SEC EDGAR · 10-Q

10-Q – 2025-11-07 – fcnca-20250930.htm

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Omsättning
  • Item 2. Unregistered Sales of Equity Securities and Use of Proceeds | 114
  • FDIC Federal Deposit Insurance Corporation PD Probability of Obligor Default | Federal Reserve Board of Governors of the Federal Reserve System PPNR Pre-provision net revenue | FHLB Federal Home Loan Bank ROU Right of Use
  • Purchases of marketable equity securities — ( 6 ) | Proceeds from sales of investments in marketable equity securities — 15 | Purchases of investment securities available for sale ( 7,476 ) ( 13,339 )
  • Proceeds from maturities of investment securities available for sale 5,802 5,036 | Proceeds from sales of investment securities available for sale 1,196 695 | Purchases of investment securities held to maturity ( 389 ) ( 791 )
  • Net increase in loans ( 4,987 ) ( 5,606 ) | Proceeds from sales of loans 220 244 | Net increase in credit balances of factoring clients 392 161
  • Purchases of operating lease equipment ( 522 ) ( 793 ) | Proceeds from sales of operating lease equipment 195 149 | Purchases of premises and equipment ( 467 ) ( 301 )
  • Proceeds from sales of other real estate owned 20 16
  • U.S. Treasury investments include Treasury bills and Notes issued by the U.S. Treasury. Investments in government agency securities represent securities issued by the Small Business Administration (“SBA”), Federal Home Loan Bank (“FHLB”) and other U.S. agencies. Investments in residential and commercial mortgage-backed securities represent securities issued by the Government National Mortgage Association, Federal National Mortgage Association and Federal Home Loan Mortgage Corporation. Investmen | 14
Periodens resultat
  • Income tax expense 183 234 534 779 | Net income $ 568 $ 639 $ 1,626 $ 2,077 | Preferred stock dividends 14 15 43 46
  • Preferred stock dividends 14 15 43 46 | Net income available to common stockholders $ 554 $ 624 $ 1,583 $ 2,031 | Earnings per common share
  • dollars in millions 2025 2024 2025 2024 | Net income $ 568 $ 639 $ 1,626 $ 2,077 | Other comprehensive income, net of tax
  • Balance at June 30, 2025 $ 881 $ 12 $ 1 $ 1,179 $ 20,337 $ ( 114 ) $ 22,296 | Net income — — — — 568 — 568 | Other comprehensive income, net of tax — — — — — 70 70
  • Balance at June 30, 2024 $ 881 $ 14 $ 1 $ 4,099 $ 18,102 $ ( 610 ) $ 22,487 | Net income — — — — 639 — 639 | Other comprehensive income, net of tax — — — — — 451 451
  • Balance at December 31, 2024 $ 881 $ 13 $ 1 $ 2,417 $ 19,361 $ ( 445 ) $ 22,228 | Net income — — — — 1,626 — 1,626 | Other comprehensive income, net of tax — — — — — 401 401
  • Balance at December 31, 2023 $ 881 $ 14 $ 1 $ 4,108 $ 16,742 $ ( 491 ) $ 21,255 | Net income — — — — 2,077 — 2,077 | Other comprehensive income, net of tax — — — — — 332 332
  • CASH FLOWS FROM OPERATING ACTIVITIES | Net income $ 1,626 $ 2,077 | Adjustments to reconcile net income to cash provided by operating activities:
Kassaflöde
  • Net unrealized (loss) gain on cash flow hedge derivatives ( 1 ) 12 5 14 | Other comprehensive income, net of tax $ 70 $ 451 $ 401 $ 332
  • dollars in millions 2025 2024 | SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION | Cash paid during the period for:
  • Principles of Consolidation and Basis of Presentation | These consolidated financial statements and notes thereto are presented in accordance with instructions for Form 10-Q and Article 10 of Regulation S-X and, therefore, do not include all information and notes necessary for a complete presentation of financial position, results of operations and cash flow activity required in accordance with accounting principles generally accepted in the United States of America (“GAAP”). In the opinion of management, all normal recurring adjustments necessary fo
  • Changes to the Composition of Reportable Segments | We updated our segment reporting during the first quarter of 2025 (the “Segment Reporting Updates”) as we transferred certain components from the Silicon Valley Bank (“SVB”) Commercial and General Bank segments to the Commercial Bank segment and modified our segment expense allocation methodology. The Segment Reporting Updates did not result in the addition or removal of any of our existing segments at December 31, 2024, and the global fund banking and investor dependent loan portfolios, as well
  • • The Consumer portfolio consisted of the following loan classes: residential mortgage, revolving mortgage, consumer auto, and consumer other. | • The SVB portfolio consisted of the following loan classes: global fund banking, investor dependent - early stage, investor dependent - growth stage, and cash flow dependent and innovation C&I.
  • • Investor dependent–early stage and investor dependent–growth stage were combined into a single investor dependent loan class, which is reported under the Commercial portfolio. | • Cash flow dependent and innovation C&I was combined with the commercial and industrial loan class, which is reported under the Commercial portfolio. | Loan and lease and ALLL disclosures for all periods presented in this Form 10-Q were recast to reflect the 2025 Loan Class Changes. Refer to Note 4—Loans and Leases and Note 5—Allowance for Loan and Lease Losses.
  • The following table presents supplemental cash flow information related to leases:
  • Supplemental Cash Flow Information
Nettoskuld
  • Other operating activities ( 54 ) ( 11 ) | Net cash provided by operating activities 1,873 1,869 | CASH FLOWS FROM INVESTING ACTIVITIES
  • Other investing activities ( 463 ) ( 279 ) | Net cash used in investing activities ( 9,240 ) ( 6,411 ) | CASH FLOWS FROM FINANCING ACTIVITIES
  • Other financing activities 1 ( 14 ) | Net cash provided by financing activities 7,427 4,496
  • (1) Amortization is included in depreciation, amortization, and accretion, net as an adjustment to reconcile net income to net cash provided by operating activities on the Consolidated Statements of Cash Flows. | (2) Net income tax benefit impact is included in net income in cash flows from operating activities on the Consolidated Statements of Cash Flows. Changes in income taxes payable are reported in the net change in other liabilities as an adjustment to reconcile net income to net cash provided by operating activities.
Eget kapital
  • Consolidated Statements of Changes in Stockholders’ Equity (Unaudited) | 7
  • Total liabilities 211,502 201,492 | Stockholders’ equity | Preferred stock - $ 0.01 par value ( 20,000,000 shares authorized at September 30, 2025 and December 31, 2024)
  • Accumulated other comprehensive loss ( 44 ) ( 445 ) | Total stockholders’ equity 21,986 22,228 | Total liabilities and stockholders’ equity $ 233,488 $ 223,720
  • Total stockholders’ equity 21,986 22,228 | Total liabilities and stockholders’ equity $ 233,488 $ 223,720
  • First Citizens BancShares, Inc. and Subsidiaries | Consolidated Statements of Changes in Stockholders’ Equity (Unaudited)
  • Three Months Ended | dollars in millions, except per share data Preferred Stock Class A Common Stock Class B Common Stock Additional Paid in Capital Retained Earnings Accumulated Other Comprehensive (Loss) Income Total Stockholders' Equity | Balance at June 30, 2025 $ 881 $ 12 $ 1 $ 1,179 $ 20,337 $ ( 114 ) $ 22,296
  • Nine Months Ended | dollars in millions, except share data Preferred Stock Class A Common Stock Class B Common Stock Additional Paid in Capital Retained Earnings Accumulated Other Comprehensive (Loss) Income Total Stockholders' Equity | Balance at December 31, 2024 $ 881 $ 13 $ 1 $ 2,417 $ 19,361 $ ( 445 ) $ 22,228
  • Financial Statements | In certain instances, amounts reported in the 2024 consolidated financial statements have been reclassified to conform to the current financial statement presentation. Such reclassifications had no effect on previously reported stockholders’ equity or net income.
Antal aktier
  • Class B Common Stock— 1,005,185 shares | (Number of shares outstanding, by class, as of November 3, 2025)
  • Diluted $ 43.08 $ 43.42 $ 119.70 $ 140.26 | Weighted average common shares outstanding | Basic 12,849,339 14,375,974 13,217,940 14,480,874
  • Number of Shares of Common Stock
  • Net income available to common stockholders $ 554 $ 624 $ 1,583 $ 2,031 | Weighted average common shares outstanding | Basic shares outstanding 12,849,339 14,375,974 13,217,940 14,480,874
  • Weighted average common shares outstanding | Basic shares outstanding 12,849,339 14,375,974 13,217,940 14,480,874 | Stock-based awards — — — 1,045
  • Stock-based awards — — — 1,045 | Diluted shares outstanding 12,849,339 14,375,974 13,217,940 14,481,919 | Earnings per common share
  • During the third quarter of 2025, we repurchased 457,350 shares of our Class A common stock for approximately $900 million. Shares repurchased during the third quarter of 2025 represented 3.79% of Class A common shares and 3.50% of total Class A and Class B common shares outstanding at June 30, 2025. From inception of the 2024 SRP through September 30, 2025, we have repurchased 1,913,633 shares of our Class A common stock for approximately $3.79 billion, representing 14.15% of Class A common sha
  • Per Common Share Information: | Weighted average common shares outstanding (diluted) 12,849,339 13,237,226 14,375,974 13,217,940 14,481,919 | Diluted earnings per common share $ 43.08 $ 42.36 $ 43.42 $ 119.70 $ 140.26
Antal anställda
  • BancShares sponsors non-contributory defined benefit pension plans for its qualifying employees. The service cost component of net periodic benefit cost is included in salaries and wages, while all other non-service cost components are included in other noninterest expense.
  • Acquisition-related personnel cost primarily includes severance and retention costs for employees associated with business combinations. These amounts are recognized over the requisite service period, if any.

