First Citizens BancShares, Inc. (NASDAQ:FCNCA) posted a strong set of fourth-quarter results on Friday, with earnings comfortably exceeding market expectations, supported by solid loan expansion and stable credit conditions.
The bank’s shares climbed 3.81% in after-hours trading following the earnings release.
For the fourth quarter of 2025, First Citizens reported adjusted earnings per share of $51.27, well above the analyst consensus estimate of $44.40. Quarterly revenue totaled $2.44 billion, with particularly strong performance in the Global Fund Banking division, which helped drive overall loan growth of 2.2% during the period.
“We delivered solid return metrics in the fourth quarter while credit quality remained stable and we achieved strong loan growth, led by Global Fund Banking,” said Chairman and CEO Frank B. Holding, Jr. “Our capital and liquidity positions remain strong. We are excited about our prospects for 2026.”
Net interest income for the quarter came in at $1.72 billion, slightly lower than the prior quarter, while net interest margin declined by 6 basis points sequentially to 3.20%. The provision for credit losses fell sharply to $54 million, down from $191 million in the third quarter.
First Citizens also continued returning capital to shareholders, repurchasing 479,470 shares of Class A common stock for $900 million during the quarter. The buyback represented roughly 3.80% of total Class A and Class B shares outstanding as of the end of September. In addition, the bank prepaid $2.5 billion of its Purchase Money Note.
Credit quality metrics improved further, with nonaccrual loans declining to $1.31 billion, or 0.88% of total loans, compared with $1.41 billion, or 0.97%, in the previous quarter. Net charge-offs also decreased to $143 million, representing 0.39% of average loans, down from $234 million, or 0.65%, in the prior period.
Separately, the bank said it has agreed to acquire 138 branches from BMO Bank, with the transaction expected to close in the second half of 2026. The deal will broaden First Citizens’ footprint across the Midwest, Great Plains and western regions of the United States.