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First Citizens BancShares (FCNCA)
NASDAQ:FCNCA
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First Citizens BancShares (FCNCA) AI Stock Analysis

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FCNCA

First Citizens BancShares

(NASDAQ:FCNCA)

Rating:78Outperform
Price Target:
$2,337.00
▲(14.00%Upside)
First Citizens BancShares scores well due to its strong financial performance, strategic capital allocation through share repurchases, and solid earnings call highlights. Technical analysis indicates mixed signals, while the valuation suggests a fair price. Despite some challenges, the company's strategic initiatives and financial stability support a positive outlook.
Positive Factors
Interest Rate Environment
A stronger jobs report and a 'hawkish cut' have led to increased bank exposure, benefiting FCNCA's stock performance.
Net Interest Income
Analysts expect a positive reaction in FCNCA's stock due to the potential for nearly 5% net interest income upside based on current rate expectations.
Stock Rating
Analysts have assigned an Outperform rating for FCNCA, reflecting confidence in its future performance.
Negative Factors
Earnings Estimates
Earnings estimates for 4Q24E have been adjusted downward due to modestly lower net interest income and higher expenses.
Stock Price Movement
FCNCA's stock experienced a 7% pullback, which may concern investors about short-term performance.

First Citizens BancShares (FCNCA) vs. SPDR S&P 500 ETF (SPY)

First Citizens BancShares Business Overview & Revenue Model

Company DescriptionFirst Citizens BancShares, Inc. operates as the holding company for First-Citizens Bank & Trust Company that provides retail and commercial banking services to individuals, businesses, and professionals. The company's deposit products include checking, savings, money market, and time deposit accounts. Its loan product portfolio comprises commercial construction and land development, commercial mortgage, commercial and industrial, and lease financing loans, as well as small business administration paycheck protection program loans; and consumer loans, such as residential and revolving mortgage, construction and land development, consumer auto, and other consumer loans. The company also offers treasury services products, cardholder and merchant services, wealth management services, and various other products and services; investment products, including annuities, discount brokerage services, and third-party mutual funds, as well as investment management and advisory services; and defined benefit and defined contribution, insurance, private banking, trust, fiduciary, philanthropy, and special asset services. The company provides its products and services through its branch network, as well as through digital banking, telephone banking, and various ATM networks. As of December 31, 2021, it operated 529 branches in Arizona, California, Colorado, Florida, Georgia, Kansas, Maryland, Missouri, North Carolina, New Mexico, Oklahoma, Oregon, South Carolina, Tennessee, Texas, Virginia, Washington, Wisconsin, and West Virginia. First Citizens BancShares, Inc. was founded in 1898 and is headquartered in Raleigh, North Carolina.
How the Company Makes MoneyFirst Citizens BancShares generates revenue primarily through interest income from its lending activities, which include personal, commercial, and real estate loans. The interest earned on these loans, minus the interest paid on deposits, forms a significant portion of the company's net interest income. Additionally, the company earns non-interest income through fees and service charges related to deposit accounts, transaction processing, and other banking services. Wealth management and investment services also contribute to the company's revenue through advisory fees and commissions. Moreover, First Citizens BancShares benefits from strategic acquisitions and partnerships that expand its customer base and enhance its service offerings, further supporting its revenue growth.

First Citizens BancShares Earnings Call Summary

Earnings Call Date:Jul 25, 2025
(Q2-2025)
|
% Change Since: -3.02%|
Next Earnings Date:Oct 23, 2025
Earnings Call Sentiment Neutral
The earnings call reflects a solid financial performance with strong capital returns and strategic growth initiatives. However, challenges remain in loan growth and competitive pressures. The company's cautious optimism is evident amidst macroeconomic uncertainties.
Q2-2025 Updates
Positive Updates
Solid Key Earnings Metrics
Net interest income growth, net charge-offs at their lowest level since Q2 2024, and adjusted noninterest expense at the low end of guidance. Adjusted earnings per share of $44.78, adjusted ROE of 11.00%, and ROA of 1.07%.
Strong Capital and Liquidity Positions
Returned $613 million to shareholders through share repurchases in Q2. Board approved a $4 billion share repurchase plan post completion of the current plan.
Loan and Deposit Growth Strategy
Continued consolidation of platforms and relationship teams. Global Fund Banking experienced growth despite lower utilization levels.
Rail Business Performance
Adjusted rental income in rail business increased by $5 million sequentially. Utilization remains high at 96.9% with 15 consecutive quarters of positive repricing trends.
Negative Updates
Loan Growth Challenges
Loans declined modestly by $89 million or 0.1% sequentially. Decline in tech and healthcare portfolio within the SVB Commercial segment.
Competitive Pressures
Increased competition in business and commercial portfolios within the branch network affecting loan originations. Competition for new business remains fierce.
Macro and Geopolitical Uncertainty
Uncertainty due to tariff policy, interest rates, and regulatory changes could represent both tailwinds and headwinds.
Deposit Growth Challenges
SVB Commercial deposits faced challenges due to cash burn and muted public and private investment activity.
Company Guidance
During the First Citizens BancShares Second Quarter 2025 Earnings Conference Call, several key metrics and forward-looking guidance were highlighted. The company reported an adjusted earnings per share of $44.78, with an adjusted return on equity (ROE) of 11.00% and a return on assets (ROA) of 1.07%. Net interest income saw growth, and net charge-offs reached their lowest level since Q2 2024. Adjusted noninterest expenses fell at the low end of guidance, while $613 million was returned to shareholders via share repurchases. Additionally, a new $4 billion share repurchase plan was approved. It was noted that adjusted net income for Q2 was $607 million, and tangible book value per share increased by 10.4% over the prior year. For the full year of 2025, net interest income is expected to be between $6.68 billion and $6.88 billion, while adjusted noninterest income is projected to be between $1.97 billion and $2.05 billion. The company expects noninterest expenses to range between $5.1 billion and $5.2 billion. The comprehensive overview reflects a cautious yet optimistic outlook for the remainder of the year amidst a dynamic economic environment.

