First Citizens BancShares Maintains Dividend Discipline Amid Strong Financials

First Citizens BancShares (NASDAQ: FCNCA) has reaffirmed its commitment to shareholder returns with its latest dividend declaration, offering stability and growth signals to investors. The bank’s April 24, 2025, announcement detailed dividends for common and preferred stocks, alongside robust financial metrics that underscore its financial resilience.

Dividend Details: Consistency and Nuance

The common stock dividend of $1.95 per share for both Class A and Class B shares remains unchanged from prior quarters, reflecting management’s focus on steady payouts. For preferred shareholders:
- Series A receives a quarterly $13.44 per share ($0.335938 per depositary share), aligning with its 5.375% annual rate.
- Series B’s $21.57 per share dividend highlights its fixed-to-floating rate structure, which may reflect a one-time adjustment tied to its hybrid terms.
- Series C delivers a consistent $0.351563 per share, maintaining its 5.625% yield.

This layered approach ensures returns for both common and preferred shareholders, with the latter benefiting from specialized instruments that cater to income-focused investors.

Financial Fortitude: A Foundation for Returns

First Citizens’ dividend policy is underpinned by solid first-quarter 2025 results. Despite revenue fluctuations, net income reached $483 million, while its total risk-based capital ratio of 15.23% as of March 31, 2025, exceeds regulatory requirements, signaling ample liquidity.

The bank’s share repurchase program further emphasizes shareholder value: it spent $613 million to buy back 302,683 Class A shares in Q1, leaving $1.22 billion remaining under its authorization. This combination of dividends and buybacks positions First Citizens as a leader in capital allocation among regional banks.

Strategic Implications: Stability and Growth

The consistency of the common dividend—unchanged for multiple quarters—suggests management’s confidence in the bank’s earnings trajectory. Meanwhile, the preferred dividends, particularly the one-time Series B payout, align with the bank’s strategy to optimize its capital structure amid evolving interest rate environments.

Investors should note that non-cumulative preferred shares (like those offered by First Citizens) lack the protection of accrued missed dividends, but the bank’s strong capital ratios reduce such risks. Additionally, the repurchase program’s remaining capacity indicates room for future buybacks, which could support share price stability.

Conclusion: A Reliable Dividend Story

First Citizens BancShares’ dividend declaration reinforces its status as a disciplined capital allocator. With a common dividend yield of ~2.4% (based on recent stock prices), robust earnings, and a capital buffer well above minimum thresholds, the bank offers investors both income and security.

The $1.22 billion remaining buyback capacity and consistent dividend growth trajectory suggest that shareholders can expect continued returns. While regional banks face macroeconomic headwinds, First Citizens’ financial metrics—particularly its 15.23% capital ratio and strong liquidity—position it to navigate challenges while rewarding investors.

For income-focused portfolios, First Citizens remains a compelling option, blending dividend reliability with the potential for share price appreciation as its capital management strategies unfold.

Data as of April 24, 2025. Past performance does not guarantee future results.