First Citizens BancShares (FCNCA) Q3 2026 Financial Results Summary
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First Citizens BancShares (FCNCA) Q3 2026: Earnings Decline, Share Buyback Announced — Cautiously Optimistic
First Citizens BancShares, Inc. reported a net income of $606 million for the third quarter of 2026, a decrease of $66 million or -9.8% compared to the linked quarter's net income of $672 million. This decline in earnings reflects a challenging environment, but the company remains committed to returning capital to shareholders through a new share repurchase plan.
Key Financial Metrics
- Net Income: $606 million (Q3 2026) vs. $672 million (Q2 2026) — a decrease of $66 million or -9.8%
- Net Income Available to Common Stockholders: $577 million, or $51.23 per common share, down from $640 million, or $55.52 per common share in the linked quarter — a decrease of $63 million or -9.8%
- Adjusted Net Income: $652 million, compared to $691 million in the linked quarter — a decrease of $39 million or -5.6%
- Net Interest Income: $1.70 billion, an increase of $43 million or +2.6% from the linked quarter
- Noninterest Income: $734 million, down $42 million or -5.4% from the linked quarter
- Noninterest Expense: $1.57 billion, an increase of $22 million or +1.4% from the linked quarter
- Loans and Leases: $157.19 billion, an increase of $6.16 billion or +4.1% from the linked quarter
- Deposits: $185.26 billion, an increase of $11.84 billion or +6.8% from the linked quarter
Analyst View
This quarter's performance is disappointing for shareholders, primarily due to the decline in net income and net income available to common stockholders. The decrease in earnings, despite an increase in net interest income, indicates that the company is facing headwinds in its noninterest income and rising expenses. However, the announcement of a new share repurchase plan authorizing the repurchase of up to $1.2 billion of Class A common shares through 2027 is a positive sign of management's commitment to returning capital to shareholders and enhancing shareholder value.
Dividend and Share Buyback
- Share Repurchase: $600 million worth of shares repurchased in Q3 2026, representing 2.68% of Class A common shares outstanding.
- New Share Repurchase Plan: Authorization for up to $1.2 billion of Class A common shares through 2027.
- Dividend: Paid a dividend of $2.10 per share on Class A and Class B common stock.
Forward Catalyst
Investors should closely monitor the company's performance in the upcoming quarters, particularly how it manages its noninterest income and expenses. The integration of the BMO Branch Acquisition and its impact on loan growth and deposit levels will be critical. Additionally, the effectiveness of the new share repurchase plan in supporting share price and overall shareholder value will be a key focus area.
In summary, while the decline in earnings is concerning, the proactive steps taken by First Citizens BancShares to return capital to shareholders and optimize its balance sheet provide a cautiously optimistic outlook for the future.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (in millions)
Note: All amounts are in millions.
| For the Quarter Ended September 30, 2026 | For the Quarter Ended June 30, 2026 |
|---|---|
| Net interest income: $1,700 | Net interest income: $1,657 |
| Noninterest income: $734 | Noninterest income: $776 |
| Total revenue: $2,434 | Total revenue: $2,433 |
| Provision for credit losses: $55 | Provision for credit losses: ($10) |
| Noninterest expense: $1,570 | Noninterest expense: $1,548 |
| Income before income taxes: $809 | Income before income taxes: $875 |
| Income tax expense: $203 | Income tax expense: $203 |
| Net income: $606 | Net income: $672 |
| Net income available to common stockholders: $577 | Net income available to common stockholders: $640 |
| Basic earnings per share: $51.23 | Basic earnings per share: $55.52 |
| Diluted earnings per share: $51.13 | Diluted earnings per share: $55.36 |
CONDENSED CONSOLIDATED BALANCE SHEETS (in millions)
Note: All amounts are in millions.
| September 30, 2026 | June 30, 2026 |
|---|---|
| Total assets: $225,000 | Total assets: $218,000 |
| Total loans and leases: $157,190 | Total loans and leases: $151,030 |
| Total investment securities: $44,880 | Total investment securities: $43,550 |
| Total deposits: $185,260 | Total deposits: $173,440 |
| Total borrowings: $24,470 | Total borrowings: $32,190 |
| Total liabilities: $209,050 | Total liabilities: $200,100 |
| Shareholders' equity: $15,950 | Shareholders' equity: $17,900 |
| Common stock and additional paid-in capital: $10,210 | Common stock and additional paid-in capital: $10,190 |
| Retained earnings: $5,530 | Retained earnings: $7,050 |
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