Overview

First Citizens BancShares, Inc. (“BancShares”, Nasdaq: FCNCA) has released its earnings for the first quarter of 2026, reporting resilient profitability, ongoing capital management, and strategic growth initiatives. The company’s financial performance exceeded internal expectations on several key metrics, despite a challenging interest rate environment. Shareholders should be aware of several developments that could have implications for share value and future company direction.

Q1 2026 Key Financial Highlights

• Net Income: \$534 million for Q1 2026, down from \$580 million in Q4 2025, but up from \$483 million in Q1 2025.
• Net Income Available to Common Stockholders: \$508 million, or \$42.63 per share, compared to \$566 million (\$45.81 per share) in the prior quarter and \$468 million (\$34.47 per share) a year ago.
• Adjusted Net Income: \$560 million, with adjusted net income available to common stockholders at \$534 million, or \$44.86 per share (a decrease from \$634 million / \$51.27 per share in Q4 2025).
• Net Interest Income: \$1.62 billion, down \$101 million (5.9%) from the prior quarter due to lower loan yields and declining purchase accounting accretion (PAA), partially offset by higher average loan balances.
• Noninterest Income: \$692 million, down \$23 million (3.2%) sequentially but up \$57 million (8.9%) year-over-year.
• Noninterest Expense: \$1.54 billion, down \$36 million (2.3%) from Q4, reflecting operational efficiency initiatives.
• Provision for Credit Losses: \$72 million, up \$18 million from the prior quarter but down \$82 million year-over-year.
• Return on Average Assets (ROA): 0.93% for Q1 2026.
• Return on Average Common Equity (ROE): 9.88% for Q1 2026.
• Net Interest Margin (NIM): 3.09%, slightly down from 3.12% in Q4 2025, reflecting margin compression.

Balance Sheet and Capital Management

• Loans: Grew by \$762 million (0.5%) from Q4, led by growth in Global Fund Banking.
• Deposits: Increased by \$9.3 billion (5.7%) from Q4, driven by business segment growth and supplemented by brokered deposits.
• Loan-to-Deposit Ratio: 87.04% at quarter-end.
• Book Value per Common Share: \$1,735.18 at March 31, 2026.
• Tangible Book Value per Common Share: Noted as a key metric but exact figure not specified in the main text.
• Capital Ratios:
  • Tier 1 Risk-Based Capital Ratio: 11.79%
  • Common Equity Tier 1 Ratio: 10.83%
  • Tier 1 Leverage Capital Ratio: 9.30%
• Investment Securities: \$42.99 billion at period end, with a diversified mix of U.S. Treasuries, agencies, mortgage-backed and other securities.

Share Repurchase Activity and Strategic Updates

• Share Repurchase: Repurchased 449,845 shares of Class A common stock, totaling \$900 million in Q1 2026. The 2025 Share Repurchase Plan allows for repurchases through 2026, but does not obligate the company to a minimum or specific number of shares. Repurchases can be suspended at any time at management’s discretion.
• FDIC Purchase Money Note: BancShares repaid an additional \$2.5 billion in the first quarter as part of its ongoing balance sheet optimization and strategic capital deployment.
• Pending Acquisition: The company highlighted the pending acquisition of 138 branches from BMO Bank N.A., which could have material implications for future growth, deposit base, and market reach.

Credit Quality and Risk Management

• Credit quality remained stable with a declining net charge-off (NCO) ratio, which fell 9 basis points from the prior quarter and remained below company guidance.
• Allowance for loan and lease losses (ALLL) and other risk metrics were not detailed but are stated as being well-managed, reflecting prudent credit and underwriting practices.

Guidance and Forward-Looking Statements

• BancShares continues to focus on operational efficiency, prudent capital management, and strategic growth, particularly through product expansion, talent development, and process optimization.
• The company warned that its forward-looking statements are subject to risks including economic uncertainty, changes in interest rates, regulatory developments (such as potential FDIC special assessments or changes in deposit insurance premiums), cyber threats, and the competitive banking landscape.
• Management reiterated no obligation to update forward-looking statements unless required by law.

Shareholder and Market Impact

• The robust share repurchase activity and strong capital ratios signal confidence in the company’s financial position, which can be price-supportive or accretive for shareholders.
• The pending BMO branch acquisition is a potentially material event that could drive future earnings growth and market share, and should be closely monitored by investors.
• Operational efficiency and lower-than-expected noninterest expense reflect disciplined management in a challenging margin environment, supporting profitability.
• Margin compression and declining net income versus the prior quarter may temper near-term enthusiasm, but the year-over-year growth and stability in credit quality are positives for long-term holders.

Access to Further Information and Webcast

The company will host a conference call to discuss these results on April 23, 2026, at 9 a.m. Eastern Time. Investors can access the webcast and related presentations on the company’s investor relations site. All relevant materials, including the financial supplement and investor presentation, are available online and have been filed with the SEC.

Non-GAAP Measures

BancShares uses several non-GAAP financial measures such as adjusted net income, adjusted EPS, and others, typically excluding the purchase accounting accretion (PAA) and notable items. Full reconciliations to the most directly comparable GAAP measures are available in the company’s financial supplement and investor presentation.