First Citizens BancShares, Inc. (FCNCA) SEC Filings & Earnings Calls

Net interest margin compression and efficiency ratio deterioration

“NIM declined from 3.26% to 3.07% YoY; efficiency ratio increased from 61.27% to 64.68%”

Dilution from preferred stock issuance.

“Issuance of 300,000 depositary shares representing preferred stock.”

Pending branch acquisition integration risk

“We expect to assume approximately $5.3 billion in deposits and acquire approximately $700 million in loans. We expect the transaction to be completed during the third quarter of 2026.”

Securities portfolio unrealized losses

“Accumulated other comprehensive (loss) income $(230) at June 30, 2026 vs $83 at December 31, 2025.”

Net interest margin (NIM) excluding purchase accounting accretion declined to 3.01% from 3.14% YoY, indicating core margin pressure from asset repricing and deposit costs.

“NIM ex-PAA 3.01% vs 3.14% YoY; NIM 3.10% vs 3.26% YoY”

Nonaccrual loans to total loans stable at 0.96%, but net charge-off ratio increased to 0.29% from 0.33% YoY, suggesting modest credit normalization.

“Nonaccrual loans ratio 0.96%; net charge-off ratio 0.29% vs 0.33% YoY”

Net interest margin pressure

“Net interest income decreased 2.5% year-over-year.”

Credit risk from commercial real estate

“Commercial real estate nonaccrual loans $524 million at March 31, 2026.”

Tariffs, geopolitical conflicts, and bank failures cited as key risks

“Risks include imposition of tariffs, retaliatory tariff measures, trade barriers, geopolitical events, and impacts related to previous bank failures.”

Concentrated ownership and insider influence

“members of our management beneficially own large percentages of our voting stock, our Boards recognize the potential for management's influence over the Boards and the Boards' processes to diminish the effectiveness of our independent directors” · word for word

Key person risk due to family ownership and management

“Frank B. Holding, Jr. ... Chairman and Chief Executive Officer ... Hope H. Bryant ... Vice Chairwoman ... Peter M. Bristow ... President ... family relationships noted” · word for word

Pledge risk from grandfathered insider pledges

“Grandfathered Pledges ... Frank B. Holding, Jr. ... 198,052 shares of Class A Common pledged ... Hope H. Bryant ... 134,362 shares of Class A Common pledged”

Commercial Real Estate Exposure

“Our general office portfolio has experienced more negative credit quality trends relative to our other CRE portfolios.” · word for word

Credit Quality Deterioration

“Net charge-offs for the current year were $640 million, an increase of $100 million from $540 million for the prior year” · word for word

Interest Rate Risk

“Net interest income 6,814 7,143 6,712” · word for word

Nonaccrual loans to total loans 0.88% vs 0.84% YoY; ALLL to loans 1.06% vs 1.20% YoY

“Nonaccrual loans to total loans and leases 0.88% at Dec 2025 vs 0.84% at Dec 2024; ALLL to loans 1.06% vs 1.20%” · word for word

Key risk management leadership change; internal successor mitigates disruption.

“CRO departure; internal appointment with 5-month overlap.”

Increased fixed dividend obligation; preferred stock ranks senior to common equity.

“Issuance of 7.000% Non-Cumulative Perpetual Preferred Stock, Series D increases fixed-charge obligations.”

Interest rate risk from investment portfolio

“The direction and magnitude of the change in value of the Company’s investment portfolio is attributable to the direction and magnitude of the change in interest rates along the treasury yield curve.”

Credit risk from commercial real estate concentration

“Commercial real estate loans generally present a higher level of risk than other types of loans due primarily to the effect of general economic conditions and the complexities involved in valuing the underlying collateral”

Deposit competition and funding cost risk

“The Company’s marketing department, together with ALM, and service-driven branch and relationship managers, continue to develop prudent strategies that will grow the loan portfolio and accumulate relationship driven deposits at costs lower than borrowing costs”