FCNCA · First Citizens BancShares, Inc.

First Citizens BancShares reported first quarter 2026 net income of $534 million, down 8.1% from the linked quarter, primarily due to lower net interest income and higher provision for credit losses. Adjusted net income, which excludes notable items such as operating lease depreciation and acquisition-related costs, was $560 million, down 13.5% from the linked quarter. Adjusted diluted EPS of $44.86 exceeded expectations, reflecting resilient profitability despite net interest margin compression of 11 basis points to 3.09%. Net interest income decreased $101 million to $1.62 billion, driven by lower yields on loans and investment securities, partially offset by lower deposit and borrowing costs. Noninterest income declined $23 million to $692 million, mainly due to lower other noninterest income and fair value adjustments. Noninterest expense decreased $36 million to $1.54 billion, aided by lower marketing and professional fees. Loan growth of $762 million (0.5%) was led by Commercial Bank segment, particularly Global Fund Banking, while deposits surged $9.26 billion (5.7%) driven by Commercial Bank and corporate deposits. Credit quality remained stable with net charge-offs of $111 million (0.30% of average loans), down from $143 million in the linked quarter. The allowance for loan and lease losses stood at 1.05% of loans. Capital ratios remained strong, with CET1 at 10.83%, supported by the issuance of $400 million of Series E preferred stock. The company returned $900 million to shareholders via share repurchases and prepaid $2.50 billion of the Purchase Money Note. Management expressed satisfaction with the quarter's results, highlighting loan and deposit growth, resilient credit quality, and return metrics exceeding expectations.