Summary of First Citizens BancShares, Inc. Q4 2025 Earnings Call

1Key Financial Results and Metrics

Adjusted Earnings Per Share (EPS):: $51.27, up $6.65 from the previous quarter.

Adjusted Return on Equity (ROE):: 11.93%.

Adjusted Return on Assets (ROA):: 1.1%.

Net Interest Income:: Declined by $12 million sequentially; headline net interest margin (NIM) at 3.2%, down six basis points.

Loans:: Increased by $3.2 billion (2.2%) sequentially, primarily driven by global fund banking.

Deposits:: Decreased by $1.1 billion (1%) sequentially; however, average deposits rose by $2.26 billion (1.6%).

Tangible Book Value per Share:: Grew by 11% in 2025 and 3% sequentially.

Share Repurchases:: $900 million returned to shareholders in Q4, totaling $4.7 billion since July 2024.

2Strategic Updates and Business Highlights

Consolidation of Reporting Segments:: SVB Commercial now integrated into the commercial bank segment, with ongoing commitment to the innovation economy.

Client Relationship Focus:: Continued efforts to deepen client relationships and enhance digital capabilities.

Talent Management:: Emphasis on recruiting and retaining talent to improve customer service.

Operational Efficiency:: Streamlining processes and reducing complexity to support growth.

Technology Investments:: Significant investments in technology to improve capabilities and client experience, with a focus on payments and operational efficiency.

3Forward Guidance and Outlook

Loan Growth Projections:: Expected to be in the range of $148 billion to $151 billion in Q1 2026, with full-year loans projected at $153 billion to $157 billion.

Deposit Growth Projections:: Anticipated to be $164 billion to $167 billion in Q1 2026, with full-year deposits expected to reach $181 billion to $186 billion.

Net Interest Income Outlook:: Q1 2026 projected to be between $1.6 billion and $1.7 billion, with full-year expectations of $6.5 billion to $6.9 billion.

Expense Management:: Adjusted noninterest expense for Q1 2026 expected to be between $1.34 billion and $1.38 billion, with full-year expenses projected at $5.37 billion to $5.46 billion.

4Bad News, Challenges, or Points of Concern

Declining Metrics:: Headline NIM decreased due to lower yields on earning assets, impacted by Fed rate cuts.

Deposit Outflows:: Notable declines in period-end deposits due to anticipated shifts and seasonal distributions.

Credit Quality Concerns:: Elevated net charge-offs in certain portfolios, particularly in the commercial bank, with expectations of continued elevated losses in 2026.

Regulatory Pressures:: Ongoing need to manage operational complexity and meet regulatory requirements, impacting short-term efficiency.

5Notable Q&A Insights

Interest Rate Outlook:: Management expects two rate cuts in 2026, with a potential impact on net interest income and margins.

Investment Spend:: The bank is nearing peak investment levels in technology and risk management, with a focus on improving operational efficiency moving forward.

Purchase Money Note Repayment:: Payments expected to be between $500 million to $1 billion monthly, with a cautious approach to balance profitability against repayment speed.

SVB Client Fund Growth:: Positive trends in total client funds attributed to improving venture investment activity and stabilization within the bank's operations. Overall, First Citizens BancShares reported strong earnings and maintained a positive outlook for 2026, despite facing challenges related to interest rates, deposit management, and credit quality. The bank remains focused on strategic investments and operational efficiency to drive future growth.