Company: FCNCB
Filing Date: 2025-05-09
Form Type: 10-Q
Source: 0000798941-25-000024
Chunk: 100

Company: FIRST CITIZENS BANCSHARES INC /DE/
Filing Date: 2025-05-09
Form: 10-Q
Item: Item 1
Chunk 100
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Corporate deposits increased $2.76 billion from December 31, 2024 primarily due to growth in savings deposits, partially offset by lower time deposits. Total deposits in Corporate mainly include $44.17 billion of Direct Bank deposits with the remaining balance consisting of brokered and other deposits. 

BALANCE SHEET ANALYSIS

Interest-earning Assets

Interest-earning assets include interest-earning deposits at banks, securities purchased under agreements to resell, investment securities, loans held for sale, and loans and leases, all of which reflect varying interest rates based on the risk level and repricing characteristics of the underlying asset. Higher-risk investments typically carry a higher interest rate, but expose us to higher levels of market and/or credit risk. We strive to maintain a high level of interest-earning assets relative to total assets while keeping non-earning assets at a minimum.  

Interest-earning Deposits at Banks

Interest-earning deposits at banks are primarily comprised of interest-bearing deposits with the FRB. Interest-earning deposits at banks as of March 31, 2025 totaled $24.69 billion, an increase of $3.33 billion or 16% from $21.36 billion at December 31, 2024. The increase from December 31, 2024 is related to continued liquidity and funding management as we grew customer deposits and issued debt, funded loan growth, and were a main funding source for purchases of investment securities and repurchases of shares of the Parent Company’s Class A common stock during the Current Quarter.

Securities Purchased Under Agreements to Resell

Securities purchased under agreements to resell at March 31, 2025 totaled $345 million, an increase of $187 million from $158 million at December 31, 2024.  

Investment Securities

The primary objective of the investment portfolio is to generate incremental income by deploying excess funds into securities that have minimal liquidity risk and low to moderate interest rate risk and credit risk. Other objectives include acting as a stable source of liquidity, serving as a tool for asset and liability management and maintaining an interest rate risk profile compatible with our objectives. Additionally, purchases of equities and corporate bonds in other financial institutions have been made under a long-term earnings optimization strategy. Changes in the total balance of our investment securities portfolio result from trends in balance sheet funding and market performance. Generally, when inflows arising from deposit and treasury services products exceed loan and lease demand, we invest excess