First Citizens BancShares reported lower third-quarter profit and authorized up to $1.2 billion in discretionary Class A share repurchases for 2027, setting the scale of a potential return to shareholders.
The company posted $606 million in net income for the quarter, versus $672 million three months earlier. Income attributable to common shareholders was $577 million, translating to $51.23 a share. The corresponding second-quarter figures were $640 million and $55.52 per share. Chairman and CEO Frank B. Holding, Jr. said results “exceeded our expectations” and pointed to growth, credit quality and expense discipline.
Net interest income — interest revenue after interest costs — reached $1.70 billion, $43 million above the second quarter. The net interest margin was 3.07%, a three-basis-point decline. BancShares linked a $90 million increase in interest expense on interest-bearing deposits to higher average balances and rates as Direct Bank and brokered deposits grew. Repayment of $8 billion of the Purchase Money Note contributed to a $19 million drop in borrowing expense, the company said.
Loans and leases grew $6.16 billion from June to $157.19 billion at quarter-end. Deposits added $11.84 billion over the same span, reaching $185.26 billion. The BMO transaction closed Sept. 4, with First-Citizens Bank & Trust Company taking over 138 branches, about $4.9 billion in deposits and $650 million in loans.
The credit-loss provision was $55 million after a $10 million benefit in the prior quarter. Net charge-offs were $103 million, or 0.27% of average loans, compared with $108 million and 0.29% in the second quarter.
During the quarter, BancShares spent $600 million repurchasing 278,828 Class A shares and paid dividends of $2.10 per share on both classes of common stock. At quarter-end, $711 million remained under a separate 2025 repurchase plan. The 2027 authorization has no minimum purchase requirement; management controls the timing and amount and can discontinue the program.
