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First Citizens BancShares (FCNCA) Q3 2026 Earnings Report
FCNCA Q3 2026 EPS Results
- Actual EPS
- $55.37
- Consensus EPS
- $46.18
- Beat/Miss
- Beat by +$9.19
- One Year Ago EPS
- $44.62
FCNCA Q3 2026 Revenue Results
- Actual Revenue
- $3.73B
- Expected Revenue
- $2.23B
- Beat/Miss
- Beat by +$1.50B
- YoY Revenue Growth
- +1.41%
Earnings Announcement Details
- Quarter
- Q3 2026
- Date
- 10/23/2026
- Time
- Before Open
- Conference Call
- Friday, October 23, 2026
FCNCA Upcoming Earnings
First Citizens BancShares's next earnings date is estimated for January 22, 2027, based on past reporting schedules.
Q3 2026 Earnings Call Audio
FCNCA Q3 2026 Earnings Call
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Q3 2026 Earnings Slide Deck
Q3 2026 Earnings Call Summary
Earnings Call Sentiment|Positive
The call was strongly positive. Management reported earnings above expectations, broad-based loan and deposit growth, improved credit metrics, significant FDIC note repayment, capital returns, and raised full-year guidance for net interest income and fee income. The principal challenges were warrant-income volatility, competitive spread pressure, expected moderation in fund-banking utilization, limited IPO and exit activity, and a temporary margin drag from replacing the FDIC note with other funding sources.
Company Guidance
First Citizens raised fourth-quarter loan guidance to $158 billion-$161 billion and projected fourth quarter deposits between $189 billion and $192 billion; full-year net interest income guidance is $6.68 billion-$6.75 billion, with a fourth quarter range of $1.7 billion-$1.77 billion factoring in zero to one 25-basis-point rate hike, fourth-quarter net charge-offs of 30 basis points-35 basis points and full-year net charge-offs of 29 basis points-31 basis points, fourth-quarter non-interest income of $540 million-$580 million and full-year non-interest income of $2.22 billion-$2.26 billion, fourth-quarter expenses of $1.35 billion-$1.39 billion and full-year expenses of $5.39 billion-$5.43 billion, and a fourth-quarter and full-year tax rate in the range of 24.5%-25.5%, exclusive of any discrete items; it projects consistent quarterly Purchase Money Note prepayments in the $3.5 billion-$4 billion range through the end of 2027, aggregate senior unsecured and subordinated debt issuances in a modest range of approximately $1 billion-$2 billion through year-end 2027, fourth-quarter 2026 share repurchases of approximately $300 million, headline fourth-quarter NIM in the mid 3.10s and ex accretion in the high 3.0s, and fourth-quarter 2027 exit headline and ex accretion net interest income up mid to high-single-digits percentage points, with headline NIM in the mid 3.20s and ex accretion NIM in the low 3.20s.
- Earnings Exceeded ExpectationsAdjusted net income was $652 million and adjusted earnings per share were $55.37, producing a 12.24% ROE and 1.08% ROA. Management said earnings exceeded expectations during the quarter.
- Strong Revenue and Net Interest Income GrowthAdjusted net revenue expanded 1.4% sequentially and drove positive adjusted operating leverage. Net interest income increased by $43 million sequentially, supported by favorable earning-asset volumes, strong yields, reduced borrowings, and a higher day count.
- Stable Net Interest MarginHeadline NIM was 3.07% and NIM excluding accretion was 2.99%, remaining essentially in line with the prior quarter and the expected range. Management described margin stability as excellent in the current environment.
- Accelerated Loan GrowthPeriod-end loans increased by $6.2 billion, or 4.1% sequentially, supported by high-quality client activity across the commercial and general bank segments. Growth included approximately $650 million of loans from the BMO branch acquisition.
- Fund Banking Delivered Exceptional GrowthFund banking loans expanded by $4.4 billion, or 11% sequentially. Growth reflected higher utilization rates, expanding capital-call balances as market transaction values and line balances increased, and stable limited-partner capital calls. The business booked close to $6 billion in new deals in the third quarter, while utilization reached approximately 40%.
- Innovation Banking and Commercial Verticals ExpandedInnovation banking loans reached $10.1 billion, an increase of 6.6% over the linked quarter, supported by technology activity, commercial-finance referrals, and strategic partnerships. The company also cited broad-based opportunities in working capital, technology, media and telecom, and energy.
- Broad-Based Deposit GrowthPeriod-end deposits increased by $11.8 billion, or 6.8% sequentially, while average deposits grew by $8.0 billion. Growth was broad-based across operating segments and included $4.9 billion of acquired BMO deposits.
- Direct Bank and Innovation Deposits Showed MomentumThe direct bank generated $3.2 billion of high-quality inflows, consisting of granular and heavily insured core retail deposits. Innovation banking deposits grew by $1.7 billion, reflecting a stabilizing innovation ecosystem, public and private capital deployment, and new client acquisition.
- BMO Branch Acquisition Added Scale and LiquidityThe BMO branch acquisition onboarded approximately $4.9 billion in high-quality deposits and expanded the branch network across 11 states. Management said the transaction added scale, enhanced liquidity, and contributed approximately $650 million in loan balances.
- Client Funds IncreasedPeriod-end total client funds grew by $6.9 billion, while average total client funds rose by $7.2 billion sequentially. Growth was primarily driven by the innovation and fund banking businesses.
- Core Fee Businesses Remained StrongAlthough adjusted non-interest income declined modestly overall, it exceeded guidance. Lending-related fees increased by $10 million sequentially, client investment fees increased by $9 million, and adjusted Rail rental income grew by $10 million due to high asset utilization and positive repricing trends.
