EL7 Factor Analysis

Overall62

Balanced — near the middle of the marketContrarianF 5/8Better than 62% of Market stocks, per EL7's model

Factor	Score	Value	Avg	Rank
Valuation	99	0.1x	17.4x	Top tier
Growth	26	13.2%	7.1%	Bottom tier
Quality	63	—	—	Around median
Safety	14	—	—	Bottom tier
Capital Return	100	76.79%	0.18%	Top tier
Momentum	23	-9.3%	1.3%	Bottom tier
Sentiment	1	1	3	Bottom tier

FCNCO First Citizens BancShares, Inc.

First Citizens BancShares, Inc. · NASDAQ

Market Open

18.43

▼ ⁦-1.71%⁩ (-0.32)

Market Cap$22.6B

Beta0.61

52w Low52w High

18.7123.43

Last Week

⁦-3.36%⁩

Last Month

⁦-9.30%⁩

Last 3 Months

⁦-11.01%⁩

Last Year

⁦-17.69%⁩

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Key Financials

Ten ratios that matter, each compared against its sector median and average — so you can see whether a number is rich or cheap relative to peers in the same sector.

StockSector medianSector averagetypical sector range

MetricValuePosition within sectorVerdict

P/E (TTM)
0.10x
3.02x24.14x
Very cheap
Forward P/E
0.10x
2.61x20.85x
Very cheap
EV / EBITDA
—
—
FCF Yield
—
—
Revenue Growth YoY
13.2%
-36.3%104.9%
Near median
EPS Growth YoY
10.4%
-99.9%193.6%
Near median
Gross Margin
—
—
ROIC
—
—
Net Debt / EBITDA
—
—
Dividend Yield
76.8%
0.0%8.8%
High
Payout Ratio
7.9%
11.9%103.5%
Low
Altman Z-Score
—
—

Financial Analysis

Stock Analysis

AI-generated

Last updated: 2026-09-27Based on 2026-07-23 data

Company Overview

First Citizens BancShares operates through a diversified banking franchise encompassing General Banking, Commercial Banking, Global Fund Banking, Tech & Healthcare, and Middle Market Banking, alongside Wealth Management and Direct Bank. Revenue is generated from net interest income on loans and interest-earning assets, as well as fees from investment and wealth management, deposits, lending, cards, merchant services, international activities, factoring, and rail operations. In Q2 FY2026 ended 2026-06-30, loan growth came particularly from Global Fund Banking, Tech & Healthcare, and Middle Market Banking, while Direct Bank added $2.8 billion in deposits and offset a $1.5 billion decline in Commercial Bank deposits.

Revenue for Q2 FY2026 ended 2026-06-30 was approximately $3.6 billion, up 51.9% year over year from $2.4 billion in Q2 FY2025. Net income was $672.0 million, diluted earnings per share were $55.48, and operating cash flow was $1.0 billion. In contrast, gross margin was 67.1% versus 95.2% a year earlier, while operating margin was 24.7% versus 31.9%, meaning the revenue surge did not translate into a comparable improvement in margins.

The business mix reflects simultaneous strength in specialized lending and fees: Global Fund Banking loans increased by $2.6 billion, Tech & Healthcare loans grew 3.7% sequentially, and Middle Market Banking added approximately $205 million. Wealth management fees also increased 12% year over year, but $50 million of the growth in noninterest income came from asset monetization and portfolio revaluations, including a $27 million gain from the equity warrant portfolio and a $17 million gain from the sale of a tax credit investment; therefore, not all income growth was equally recurring.

Key numbers

Q2 FY2026

Revenue: $3.6B; +51.9%vs a year earlier
Gross margin: 67.1%; −28.0ppvs a year earlier
Operating margin: 24.7%; −7.2ppvs a year earlier
Net income: $672.0M; +16.9%vs a year earlier
Diluted EPS: 55.48; +31.0%vs a year earlier

