Contradictions Unveiled: Navigating M&A Strategy, Share Repurchases, and SVB's Deposit Trends in Q1 2025

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Financial Performance and Share Repurchase:
- First Citizens BancShares reported adjusted earnings per share of $37.79 in Q1 2025, aligned with guidance.
- The company returned $613 million of capital to shareholders through share repurchases, bringing total repurchases since inception to $2.3 billion.
- This was driven by strong capital and liquidity positions, and proactive steps to manage debt and capital structures.

Loan and Deposit Growth:
- Loans grew by $1.1 billion or 0.8% sequentially, with growth concentrated in Commercial Bank and SVB Commercial segments.
- Deposits increased by $4.1 billion or 2.6% sequentially, exceeding guidance.
- The growth was attributed to strong performance in specific industry verticals, new client acquisition, and strategic shifts in deposit offerings.

Credit Performance and Reserve Coverage:
- Net charge-offs declined to 41 basis points, at the low end of guidance, predominantly concentrated in general office, investor-dependent, and equipment finance portfolios.
- The allowance ratio decreased by 1 basis point to 1.19%.
- Strong risk management, rigorous underwriting standards, and diversified portfolios maintained balance sheet resilience despite economic uncertainty.

Capital Management and CET1 Ratio:
- The CET1 capital ratio, excluding SLA benefits, was 12.19%, with plans to manage towards 10.5% to 11% by early 2026.
- The company plans further share repurchases in 2025 to achieve this target, considering ongoing loan growth and economic environments.
- The termination of the FDIC shared loss agreement did not impact capital management strategies.