Company: FCNCB
Filing Date: 2025-05-09
Form Type: 10-Q
Source: 0000798941-25-000024
Chunk: 113

Company: FIRST CITIZENS BANCSHARES INC /DE/
Filing Date: 2025-05-09
Form: 10-Q
Item: Item 1
Chunk 113
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 loan volume, partially offset by the result of a mix shift from the investor dependent portfolio to the global fund banking portfolio, which has a lower loss rate relative to our other loan portfolios, and lower specific reserves for individually evaluated loans. The reserve release in the Linked Quarter was primarily due to lower specific reserves, partially offset by increases in loan volume. 

While management utilizes its best judgment and information available, the ultimate adequacy of our ALLL is dependent upon a variety of factors beyond our control which are inherently difficult to predict, the most significant being the macroeconomic scenario forecasts that determine the economic variables, including unemployment, gross domestic product, home price index, CRE index, corporate profits, and credit spreads, utilized in the ALLL models. These economic variables are based on macroeconomic scenario forecasts with a forecast horizon that covers the lives of the loan portfolios. In addition, during the first quarter of 2025, economic uncertainty increased due to the potential impacts of new trade and other economic policies in the United States, including tariffs. Due to the inherent uncertainty in the macroeconomic forecasts, BancShares utilizes baseline, upside, and downside macroeconomic scenarios and weights the scenarios based on review of variable forecasts for each scenario and comparison to expectations. At March 31, 2025, ALLL estimates in these scenarios ranged from approximately $1.42 billion, when weighing the upside scenario 100%, to approximately $2.17 billion when weighting the downside scenario 100%. BancShares management determined that an ALLL of $1.68 billion was appropriate as of March 31, 2025.  

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Table 31

ALLL for Loans and Leases

dollars in millionsThree Months Ended March 31, 2025CommercialConsumerSVBTotalBalance at beginning of period$1,063 $158 $455 $1,676 Provision for loan and lease losses105 10 33 148 Charge-offs(105)(8)(54)(167)Recoveries15 3 5 23 Balance at end of period$1,078 $163 $439 $1,680 Net charge-off ratio0.41 %Net charge-offs$90 $5 $49 $144 Average loans$140,780 Percent of loans in each category to total loans51 %20 %29 %100 %Three Months Ended December 31, 2024CommercialConsumerSVBTotalBalance at beginning of period$1,