Monitor the use of proceeds in upcoming 10-Q/K filings for signs of M&A or capital return. The preferred is unlisted, so secondary trading will be thin — institutional buyers should expect to hold to call (Sept 2031) or redemption. For common stock, the offering is neutral; no immediate catalyst.
Price Chart
Executive Summary
First Citizens BancShares is issuing $300M in depositary shares (Series F Preferred Stock) at a 7.500% fixed rate through September 2031, then floating at 5yr Treasury + 2.894%. Net proceeds of ~$296M will go to general corporate purposes. The offering adds ~$296M to equity (Tier 1 capital) with a modest 1.4% dilution to common equity book value, but the perpetual, non-cumulative preferred carries no maturity and no listing, limiting secondary liquidity. For the common stock (FCNCA), this is a neutral capital management event — the bank is raising additional Tier 1 capital at a reasonable cost, but the proceeds are for general purposes, not a transformative catalyst.
Key Facts
- Offering of 300,000 depositary shares at $1,000 each, total $300,000,000
- Net proceeds to BancShares: ~$296,000,000 after underwriting discount and expenses
- Dividend rate: 7.500% fixed to Sept 15, 2031, then 5yr Treasury + 2.894% floating
- Series F Preferred is perpetual, non-cumulative, no maturity, no listing on any exchange
- Proceeds used for general corporate purposes
- Underwriters include Morgan Stanley, BofA, J.P. Morgan, Wells Fargo, and subsidiary FCCS
- As of June 30, 2026, total assets $236.84B, total equity $21.9B actual / $22.196B adjusted
- Existing debt of $32.19B as of June 30, 2026
Financial Impact
~$296M net proceeds added to equity; preferred dividend cost ~$22.5M/year fixed for 5 years
Risk Factors
- No established trading market for depositary shares — liquidity risk for holders
- Dividends are discretionary and non-cumulative; missed dividends do not accrue
- Redemption requires Federal Reserve approval; may not occur on schedule
- Dividend rate resets to floating after 2031; could decline if Treasury rates fall
- Structurally subordinated to $32.19B in debt and all subsidiary liabilities
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 5 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 424B5 Filing (Primary) | 0001193125-26-387985 |
| Document: d154749dexfilingfees.htm | 0001193125-26-387985 |
| Document: 0001193125-26-387985-index-headers.html | 0001193125-26-387985 |
| Document: 0001193125-26-387985-index.html | 0001193125-26-387985 |
| Document: 0001193125-26-387985.txt | 0001193125-26-387985 |
Track record builds as more directional reports settle.
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Sep 10, 2026 21d ago | 424B5 | $2,173.00 $2,111.89 | ▼ −2.81% | ▼ −2.59% | $2,074.35 (−4.54%) |
Jul 23, 2026 10w ago | 8-K | $2,212.77 $2,156.23 | ▼ −2.56% | ▼ −3.03% | $2,074.35 (−6.26%) |
Jun 8, 2026 16w ago | Insider Cluster | $2,100.68 $2,068.75 | ▼ −1.52% | ▼ −3.93% | $2,074.35 (−1.25%) |
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