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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
____________________________________________________
FORM 10-Q
____________________________________________________

☒ Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
For the quarterly period ended September 30, 2025

or
☐ Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Commission File Number: 001-16715

First Citizens BancShares, Inc.
(Exact name of Registrant as specified in its charter)

Delaware 56-1528994
(State or other jurisdiction of
incorporation or organization) (I.R.S. Employer
Identification Number)

4300 Six Forks Road Raleigh North Carolina 27609
(Address of principal executive offices) (Zip code)

(919) 716-7000
(Registrant’s telephone number, including area code)

____________________________________________________

Securities registered pursuant to Section 12(b) of the Securities Exchange Act of 1934:
Title of each class Trading Symbol(s) Name of each exchange on which registered
Class A Common Stock, Par Value $1 FCNCA Nasdaq Global Select Market

Depositary Shares, Each Representing a 1/40th Interest in a Share of 5.375% Non-Cumulative Perpetual Preferred Stock, Series A FCNCP Nasdaq Global Select Market

5.625% Non-Cumulative Perpetual Preferred Stock, Series C FCNCO Nasdaq Global Select Market

Securities registered pursuant to Section 12(g) of the Securities Exchange Act of 1934:
Class B Common Stock, Par Value $1

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).
Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer”, “smaller reporting company” and ‘emerging growth company’ in Rule 12b-2 of the Exchange Act.

Large accelerated filer ☒ Accelerated filer ☐ Non-accelerated filer ☐ Smaller reporting company ☐ Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.  ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

Class A Common Stock— 11,430,367 shares
Class B Common Stock— 1,005,185 shares
(Number of shares outstanding, by class, as of November 3, 2025)

CONTENTS
Page
PART I—FINANCIAL INFORMATION

Item 1. Financial Statements
4

Consolidated Balance Sheets (Unaudited)
4

Consolidated Statements of Income (Unaudited)
5

Consolidated Statements of Comprehensive Income (Unaudited)
6

Consolidated Statements of Changes in Stockholders’ Equity (Unaudited)
7

Consolidated Statements of Cash Flows (Unaudited)
9

Notes to Unaudited Consolidated Financial Statements
11

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations
58

Item 3. Quantitative and Qualitative Disclosures about Market Risk
112

Item 4. Controls and Procedures
112

PART II—OTHER INFORMATION

Item 1. Legal Proceedings
113

Item 1A. Risk Factors
113

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds
114

Item 5. Other Information
114

Item 6. Exhibits
115

Signatures
116

2

GLOSSARY OF ABBREVIATIONS AND ACRONYMS
The following is a list of select abbreviations and acronyms used throughout this document. You may find it helpful to refer back to this table.

Acronym Definition Acronym Definition
ALLL Allowance for Loan and Lease Losses MSRs Mortgage Servicing Rights
AOCI Accumulated Other Comprehensive Income NCCOB
North Carolina Office of the Commissioner of Banks

ASC Accounting Standards Codification NDFI Nondepository Financial Institution
ASU Accounting Standards Update NII Net Interest Income
BHC Bank Holding Company NII Sensitivity Net Interest Income Sensitivity
bp or bps Basis point(s); 1 bp = 0.01% NIM Net Interest Margin
CRA Community Reinvestment Act NPR Notice of Proposed Rulemaking
CRE Commercial Real Estate OBBBA One Big Beautiful Bill Act
DPA Deferred Purchase Agreement OREO Other Real Estate Owned
DTAs Deferred Tax Assets PAA Purchase Accounting Accretion or Amortization
ETR Effective Income Tax Rate PAM Proportional Amortization Method
EVE Sensitivity Economic Value of Equity Sensitivity PCA Prompt Corrective Action
FCB First-Citizens Bank & Trust Company PCD Purchased Credit Deteriorated
FDIC Federal Deposit Insurance Corporation PD Probability of Obligor Default
Federal Reserve Board of Governors of the Federal Reserve System PPNR Pre-provision net revenue
FHLB Federal Home Loan Bank ROU Right of Use
FOMC Federal Open Market Committee RWA Risk-weighted assets
FRB Federal Reserve Bank SBA Small Business Administration
GAAP United States Generally Accepted Accounting Principles SOFR Secured Overnight Financing Rate
HPI Home Price Index SRP Share Repurchase Program
HQLS High-Quality Liquid Securities SVB Silicon Valley Bank
ISDA International Swaps and Derivatives Association SVBB Silicon Valley Bridge Bank, N.A.
LGD Loss Given Default TMT Technology Media and Telecommunications

LOCOM Lower of Cost or Fair Value UPB Unpaid Principal Balance
MD&A Management’s Discussion and Analysis VIE Variable Interest Entities

3

PART I—FINANCIAL INFORMATION

Item 1. Financial Statements.