First Citizens BancShares Financial Statement Overview

Summary
First Citizens BancShares exhibits solid financial health with strong profitability and a stable balance sheet. However, revenue growth has slightly declined, and cash flow is decreasing year-over-year. Despite these, the company maintains effective cash management and a healthy equity ratio, supporting a high score.
Income Statement
85
Very Positive
The income statement demonstrates robust profitability with a strong net profit margin of 17.2% TTM. However, revenue growth has slowed recently, declining by approximately 1.6% from the previous year. The gross profit margin remains solid at 61.2% TTM, supporting the company's ability to generate profit efficiently.
Balance Sheet
78
Positive
The balance sheet shows a healthy equity ratio of 9.74% TTM, indicating a stable financial structure. The debt-to-equity ratio has slightly increased to 1.74, suggesting moderate leverage with manageable risk. Return on equity is strong at 11.34% TTM, reflecting effective use of shareholder equity to generate profits.
Cash Flow
82
Very Positive
Cash flow analysis highlights a positive free cash flow, although declining by 24.2% year-over-year. The operating cash flow to net income ratio is 1.04, suggesting strong cash generation relative to accounting profits. The company maintains positive free cash flow to net income ratio at 0.44, indicating efficient cash management.
Breakdown
Income Statement
Total Revenue
Gross Profit
EBITDA
Net Income
Balance Sheet
Total Assets
Cash, Cash Equivalents and Short-Term Investments
Total Debt
Total Liabilities
Stockholders Equity
Cash Flow
Free Cash Flow
Operating Cash Flow
Investing Cash Flow
Financing Cash Flow

First Citizens BancShares Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price2050.04
Price Trends
50DMA
1957.01
Positive
100DMA
1871.29
Positive
200DMA
1993.42
Positive
Market Momentum
MACD
44.64
Positive
RSI
50.31
Neutral
STOCH
31.12
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FCNCA, the sentiment is Neutral. The current price of 2050.04 is below the 20-day moving average (MA) of 2093.78, above the 50-day MA of 1957.01, and above the 200-day MA of 1993.42, indicating a neutral trend. The MACD of 44.64 indicates Positive momentum. The RSI at 50.31 is Neutral, neither overbought nor oversold. The STOCH value of 31.12 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for FCNCA.

First Citizens BancShares Risk Analysis

First Citizens BancShares disclosed 50 risk factors in its most recent earnings report. First Citizens BancShares reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

First Citizens BancShares Peers Comparison

Overall Rating
UnderperformOutperform
Sector (58)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
78
Outperform
$26.93B11.7411.46%0.37%-21.44%
78
Outperform
$28.39B13.2411.58%3.48%2.08%2.87%
77
Outperform
$23.75B12.3311.59%3.80%2.83%20.85%
77
Outperform
$21.46B15.106.48%3.41%-4.07%25.31%
77
Outperform
$24.39B12.4210.43%3.73%5.82%28.04%
76
Outperform
$31.17B12.589.48%2.78%0.62%14.75%
58
Neutral
HK$92.81B5.81-3.20%4.80%5.50%-56.25%
* Financial Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
FCNCA
First Citizens BancShares
2,031.90
-88.78
-4.19%
FITB
Fifth Third Bancorp
42.64
1.87
4.59%
HBAN
Huntington Bancshares
16.75
2.20
15.12%
MTB
M&T Bank
194.34
25.61
15.18%
RF
Regions Financial
26.19
4.40
20.19%
CFG
Citizens Financial
49.33
7.81
18.81%

First Citizens BancShares Corporate Events

Executive/Board ChangesStock BuybackFinancial Disclosures
First Citizens BancShares Announces New Share Repurchase Program
Positive
Jul 25, 2025

On July 25, 2025, First Citizens BancShares announced a new share repurchase program, authorizing up to $4 billion in Class A common stock repurchases through 2026, following the completion of a previous $3.5 billion program. The company reported strong financial results for the second quarter of 2025, with net income rising to $575 million, driven by revenue growth and positive credit performance. The announcement reflects the company’s commitment to long-term value creation and returning capital to shareholders, while also strengthening its leadership with the appointment of Diane Morais to the Board of Directors.

The most recent analyst rating on (FCNCA) stock is a Hold with a $2350.00 price target. To see the full list of analyst forecasts on First Citizens BancShares stock, see the FCNCA Stock Forecast page.

Executive/Board Changes
First Citizens BancShares Appoints Diane Morais to Board
Neutral
Jun 26, 2025

On June 24, 2025, First Citizens BancShares appointed Diane Morais to its Board of Directors, effective July 1, 2025. Morais, a seasoned financial services leader with over 30 years of experience, previously held key roles at Ally Bank, including President of Consumer and Commercial Banking. Her appointment is expected to enhance the board’s governance efforts and align with First Citizens’ long-term, relationship-focused approach. Morais will serve on the Risk and Technology Committees, bringing valuable insights from her extensive background in banking and community involvement.

The most recent analyst rating on (FCNCA) stock is a Hold with a $2350.00 price target. To see the full list of analyst forecasts on First Citizens BancShares stock, see the FCNCA Stock Forecast page.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jul 29, 2025