- Expense Discipline and Efficiency ProgressAdjusted non-interest expense was largely stable sequentially and within guidance. Lower professional-services expenses, improved direct-bank marketing effectiveness, and essentially flat personnel expenses mitigated continued investment in digital infrastructure and data-center modernization. Management said operating efficiency was bending the cost curve in its favor.
- Credit Metrics ImprovedNonaccrual loans decreased by $80 million sequentially to 0.87% of total loans. Net charge-offs were $103 million, the net charge-off ratio improved by 2 basis points to 0.27%, and the ratio declined for four straight quarters to its lowest level since the first quarter of 2023. Criticized and classified asset levels also continued to decline.
- Allowance and Credit Outlook Remained FavorableThe company reduced its allowance for loan losses as credit-quality trends improved and said the allowance remained prudent and conservative, covering quarter-to-date net charge-offs by over 3.4x and year-to-date net charge-offs by over 3x. Full-year net charge-off guidance was tightened to 29 basis points-31 basis points.
- Significant FDIC Note RepaymentFirst Citizens prepaid $8 billion of the FDIC Purchase Money Note during the quarter and another $1.5 billion in October. Since beginning prepayments in the fourth quarter of 2025, the company has retired approximately 47% of the original balance, representing $17 billion of debt reduction.
- Capital Return and CET1 Target AchievedThe company returned $600 million to shareholders through third-quarter share repurchases, bringing the CET1 ratio to 10.24%, within the target operating range. As of October 20, approximately 24% of outstanding common shares had been repurchased, representing $6.9 billion of capital return, and a new $1.2 billion repurchase plan will begin in 2027.
- Raised Loan, Deposit, Net Interest Income, and Fee GuidanceFourth-quarter loan guidance was raised to $158 billion-$161 billion and deposit guidance to $189 billion-$192 billion. Full-year net interest income guidance was raised to $6.68 billion-$6.75 billion, while full-year non-interest income guidance was raised to $2.22 billion-$2.26 billion.
- Positive Longer-Term Margin and Growth OutlookManagement expects fourth-quarter headline net interest income to increase by low-single-digit percentage points and ex-accretion net interest income to increase by low to mid-single-digit percentage points. For the fourth-quarter 2027 exit versus the fourth-quarter 2026 exit, both headline and ex-accretion net interest income are expected to increase by mid to high-single-digits percentage points.
- Expense Growth Expected to Remain ControlledManagement said low to mid-single-digit expense growth over the medium term was reasonable, supported by continued optimization of platforms, processes, and teams. Fourth-quarter expenses are expected to be $1.35 billion-$1.39 billion, with full-year expenses expected at $5.39 billion-$5.43 billion.
- Fund Banking Economics Remained AttractiveManagement said fund banking loans were generating healthy spreads and were coming on slightly above the overall portfolio, while related deposits were below the bank's average deposit cost. Loan-spread compression had slowed, and pricing decisions continued to consider the full risk-adjusted client relationship.
- Venture and Capital Deployment Activity Stayed RobustManagement said sponsors continued to have substantial dry powder, fundraising remained active among established managers, and clients remained focused on deploying capital. Venture investment through the third quarter remained robust, with no detected dampening of enthusiasm based on rates.
- Brand Alignment Received Positive Client FeedbackManagement said the unified brand launch had generated a good experience and that clients largely remained focused on continued delivery of the same client experience and product solutions. The company said the marketplace had seemingly moved past the name change as a no-big-deal event.
- Regulatory Environment Viewed FavorablyManagement said recent and proposed regulatory changes, including Federal Reserve supervisory principles, FDIC proposed rulemaking, and tailoring, were supportive of the company's objectives. The regulatory environment was described as highly positive and conducive to M&A.
- Potential Basel III Capital BenefitManagement estimated that the standardized approach under the Basel III proposals could reduce current risk-weighted assets in the mid to high single digits percentage range and be accretive to the CET1 ratio by around 70 basis points. The company said AOCI inclusion was not expected to have a material impact given the relatively short-duration investment portfolio.
FCNCA Earnings History
| Report Date | Fiscal Quarter | Forecast / EPS | Last Year's EPS | EPS YoY Change | Press Release |
|---|---|---|---|---|---|
| Jan 22, 2027 | 2026 (Q4) | 51.87- | 51.27 | ― | ― |
| Oct 23, 2026 | 2026 (Q3) | 46.1855.37 | 44.62 | 24.09% (+10.75) | |
| Jul 23, 2026 | 2026 (Q2) | 40.6957.09 | 44.78 | 27.49% (+12.31) | |
| Apr 23, 2026 | 2026 (Q1) | 39.5644.86 | 37.79 | 18.71% (+7.07) | |
| Jan 23, 2026 | 2025 (Q4) | 43.9951.27 | 45.1 | 13.68% (+6.17) | |
| Oct 23, 2025 | 2025 (Q3) | 41.8744.62 | 45.87 | -2.73% (-1.25) | |
| Jul 25, 2025 | 2025 (Q2) | 39.7244.78 | 50.87 | -11.97% (-6.09) | |
| Apr 24, 2025 | 2025 (Q1) | 37.9137.79 | 52.92 | -28.59% (-15.13) | |
| Jan 24, 2025 | 2024 (Q4) | 38.9745.10 | 46.58 | -3.18% (-1.48) | |
| Oct 24, 2024 | 2024 (Q3) | 47.1045.87 | 55.92 | -17.97% (-10.05) |
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat Missed