First Citizens BancShares Reports Q3 2026 Results & Authorizes New $1.2B Share Repurchase Plan

Overview of Filing

On October 23, 2026, First Citizens BancShares, Inc. (NASDAQ: FCNCA) filed a Current Report on Form 8-K covering Items 2.02 (Results of Operations and Financial Condition), 7.01 (Regulation FD Disclosure), and 8.01 (Other Events).

Key Highlights

1. Q3 2026 Financial Performance

• Net Income: Reported net income of $606 million, compared to $672 million in Q2 2026. Net income available to common stockholders was $577 million ($51.23 per common share), down from $640 million ($55.52 per share) in the linked quarter.
• Adjusted Net Income: $652 million ($55.37 per share), compared to $691 million ($57.09 per share) in Q2 2026.
• Net Interest Income (NII): $1.70 billion (up $43 million linked-quarter). Excluding purchase accounting accretion (PAA), NII was $1.66 billion (up $47 million).
• Net Interest Margin (NIM): 3.07% (down 3 bps from 3.10% in Q2 2026); NIM excluding PAA was 2.99% (down 2 bps).
• Noninterest Income: $734 million (adjusted: $575 million), compared to $776 million (adjusted: $586 million) in the linked quarter.
• Noninterest Expense: $1.57 billion (adjusted: $1.36 billion), compared to $1.55 billion in the linked quarter.

2. Share Repurchase Authorizations & Capital Return

• New 2027 Repurchase Plan: The Board authorized the 2027 Share Repurchase Program (2027 SRP) to repurchase up to $1.2 billion of Class A common stock during calendar year 2027.
• Q3 2026 Activity: BancShares repurchased 278,828 shares of Class A common stock for $600 million (2.45% of total common shares outstanding as of June 30, 2026) and paid a dividend of $2.10 per share.
• Remaining Capacity: As of September 30, 2026, $711 million in capacity remained under the existing 2025 share repurchase plan through year-end 2026, in addition to the newly authorized $1.2 billion for 2027.

3. Balance Sheet & Deleveraging

• FDIC Purchase Money Note: BancShares prepaid an additional $8.0 billion of the Purchase Money Note during Q3 2026, reducing the outstanding principal balance to $20.45 billion (down from $35.85 billion as of September 30, 2025).
• Loans and Leases: Increased by $6.16 billion (+4.1%) to $157.19 billion, driven by $5.48 billion growth in Commercial Banking (principally Fund Banking) and $633 million in General Banking.
• Deposits: Expanded by $11.84 billion (+6.8%) to $185.26 billion. Deposits now represent 88.3% of total funding.
• BMO Branch Acquisition: Closed on September 4, 2026, adding 138 branches across the Midwest, Great Plains, and Western regions, bringing in ~$4.9 billion in assumed deposits and ~$650 million in acquired loans.

4. Credit Quality and Capital Ratios

• Provision for Credit Losses: $55 million (provision for loan losses of $50M and unfunded commitments of $6M), compared to a benefit of $10 million in Q2 2026.
• Net Charge-Offs: $103 million (0.27% of average loans) vs. $108 million (0.29%) in Q2 2026.
• Nonaccrual Loans: Decreased to $1.37 billion (0.87% of loans) from $1.45 billion (0.96%).
• Allowance for Loan and Lease Losses: $1.44 billion (0.91% of total loans).
• Regulatory Capital Ratios: Common Equity Tier 1 (CET1) ratio of 10.24%, Tier 1 risk-based capital ratio of 11.32%, and total risk-based capital ratio of 12.90%. BancShares also completed an issuance of $300 million in Series F perpetual preferred stock during Q3.