First Citizens BancShares, Inc. and Subsidiaries
Consolidated Balance Sheets (Unaudited)

dollars in millions, except share data September 30, 2025 December 31, 2024
Assets
Cash and due from banks $ 874   $ 814  
Interest-earning deposits at banks 24,798   21,364  
Securities purchased under agreements to resell 83   158  
Investment in marketable equity securities (cost of $ 78 at September 30, 2025 and $ 79 at December 31, 2024)
110   101  
Investment securities available for sale (cost of $ 35,187 at September 30, 2025 and $ 34,512 at December 31, 2024)
34,963   33,750  
Investment securities held to maturity (fair value of $ 8,838 at September 30, 2025 and $ 8,702 at December 31, 2024)
10,051   10,239  
Assets held for sale 112   85  
Loans and leases 144,758   140,221  
Allowance for loan and lease losses ( 1,652 ) ( 1,676 )
Loans and leases, net of allowance for loan and lease losses 143,106   138,545  
Operating lease equipment, net 9,446   9,323  
Premises and equipment, net 2,283   2,006  
Goodwill 346   346  
Other intangible assets, net 208   249  
Other assets 7,108   6,740  
Total assets $ 233,488   $ 223,720  
Liabilities
Deposits:
Noninterest-bearing $ 42,752   $ 38,633  
Interest-bearing 120,438   116,596  
Total deposits 163,190   155,229  
Credit balances of factoring clients 1,326   1,016  
Borrowings:

Short-term borrowings 423   367  

Long-term borrowings 38,252   36,684  
Total borrowings 38,675   37,051  
Other liabilities 8,311   8,196  
Total liabilities 211,502   201,492  
Stockholders’ equity
Preferred stock - $ 0.01 par value ( 20,000,000 shares authorized at September 30, 2025 and December 31, 2024)
881   881  
Common stock:
Class A - $ 1 par value ( 32,000,000 shares authorized at September 30, 2025 and December 31, 2024; 11,613,444 and 12,712,436 shares issued and outstanding at September 30, 2025 and December 31, 2024, respectively)
12   13  
Class B - $ 1 par value ( 2,000,000 shares authorized and 1,005,185 shares issued and outstanding at September 30, 2025 and December 31, 2024)
1   1  
Additional paid in capital 270   2,417  
Retained earnings 20,866   19,361  
Accumulated other comprehensive loss ( 44 ) ( 445 )
Total stockholders’ equity 21,986   22,228  
Total liabilities and stockholders’ equity $ 233,488   $ 223,720  

See accompanying Notes to the Unaudited Consolidated Financial Statements.

4

First Citizens BancShares, Inc. and Subsidiaries
Consolidated Statements of Income (Unaudited)

Three Months Ended September 30, Nine Months Ended September 30,
dollars in millions, except share and per share data 2025 2024 2025 2024
Interest income
Interest and fees on loans $ 2,300   $ 2,430   $ 6,806   $ 7,206  
Interest on investment securities 433   358   1,266   970  
Interest on deposits at banks 265   350   766   1,176  
Total interest income 2,998   3,138   8,838   9,352  
Interest expense
Deposits 911   1,004   2,698   2,907  
Borrowings 353   338   1,048   1,011  
Total interest expense 1,264   1,342   3,746   3,918  
Net interest income 1,734   1,796   5,092   5,434  
Provision for credit losses 191   117   460   276  
Net interest income after provision for credit losses 1,543   1,679   4,632   5,158  
Noninterest income
Rental income on operating lease equipment 273   262   815   776  
Lending-related fees 67   67   202   189  
Deposit fees and service charges 61   57   178   172  
Client investment fees 58   55   163   159  
Wealth management services 57   54   168   157  
International fees 34   29   99   86  
Factoring commissions 18   19   53   55  
Cardholder services, net 39   42   121   122  
Merchant services, net 12   12   39   36  
Insurance commissions 13   14   41   42  
Realized gain on sale of investment securities, net —   4   —   4  
Fair value adjustment on marketable equity securities, net 13   9   10   3  
Gain on sale of leasing equipment, net 3   5   16   19  

Loss on extinguishment of debt —   —   —   ( 2 )
Other noninterest income 51   21   107   98  
Total noninterest income 699   650   2,012   1,916  
Noninterest expense
Depreciation on operating lease equipment 98   99   296   293  
Maintenance and other operating lease expenses 67   59   180   164  
Personnel cost 817   788   2,445   2,277  
Net occupancy expense 58   62   177   182  
Equipment expense 137   128   404   368  
Professional fees 26   42   81   91  
Third-party processing fees 67   55   193   173  
FDIC insurance expense 38   31   114   105  
Marketing expense 33   20   97   52  
Acquisition-related expenses 28   46   108   148  
Intangible asset amortization 13   15   41   47  
Other noninterest expense 109   111   348   318  
Total noninterest expense 1,491   1,456   4,484   4,218  
Income before income taxes 751   873   2,160   2,856  
Income tax expense 183   234   534   779  
Net income $ 568   $ 639   $ 1,626   $ 2,077  
Preferred stock dividends 14   15   43   46  
Net income available to common stockholders $ 554   $ 624   $ 1,583   $ 2,031  
Earnings per common share
Basic $ 43.08   $ 43.42   $ 119.70   $ 140.27  
Diluted $ 43.08   $ 43.42   $ 119.70   $ 140.26  
Weighted average common shares outstanding
Basic 12,849,339 14,375,974 13,217,940 14,480,874
Diluted 12,849,339 14,375,974 13,217,940 14,481,919

See accompanying Notes to the Unaudited Consolidated Financial Statements.
5

First Citizens BancShares, Inc. and Subsidiaries
Consolidated Statements of Comprehensive Income (Unaudited)

Three Months Ended September 30, Nine Months Ended September 30,
dollars in millions 2025 2024 2025 2024
Net income $ 568   $ 639   $ 1,626   $ 2,077  
Other comprehensive income, net of tax
Net unrealized gain on securities available for sale 72   438   400   325  
Net change in unrealized loss on securities available for sale transferred to securities held to maturity —   1   —   1  
Net change in defined benefit pension items ( 1 ) —   ( 4 ) ( 8 )

Net unrealized (loss) gain on cash flow hedge derivatives ( 1 ) 12   5   14  
Other comprehensive income, net of tax $ 70   $ 451   $ 401   $ 332  
Total comprehensive income $ 638   $ 1,090   $ 2,027   $ 2,409  

See accompanying Notes to the Unaudited Consolidated Financial Statements.

6

First Citizens BancShares, Inc. and Subsidiaries
Consolidated Statements of Changes in Stockholders’ Equity (Unaudited)

Three Months Ended
dollars in millions, except per share data Preferred Stock Class A Common Stock Class B Common Stock Additional Paid in Capital Retained Earnings Accumulated Other Comprehensive (Loss) Income Total Stockholders' Equity
Balance at June 30, 2025 $ 881   $ 12   $ 1   $ 1,179   $ 20,337   $ ( 114 ) $ 22,296  
Net income —  —  —  —  568   —  568  
Other comprehensive income, net of tax —  —  —  —  —  70   70  

Repurchased 457,350 shares of Class A common stock
—  —  —  ( 909 ) —  —  ( 909 )
Cash dividends declared ($ 1.95 per common share):

Class A common stock —  —  —  —  ( 23 ) —  ( 23 )
Class B common stock —  —  —  —  ( 2 ) —  ( 2 )
Preferred stock dividends declared:
Series A —  —  —  —  ( 5 ) —  ( 5 )
Series B —  —  —  —  ( 7 ) —  ( 7 )
Series C —  —  —  —  ( 2 ) —  ( 2 )
Balance at September 30, 2025 $ 881   $ 12   $ 1   $ 270   $ 20,866   $ ( 44 ) $ 21,986  

Balance at June 30, 2024 $ 881   $ 14   $ 1   $ 4,099   $ 18,102   $ ( 610 ) $ 22,487  
Net income —  —  —  —  639   —  639  
Other comprehensive income, net of tax —  —  —  —  —  451   451  

Stock based compensation —  —  —  ( 4 ) —  —  ( 4 )
Repurchased 353,058 shares of Class A common stock
—  ( 1 ) —  ( 706 ) —  —  ( 707 )
Cash dividends declared ($ 1.64 per common share):

