10-QPeriod: Q2 FY2026

FIRST CITIZENS BANCSHARES INC /DE/ Quarterly Report for Q2 Ended Jun 30, 2026

Filed August 7, 2026For Securities:FCNCAFCNCPFCNCBFCNCOFCNCN

Summary

First Citizens BancShares, Inc. /DE/ (FCNCA) reported a solid second quarter for 2026, with net income available to common stockholders reaching $640 million, 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, 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% 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.

Key Highlights

  • 1Net income available to common stockholders increased by 26% to $640 million in Q2 2026 compared to the previous quarter.
  • 2Total assets grew to $236.8 billion, with total deposits reaching $173.4 billion, up 7% from the prior year-end.
  • 3Provision for credit losses turned into a benefit of $10 million, primarily due to a significant $74 million ALLL reserve release and model updates.
  • 4Net interest income increased by 2% to $1.66 billion driven by higher loan yields and volumes, partially offset by increased deposit costs.
  • 5Commercial Bank segment net income surged by 47% quarter-over-quarter, driven by a lower provision for credit losses and higher noninterest income.
  • 6The company continued to reduce its outstanding borrowings, prepaying $2.5 billion on the FDIC Purchase Money Note during the quarter.
  • 7Capital ratios remain strong, with Total Risk-Based Capital at 13.37% and Common Equity Tier 1 at 10.77% as of June 30, 2026.

Frequently Asked Questions

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.

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.

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.

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.