceiling and budget deficit concerns, and changes in domestic and foreign trade policies, such as the imposition of tariffs and retaliatory tariffs, which could adversely affect its financial condition, results of operations, and cash flows . Competitive risks are significant, with intense competition from traditional and non-traditional financial service providers potentially reducing market share and profitability, and the increasing trend of consumers bypassing banks for financial transactions (disintermediation) posing a risk to fee income and deposit base . Regulatory risks are heightened by operating in a highly regulated industry, with changes in laws, regulations, or their interpretation, or failure to comply, potentially leading to increased compliance costs, limitations on business activities, adverse regulatory actions, civil money penalties, or reputational damage . Specifically, enhanced prudential standards for banking organizations with over $100 billion in consolidated assets, and potential future requirements if asset thresholds are crossed, could have a material adverse effect . Geopolitical risks include the potential for cyberattacks and information or security breaches from nation-state actors or others, especially given FCB's expanded geographic footprint and increased prominence . Operational risks encompass significant challenges in maintaining appropriate operational infrastructure and oversight, including employee fraud, control lapses, and reliance on third-parties for key business infrastructure, any of which could lead to service loss, reputational harm, legal actions, and noncompliance . The company is also exposed to losses related to fraud, which is becoming increasingly sophisticated, and its business and financial performance could be impacted by natural or man-made disasters, global pandemics, civil unrest, acts of war, terrorist activities, or climate change . Deposit insurance premiums levied by the FDIC may increase if there is an increase in bank failures, resolution costs, or the FDIC deposit insurance coverage limit . The FDIC increased the base deposit insurance assessment rates by 2 basis points starting in the first quarter of 2023, and FCB is subject to special assessments at a quarterly rate of 3.36 basis points for seven quarterly assessment periods and a reduced quarterly rate of 2.97 basis points for the eighth and final period ending December 31, 2025, to recover losses to the Deposit Insurance Fund .

Management Priorities

Management's message to shareholders emphasizes a commitment to effectively managing capital to protect depositors, creditors, and stockholders, continually monitoring capital levels and ratios to ensure they exceed minimum regulatory requirements and are appropriate for growth projections, risk profile, and potential changes in the regulatory or external environment . The overall tone reflects a focus on strategic growth through acquisitions and organic expansion, while prudently managing risks and optimizing the balance sheet. Management has provided specific forward-looking statements regarding the 2025 Share Repurchase Program (SRP), noting that the Board authorized repurchases of Class A common stock in an aggregate amount up to $4.0 billion through December 31, 2026 , with $2.37 billion of capacity remaining as of February 13, 2026 . Additionally, management stated that FCB made additional prepayments of approximately $500 million on the Purchase Money Note in both January and February 2026 . The three strategic priorities emphasized for the period ahead are client focus, talent and culture, and operational efficiency, alongside balance sheet optimization . These priorities aim to expand capabilities and products, attract and develop talent, optimize processes and systems, and prudently manage funding and liquidity .