Class A common stock —  —  —  —  ( 21 ) —  ( 21 )
Class B common stock —  —  —  —  ( 2 ) —  ( 2 )
Preferred stock dividends declared:
Series A —  —  —  —  ( 5 ) —  ( 5 )
Series B —  —  —  —  ( 8 ) —  ( 8 )
Series C —  —  —  —  ( 2 ) —  ( 2 )
Balance at September 30, 2024 $ 881   $ 13   $ 1   $ 3,389   $ 18,703   $ ( 159 ) $ 22,828  

7

Nine Months Ended
dollars in millions, except share data Preferred Stock Class A Common Stock Class B Common Stock Additional Paid in Capital Retained Earnings Accumulated Other Comprehensive (Loss) Income Total Stockholders' Equity
Balance at December 31, 2024 $ 881   $ 13   $ 1   $ 2,417   $ 19,361   $ ( 445 ) $ 22,228  
Net income —  —  —  —  1,626   —  1,626  
Other comprehensive income, net of tax —  —  —  —  —  401   401  

Repurchased 1,098,992 shares of Class A common stock
—  ( 1 ) —  ( 2,147 ) —  —  ( 2,148 )
Cash dividends declared ($ 5.85 per common share):

Class A common stock —  —  —  —  ( 72 ) —  ( 72 )
Class B common stock —  —  —  —  ( 6 ) —  ( 6 )
Preferred stock dividends declared:
Series A —  —  —  —  ( 14 ) —  ( 14 )
Series B —  —  —  —  ( 21 ) —  ( 21 )
Series C —  —  —  —  ( 8 ) —  ( 8 )
Balance at September 30, 2025 $ 881   $ 12   $ 1   $ 270   $ 20,866   $ ( 44 ) $ 21,986  

Balance at December 31, 2023 $ 881   $ 14   $ 1   $ 4,108   $ 16,742   $ ( 491 ) $ 21,255  
Net income —  —  —  —  2,077   —  2,077  
Other comprehensive income, net of tax —  —  —  —  —  332   332  

Stock based compensation —  —  —  ( 13 ) —  —  ( 13 )
Repurchased 353,058 shares of Class A common stock
—  ( 1 ) —  ( 706 ) —  —  ( 707 )
Cash dividends declared ($ 4.92 per common share):

Class A common stock —  —  —  —  ( 65 ) —  ( 65 )
Class B common stock —  —  —  —  ( 5 ) —  ( 5 )
Preferred stock dividends declared:
Series A —  —  —  —  ( 14 ) —  ( 14 )
Series B —  —  —  —  ( 24 ) —  ( 24 )
Series C —  —  —  —  ( 8 ) —  ( 8 )
Balance at September 30, 2024 $ 881   $ 13   $ 1   $ 3,389   $ 18,703   $ ( 159 ) $ 22,828  

See accompanying Notes to the Unaudited Consolidated Financial Statements.
8

First Citizens BancShares, Inc. and Subsidiaries
Consolidated Statements of Cash Flows (Unaudited)

                                                                                                                                                                                                                                                              Nine Months Ended September 30,
dollars in millions 2025 2024
CASH FLOWS FROM OPERATING ACTIVITIES
Net income $ 1,626   $ 2,077  
Adjustments to reconcile net income to cash provided by operating activities:
Provision for credit losses 460   276  
Deferred tax benefit ( 104 ) ( 127 )
Depreciation, amortization, and accretion, net 284   36  

Realized gain on sale of investment securities, net —   ( 4 )
Fair value adjustment on marketable equity securities, net ( 10 ) ( 3 )
Gain on sale of loans, net ( 12 ) ( 7 )
Gain on sale of operating lease equipment, net ( 16 ) ( 19 )
Loss on sale of premises and equipment, net —   1  
Gain on other real estate owned, net ( 1 ) ( 6 )

Loss on extinguishment of debt —   2  
Origination of loans held for sale ( 1,011 ) ( 799 )
Proceeds from sale of loans held for sale 1,137   867  
Impairment of premises and equipment 5   —  
Net change in other assets ( 86 ) ( 169 )
Net change in other liabilities ( 345 ) ( 245 )
Other operating activities ( 54 ) ( 11 )
Net cash provided by operating activities 1,873   1,869  
CASH FLOWS FROM INVESTING ACTIVITIES
Net (increase) decrease in interest-earning deposits at banks ( 3,434 ) 7,969  
Purchases of marketable equity securities —   ( 6 )
Proceeds from sales of investments in marketable equity securities —   15  
Purchases of investment securities available for sale ( 7,476 ) ( 13,339 )
Proceeds from maturities of investment securities available for sale 5,802   5,036  
Proceeds from sales of investment securities available for sale 1,196   695  
Purchases of investment securities held to maturity ( 389 ) ( 791 )
Proceeds from maturities of investment securities held to maturity 598   401  
Net decrease in securities purchased under agreements to resell 75   18  
Net increase in loans ( 4,987 ) ( 5,606 )
Proceeds from sales of loans 220   244  
Net increase in credit balances of factoring clients 392   161  
Purchases of operating lease equipment ( 522 ) ( 793 )
Proceeds from sales of operating lease equipment 195   149  
Purchases of premises and equipment ( 467 ) ( 301 )

Proceeds from sales of other real estate owned 20   16  

Other investing activities ( 463 ) ( 279 )
Net cash used in investing activities ( 9,240 ) ( 6,411 )
CASH FLOWS FROM FINANCING ACTIVITIES
Net decrease in time deposits ( 2,178 ) ( 2,295 )
Net increase in demand and other interest-bearing deposits 10,312   8,063  
Net increase (decrease) in securities sold under agreements to repurchase 56   ( 94 )

Repayment of long-term borrowings ( 355 ) ( 348 )
Proceeds from issuance of long-term borrowings 1,839   —  

Repurchase of Class A common stock ( 2,127 ) ( 700 )
Cash dividends paid ( 121 ) ( 116 )
Other financing activities 1   ( 14 )
Net cash provided by financing activities 7,427   4,496  

Change in cash and due from banks 60   ( 46 )
Cash and due from banks at beginning of period 814   908  
Cash and due from banks at end of period $ 874   $ 862  

9

Nine Months Ended September 30,
dollars in millions 2025 2024
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION
Cash paid during the period for:
Interest $ 3,663   $ 4,005  
Income taxes 289   754  
Significant non-cash investing and financing activities:
Transfers of loans to other real estate 55   1  

Net settlement with FDIC for Purchase Money Note —   80  

Transfer of assets from held for investment to held for sale 401   329  
Transfer of assets from held for sale to held for investment 28   25  

Commitments extended during the period on affordable housing investment credits 454   360  

See accompanying Notes to the Unaudited Consolidated Financial Statements.

10

First Citizens BancShares, Inc. and Subsidiaries
Notes to Unaudited Consolidated Financial Statements

NOTE 1 — SIGNIFICANT ACCOUNTING POLICIES AND BASIS OF PRESENTATION

Nature of Operations
First Citizens BancShares, Inc. (the “Parent Company” and, when including all of its subsidiaries on a consolidated basis, “we,” “us,” “our,” “BancShares”) is a financial holding company organized under the laws of Delaware that conducts operations through its banking subsidiary, First-Citizens Bank & Trust Company (“FCB”), which is headquartered in Raleigh, North Carolina. BancShares operates a network of branches and offices, predominantly located in the Southeast, Mid-Atlantic, Midwest and Western United States. BancShares provides various types of commercial and consumer banking services, including lending, leasing, and wealth management services. Deposit services include checking, savings, money market, and time deposit accounts.