What's Driving the Stock

Year-over-year revenue growth accelerated to 51.9% in Q2 FY2026 ended 2026-06-30, from 0.7% in Q1 FY2026, alongside a $2.3 billion increase in period-end loans and a $2.6 billion sequential increase in deposits.
Global Fund Banking is leading credit expansion; its balances increased by $2.6 billion in Q2 FY2026 and are supported by an $11 billion opportunity pipeline, although management acknowledged that balance growth could moderate following record production and higher utilization in the first half.
The BMO branch transaction, expected to close in Q3 FY2026, is projected to add approximately $700 million in loans and $5.3 billion in deposits, supporting quarterly guidance of $152 billion to $155 billion for loans and $179 billion to $182 billion for deposits.
Management raised FY2026 noninterest income guidance to a range of $2.14 billion to $2.22 billion, driven by client investment fees, growth in off-balance-sheet funds, and asset returns, while setting the Q3 FY2026 range at $520 million to $560 million.
The path of funding costs remains critical; management described deposit competition as intense, with Direct Bank's spot rate at 3.71% and its highest offered rate at 4.1%. It expects Q3 FY2026 net interest income to remain between $1.63 billion and $1.71 billion, with funding-cost pressure continuing to limit the bank's benefit from its asset sensitivity to interest rates.

Buying & Selling Case

▲ Buying Case7 pts

+Year-over-year revenue growth accelerated to 51.9% in Q2 FY2026 ended 2026-06-30, versus 0.7% in Q1 FY2026, supported by loan and fee expansion across several banking businesses.
+Lending grew in specific areas with clear momentum; Global Fund Banking added approximately $2.6 billion, Tech & Healthcare increased 3.7% sequentially, and Middle Market Banking added approximately $205 million, with an $11 billion opportunity pipeline in Global Fund Banking.
+The BMO branch transaction supports deposit-funded expansion, as management expects it to add approximately $5.3 billion in deposits and $700 million in loans in Q3 FY2026, alongside a deposit target of $179 billion to $182 billion.
+Credit quality indicators improved; the net charge-off rate declined by one basis point to 29 basis points in Q2 FY2026, with nonaccrual loans unchanged at 96 basis points of total loans and criticized and classified assets improving.
+The diluted share count decreased 12.9% to 11.5 million shares in Q2 FY2026, from 13.2 million shares in Q2 FY2025, increasing each share's participation in results if operating profit is sustained.

What would change this view

When: Q3 FY2026

Loans reach $152 billion, the lower end of quarterly guidance
▲ Positive
Loans reaching $152 billion or more would confirm continued growth in Global Fund Banking, Tech & Healthcare, and Middle Market Banking, as well as the contribution from the BMO transaction.
▼ Negative
Loans falling below $152 billion would weaken the thesis of sustained credit demand and execution of the BMO transaction's contribution as planned.
Deposits reach $179 billion, the lower end of quarterly guidance
▲ Positive
Deposits reaching $179 billion or more would confirm the ability of Direct Bank, the branch network, and the BMO transaction to fund balance-sheet growth.
▼ Negative
Deposits falling below $179 billion would heighten pricing-competition risks and cast doubt on the ability of deposit-gathering channels to offset outflows.
Net interest income reaches $1.63 billion, the lower end of quarterly guidance
▲ Positive

Valuation

No calculated values are available from the discounted cash flow model, industry multiple, zero-growth value, or numerical analyst price targets. The available valuation indicator is the analyst consensus recommendation of “Buy,” but it does not allow a quantitative comparison among independent valuation methods. The EL7 score provides relative context only, with the valuation pillar ranking 9 out of 539 within the industry and scoring 99 out of 100, without representing an independent fair value in dollars.

Figures in the text are as of 2026-09-27; the live price is shown at the top of the page.

FAQ

What drove First Citizens BancShares' growth in Q2 FY2026?

Revenue reached $3.6 billion in Q2 FY2026 ended 2026-06-30, representing year-over-year growth of 51.9% from $2.4 billion. Period-end loans increased by $2.3 billion, led by $2.6 billion of growth in Global Fund Banking, while Tech & Healthcare increased 3.7% and Middle Market Banking added approximately $205 million. Noninterest income also benefited from core business fees, as well as $27 million in equity warrant gains and $17 million from the sale of a tax credit investment.

How will the BMO branch transaction affect First Citizens BancShares' balance sheet?

Management expects the transaction to close in Q3 FY2026 and add approximately $5.3 billion in deposits and $700 million in loans. This is included in quarterly guidance of $179 billion to $182 billion for deposits and $152 billion to $155 billion for loans. The company also expects to use the liquidity generated by the transaction as part of a $6 billion to $8 billion repayment of the purchase money note owed to FDIC during the same quarter.

Is First Citizens BancShares' credit quality stable?

Earnings callEDGAR filings30-day newsInsider activity

Automated analysis for informational purposes only — not investment advice.

