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First Citizens BancShares Reports First Quarter 2026 Earnings

First Citizens BancShares, Inc. (Nasdaq: FCNCA) has recently released its financial results for the first quarter of 2026. Chairman and CEO Frank B. Holding Jr. expressed satisfaction regarding the outcomes that highlighted strong loan and deposit growth, solid credit quality, and return metrics surpassing expectations. Additionally, during this quarter, the company effectively returned $900 million of capital to shareholders through share repurchases and prepaid $2.50 billion of the Purchase Money Note, showcasing a robust capital and liquidity position.

Financial Overview

In terms of financial performance, BancShares reported a net income of $534 million for the first quarter, a slight decline from $580 million reported in the prior quarter. The income available to common stockholders saw a similar trend, amounting to $508 million, or $42.63 per common share, resulting in a $58 million decrease. Adjusted net income for the current quarter stood at $560 million, down from $648 million in the linked quarter.

Net Interest Income and Margin

The net interest income reached $1.62 billion for the quarter, witnessing a $101 million decrease from the fourth quarter of 2025. The decrease stemmed from a combination of factors including a decline in loan yield and interest income from investment securities. The net interest margin slightly decreased to 3.09%, compared to 3.20% in the previous quarter, influenced mainly by the yield on average interest-earning assets and competitive pressures in the market.

Noninterest Income and Expense

In terms of noninterest income, BancShares reported $692 million, reflecting a decrease from $715 million in the previous quarter. Adjusted noninterest income totaled $520 million. The decrease is largely attributed to a decline in other noninterest income, affected by the previous quarter's gains from tax credit investments. Conversely, there were slight increases in deposit fees and service charges.

Noninterest expense amounted to $1.54 billion, a decrease of $36 million from the preceding quarter. Adjusted noninterest expense was reported at $1.33 billion, signaling successful cost management measures undertaken during the period. Key savings encompassed reductions in marketing costs and professional fees, although personnel expenses saw an uptick due to seasonal factors.

Balance Sheet Highlights

As of March 31, 2026, the total loans and leases increased to $148.69 billion, marking a rise of $762 million, demonstrating BancShares' effective lending strategies and focus on high-growth segments like Global Fund Banking. The investment securities also increased to $42.99 billion, while deposits surged by $9.26 billion or 5.7% in the same timeframe, primarily driven by efforts in the Commercial Bank and corporate deposits.

Noninterest-bearing deposits have now reached $2.95 billion, representing a significant 7.3% growth from the linked quarter, illustrating a solid foundation for future growth strategies.

Provision for Credit Losses and Credit Quality

Regarding credit quality, a provision for credit losses totaling $72 million was recognized, reflecting upward adjustments in response to changing economic conditions and maintaining a healthy risk profile. Nonaccrual loans amounted to $1.43 billion, indicating vigil in monitoring credit risks and ensuring proactive management of the loan portfolio. The company continues to maintain robust capital ratios, assuring stakeholders of its strong positioning within regulatory expectations.

Looking Ahead

BancShares is set to host a conference call on April 23, 2026, at 9 a.m. ET to further discuss its financial results. Stakeholders can access the call via the company’s website. First Citizens BancShares continues to reinforce its enduring commitment to delivering long-term value to its shareholders while ensuring the highest standards of service to its customers across its expansive operations.

For those keen on staying updated about BancShares and its financial initiatives, more information can be found on the company’s investor relations website and the SEC portal.

About First Citizens BancShares

As one of the leading financial institutions in the United States, First Citizens BancShares holds a position among the top 20 banks, boasting assets over $225 billion. It is dedicated to providing comprehensive banking solutions across all segments of the market. With a legacy of stability and trust, First Citizens remains committed to fostering growth and innovation in the banking sector.