First Citizens BancShares (FCNCA) Q2 2026 earnings summary

Executive summary

• Delivered strong sequential top-line growth in Q2 2026, exceeding guidance and consensus estimates, with adjusted net income of $691 million and adjusted EPS of $57.09, reflecting over 20% growth from the prior quarter.

• EPS, ROE, and ROA improved sequentially and exceeded expectations, driven by higher pre-provision net revenue, credit-related reserve release, and disciplined expense management.

• Performance driven by net revenue expansion, resilient credit quality, and broad-based loan and deposit growth across key business verticals.

• Returned $600 million to shareholders via share repurchases and prepaid $2.5 billion of the FDIC purchase money note, with cumulative prepayments totaling $8.5 billion.

• Announced acquisition of 138 BMO Bank branches, expecting to assume $5.3 billion in deposits and $700 million in loans, with completion anticipated in Q3 2026.

Financial highlights

• Adjusted EPS reached $57.09, up from $44.86 in 1Q26 and $44.78 in 2Q25; adjusted net income was $691 million, up from $560 million.

• Adjusted ROE was 12.94% and adjusted ROA was 1.18%, both up more than 20% sequentially and higher year-over-year.

• Net interest income rose to $1.66 billion, up $35 million sequentially; net interest margin was 3.10%.

• Adjusted non-interest income rose by $66 million sequentially, with $50 million from asset monetization and portfolio revaluation; noninterest income increased to $776 million.

• Loans and leases grew to $151.03 billion, up $2.34 billion; deposits rose to $173.43 billion, up $2.59 billion.

Outlook and guidance

• Projecting Q3 loan balances of $152B-$155B and full-year guidance of $153B-$157B, supported by the BMO branch acquisition.

• Q3 deposits expected at $179B-$182B, with BMO adding $5.3B; full-year deposit guidance reaffirmed at $181B-$186B.

• Net interest income guidance narrowed to $6.6B-$6.75B for the year; Q3 guidance at $1.63B-$1.71B.

• Full-year expense guidance improved to $5.34B-$5.41B; efficiency ratio expected in the low 60% range for 2026.

• Full-year net charge-off guidance improved to 30-35 bps; Q3 expected at 30-40 bps.