What is the company's profitability trend compared to the previous quarter?

First Citizens BancShares, Inc. demonstrated strong sequential growth in profitability. Net income available to common stockholders increased by 26% from $508 million in the first quarter of 2026 to $640 million in the second quarter of 2026. This improvement was driven by higher net interest income and noninterest income, coupled with a substantial decrease in the provision for credit losses.

How has the company's loan portfolio quality evolved?

The company's loan portfolio quality shows improvement. The allowance for loan and lease losses (ALLL) decreased by $82 million from the prior year-end to $1.48 billion at June 30, 2026. This reduction was attributed to lower specific reserves, credit quality improvements, model updates, and a shift in loan growth towards capital call lines, which have a lower loss rate. The provision for credit losses for the quarter resulted in a benefit of $10 million.

What is the company's capital and liquidity position?

First Citizens BancShares maintains a strong capital and liquidity position. As of June 30, 2026, its Total Risk-Based Capital ratio was 13.37% and Common Equity Tier 1 ratio was 10.77%, both comfortably exceeding regulatory requirements. The company also held $59.14 billion in high-quality liquid assets and had contingent liquidity sources of $30.52 billion, providing a strong buffer against potential funding needs.

What are the key drivers of the increase in Net Interest Income (NII)?

Net interest income increased by 2% to $1.66 billion compared to the prior quarter. This growth was primarily driven by higher yields and average balances in loans and investment securities, as well as a reduction in borrowing balances due to prepayments on the Purchase Money Note. These factors were partially offset by an increase in the average balance and rates paid on interest-bearing deposits.

FCNCA 10-Q Quarterly Report Q2 FY2026 — Revenue, Net Income, EPS

01—Abstract

Summary

Summary of the 10-Q filed August 7, 2026. Cited figures are marked; the original filing is the authoritative source.

First Citizens BancShares, Inc. /DE/ (FCNCA) reported a solid second quarter for 2026, with net income available to common stockholders reaching $640 million^a, a significant 26% increase from the prior quarter, driven by improved net interest income and higher noninterest income.

Total assets grew to $236.8 billion^b, supported by a substantial increase in deposits to $173.4 billion. The company continued its proactive debt management, prepaying $2.5 billion on the FDIC Purchase Money Note. Key operational highlights include a decrease in the allowance for loan and lease losses (ALLL) driven by model enhancements and improved credit quality, leading to a benefit for credit losses of $10 million.

The company also saw strong performance in its Commercial Bank segment, which reported a 47%^c increase in net income quarter-over-quarter. While the Rail segment experienced a slight dip in sequential quarterly income, the overall financial health remains robust, with capital ratios comfortably exceeding regulatory requirements.

02—Key points

Key Highlights

Net income available to common stockholders increased by 26% to $640 million in Q2 2026 compared to the previous quarter.
Total assets grew to $236.8 billion, with total deposits reaching $173.4 billion, up 7% from the prior year-end.
Provision for credit losses turned into a benefit of $10 million, primarily due to a significant $74 million ALLL reserve release and model updates.
Net interest income increased by 2% to $1.66 billion driven by higher loan yields and volumes, partially offset by increased deposit costs.
Commercial Bank segment net income surged by 47% quarter-over-quarter, driven by a lower provision for credit losses and higher noninterest income.
The company continued to reduce its outstanding borrowings, prepaying $2.5 billion on the FDIC Purchase Money Note during the quarter.
Capital ratios remain strong, with Total Risk-Based Capital at 13.37% and Common Equity Tier 1 at 10.77% as of June 30, 2026.

03—Questions

Frequently Asked Questions

What is the company's profitability trend compared to the previous quarter?
First Citizens BancShares, Inc. demonstrated strong sequential growth in profitability. Net income available to common stockholders increased by 26% from $508 million in the first quarter of 2026 to $640 million in the second quarter of 2026. This improvement was driven by higher net interest income and noninterest income, coupled with a substantial decrease in the provision for credit losses.
How has the company's loan portfolio quality evolved?
The company's loan portfolio quality shows improvement. The allowance for loan and lease losses (ALLL) decreased by $82 million from the prior year-end to $1.48 billion at June 30, 2026. This reduction was attributed to lower specific reserves, credit quality improvements, model updates, and a shift in loan growth towards capital call lines, which have a lower loss rate. The provision for credit losses for the quarter resulted in a benefit of $10 million.
What is the company's capital and liquidity position?
First Citizens BancShares maintains a strong capital and liquidity position. As of June 30, 2026, its Total Risk-Based Capital ratio was 13.37% and Common Equity Tier 1 ratio was 10.77%, both comfortably exceeding regulatory requirements. The company also held $59.14 billion in high-quality liquid assets and had contingent liquidity sources of $30.52 billion, providing a strong buffer against potential funding needs.
What are the key drivers of the increase in Net Interest Income (NII)?
Net interest income increased by 2% to $1.66 billion compared to the prior quarter. This growth was primarily driven by higher yields and average balances in loans and investment securities, as well as a reduction in borrowing balances due to prepayments on the Purchase Money Note. These factors were partially offset by an increase in the average balance and rates paid on interest-bearing deposits.

04—Continue

← View all 10-Q filings