View Source Annual Report on SEC.gov ↗

References

  1. [1] Item 1, Business — General
  2. [2] Item 1, Business — General
  3. [3] Item 1, Business — General
  4. [4] Item 1, Business — General
  5. [5] Item 1, Business — General
  6. [6] Item 1, Business — General
  7. [7] Item 1, Business — Business Combinations
  8. [8] Item 1, Business — Competition
  9. [9] Item 1, Business — Competition
  10. [10] Item 1, Business — Competition
  11. [11] Item 1, Business — Competition
  12. [12] Item 1, Business — General
  13. [13] Item 1, Business — General
  14. [14] Item 7, MD&A — Net Interest Income and Net Interest Margin
  15. [15] Item 1, Business — General
  16. [16] Item 1, Business — Segments
  17. [17] Item 1, Business — SEGMENT MARKETS AND SERVICES
  18. [18] Item 1, Business — SEGMENT MARKETS AND SERVICES
  19. [19] Item 7, MD&A — General Bank
  20. [20] Item 7, MD&A — General Bank
  21. [21] Item 7, MD&A — General Bank
  22. [22] Item 7, MD&A — General Bank
  23. [23] Item 1, Business — SEGMENT MARKETS AND SERVICES
  24. [24] Item 1, Business — SEGMENT MARKETS AND SERVICES
  25. [25] Item 1, Business — SEGMENT MARKETS AND SERVICES
  26. [26] Item 7, MD&A — Commercial Bank
  27. [27] Item 7, MD&A — Commercial Bank
  28. [28] Item 7, MD&A — Commercial Bank
  29. [29] Item 7, MD&A — Commercial Bank
  30. [30] Item 1, Business — SEGMENT MARKETS AND SERVICES
  31. [31] Item 7, MD&A — Rail
  32. [32] Item 7, MD&A — Rail
  33. [33] Item 7, MD&A — Rail
  34. [34] Item 1, Business — SEGMENT MARKETS AND SERVICES
  35. [35] Item 7, MD&A — Table 1, Selected Financial Data
  36. [36] Item 7, MD&A — Table 1, Selected Financial Data
  37. [37] Item 7, MD&A — Table 1, Selected Financial Data
  38. [38] Item 7, MD&A — Financial Performance Summary
  39. [39] Item 7, MD&A — Table 1, Selected Financial Data
  40. [40] Item 7, MD&A — Table 1, Selected Financial Data
  41. [41] Item 7, MD&A — Table 1, Selected Financial Data
  42. [42] Item 7, MD&A — Table 1, Selected Financial Data
  43. [43] Item 7, MD&A — Table 1, Selected Financial Data
  44. [44] Item 7, MD&A — Table 1, Selected Financial Data
  45. [45] Item 7, MD&A — Table 1, Selected Financial Data
  46. [46] Item 7, MD&A — Table 1, Selected Financial Data
  47. [47] Item 7, MD&A — Table 1, Selected Financial Data
  48. [48] Item 7, MD&A — Table 1, Selected Financial Data
  49. [49] Item 7, MD&A — Table 1, Selected Financial Data
  50. [50] Item 7, MD&A — Table 1, Selected Financial Data
  51. [51] Item 7, MD&A — Table 1, Selected Financial Data
  52. [52] Item 7, MD&A — Table 1, Selected Financial Data
  53. [53] Item 7, MD&A — Table 1, Selected Financial Data
  54. [54] Item 7, MD&A — Table 1, Selected Financial Data
  55. [55] Item 7, MD&A — Table 1, Selected Financial Data
  56. [56] Item 7, MD&A — Financial Performance Summary
  57. [57] Item 7, MD&A — Table 1, Selected Financial Data
  58. [58] Item 7, MD&A — Table 1, Selected Financial Data
  59. [59] Item 7, MD&A — Financial Performance Summary
  60. [60] Item 7, MD&A — Financial Performance Summary
  61. [61] Item 7, MD&A — Financial Performance Summary
  62. [62] Item 7, MD&A — Financial Performance Summary
  63. [63] Item 7, MD&A — Table 1, Selected Financial Data
  64. [64] Item 7, MD&A — Table 1, Selected Financial Data
  65. [65] Item 7, MD&A — Financial Performance Summary
  66. [66] Item 7, MD&A — Financial Performance Summary
  67. [67] Item 7, MD&A — Financial Performance Summary
  68. [68] Item 7, MD&A — Financial Performance Summary
  69. [69] Item 7, MD&A — Table 1, Selected Financial Data
  70. [70] Item 7, MD&A — Table 1, Selected Financial Data
  71. [71] Item 7, MD&A — Financial Performance Summary
  72. [72] Item 7, MD&A — Table 1, Selected Financial Data
  73. [73] Item 7, MD&A — Table 1, Selected Financial Data
  74. [74] Item 7, MD&A — Financial Performance Summary
  75. [75] Item 7, MD&A — Recent Events
  76. [76] Item 7, MD&A — Recent Events
  77. [77] Item 7, MD&A — Recent Events
  78. [78] Item 7, MD&A — Recent Events
  79. [79] Item 7, MD&A — Recent Events
  80. [80] Item 7, MD&A — Recent Events
  81. [81] Item 7, MD&A — Recent Events
  82. [82] Item 7, MD&A — Recent Events
  83. [83] Item 7, MD&A — Recent Events
  84. [84] Item 7, MD&A — Recent Events
  85. [85] Item 7, MD&A — Recent Events
  86. [86] Item 7, MD&A — Recent Events
  87. [87] Item 7, MD&A — Recent Events
  88. [88] Item 7, MD&A — Recent Events
  89. [89] Item 7, MD&A — Recent Events
  90. [90] Item 7, MD&A — Recent Events
  91. [91] Item 7, MD&A — Recent Events
  92. [92] Item 7, MD&A — Key Strategic Objectives
  93. [93] Item 7, MD&A — Key Strategic Objectives
  94. [94] Item 7, MD&A — Recent Events
  95. [95] Item 7, MD&A — Recent Events
  96. [96] Item 7, MD&A — Recent Events