BASIS OF PRESENTATION

Principles of Consolidation and Basis of Presentation
These consolidated financial statements and notes thereto are presented in accordance with instructions for Form 10-Q and Article 10 of Regulation S-X and, therefore, do not include all information and notes necessary for a complete presentation of financial position, results of operations and cash flow activity required in accordance with accounting principles generally accepted in the United States of America (“GAAP”). In the opinion of management, all normal recurring adjustments necessary for a fair presentation of the consolidated financial position and consolidated results of operations have been made. The unaudited interim consolidated financial statements included in this Quarterly Report on Form 10-Q (this “Form 10-Q”) should be read in conjunction with the Consolidated Financial Statements and Notes to the Consolidated Financial Statements included in our Annual Report on Form 10-K for the year ended December 31, 2024 (the “2024 Form 10-K”). Interim results are not necessarily indicative of results for a full year.

The consolidated financial statements of BancShares include the accounts of BancShares and its subsidiaries, certain partnership interests and variable interest entities (“VIEs”) where BancShares is the primary beneficiary, if applicable. All significant intercompany accounts and transactions are eliminated upon consolidation. Assets held in agency or fiduciary capacity are not included in the consolidated financial statements. Refer to Note 8—Variable Interest Entities for additional information regarding VIEs.

Reclassifications

Financial Statements
In certain instances, amounts reported in the 2024 consolidated financial statements have been reclassified to conform to the current financial statement presentation. Such reclassifications had no effect on previously reported stockholders’ equity or net income.

Changes to the Composition of Reportable Segments
We updated our segment reporting during the first quarter of 2025 (the “Segment Reporting Updates”) as we transferred certain components from the Silicon Valley Bank (“SVB”) Commercial and General Bank segments to the Commercial Bank segment and modified our segment expense allocation methodology. The Segment Reporting Updates did not result in the addition or removal of any of our existing segments at December 31, 2024, and the global fund banking and investor dependent loan portfolios, as well as a substantial portion of the cash flow dependent and innovation commercial and industrial (“innovation C&I”) loans, remain in the SVB Commercial segment. Segment disclosures for 2024 periods included in this Form 10-Q were recast to conform with the Segment Reporting Updates summarized above. Refer to Note 17—Segment Information for additional information.

11

2025 Loan Class Changes
At December 31, 2024, our disclosures for loans and leases and the allowance for loan and lease losses (“ALLL”) were aggregated into Commercial, Consumer, and SVB portfolios, each of which consisted of several loan classes as summarized below:
• The Commercial portfolio consisted of the following loan classes: commercial construction, owner occupied commercial mortgage, non-owner occupied commercial mortgage, commercial and industrial, and leases.
• The Consumer portfolio consisted of the following loan classes: residential mortgage, revolving mortgage, consumer auto, and consumer other.
• The SVB portfolio consisted of the following loan classes: global fund banking, investor dependent - early stage, investor dependent - growth stage, and cash flow dependent and innovation C&I.

For further descriptions of these loan classes, refer to Note 1—Significant Accounting Policies and Basis of Presentation in the Notes to the Consolidated Financial Statements included in our 2024 Form 10-K.

During the second quarter of 2025, the loan classes which were reported in the SVB portfolio in the 2024 Form 10-K were recast to the Commercial portfolio (the “2025 Loan Class Changes”) as summarized below:
• Global fund banking remained a separate loan class, but is reported under the Commercial portfolio.
• Investor dependent–early stage and investor dependent–growth stage were combined into a single investor dependent loan class, which is reported under the Commercial portfolio.
• Cash flow dependent and innovation C&I was combined with the commercial and industrial loan class, which is reported under the Commercial portfolio.
Loan and lease and ALLL disclosures for all periods presented in this Form 10-Q were recast to reflect the 2025 Loan Class Changes. Refer to Note 4—Loans and Leases and Note 5—Allowance for Loan and Lease Losses.

The disclosures in Note 17—Segment Information were not recast as a result of the 2025 Loan Class Changes because the composition of reportable segments is separate and distinct from the identification of loan classes.

Use of Estimates in the Preparation of Financial Statements
The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions based on available information. These estimates and assumptions impact the amounts reported in the consolidated financial statements and accompanying notes and the disclosures provided, and actual results could differ from those estimates. The significant estimate related to the determination of the ALLL is considered a critical accounting estimate.

SIGNIFICANT ACCOUNTING POLICIES

Significant accounting policies are described in the 2024 Form 10-K. There were no material changes to these policies during the nine months ended September 30, 2025.

12

NOTE 2 — BUSINESS COMBINATIONS

Pending Branch Acquisition
On October 16, 2025, FCB announced that it had entered into an agreement to consummate the acquisition of 138 branches from BMO Bank N.A. (“BMO Bank”) located throughout the Midwest, Great Plains and West regions of the U.S. (the “BMO Branch Acquisition”). In connection with the BMO Branch Acquisition, FCB expects to assume approximately $ 5.7  billion in deposit liabilities and acquire approximately $ 1.1  billion in loans. We expect the transaction to close in mid-2026, subject to customary closing terms and conditions and regulatory approvals.

Completed Acquisition
On March 27, 2023 (the “SVBB Acquisition Date”), FCB acquired substantially all loans and certain other assets and assumed all customer deposits and certain other liabilities of Silicon Valley Bridge Bank, N.A. (“SVBB”) from the Federal Deposit Insurance Corporation (the “FDIC”) pursuant to the terms of a purchase and assumption agreement (the “SVBB Purchase Agreement”) by and among FCB, the FDIC, and the FDIC, as receiver of SVBB (the “SVBB Acquisition”).

In connection with the SVBB Purchase Agreement, FCB entered into a commercial shared loss agreement with the FDIC (the “Shared-Loss Agreement”). On April 7, 2025, FCB and the FDIC entered into an agreement (the “Shared-Loss Termination Agreement”) to terminate the Shared-Loss Agreement. As a result of entering into the Shared-Loss Termination Agreement, all rights and obligations of the parties under the Shared-Loss Agreement terminated as of the date of the Shared-Loss Termination Agreement, including FCB’s reporting covenants and obligations related to FDIC Loss Sharing and FCB reimbursement (each as defined in Note 2—Business Combinations in our 2024 Form 10-K). There was no impact to our consolidated balance sheets or statements of income resulting from the Shared-Loss Termination Agreement because there was no loss indemnification asset or true-up liability associated with the Shared-Loss Agreement, primarily based on evaluation of historical loss experience and the credit quality of the Covered Assets (as defined in Note 2—Business Combinations in our 2024 Form 10-K).

In connection with the SVBB Acquisition, FCB issued a five-year $ 36.07  billion note payable to the FDIC, maturing March 27, 2028, which was amended and restated on November 20, 2023 (the “Purchase Money Note”). FCB and the FDIC, as lender and as collateral agent, also entered into an Advance Facility Agreement, dated as of the SVBB Acquisition Date, and effective as of November 20, 2023 (the “Advance Facility Agreement”), which provided total advances available through March 27, 2025 of up to $ 70  billion solely to provide liquidity to offset deposit withdrawal or runoff of former SVBB deposit accounts and to fund the unfunded commercial lending commitments acquired in the SVBB Acquisition. There were no amounts outstanding on the facility at the end of the draw period on March 27, 2025.

Refer to Note 2—Business Combinations in our 2024 Form 10-K for further discussion of the SVBB Acquisition, Purchase Money Note, and the Advance Facility Agreement.

