First Citizens BancShares (FCNCA) investor relations material

Executive summary

• Achieved strong sequential top-line and earnings growth in Q2 2026, with adjusted net income of $691 million and adjusted EPS of $57.09, both exceeding guidance and consensus, and net income rising 26% sequentially to $672 million.

• EPS, ROE, and ROA improved sequentially and year-over-year, driven by higher pre-provision net revenue, credit-related reserve releases, and disciplined expense management.

• Performance was supported by broad-based loan and deposit growth, resilient credit quality, and balance sheet momentum.

• Returned $600 million to shareholders via share repurchases in Q2, totaling $6.3 billion since July 2024.

• Announced acquisition of 138 BMO Bank branches, expected to close in Q3 2026, bringing $5.3 billion in deposits and $700 million in loans.

Financial highlights

• Adjusted EPS reached $57.09, up from $44.86 in Q1 2026; adjusted ROE was 12.94% and adjusted ROA was 1.18%, both up over 20% sequentially.

• Net interest income rose to $1.66 billion, up $35 million sequentially; net interest margin was 3.10%, up 1 basis point.

• Noninterest income increased to $776 million, up $84 million from Q1; adjusted noninterest income was $586 million.

• Noninterest expense was $1.55 billion, up $15 million; adjusted noninterest expense was $1.35 billion, mainly due to targeted marketing and digital transformation investments.

• 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

• Loans expected to reach $152–$155 billion by Q3 2026 and $153–$157 billion for FY26, supported by the BMO branch acquisition.

• Deposits projected at $179–$182 billion for Q3 2026 and $181–$186 billion for FY26, with BMO adding $5.3 billion.

• Net interest income guidance for FY26 is $6.60–$6.75 billion; Q3 guidance at $1.63–$1.71 billion.

• Full-year expense guidance improved to $5.34–$5.41 billion; 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.