  97. [97] Item 7, MD&A — Corporate
  98. [98] Item 7, MD&A — Corporate
  99. [99] Item 7, MD&A — Financial Performance Summary
  100. [100] Item 7, MD&A — Financial Performance Summary
  101. [101] Item 7, MD&A — Key Strategic Objectives
  102. [102] Item 7, MD&A — Interest rate risk management
  103. [103] Item 7, MD&A — Interest rate risk management
  104. [104] Item 7, MD&A — Interest rate risk management
  105. [105] Item 7, MD&A — Interest rate risk management
  106. [106] Item 7, MD&A — Interest rate risk management
  107. [107] Item 7, MD&A — Recent Events
  108. [108] Item 7, MD&A — Recent Events
  109. [109] Item 7, MD&A — Recent Events
  110. [110] Item 7, MD&A — Recent Events
  111. [111] Item 7, MD&A — Recent Events
  112. [112] Item 7, MD&A — Funding, Liquidity and Capital Overview
  113. [113] Item 1A, Risk Factors — We encounter significant competition that may reduce our market share and profitability and our financial performance depends upon our ability to attract and retain customers for our products and services.
  114. [114] Item 1A, Risk Factors — We encounter significant competition that may reduce our market share and profitability and our financial performance depends upon our ability to attract and retain customers for our products and services.
  115. [115] Item 1A, Risk Factors — Consumers may increasingly decide not to use banks to complete their financial transactions, which could have a material adverse impact on our financial condition and operations.
  116. [116] Item 1A, Risk Factors — Failure to adopt new technologies that match consumer preferences or to keep pace with or effectively implement technological changes could adversely affect our results of operations and financial condition.
  117. [117] Item 1A, Risk Factors — Failure to adopt new technologies that match consumer preferences or to keep pace with or effectively implement technological changes could adversely affect our results of operations and financial condition.
  118. [118] Item 1A, Risk Factors — Failure to adopt new technologies that match consumer preferences or to keep pace with or effectively implement technological changes could adversely affect our results of operations and financial condition.
  119. [119] Item 1A, Risk Factors — Changes in domestic and foreign trade policies, including the imposition of tariffs and retaliatory tariffs may adversely impact our business, financial condition, and results of operations.
  120. [120] Item 1A, Risk Factors — U.S. debt ceiling and budget deficit concerns have and could continue to adversely affect our business.
  121. [121] Item 1A, Risk Factors — Our business and financial performance could be impacted by natural or man-made disasters, global pandemics, civil unrest, acts of war, terrorist activities, climate change or other adverse external events.
  122. [122] Item 1A, Risk Factors — Risk Factor Summary
  123. [123] Item 1A, Risk Factors — Risk Factor Summary
  124. [124] Item 1A, Risk Factors — Risk Factor Summary
  125. [125] Item 1A, Risk Factors — Risk Factor Summary
  126. [126] Item 1A, Risk Factors — A cyberattack, information or security breach, or a technology outage of ours or of a third-party could adversely affect our ability to conduct our business, manage our exposure to risk or result in the disclosure or misuse of confidential customer or employee data or proprietary information, and increase our costs to maintain and enhance our operational and security systems and infrastructure. Such an event or resource expenditures could adversely impact our results of operations, liquidity and financial condition.
  127. [127] Item 1A, Risk Factors — Risk Factor Summary
  128. [128] Item 1A, Risk Factors — Risk Factor Summary
  129. [129] Item 1A, Risk Factors — Deposit insurance premiums levied on banks, including FCB, may increase if there is an increase in the number of bank failures, the cost of resolving failed banks, or the FDIC deposit insurance coverage limit.
  130. [130] Item 1, Business — FDIC Insurance
  131. [131] Item 1, Business — FDIC Insurance
  132. [132] Item 1, Business — FDIC Insurance
  133. [133] Item 1, Business — FDIC Insurance
  134. [134] Item 7, MD&A — Capital
  135. [135] Item 5, Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities
  136. [136] Item 5, Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities
  137. [137] Item 5, Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities
  138. [138] Item 5, Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities
  139. [139] Item 7, MD&A — Recent Events
  140. [140] Item 7, MD&A — Recent Events
  141. [141] Item 7, MD&A — Key Strategic Objectives
  142. [142] Item 7, MD&A — Key Strategic Objectives

Analysis on 5/21/2026