First Citizens BancShares’ fourth quarter results were overshadowed by a negative market reaction, despite revenue and adjusted earnings per share both exceeding Wall Street expectations. Management attributed the performance to resilient net interest income and stable credit quality, particularly within their global fund banking and SVB Commercial segments. CEO Frank Holding emphasized the bank’s progress in deepening client relationships and investing in digital capabilities, noting that loan growth was primarily driven by increased activity in the innovation economy. However, he also acknowledged competitive pressures on lending spreads and deposit competition, as well as expense growth linked to technology and personnel investments. The quarter was further marked by continued share repurchases and a strategic focus on optimizing the balance sheet.
Is now the time to buy FCNCA? Find out in our full research report (it’s free for active Edge members).
First Citizens BancShares (FCNCA) Q4 CY2025 Highlights:
- Revenue: $2.25 billion vs analyst estimates of $2.22 billion (1.2% year-on-year growth, 1.5% beat)
- Adjusted EPS: $51.27 vs analyst estimates of $43.79 (17.1% beat)
- Adjusted Operating Income: $829 million vs analyst estimates of $899.4 million (36.8% margin, 7.8% miss)
- Market Capitalization: $24.17 billion
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions From First Citizens BancShares’s Q4 Earnings Call
- Chris McGratty (KBW) asked about the cadence of net interest income and margin trends in relation to Fed rate expectations. CFO Craig Nix explained that the baseline forecast assumes two rate cuts, with net interest income expected to trough and recover as technology spending peaks and operational efficiencies are realized.
- Chris McGratty (KBW) also questioned when technology and risk management investment would moderate. CIO Greg Smith confirmed spend will peak in 2026, with much of the technology simplification and data center consolidation already underway, enabling future cost control.
- Anthony Iulian (JPMorgan) sought clarity on expense guidance and its range. Executive Elliot Howard attributed the high end to increased direct bank advertising and timing of technology efficiencies, while faster efficiency gains could lower expenses.
- Anthony Iulian (JPMorgan) inquired about growth in SVB client funds. SVB executive Marc Einerman attributed it to improved venture activity and internal stability, which enhanced the bank’s market execution.
- Casey Haire (Autonomous) pressed for details on the pace of purchase money note repayment and loan growth moderation. CFO Craig Nix said repayments depend on loan collateral run-off and funding cost comparisons, while loan growth is managed in line with deposit generation and liquidity needs.
Catalysts in Upcoming Quarters
In the coming quarters, the StockStory team will be monitoring (1) the pace and effectiveness of technology infrastructure projects and whether expense growth moderates as planned, (2) progress in core deposit acquisition, particularly through direct banking channels, and (3) credit performance in commercial office and equipment finance portfolios. Additionally, we will watch the BMO branch integration and its impact on balance sheet growth.
First Citizens BancShares currently trades at $2,038, down from $2,204 just before the earnings. Is the company at an inflection point that warrants a buy or sell? Find out in our full research report (it’s free).
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