First Citizens BancShares, Inc. Class B(FCNCB)
$1,790.00-4.51 (-0.25%)
FCNCB
First Citizens BancShares, Inc. Class B earnings date
$1,790.00
At close:-4.51 (-0.25%)
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First Citizens BancShares, Inc. Class B (FCNCB) Q3 2026 Earnings Report
FCNCB Q3 2026 EPS Results
- Actual EPS
- $55.37
- Consensus EPS
- $46.04
- Beat/Miss
- Beat by +$9.33
- One Year Ago EPS
- $44.62
FCNCB Q3 2026 Revenue Results
- Actual Revenue
- $3.73B
- Expected Revenue
- $2.23B
- Beat/Miss
- Beat by +$1.51B
- YoY Revenue Growth
- +1.36%
Earnings Announcement Details
- Quarter
- Q3 2026
- Date
- 10/23/2026
- Time
- Before Open
- Conference Call
- Friday, October 23, 2026
FCNCB Upcoming Earnings
First Citizens BancShares, Inc. Class B's next earnings date is estimated for January 22, 2027, based on past reporting schedules.
Q3 2026 Earnings Call Audio
FCNCB 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 overall. Earnings exceeded expectations, loan and deposit growth was robust, credit metrics improved, capital was returned to shareholders, and full-year guidance was raised for net interest income and non-interest income. The principal challenges were warrant-income volatility, competitive spread compression, potential moderation in fund banking utilization, limited IPO and exit activity, higher-cost replacement funding, and several timing-related expense and margin pressures. These concerns were presented as manageable within a broader outlook of continued growth, improving efficiency, strong liquidity, and resilient credit quality.
Company Guidance
For the fourth quarter of 2026, First Citizens guided to loans of $158 billion-$161 billion, deposits between $189 billion and $192 billion, net interest income of $1.7 billion-$1.77 billion assuming zero to one 25-basis-point rate hike, non-interest income between $540 million and $580 million, expenses within the $1.35 billion-$1.39 billion range, net charge-offs in the 30 basis points-35 basis points range, and a tax rate in the range of 24.5%-25.5%, exclusive of any discrete items; full-year 2026 guidance is net interest income of $6.68 billion-$6.75 billion, non-interest income of $2.22 billion-$2.26 billion, expenses of $5.39 billion-$5.43 billion, net charge-offs of 29 basis points-31 basis points, and a tax rate in the range of 24.5%-25.5%, while projected quarterly Purchase Money Note prepayments are in the $3.5 billion-$4 billion range through the end of 2027, aggregate senior unsecured and subordinated debt issuances are in a modest range of approximately $1 billion-$2 billion through year-end 2027, fourth quarter 2026 share repurchases are approximately $300 million, and medium-term expense growth is low to mid-single digit.
- Earnings Exceeded ExpectationsThird-quarter earnings exceeded management's expectations. Adjusted net income was $652 million, adjusted earnings per share was $55.37, ROE was 12.24%, and ROA was 1.08%.
- Strong Loan and Deposit GrowthLoans increased by $6.2 billion, or 4.1% sequentially, while period-end deposits increased by $11.8 billion, or 6.8% sequentially. Average deposits increased by $8.0 billion.
- BMO Branch Acquisition Added Deposits and LoansThe BMO branch acquisition onboarded approximately $4.9 billion of deposits and contributed approximately $650 million in loan balances. The transaction expanded the branch network across 11 states and enhanced liquidity.
- Fund Banking Delivered Outstanding GrowthFund banking loans expanded by $4.4 billion, or 11% sequentially, driven by higher utilization rates, expanding capital call balances, rising market transaction values and line balances, and stable limited partner capital calls.
- Innovation Banking Continued to ExpandInnovation banking loans reached $10.1 billion at quarter end, an increase of 6.6% over the linked quarter. Growth was anchored in the technology business and supported by commercial finance referrals and strategic business partnerships.
- Broad-Based Commercial and General Bank GrowthGrowth was also reported across middle market banking, industry verticals, commercial finance, branch banking, and wealth management. General bank loan balances increased by $633 million, reflecting the BMO acquisition and growth within the branch network and wealth management segments.
- Net Interest Income and Margin StabilityAdjusted net revenue increased by 1.4% sequentially, while net interest income increased by $43 million. Headline NIM was 3.07% and NIM excluding accretion was 2.99%, remaining essentially in line with the prior quarter and the expected band.
- Fee-Based Businesses Remained ResilientAdjusted non-interest income declined by a modest $11 million sequentially but exceeded guidance. Lending-related fees increased by $10 million, client investment fees increased by $9 million, and Rail adjusted rental income increased by $10 million.
- Rail Portfolio Continued to Perform WellThe Rail business benefited from exceptional utilization stability and resilient positive repricing trends. Management expressed confidence in the portfolio's fundamentals and identified clear near-term tailwinds.
- Expense Discipline and Operating EfficiencyAdjusted non-interest expense was largely stable sequentially and within guidance. Lower professional services expense followed the completion of key risk management and technology initiatives, marketing expenses declined through improved direct-bank marketing effectiveness, and personnel expenses were essentially flat.
- Continued Investment in Digital InfrastructureThe company continued investing in digital infrastructure, data center modernization, equipment, and third-party processing capabilities. Management described these as high-return investments and said vendor relationships were being rigorously evaluated to optimize investment and efficiency.
- Improving Credit MetricsNonaccrual 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 consecutive quarters to its lowest level since the first quarter of 2023.
- Successful Resolution of Larger ExposuresSeveral larger exposures in the general office portfolio were resolved at better outcomes than initially modeled. The company also observed positive loss trends across investor-dependent, broader C&I, and equipment finance portfolios.
