First Citizens Bancshares, Inc. (FCNCA.O): 2Q26 Review - Better Loan Growth and NIM Outlook

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First Citizens Bancshares, Inc. (FCNCA.O): 2Q26 Review - Better Loan Growth and NIM Outlook

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24 Jul 2026 05:00:00 ET │ 14 pages

First Citizens Bancshares, Inc. (FCNCA.O)

2Q26 Review - Better Loan Growth and NIM Outlook

CITI'S TAKE

Neutral FCNCA delivered stronger than expected 2Q results; healthy loan growth

was driven by global fund banking, tech & healthcare, and middle market, Short-Term View: Downside, expires 30-JUL-26

alongside a 1.5% deposit rise anchored by Direct Bank. The pending BMO Price (23 Jul 26 16:00) US$2,212.77

Branch acquisition is expected to add ~$5.3B in deposits and ~$700M in Target price US$2,300.00↑

loans in 3Q (we project Labor Day); roughly, matching the projected FDIC from US$2,100.00

paydown in 3Q. We believe shares are likely to track NIM expectations Expected share price

over the next few months as the future debate is likely to focus on Fed 3.9% return

rates, note repayments pace, and buyback pace. We increase our TP to Expected dividend yield 0.4%

$2,300 (+$200), to account for the modestly stronger loan growth

Expected total return 4.3% outlook and better than feared NIM outlook.

Market Cap US$23,415M

Estimate Changes — We refresh our model for the quarter’s results and updated

guidance. We tweak our 2026E EPS (from $175.76 to $190.41) and move 2027E EPS

(from $198.46 to $202.66). We adjust our loan growth up modestly, supportive to Benjamin GerlingerAC

PPNR outlook. We also tweak our funding base to include $7B reduction in FDIC +1-212-816-3538

funding. While these changes are modest, the net impact supports our 2027 benjamin.gerlinger@citi.com

estimates. Additionally, we decrease expense base in 2027, also supportive to

PPNR. From the modest tweak higher in our long-term estimates, we tweak our TP Kaili Wang, CFA