FCNCB Filings — First Citizens Bancshares Inc /de/ - FilingSpy
FCNCB
First Citizens Bancshares Inc /de/
A bank holding company whose roots trace to a small North Carolina bank founded in 1898 to serve local tobacco and cotton farmers. It grew into a nationwide lender by absorbing rivals, most famously buying Silicon Valley Bridge Bank out of the FDIC after that tech lender collapsed in 2023. The name comes from a 1921 merger with Citizens National Bank.
Net income rose 26% QoQ to $672M as credit provision swung to a $10M benefit and noninterest income climbed 12%.
Credit flipped from a cost to a small benefit, lifting the . Net income rose 26% from the prior quarter to $672M, with of $55.52, as the swung to a $10M benefit and noninterest income rose 12% on warrant and tax credit gains. The company enters the second half of 2026 with a growing loan book, a pending branch acquisition, and plans for up to $8B in debt prepayments.
Key takeaways
rose 26% linked quarter to $672M, driven by a swing in the to a $10M benefit from a $72M provision in Q1 2026, alongside higher noninterest income and .
The credit provision reversal was the largest single driver of the earnings increase, as the allowance reserve release expanded and net charge-offs remained low.
Noninterest income rose 12% QoQ to $776M, primarily from a $27M increase in equity warrant fair value and a $17M gain on the sale of tax credit investments.
Section summaries
Management's Discussion and Analysis
Net income rose 26% QoQ to $672M on lower credit provisions, higher noninterest income, and NII growth, while loans grew 2% YTD.
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available to common stockholders was $640M, up 26% from the linked quarter, driven by a $10M benefit for credit losses versus a $72M provision.
increased 2% QoQ to $1.66B, with edging up 1 to 3.10%, helped by higher loan yields and lower average borrowings after $2.5B in Purchase Money Note prepayments.
Total loans grew 2% year to date to $151.0B, led by a $2.4B increase in capital call lines within the Commercial Bank , while deposits rose 7% YTD to $173.4B on Corporate deposit growth.
The company expects $6B to $8B in Purchase Money Note prepayments in Q3 2026, largely driven by expected liquidity from the pending BMO branch acquisition.
What changed
, flagged last quarter after an 11bps drop to 3.09%, stabilized and rose 1bp to 3.10% as loan yields improved and borrowing costs eased with Purchase Money Note prepayments.
The $4.0B program saw no deployment reported again this quarter, continuing the pause observed since Q2 2025.
The , watched after falling to 10.83% in Q1 2026, was not separately updated in the provided material, though the company remained well capitalized.
The pending BMO branch acquisition, previously expected to close in the second half of 2026, is now cited as a source of liquidity for $6B to $8B in Purchase Money Note prepayments in Q3 2026, signaling progress toward closing.
What to watch
next quarter after the 1bp rise to 3.10% as the expected $6B-$8B in Purchase Money Note prepayments further reduce borrowing costs.
Closing of the BMO branch acquisition and its impact on the balance sheet, deposits, and liquidity deployment.
trajectory after the $10M benefit this quarter and whether the reserve release pattern continues.
Pace of the $4.0B program, which has seen no deployment reported since Q2 2025.
increased 2% QoQ to $1.66B, with up 1 bp to 3.10%, helped by higher loan yields and lower average borrowings from $2.5B in Purchase Money Note prepayments.
Noninterest income rose 12% QoQ to $776M, largely due to a $27M increase in equity warrant fair value and a $17M gain on sale of tax credit investments.
Total loans and leases grew 2% YTD to $151.0B, led by a $2.4B increase in capital call lines within the Commercial Bank .
Deposits increased 7% YTD to $173.4B, with Corporate deposit growth of $6.8B primarily from the Direct Bank and brokered deposits.
The company expects $6B to $8B in total Purchase Money Note prepayments in Q3 2026, largely driven by expected liquidity from the pending BMO Branch Acquisition.
Quantitative and Qualitative Disclosures About Market Risk
Market risk is the potential economic loss resulting from changes in market prices and interest rates. This risk can either result in diminished current fair values of financial instruments or reduced NII in future periods. Changes in fair value that result from movement in mark…
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Market risk is the potential economic loss resulting from changes in market prices and interest rates. This risk can either result in diminished current fair values of financial instruments or reduced NII in future periods. Changes in fair value that result from movement in market rates cannot be predicted with any degree of certainty. Therefore, the impact that future changes in market rates will have on the fair values of financial instruments is uncertain.
The information required by this Item 3. Quantitative and Qualitative Disclosures about Market Risk is set forth in Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations within the “Risk Management” section and in Item 1. Financial Statements within Note 11—Derivative Financial Instruments and Note 12—Fair Value of this Form 10-Q.
Information relating to legal proceedings is set forth in Note 19—Commitments and Contingencies of the Notes to Consolidated Financial Statements contained in Item 1. Financial Statements, and is incorporated herein by reference.
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Information relating to legal proceedings is set forth in Note 19—Commitments and Contingencies of the Notes to Consolidated Financial Statements contained in Item 1. Financial Statements, and is incorporated herein by reference.
There have been no material changes in the risk factors during 2026 from those reported in our 2025 Form 10-K. For a discussion of the risks and uncertainties that management believes are material to an investment in us, refer to Part I, Item 1A. Risk Factors, of our 2025 Form 1…
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There have been no material changes in the risk factors during 2026 from those reported in our 2025 Form 10-K. For a discussion of the risks and uncertainties that management believes are material to an investment in us, refer to Part I, Item 1A. Risk Factors, of our 2025 Form 10-K, and Forward-Looking Statements of this Form 10-Q.