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NOTE 3 — INVESTMENT SECURITIES

The following tables include the amortized cost and fair value of investment securities:

Amortized Cost and Fair Value - Investment Securities

dollars in millions September 30, 2025
Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value
Investment securities available for sale
U.S. Treasury $ 13,729   $ 54   $ ( 2 ) $ 13,781  
Government agency 53   —   ( 1 ) 52  
Residential mortgage-backed securities 17,550   236   ( 351 ) 17,435  
Commercial mortgage-backed securities 3,582   27   ( 181 ) 3,428  
Corporate bonds 256   —   ( 6 ) 250  
Municipal bonds 17   —   —   17  

Total investment securities available for sale $ 35,187   $ 317   $ ( 541 ) $ 34,963  
Investment in marketable equity securities $ 78   $ 33   $ ( 1 ) $ 110  
Investment securities held to maturity
U.S. Treasury $ 387   $ —   $ ( 18 ) $ 369  
Government agency 1,459   —   ( 64 ) 1,395  
Residential mortgage-backed securities 4,568   28   ( 513 ) 4,083  
Commercial mortgage-backed securities 3,358   —   ( 625 ) 2,733  

Supranational securities 277   —   ( 21 ) 256  
Other 2   —   —   2  
Total investment securities held to maturity $ 10,051   $ 28   $ ( 1,241 ) $ 8,838  
Total investment securities $ 45,316   $ 378   $ ( 1,783 ) $ 43,911  

December 31, 2024
Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value
Investment securities available for sale
U.S. Treasury $ 13,897   $ 33   $ ( 27 ) $ 13,903  
Government agency 79   —   ( 2 ) 77  
Residential mortgage-backed securities 16,161   41   ( 582 ) 15,620  
Commercial mortgage-backed securities 3,869   7   ( 210 ) 3,666  
Corporate bonds 489   —   ( 22 ) 467  
Municipal bonds 17   —   —   17  
Total investment securities available for sale $ 34,512   $ 81   $ ( 843 ) $ 33,750  
Investment in marketable equity securities $ 79   $ 27   $ ( 5 ) $ 101  
Investment securities held to maturity
U.S. Treasury $ 483   $ —   $ ( 31 ) $ 452  
Government agency 1,489   —   ( 115 ) 1,374  
Residential mortgage-backed securities 4,558   2   ( 682 ) 3,878  
Commercial mortgage-backed securities 3,407   —   ( 678 ) 2,729  

Supranational securities 300   —   ( 33 ) 267  
Other 2   —   —   2  
Total investment securities held to maturity $ 10,239   $ 2   $ ( 1,539 ) $ 8,702  
Total investment securities $ 44,830   $ 110   $ ( 2,387 ) $ 42,553  

U.S. Treasury investments include Treasury bills and Notes issued by the U.S. Treasury. Investments in government agency securities represent securities issued by the Small Business Administration (“SBA”), Federal Home Loan Bank (“FHLB”) and other U.S. agencies. Investments in residential and commercial mortgage-backed securities represent securities issued by the Government National Mortgage Association, Federal National Mortgage Association and Federal Home Loan Mortgage Corporation. Investments in corporate bonds represent positions in debt securities of other financial institutions. Municipal bonds are revenue bonds. Investments in marketable equity securities represent positions in common stock of publicly traded financial institutions. Investments in supranational securities represent securities issued by the Supranational Entities & Multilateral Development Banks. Other held to maturity investments include certificates of deposit with other financial institutions.
14

BancShares initially held approximately 354,000 shares of Visa, Inc. (“Visa”) Class B common stock (“Visa Class B common stock”). Effective January 24, 2024, all outstanding shares of Visa Class B common stock were redenominated as Visa Class B-1 common stock (“Visa Class B-1 common stock”) pursuant to Visa’s eighth amended and restated certificate of incorporation. BancShares currently holds approximately 354,000 shares of Visa Class B-1 common stock. Until the resolution of certain litigation, at which time the Visa Class B-1 common stock will convert to publicly traded Visa Class A common stock, or the potential exchange of Visa Class B-1 common stock for other marketable classes of Visa common stock, these shares are only transferable to other stockholders of Visa Class B-1 common stock or certain new denominations of Visa’s former Class B common stock. As a result, there is limited transfer activity in private transactions between buyers and sellers. Given this limited trading activity and the continuing uncertainty regarding the likelihood, ultimate timing and eventual exchange of Visa Class B-1 common stock for shares of Visa Class A common stock or other marketable classes of Visa common stock, these shares are not considered to have a readily determinable fair value and have no carrying value. BancShares continues to monitor the trading activity in Visa Class B-1 common stock, the status of the resolution of certain litigation matters at Visa, and other potential exchange alternatives that would trigger the conversion of the Visa Class B-1 common stock into Visa Class A common stock or other marketable classes of Visa common stock.

Accrued interest receivable for available for sale and held to maturity debt securities was excluded from the estimate for credit losses. At September 30, 2025, accrued interest receivable for available for sale and held to maturity debt securities was $ 172 million and $ 19 million, respectively. At December 31, 2024, accrued interest receivable for available for sale and held to maturity debt securities was $ 177 million and $ 20  million, respectively. During the three and nine months ended September 30, 2025 and 2024, there was no accrued interest that was deemed uncollectible and written off against interest income.

A security is considered past due once it is 30 days contractually past due under the terms of the agreement. There were no securities past due as of September 30, 2025 or December 31, 2024.

The following table provides the amortized cost and fair value by contractual maturity. Expected maturities will differ from contractual maturities on certain securities because borrowers and issuers may have the right to call or prepay obligations with or without prepayment penalties. Residential and commercial mortgage-backed and government agency securities are stated separately as they are not due at a single maturity date.

Maturities - Debt Securities

dollars in millions September 30, 2025 December 31, 2024
Amortized Cost Fair Value Amortized Cost Fair Value
Investment securities available for sale
Non-amortizing securities maturing in:
One year or less $ 9,276   $ 9,295   $ 5,090   $ 5,086  
After one through five years 4,631   4,662   8,945   8,949  
After five through 10 years 78   74   346   330  
After 10 years 17   17   22   22  

Government agency 53   52   79   77  
Residential mortgage-backed securities 17,550   17,435   16,161   15,620  
Commercial mortgage-backed securities 3,582   3,428   3,869   3,666  

Total investment securities available for sale $ 35,187   $ 34,963   $ 34,512   $ 33,750  
Investment securities held to maturity
Non-amortizing securities maturing in:
One year or less $ 505   $ 500   $ 429   $ 419  
After one through five years 1,492   1,406   1,299   1,208  
After five through 10 years 128   116   546   468  

Residential mortgage-backed securities 4,568   4,083   4,558   3,878  
Commercial mortgage-backed securities 3,358   2,733   3,407   2,729  

Total investment securities held to maturity $ 10,051   $ 8,838   $ 10,239   $ 8,702  

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T he following table presents interest and dividend income on investment securities:

Interest and Dividends on Investment Securities

dollars in millions Three Months Ended September 30, Nine Months Ended September 30,
2025 2024 2025 2024
Interest income - taxable investment securities (1)
$ 432   $ 357   $ 1,263   $ 967  
Interest income - nontaxable investment securities 1   —   1   1  
Dividend income - marketable equity securities —   1   2   2  
Interest on investment securities $ 433   $ 358   $ 1,266   $ 970  

(1) Amount includes interest income on securities purchased under agreements to resell.

