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FIRST CITIZENS BANCSHARES INC /DE/ (FCNCA)·Q3 2025 Earnings Summary

Executive Summary

  • Adjusted EPS of $44.62 beat S&P Global consensus $41.49 by ~7.6%; revenue of $2.24B beat $2.22B; NIM held flat at 3.26% as deposit costs eased modestly while credit costs rose on a single-name charge-off . Estimates from S&P Global*.
  • Reported net revenue rose 2.5% QoQ to $2.43B as net interest income increased and adjusted noninterest income edged higher; adjusted efficiency improved to 56.78% QoQ .
  • Loans grew 2.5% QoQ (+$3.5B) and deposits +2.0% QoQ (+$3.3B), led by SVB Commercial’s Global Fund Banking; noninterest-bearing mix improved to 26.2%; CET1 slipped to 11.65% after $900M of buybacks .
  • Guidance tightened: FY25 NII $6.74–$6.84B (slightly higher midpoint vs prior), NCO ratio 43–47 bps (raised), adj. noninterest income $1.99–$2.02B (tightened), expense $5.12–$5.16B (tightened) .
  • Stock reaction: shares traded +1.1% pre-market on the beat and tightening of ranges; management expects NII to bottom in Q1’26 (call) .

What Went Well and What Went Wrong

What Went Well

  • Broad-based growth with SVB Commercial momentum: loans +$3.5B QoQ, deposits +$3.3B QoQ; SVB Commercial deposits +$2.1B and Global Fund Banking loans drove the gain .
  • Margin stable; deposit costs down: NIM 3.26% unchanged QoQ; NIM ex-PAA +1 bp to 3.15% as rate paid on interest-bearing liabilities fell 3 bps and deposit cost declined to 2.25% .
  • Capital return: repurchased $900M (457,350 shares) this quarter; dividend increased to $2.10 per share for Dec 15 payment . CEO: “We delivered solid return metrics… completed the 2024 plan and commenced repurchases under the 2025 plan” .

What Went Wrong

  • Credit costs rose on idiosyncratic loss: provision increased to $191M (vs $115M QoQ) with net charge-offs at 0.65% (vs 0.33%), primarily an $82M charge-off in a single supply chain finance client in the Commercial Bank .
  • CET1 ratio down 47 bps QoQ to 11.65% on buybacks and RWA growth; tangible common equity/assets fell to 8.82% .
  • Adjusted noninterest expense held flat QoQ at $1.28B but up YoY, with higher equipment, third-party processing, marketing and FDIC insurance costs offsetting lower professional fees .

Financial Results

Reported P&L and Key Metrics (Company Figures)

MetricQ3 2024Q1 2025Q2 2025Q3 2025
Net Interest Income ($M)$1,796 $1,663 $1,695 $1,734
Noninterest Income ($M)$650 $635 $678 $699
Net Revenue ($M)$2,446 $2,298 $2,373 $2,433
Noninterest Expense ($M)$1,456 $1,493 $1,500 $1,491
Adj. EPS ($)$45.87 $37.79 $44.78 $44.62
NIM (%)3.53 3.26 3.26 3.26
NIM ex-PAA (%)3.33 3.12 3.14 3.15
Net Charge-off Ratio (%)0.42 0.41 0.33 0.65
CET1 (%)13.24 12.81 12.12 11.65

Estimates vs Actuals (S&P Global; for comparison to street)

MetricQ3 2024Q1 2025Q2 2025Q3 2025
EPS (Consensus)$47.50*$37.69*$39.09*$41.49*
EPS (Actual)$45.87*$37.79*$44.78*$44.62*
Revenue ($B, Cons)$2.304*$2.217*$2.207*$2.216*
Revenue ($B, Actual)$2.329*$2.144*$2.258*$2.242*

Values retrieved from S&P Global*.

Balance Sheet and Funding

MetricQ3 2024Q2 2025Q3 2025
Loans & Leases ($B, EOP)$138.70 $141.27 $144.76
Deposits ($B, EOP)$151.57 $159.94 $163.19
Noninterest-bearing % of Deposits26.0% 25.6% 26.2%
Cost of Avg. Total Deposits2.64% 2.27% 2.25%

Segment/KPI Highlights (Q3 2025)

  • Loan growth by segment (QoQ): SVB Commercial +$3.10B, General Bank +$0.24B, Commercial Bank +$0.15B .
  • Deposit growth by segment (QoQ): SVB Commercial +$2.09B, General Bank +$1.10B, Commercial Bank +$0.08B, Direct Bank +$0.04B .
  • Share repurchases: $900M (457,350 Class A shares) during the quarter; remaining capacity under 2025 SRP $3.71B .
  • Rail: utilization 96.8%; continued favorable repricing though adjusted rental income dipped on higher maintenance .