- Allowance Reduction Supported by Credit QualityThe allowance for loan losses was reduced due to improving credit quality trends, continued low net charge-offs, and a positive macroeconomic backdrop. Management said the allowance covered quarter-to-date net charge-offs by over 3.4x and year-to-date net charge-offs by over 3x.
- Accelerated FDIC Note RepaymentThe company prepaid $8 billion of the FDIC Purchase Money Note during the quarter and another $1.5 billion in October. Since beginning the program in the fourth quarter of 2025, it has prepaid approximately 47% of the original balance, representing $17 billion of debt reduction.
- Capital Return and CET1 Target AchievedFirst Citizens returned $600 million to shareholders through third-quarter share repurchases, bringing the CET1 ratio within its target range at 10.24%. As of October 20, approximately 24% of outstanding common shares had been repurchased, representing $6.9 billion of capital returned.
- Additional Share Repurchase AuthorizationManagement announced a new $1.2 billion share repurchase plan scheduled to commence in 2027 and expects approximately $300 million of repurchases in the fourth quarter of 2026.
- Positive Outlook for Loan and Deposit GrowthFourth-quarter loan guidance was raised to $158 billion-$161 billion, and fourth-quarter deposit guidance was raised to $189 billion-$192 billion. The outlook reflects sustained client activity, disciplined pipeline conversion, growth across core channels, direct-bank expansion, and optimized use of brokered CDs.
- Raised Net Interest Income GuidanceFull-year 2026 net interest income guidance was raised to $6.68 billion-$6.75 billion, with fourth-quarter guidance of $1.7 billion-$1.77 billion. The outlook assumes zero to one 25-basis-point rate hike in the fourth quarter and expects higher asset yields to outpace rising funding costs.
- Raised Non-Interest Income GuidanceFull-year 2026 non-interest income guidance was raised to $2.22 billion-$2.26 billion, supported by momentum in client investment fees, deposit fees, lending fees, Rail, and wealth management.
- Predictable Purchase Money Note Paydown PlanManagement projects quarterly Purchase Money Note prepayments of $3.5 billion-$4 billion through the end of 2027 and expects to extinguish the remaining balance in full by that time.
- Potential Basel III Capital BenefitManagement estimated that the standardized approach under the proposed Basel III framework could reduce current risk-weighted assets in the mid to high single digits percentage range and increase the CET1 ratio by around 70 basis points. The company expects an update or final rule determination by year-end.
- Strong Funding and Liquidity PositionManagement said strong net positive deposit growth outperformed loan expansion and, together with the BMO acquisition, supported the accelerated FDIC note prepayments. The company also stated that it has significant untapped FHLB liquidity capacity.
- Healthy Fund Banking Demand and Market Share GainsFund banking booked close to $6 billion in new deals during the third quarter. Management said demand came from existing clients and market-share gains, with utilization around 40%, the highest level in the last few years and just below the 2021 and 2022 highs.
- Direct Bank and Innovation Deposit MomentumThe direct bank generated $3.2 billion of high-quality inflows. Innovation banking deposits increased by $1.7 billion, while total period-end client funds increased by $6.9 billion and average total client funds increased by $7.2 billion sequentially.
- Brand Integration Feedback Was PositiveManagement reported a good experience with the unified brand launch and said client feedback was positive. Clients generally continued to focus on the same client experience and product solutions rather than the name change.
- Supportive Regulatory EnvironmentManagement described recent and proposed changes involving Federal Reserve supervisory principles, FDIC rulemaking, and regulatory tailoring as highly positive and supportive of the company's strategy. The company also said the regulatory environment was conducive to M&A.
- Stable Expense OutlookFourth-quarter expenses are expected to be $1.35 billion-$1.39 billion, with full-year 2026 expenses expected to be $5.39 billion-$5.43 billion. Management expects medium-term expense growth in the low to mid-single digits and said efficiency initiatives should continue into 2027.
- Stable Credit OutlookFourth-quarter net charge-offs are expected to remain within the 30 basis points-35 basis points range, while full-year guidance was tightened to 29 basis points-31 basis points. Management said it observed no systemic trends signaling credit quality deterioration and expects nonaccrual loans to continue declining.
FCNCB Earnings History
| Report Date | Fiscal Quarter | Forecast / EPS | Last Year's EPS | EPS YoY Change | Press Release |
|---|---|---|---|---|---|
| Jan 22, 2027 | 2026 (Q4) | 52.05- | 51.27 | ― | ― |
| Oct 23, 2026 | 2026 (Q3) | 46.0455.37 | 44.62 | 24.09% (+10.75) | |
| Jul 23, 2026 | 2026 (Q2) | 40.4457.09 | 44.78 | 27.49% (+12.31) | |
| Apr 23, 2026 | 2026 (Q1) | 39.5844.86 | 37.79 | 18.71% (+7.07) | |
| Jan 23, 2026 | 2025 (Q4) | 43.8451.27 | 45.1 | 13.68% (+6.17) | |
| Oct 23, 2025 | 2025 (Q3) | 41.5944.62 | 45.87 | -2.73% (-1.25) | |
| Jul 25, 2025 | 2025 (Q2) | 39.5644.78 | 50.87 | -11.97% (-6.09) | |
| Apr 24, 2025 | 2025 (Q1) | 37.7337.79 | 52.92 | -28.59% (-15.13) | |
| Jan 24, 2025 | 2024 (Q4) | 38.9945.10 | 46.58 | -3.18% (-1.48) | |
| Oct 24, 2024 | 2024 (Q3) | 47.2445.87 | 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