The following table presents the gross realized gain and loss on sales of investment securities available for sale, and the net realized gain on sale of marketable equity securities:

Realized Gain (Loss) on Sale of Investment Securities, Net

dollars in millions Three Months Ended September 30, Nine Months Ended September 30,
2025 2024 2025 2024
Gross realized gain on sale of investment securities available for sale $ —   $ —   $ 1   $ —  
Gross realized loss on sale of investment securities available for sale —   —   ( 2 ) —  
Net realized loss on sale of investment securities available for sale —   —   ( 1 ) —  
Net realized gain on sale of marketable equity securities
—   4   1   4  
Realized gain on sale of investment securities, net
$ —   $ 4   $ —   $ 4  

The following table provides information regarding investment securities available for sale with unrealized losses:

Gross Unrealized Losses on Debt Securities Available For Sale

dollars in millions September 30, 2025
Less than 12 months 12 months or more Total
Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses
Investment securities available for sale
U.S. Treasury $ 501   $ ( 1 ) $ 400   $ ( 1 ) $ 901   $ ( 2 )
Government agency —   —   52   ( 1 ) 52   ( 1 )
Residential mortgage-backed securities 403   ( 1 ) 3,381   ( 350 ) 3,784   ( 351 )
Commercial mortgage-backed securities 96   —   1,175   ( 181 ) 1,271   ( 181 )
Corporate bonds 1   —   212   ( 6 ) 213   ( 6 )

Total $ 1,001   $ ( 2 ) $ 5,220   $ ( 539 ) $ 6,221   $ ( 541 )

December 31, 2024
Less than 12 months 12 months or more Total
Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses
Investment securities available for sale
U.S. Treasury $ 3,791   $ ( 12 ) $ 981   $ ( 15 ) $ 4,772   $ ( 27 )
Government agency —   —   77   ( 2 ) 77   ( 2 )
Residential mortgage-backed securities 7,470   ( 61 ) 3,575   ( 521 ) 11,045   ( 582 )
Commercial mortgage-backed securities 1,183   ( 8 ) 1,342   ( 202 ) 2,525   ( 210 )
Corporate bonds 16   —   438   ( 22 ) 454   ( 22 )

Total $ 12,460   $ ( 81 ) $ 6,413   $ ( 762 ) $ 18,873   $ ( 843 )

16

As of September 30, 2025, there were 461 investment securities available for sale with continuous unrealized losses for more than 12 months, of which 427 were government sponsored enterprise-issued mortgage-backed securities, government agency securities, or U.S. Treasury securities and the remaining 34 were corporate bonds. BancShares has the ability and intent to retain these securities for a period of time sufficient to recover all unrealized losses. Given the consistently strong credit rating of the U.S. Treasury, and the long history of no credit losses on debt securities issued by government agencies and government sponsored entities, as of September 30, 2025, no allowance for credit loss was required. For corporate bonds, we analyzed the changes in interest rates relative to when the investment securities were purchased or acquired, and considered other factors including changes in credit ratings, delinquencies, and other macroeconomic factors. As a result of this analysis, we determined that no allowance for credit loss was required for investment securities available for sale as of September 30, 2025.

BancShares’ portfolio of held to maturity debt securities consists of mortgage-backed securities issued by government agencies and government sponsored entities, U.S. Treasury notes, unsecured bonds issued by government agencies and government sponsored entities, and securities issued by the Supranational Entities & Multilateral Development Banks. Given the consistently strong credit rating of the U.S. Treasury and the Supranational Entities & Multilateral Development Banks, and the long history of no credit losses on debt securities issued by government agencies and government sponsored entities, no allowance for credit loss was required for debt securities held to maturity as of September 30, 2025.

There were no debt securities on nonaccrual status as of September 30, 2025 or December 31, 2024.

Investment securities having an aggregate carrying value of $ 6.18 billion at September 30, 2025, and $ 3.94 billion at December 31, 2024, were pledged as collateral to secure public funds on deposit, the Purchase Money Note, certain short-term borrowings, and for other purposes as required by law.

Certain investments held by BancShares are reported in other assets, including FHLB stock and nonmarketable securities without readily determinable fair values that are recorded at cost, and investments in qualified affordable housing projects, all of which are accounted for under the proportional amortization method (the “PAM”).

17

NOTE 4 — LOANS AND LEASES

Unless otherwise noted, loans held for sale are not included in the following tables. Leases in the following tables include finance leases, but exclude operating lease equipment.

Loans by Class
dollars in millions September 30, 2025 December 31, 2024
Commercial
Commercial construction $ 5,926   $ 5,109  
Owner occupied commercial mortgage 17,232   16,842  
Non-owner occupied commercial mortgage 15,645   16,194  
Commercial and industrial 41,172   40,737  
Leases 2,066   2,014  
Global fund banking 31,615   27,904  
Investor dependent 2,772   3,193  
Total commercial 116,428   111,993  
Consumer
Residential mortgage 23,036   23,152  
Revolving mortgage 2,794   2,567  
Consumer auto 1,463   1,523  
Consumer other 1,037   986  
Total consumer 28,330   28,228  
Total loans and leases $ 144,758   $ 140,221  

Refer to Note 1—Significant Accounting Policies and Basis of Presentation for discussion related to changes in loan classes.

At September 30, 2025 and December 31, 2024, accrued interest receivable on loans included in other assets was $ 637 million and $ 603 million, respectively, and was excluded from the estimate of credit losses.

The discount on acquired loans is accreted to interest income over the contractual life of the loan using the effective interest method. Discount accretion income was $ 71 million and $ 230 million for the three and nine months ended September 30, 2025, including $ 6 million and $ 17 million for unfunded commitments, respectively. Discount accretion income was $ 107 million and $ 415 million for the three and nine months ended September 30, 2024, including $ 16 million and $ 71 million for unfunded commitments, respectively.

The following table presents selected components of the amortized cost of loans, including the unamortized discount on acquired loans.

Components of Amortized Cost

dollars in millions September 30, 2025 December 31, 2024
Deferred fees, including unamortized costs and unearned fees on non-PCD loans $ ( 89 ) $ ( 91 )

Net unamortized discount on acquired loans
Non-PCD $ 1,339 $ 1,504
PCD 44 94  
Total net unamortized discount $ 1,383 $ 1,598

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The aging and nonaccrual status of the outstanding loans and leases by class at September 30, 2025 and December 31, 2024 are provided in the tables below. Loans and leases less than 30 days past due are considered current, as various grace periods allow borrowers to make payments within a stated period after the due date and remain in compliance with the respective agreement.

Loans and Leases - Delinquency and Nonaccrual Status (1) (2)

dollars in millions September 30, 2025
Accruing Loans
30-59 Days
Past Due 60-89 Days
Past Due 90 Days or
Greater Total
Past Due Current Total Accruing Nonaccrual Loans Total
Commercial
Commercial construction $ 8   $ 20   $ 19   $ 47   $ 5,870   $ 5,917   $ 9   $ 5,926  
Owner occupied commercial mortgage 31   21   —   52   17,022   17,074   158   17,232  
Non-owner occupied commercial mortgage 36   36   142   214   15,066   15,280   365   15,645  
Commercial and industrial 253   53   40   346   40,250   40,596   576   41,172  
Leases 30   7   —   37   2,004   2,041   25   2,066  
Global fund banking —   —   —   —   31,615   31,615   —   31,615  
Investor dependent 2   1   —   3   2,708   2,711   61   2,772  
Total commercial 360   138   201   699   114,535   115,234   1,194   116,428  
Consumer
Residential mortgage 116   36   6   158   22,708   22,866   170   23,036  
Revolving mortgage 16   3   —   19   2,742   2,761   33   2,794  
Consumer auto 10   2   —   12   1,443   1,455   8   1,463  
Consumer other 4   3   2   9   1,027   1,036   1   1,037  
Total consumer 146   44   8   198   27,920   28,118   212   28,330  
Total loans and leases $ 506   $ 182   $ 209   $ 897   $ 142,455   $ 143,352   $ 1,406   $ 144,758  