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Loans & Leases (EOP)FY25$144B–$147B (full-year); Q2 outlook $142B–$144B for Q2 $143B–$146B Slightly lowered/tightened
Deposits (EOP)FY25$163B–$168B $161B–$165B Tightened lower
Net Interest IncomeFY25$6.55B–$6.95B $6.74B–$6.84B Tightened; higher midpoint
Net Interest IncomeQ4’25N/A$1.65B–$1.75B New quarterly range
Net Charge-off RatioFY2535–45 bps 43–47 bps Raised
Net Charge-off RatioQ4’25N/A35–45 bps New range
Adj. Noninterest IncomeFY25$1.95B–$2.05B $1.99B–$2.02B Tightened
Adj. Noninterest ExpenseFY25$5.05B–$5.20B $5.12B–$5.16B Tightened/slightly higher
Effective Tax RateFY2525%–26% 25%–26% Maintained

Earnings Call Themes & Trends

TopicPrevious Mentions (Q1, Q2)Current Period (Q3 2025)Trend
NII/NIM trajectoryLower deposit betas and down-beta actions; FY NII $6.55–$6.95B; NIM pressure from rate cuts NIM steady at 3.26%; FY NII tightened to $6.74–$6.84B; mgmt expects NII to bottom in Q1’26 Stabilizing near-term; bottoming expected Q1’26
Credit qualityIdiosyncratic losses; allowance coverage adequate $82M single-name supply chain finance charge-off; NCO 0.65% QoQ; FY NCO 43–47 bps Elevated near-term losses, still contained
SVB CommercialGrowth concentrated in back half; cautious on macro Strong Global Fund Banking utilization; SVB deposits +$2.1B QoQ Improving momentum
Deposit betasDown-beta actions; focus on direct bank flexibility Rate paid on interest-bearing liabilities -3 bps QoQ; cost of deposits 2.25% Moderating deposit costs
Capital return$613M buybacks in Q1; 2024 SRP ongoing $900M buybacks; $3.71B remaining under 2025 SRP Aggressive and continuing
M&A/liquidity—Agreement to acquire 138 BMO Bank branches; assume ~$5.7B deposits, $1.1B loans, closing mid-2026 Strategic expansion; adds low-cost funding
AI/data centers (exposure)—Financing benefiting from AI-driven data center demand (Commercial Finance commentary) Emerging tailwind

Management Commentary

  • CEO Frank B. Holding, Jr.: “We delivered solid return metrics in the third quarter as all of our operating segments achieved loan and deposit growth, led by SVB Commercial… we returned an additional $900 million… We are excited about our… acquisition of 138 BMO Bank branches which will expand our footprint and enhance our liquidity position” .
  • On margin and funding: NIM held at 3.26%; deposit rate paid declined; cost of deposits 2.25% .
  • On credit: “Net charge-offs were $234 million… increase mainly due to an $82 million charge-off on a single supply chain finance client” .

Q&A Highlights

  • NII outlook: Management reaffirmed and tightened FY ranges and indicated NII likely bottoms in Q1’26, giving investors a clearer near-term trajectory .
  • Credit event: Analysts probed the $82M charge-off (First Brands reference in Q&A); management framed it as a single-name with increased specific reserves elsewhere as needed .
  • AI/data center demand: Commercial Finance highlighted strong activity tied to AI-driven computing capacity needs in data centers as a supportive end-market .

Estimates Context

  • Q3 2025 beat: Adjusted EPS $44.62 vs $41.49 consensus; revenue $2.24B vs $2.22B. EPS beat ~7.6%; revenue modestly ahead . Estimates from S&P Global*.
  • Backdrop: Company-reported net revenue ($2.43B) exceeds S&P revenue actual ($2.24B) due to definitional differences; we anchor estimate comparisons on S&P Global and present company’s “net revenue” separately .
  • Revisions: Tightened ranges (NII, fees, expenses) suggest modest upward bias to FY NII midpoint; higher FY NCO range implies slightly higher provisioning near term .

Values retrieved from S&P Global*.

Key Takeaways for Investors

  • Broad-based QoQ growth with NIM stability: SVB-led growth and easing deposit costs supported PPNR; NIM held at 3.26% with NIM ex-PAA edging up .
  • Credit hiccup but contained: One-off $82M charge-off lifted NCOs to 0.65%, but management maintained confidence and FY NCO within revised range .
  • Capital return remains a catalyst: $900M buyback in Q3; $3.71B capacity left under 2025 SRP; dividend raised to $2.10 for December pay date .
  • Guidance tightened: FY NII midpoint slightly higher; expect NII to trough in Q1’26—supportive for valuation stabilization near term .
  • Strategic branch acquisition from BMO adds ~$5.7B of deposits and enhances liquidity ahead of 2026 closing—funding-positive .
  • Watch items: Deposit betas trajectory into further Fed cuts, SVB portfolio credit performance, office CRE and investor-dependent exposures, and expense discipline given tech/risk investments .
  • Trading implication: Near-term positive skew from beat/tightened guides and capital return; medium-term hinges on credit normalization and pace of deposit cost decline.

Additional Relevant Press Releases (Q3 2025)

  • BMO branch acquisition (138 branches; ~$5.7B deposits assumed; ~$1.1B loans), expected close mid-2026 .
  • Dividends: $2.10 common dividend payable Dec 15, 2025; preferred dividends detailed .

Notes and sources:

  • Company results, metrics, and guidance drawn from Q3 2025 press release, investor presentation, and financial supplement (Form 8-K exhibits) . Prior quarters from Q2 and Q1 2025 press releases and ; YoY from Q3 2024 press release -.
  • Earnings call transcript insights referenced via third-party sources (Seeking Alpha/MarketScreener/Yahoo/Investing.com) .
  • Estimates are S&P Global consensus and actuals per GetEstimates; we anchor estimate comparisons on S&P Global as requested. Values retrieved from S&P Global*.