First Citizens BancShares Reports $534 Million Net Income in Q1 2026

First Citizens BancShares, Inc. reported a net income of $534 million for the first quarter of 2026, reflecting an 11% increase from $483 million in the same period last year. The earnings per share rose to $42.63, up from $34.47 a year earlier. However, compared to the previous quarter, net income decreased by 8% from $580 million, primarily due to a decline in net interest income and an increase in the provision for credit losses. The company’s net interest income for the quarter was $1.62 billion, down 6% from $1.72 billion in the prior quarter, attributed to lower yields on loans and investment securities.

Total assets increased to $235.96 billion as of March 31, 2026, up from $229.70 billion at the end of 2025. The growth was driven by a rise in deposits, which reached $170.84 billion, a 6% increase from $161.58 billion. The company saw significant deposit growth in its Commercial Bank segment, which added $5.66 billion, while the General Bank segment contributed $1.12 billion. The allowance for loan and lease losses (ALLL) was $1.56 billion, slightly down from $1.57 billion at the end of 2025, reflecting a reserve release of $8 million due to loan growth in lower-risk capital call lines.

In terms of strategic developments, First Citizens announced the pending acquisition of 138 branches from BMO Bank N.A., expected to close in the second half of 2026. This acquisition will add approximately $5.3 billion in deposit liabilities and $1.1 billion in loans. Additionally, the company issued $500 million in fixed-to-floating rate senior notes in March 2026, further diversifying its funding sources. The company also repurchased 449,845 shares of its Class A common stock for $900 million during the quarter, part of its ongoing share repurchase program.

Operationally, First Citizens reported a total loan and lease portfolio of $148.69 billion, an increase of $762 million from the previous quarter. The commercial loan segment saw a growth of $1.35 billion, while consumer loans decreased slightly. The company’s nonaccrual loans increased to $1.43 billion, representing 0.96% of total loans, up from 0.88% at the end of 2025. The bank's capital ratios remained strong, with a total risk-based capital ratio of 13.51%, well above the regulatory requirements.

Looking ahead, First Citizens remains focused on managing its capital and liquidity positions amid a dynamic economic environment. The company plans to continue monitoring interest rate trends and the macroeconomic landscape, which could impact its financial performance. The management expressed confidence in its ability to navigate potential challenges while pursuing growth opportunities through strategic acquisitions and maintaining a strong deposit base.