December 31, 2024
Accruing Loans
30-59 Days
Past Due 60-89 Days
Past Due 90 Days or
Greater Total
Past Due Current Total Accruing Nonaccrual Loans Total
Commercial
Commercial construction $ 21   $ 1   $ 1   $ 23   $ 5,077   $ 5,100   $ 9   $ 5,109  
Owner occupied commercial mortgage 30   9   2   41   16,739   16,780   62   16,842  
Non-owner occupied commercial mortgage 43   27   78   148   15,621   15,769   425   16,194  
Commercial and industrial 170   40   16   226   40,122   40,348   389   40,737  
Leases 33   11   2   46   1,937   1,983   31   2,014  
Global fund banking —   —   —   —   27,904   27,904   —   27,904  
Investor dependent 10   1   —   11   3,095   3,106   87   3,193  
Total commercial 307   89   99   495   110,495   110,990   1,003   111,993  
Consumer
Residential mortgage 172   27   7   206   22,798   23,004   148   23,152  
Revolving mortgage 20   4   —   24   2,519   2,543   24   2,567  
Consumer auto 12   3   —   15   1,500   1,515   8   1,523  
Consumer other 5   3   3   11   974   985   1   986  
Total consumer 209   37   10   256   27,791   28,047   181   28,228  
Total loans and leases $ 516   $ 126   $ 109   $ 751   $ 138,286   $ 139,037   $ 1,184   $ 140,221  

(1)     Accrued interest that was reversed when the loan went to nonaccrual status was $ 14 million for the nine months ended September 30, 2025 and $ 14 million for the year ended December 31, 2024.
(2)     Nonaccrual loans for which there was no related ALLL totaled $ 411 million at September 30, 2025 and $ 303 million at December 31, 2024.

Other real estate owned (“OREO”) and repossessed assets were $ 98 million as of September 30, 2025 and $ 64 million as of December 31, 2024.

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Credit Quality Indicators
Loans and leases are monitored for credit quality on a recurring basis. Commercial loans and leases and consumer loans have different credit quality indicators as a result of the unique characteristics of the loan classes being evaluated. The credit quality indicators for commercial loans and leases are developed through a review of individual borrowers on an ongoing basis. Commercial loans are evaluated periodically with more frequent evaluations done on criticized loans. The indicators as of the date presented are based on the most recent assessment performed and are defined below:

Pass – A pass rated asset is not adversely classified because it does not display any of the characteristics for adverse classification.

Special mention – A special mention asset has potential weaknesses which deserve management’s close attention. If left uncorrected, such potential weaknesses may result in deterioration of the repayment prospects or collateral position at some future date. Special mention assets are not adversely classified and do not warrant adverse classification.

Substandard – A substandard asset is inadequately protected by the current net worth and paying capacity of the borrower or of the collateral pledged, if any. Assets classified as substandard generally have a well-defined weakness, or weaknesses, that jeopardize the liquidation of the debt. These assets are characterized by the distinct possibility of loss if the deficiencies are not corrected.

Doubtful – An asset classified as doubtful has all the weaknesses inherent in an asset classified substandard with the added characteristic that the weaknesses make collection or liquidation in full highly questionable and improbable on the basis of currently existing facts, conditions and values.

Loss – Assets classified as loss are considered uncollectible and of such little value it is inappropriate to be carried as an asset. This classification is not necessarily equivalent to any potential for recovery or salvage value, but rather it is not appropriate to defer a full charge-off even though partial recovery may be affected in the future.

Ungraded – Ungraded loans represent loans not included in the individual credit grading process due to their relatively small balances or borrower type. The majority of ungraded loans at September 30, 2025 and December 31, 2024, relate to business credit cards. Business credit card loans are subject to automatic charge-off when they become 120 days past due in the same manner as unsecured consumer lines of credit.

The credit quality indicator for consumer loans is based on delinquency status of the borrower as of the date presented. As the borrower becomes more delinquent, the likelihood of loss increases. An exemption is applied to government guaranteed loans as the principal repayments are insured by the Federal Housing Administration and U.S. Department of Veterans Affairs and thus remain on accrual status regardless of delinquency status.

The following tables summarize the commercial loans disaggregated by year of origination and by risk rating. The consumer loan delinquency status by year of origination is also presented below. The tables reflect the amortized cost of the loans and include purchased credit deteriorated (“PCD”) loans.

20

Commercial Loans - Risk Classifications by Class

September 30, 2025
Risk Classification: Term Loans by Origination Year Revolving Converted to Term Loans
dollars in millions 2025 2024 2023 2022 2021 2020 & Prior Revolving Total
Commercial construction
Pass $ 1,488   $ 1,672   $ 1,453   $ 590   $ 84   $ 79   $ 362   $ —   $ 5,728  
Special Mention 7   4   56   —   —   —   —   —   67  
Substandard 5   15   4   85   15   4   —   —   128  
Doubtful 3   —   —   —   —   —   —   —   3  
Ungraded —   —   —   —   —   —   —   —   —  
Total commercial construction 1,503   1,691   1,513   675   99   83   362   —   5,926  
Owner occupied commercial mortgage
Pass 1,806   2,703   2,345   2,463   2,355   4,253   215   28   16,168  
Special Mention 47   32   47   106   40   51   2   —   325  
Substandard 39   59   115   187   94   221   9   1   725  
Doubtful —   4   10   —   —   —   —   —   14  
Ungraded —   —   —   —   —   —   —   —   —  
Total owner occupied commercial mortgage 1,892   2,798   2,517   2,756   2,489   4,525   226   29   17,232  
Non-owner occupied commercial mortgage
Pass 1,977   2,606   3,235   2,241   1,375   2,575   93   3   14,105  
Special Mention 128   53   114   51   1   24   —   —   371  
Substandard 354   243   141   107   35   199   1   —   1,080  
Doubtful 42   21   —   15   —   11   —   —   89  
Ungraded —   —   —   —   —   —   —   —   —  
Total non-owner occupied commercial mortgage 2,501   2,923   3,490   2,414   1,411   2,809   94   3   15,645  
Commercial and industrial
Pass 9,018   8,274   4,151   3,307   1,717   1,803   9,082   75   37,427  
Special Mention 188   234   105   122   193   47   116   —   1,005  
Substandard 410   207   387   454   316   58   502   4   2,338  
Doubtful 10   11   31   80   10   1   108   —   251  
Ungraded —   —   —   —   —   —   151   —   151  
Total commercial and industrial 9,626   8,726   4,674   3,963   2,236   1,909   9,959   79   41,172  
Leases
Pass 620   591   375   179   79   62   —   —   1,906  
Special Mention 14   16   13   20   2   —   —   —   65  
Substandard 19   22   19   9   7   10   —   —   86  
Doubtful 2   2   2   2   1   —   —   —   9  
Ungraded —   —   —   —   —   —   —   —   —  
Total leases 655   631   409   210   89   72   —   —   2,066  
Global fund banking
Pass 983   778   57   104   11   16   29,516   148   31,613  
Special Mention —   1   —   —   —   —   —   —   1  
Substandard —   —   —   —   —   —   1   —   1  
Doubtful —   —   —   —   —   —   —   —   —  
Ungraded —   —   —   —   —   —   —   —   —  
Total global fund banking 983   779   57   104   11   16   29,517   148   31,615  
Investor dependent
Pass 798   776   183   108   —   —   290   —   2,155  
Special Mention 1   48   7   5   —   —   1   —   62  
Substandard 65   190   140   46   7   —   47   —   495  
Doubtful 10   24   16   6   —   —   4   —   60  
Ungraded —   —   —   —   —   —   —   —   —  
Total investor dependent 874   1,038   346   165   7   —   342   —   2,772  
Total commercial $ 18,034   $ 18,586   $ 13,006   $ 10,287   $ 6,342   $ 9,414   $ 40,500   $ 259   $ 116,428  

21

Consumer Loans - Delinquency Status by Class