First Citizens BancShares Reports $672 Million Net Income in Q2 2026

First Citizens BancShares, Inc. reported a net income of $672 million for the second quarter of 2026, reflecting a 16.9% increase from $575 million in the same period last year. The earnings per share rose to $55.52, up from $42.36 a year earlier. The company's net interest income for the quarter was $1.66 billion, a slight decrease from $1.70 billion in the previous year, while total interest income decreased to $2.85 billion from $2.95 billion. The decline in net interest income was attributed to a lower yield on loans and a higher average balance of interest-bearing deposits, despite an increase in the average balance of loans.

Compared to the previous fiscal period, First Citizens saw significant changes in its balance sheet. Total assets increased to $236.84 billion as of June 30, 2026, up from $229.70 billion at the end of 2025. Total loans and leases rose to $151.03 billion, a 2% increase from $147.93 billion at the end of 2025, driven primarily by growth in capital call lines. Deposits also grew by 7% to $173.43 billion, with notable increases in both corporate and commercial banking segments. The allowance for loan and lease losses (ALLL) decreased to $1.48 billion, down from $1.57 billion, reflecting improvements in credit quality and a reserve release.

Strategically, the company is in the process of acquiring 138 branches from BMO Bank N.A., which is expected to close in the third quarter of 2026. This acquisition will add approximately $5.3 billion in deposits and $700 million in loans to First Citizens' portfolio. Additionally, the company completed a securitization of $363 million in SBA commercial loans held for sale, resulting in a $3 million gain. The company also repurchased 298,907 shares of its Class A common stock during the quarter, as part of its ongoing share repurchase program.

Operationally, First Citizens reported a total of 10,287,935 shares of Class A common stock and 1,005,185 shares of Class B common stock outstanding as of June 30, 2026. The bank's customer base and engagement metrics showed positive trends, with a significant increase in deposits and loans. The bank's capital ratios remained strong, with a total risk-based capital ratio of 13.37%, well above the regulatory requirements. The company continues to monitor economic conditions and adjust its strategies accordingly, particularly in light of ongoing inflationary pressures and market volatility.

Looking ahead, First Citizens anticipates continued growth in its loan portfolio and expects to maintain a strong liquidity position. The company plans to leverage its recent acquisitions and strategic initiatives to enhance its market presence and operational efficiency. Management remains focused on optimizing its capital structure and managing risks associated with credit quality and market conditions.