Monitor next quarter's net interest margin and loan growth trends, particularly in the Commercial Bank segment, as the bank continues to manage through interest rate headwinds while maintaining strong deposit growth and capital returns.
Price Chart
Executive Summary
First Citizens BancShares reported Q1 2026 earnings with net interest income of $1.62 billion (down from $1.72 billion) and NIM of 3.09% (down 11 bps), driven by lower rates and PAA. The bank grew loans by $762 million and deposits by $9.26 billion, repaid $2..5 billion of the Purchase Money Note, and repurchased $900 million in shares. Despite NIM pressure, management highlighted resilient profitability and credit quality.
Key Financial Metrics
Key Facts
- Net interest income was $1.62 billion, down $101 million from the prior quarter
- Net interest margin (NIM) was 3.09%, down 11 basis points from 3.20%
- Loans grew $762 million to $148.69 billion, driven by Commercial Bank segment
- Deposits increased $9.26 billion to $170.84 billion, with noninterest-bearing deposits up 7.3%
- Borrowings decreased $2.05 billion to $33.96 billion, primarily due to $2.5 billion prepayment of the Purchase Money Note
- The company repurchased $900 million of Class A common stock and issued $400 million of Series E preferred stock
- Net income available to common shareholders was $508 million, or $42.63 per share
Financial Impact
Net interest income decreased by $101 million quarter-over-quarter, with net interest margin down 11 basis points. The company repurchased $900 million in shares and issued $400 million in preferred stock.
Risk Factors
- Continued compression of net interest margin due to lower interest rates and declining purchase accounting accretion
- Potential for increased credit costs if macroeconomic conditions deteriorate, particularly in commercial real estate
- Dependence on brokered deposits and wholesale funding could increase funding costs
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 8 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0000798941-26-000018 |
| Exhibit: ex_991earningsrelease-1q20.htm | 0000798941-26-000018 |
| Document: a1q26investorpresentatio.htm | 0000798941-26-000018 |
| Document: fcnca-20260423.htm | 0000798941-26-000018 |
| Document: 0000798941-26-000018-index-headers.html | 0000798941-26-000018 |
| Document: 0000798941-26-000018-index.html | 0000798941-26-000018 |
| Document: 0000798941-26-000018.txt | 0000798941-26-000018 |
| 8-K Data (Synthetic) | 0000798941-26-000018 |
US Market Status
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