10-QPeriod: Q1 FY2026

FIRST CITIZENS BANCSHARES INC /DE/ Quarterly Report for Q1 Ended Mar 31, 2026

Filed May 8, 2026For Securities:FCNCAFCNCPFCNCBFCNCOFCNCN

Summary

First Citizens BancShares, Inc. /de/ (FCNCA) reported solid financial results for the first quarter of 2026. Net income available to common stockholders increased by 9% year-over-year to $508 million, or $42.63 per diluted share, driven by a decrease in the provision for credit losses and an increase in noninterest income. The bank's balance sheet saw significant growth, with total assets reaching $235.96 billion, up 2.8% from the prior quarter. Deposits increased by 5.7% to $170.84 billion, bolstered by growth across all segments, particularly in the Commercial Bank and Corporate segments. Borrowings decreased by 5.7% to $33.96 billion, mainly due to prepayments on the FDIC Purchase Money Note and the issuance of new senior unsecured notes. The bank maintained strong capital ratios, well exceeding regulatory requirements, indicating a robust financial position. Management remains focused on managing interest rate risk and liquidity, with significant holdings in high-quality liquid assets and available borrowing capacity, positioning the company for continued stability and growth.

Key Highlights

  • 1Net income available to common stockholders increased by 9% year-over-year to $508 million.
  • 2Diluted earnings per common share rose to $42.63, an increase from $34.47 in the prior year quarter.
  • 3Total assets grew by 2.8% sequentially to $235.96 billion.
  • 4Total deposits increased by 5.7% sequentially to $170.84 billion, with noninterest-bearing deposits growing by 7.3%.
  • 5Total borrowings decreased by 5.7% sequentially to $33.96 billion, driven by prepayments on the FDIC Purchase Money Note.
  • 6The provision for credit losses decreased significantly by 53% year-over-year to $72 million.
  • 7Capital ratios remained strong, with the Common Equity Tier 1 ratio at 10.83% for BancShares.

Frequently Asked Questions

Net interest income (NII) for the quarter was $1.62 billion, a decrease of 3% from the prior year quarter, and the net interest margin (NIM) was 3.09%, down from 3.26% in the prior year quarter. This was primarily due to lower yields on loans and interest-earning deposits, partially offset by a higher average balance of loans and a lower rate paid on interest-bearing deposits.

Total borrowings decreased by 5.7% to $33.96 billion. This reduction was primarily driven by prepayments of $2.50 billion on the FDIC Purchase Money Note, partially offset by the issuance of $500 million in new Senior Unsecured Notes due 2032.

Loans and leases increased by 0.5% sequentially to $148.69 billion. While the overall provision for credit losses decreased, the allowance for loan and lease losses (ALLL) remained stable at $1.56 billion. The ratio of nonaccrual loans to total loans increased slightly to 0.96%, with a notable increase in nonaccrual commercial real estate loans.

The bank experienced strong deposit growth of 5.7% sequentially, reaching $170.84 billion. Noninterest-bearing deposits also grew, representing 25.5% of total deposits. The bank maintains a strong liquidity position with $60.72 billion in high-quality liquid assets and significant unused borrowing capacity, indicating a solid ability to meet its obligations.