First Citizens BancShares delivered third quarter results that modestly exceeded Wall Street’s revenue and non-GAAP profit expectations, while sales remained flat compared to the prior year. Management attributed stable performance to net interest income growth, disciplined expense management, and continued deposit inflows, particularly from the SVB Commercial division. CEO Frank Holding cited a seventh consecutive quarter of deposit growth and highlighted strong loan production in Global Fund Banking. CFO Craig Nix noted that, despite a one-off charge-off related to the First Brands bankruptcy, credit quality remained within anticipated ranges and the overall loan portfolio showed resilience. The management team emphasized ongoing efforts to maintain capital strength and operational efficiency through automation and platform integration.
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) Q3 CY2025 Highlights:
- Revenue: $2.43 billion vs analyst estimates of $2.38 billion (flat year on year, 2.1% beat)
- Adjusted EPS: $44.62 vs analyst estimates of $41.49 (7.5% beat)
- Adjusted Operating Income: $782 million vs analyst estimates of $911.8 million (32.1% margin, 14.2% miss)
- Market Capitalization: $22.38 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 Q3 Earnings Call
- Christopher McGratty (KBW) pressed on net interest income (NII) guidance and the timing of NII bottoming. CFO Craig Nix clarified that, assuming two rate cuts, both headline and adjusted NII are expected to trough in early 2026, with potential improvement thereafter.
- Bernard Von Gizycki (Deutsche Bank) asked about supply chain finance risk post-First Brands. Andrew Giangrave, head of risk, explained that the remaining portfolio is diversified and thoroughly reviewed, and management does not see systemic issues.
- Casey Haire (Autonomous) questioned the conservative loan growth outlook for Global Fund Banking. Segment leaders explained that significant swings can occur in borrowing and repayments, making period-end growth figures volatile and justifying a cautious forecast.
- Anthony Elian (JPMorgan) inquired about drivers of SVB’s client fund growth and the outlook for continued momentum. Management cited mixed signals in venture investment and IPO activity, leading to a guarded stance on sustaining recent growth.
- Steven Alexopoulos (TD Cowen) followed up on expense pressures related to regulatory preparedness, asking when relief might be expected. Management indicated that while some expense moderation is anticipated after major projects, ongoing investments in technology will keep expenses elevated.
Catalysts in Upcoming Quarters
In the coming quarters, the StockStory team will watch (1) the impact of interest rate changes and competition on loan and deposit growth, (2) progress on integrating newly acquired BMO branches and the resulting shift in funding mix, and (3) evidence that technology and operational investments are translating into improved efficiency and client experience. Developments in regulatory compliance and credit quality trends will also be important markers.
First Citizens BancShares currently trades at $1,771, up from $1,744 just before the earnings. In the wake of this quarter, is it a buy or sell? Find out in our full research report (it’s free for active Edge members).
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