First Citizens BancShares tops Q2 profit estimates

Overview

• U.S. banking group's Q2 adjusted EPS and adjusted net income beat analyst expectations

• Company repurchased $600 mln in shares during the quarter

• Net interest income and margin increased, driven by loan and deposit growth

Outlook

• Company expects BMO branch acquisition to close in Q3 2026, adding $5.3 bln in deposits

Result Drivers

• NET INTEREST INCOME - Higher net interest income driven by increased yields and average balances on loans and investment securities, and lower interest expense on borrowings due to debt repayment

• CREDIT QUALITY - Improved credit quality and reserve releases led to a benefit for credit losses, supporting net income growth

• NONINTEREST INCOME - Increase in noninterest income mainly due to higher derivative fair values and gains on sale of tax credit investments

Company press release: ID:nPn7MzytXa

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 3 "strong buy" or "buy", 10 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the banks peer group is "buy."

• Wall Street's median 12-month price target for First Citizens BancShares Inc (Delaware) is $2,300.00, about 10.7% above its July 22 closing price of $2,077.57

• The stock recently traded at 11 times the next 12-month earnings vs. a P/E of 10 three months ago

Reuters Recommended Reads

• July 23 - Huntington Bancshares Q2 net income rises 39% sequentially on loan growth

• July 21 - Webster Financial Q2 revenue beats estimates on loan, deposit growth

• July 21 - KeyCorp quarterly profit rises on interest income strength

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)