Share repurchases have shifted from deploying excess capital to maintaining capital: total common shares repurchased through 2026-07-21 exceeded 20% of shares outstanding, with a value of $6.3 billion, while management expects to repurchase approximately $600 million in Q3 and approximately $300 million in Q4 FY2026.

+The shareholder return pillar in the EL7 score ranks 3 out of 496 within the industry, with a score of 100 out of 100. This pillar measures the strength of capital distributions to shareholders, consistent with $6.3 billion in share repurchases through 2026-07-21.

+The valuation pillar in the EL7 score ranks 9 out of 539 within the industry, with a score of 99 out of 100. This pillar measures the attractiveness of relative valuation metrics compared with peer banks.

▼ Selling Case8 pts

−Revenue profitability declined sharply; gross margin fell to 67.1% in Q2 FY2026 ended 2026-06-30, from 95.2% in Q2 FY2025, a decrease of 28.0 percentage points.
−Operating margin declined to 24.7% in Q2 FY2026, from 31.9% a year earlier, a decrease of 7.2 percentage points, showing that revenue growth of 51.9% was accompanied by significant pressure on conversion into operating profit.
−A portion of noninterest income growth came from items that may not recur at the same level, including $27 million in gains from the equity warrant portfolio and $17 million from the sale of a tax credit investment, while management confirmed that allowance model improvements are largely behind it.
−Deposits face intense pricing competition; Direct Bank's spot rate was 3.71% and its highest offered rate was 4.1%, and management said higher funding costs are mitigating the effect of asset sensitivity to interest rates and limiting improvement in the net interest margin.
−Credit risks remain concentrated in certain portfolios; management expects charge-offs in commercial office real estate and innovation portfolios to continue over the medium term and guided to net charge-offs of 30 to 40 basis points in Q3 FY2026.
−The financial safety pillar in the EL7 score ranks 354 out of 539 within the industry, with a score of 34 out of 100. This pillar measures balance-sheet resilience and the ability to withstand stress, despite the CET1 ratio reaching 10.77% at the end of Q2 FY2026.
−The momentum pillar in the EL7 score ranks 513 out of 529 within the industry, with a score of 3 out of 100. This pillar measures the strength of the stock's relative trend compared with peers.
−The sentiment pillar in the EL7 score ranks 408 out of 423 within the industry, with a score of 3 out of 100. This pillar measures the direction of market estimates and views toward the company.

Net interest income reaching $1.63 billion or more would confirm that asset growth and repayment of the FDIC note are offsetting funding-cost pressure.

▼ Negative

Net interest income falling below $1.63 billion would indicate that the cost of deposits and alternative funding sources is pressuring profitability more than expected.

Net charge-offs remain at 40 basis points, the upper end of quarterly guidance

▲ Positive: Net charge-offs remaining at 40 basis points or less would confirm continued credit-quality resilience despite pressure in commercial office real estate and innovation portfolios.
▼ Negative: Net charge-offs exceeding 40 basis points would heighten credit risk and weaken confidence in management's ability to contain losses within the guided range.

The net charge-off rate was 29 basis points in Q2 FY2026 ended 2026-06-30, following a sequential improvement of one basis point. Nonaccrual loans remained unchanged at 96 basis points of total loans, and management expects them to decline during the second half of FY2026. However, the company still expects charge-offs in commercial office real estate and innovation portfolios to continue and guided to a range of 30 to 40 basis points for Q3 FY2026.

What is the main pressure on First Citizens BancShares' net interest income?

Management set Q3 FY2026 net interest income guidance at $1.63 billion to $1.71 billion, expecting it to remain approximately stable compared with the previous quarter. The main pressure is intense competition for deposits; Direct Bank's spot rate was 3.71% and its highest offered rate was 4.1%. Management expects deposits to reprice faster than variable-rate loans, so most of the benefit from any increase in interest rates would appear during FY2027 rather than late FY2026.

How is First Citizens BancShares returning capital to shareholders?

Through 2026-07-21, the company repurchased more than 20% of its outstanding common shares for a total of $6.3 billion, equivalent to approximately 84% of the available authorization. Repurchase spending was $600 million in Q2 FY2026, and management expects approximately $600 million in Q3 and $300 million in Q4. At the same time, the CET1 ratio was approximately 10.77% at the end of Q2, and management is targeting a range of 10% to 10.5% while moderating the pace of repurchases.

What does the decline in First Citizens BancShares' margins despite higher revenue indicate?

Gross margin was 67.1% in Q2 FY2026 ended 2026-06-30, versus 95.2% in the corresponding period of FY2025, a decrease of 28.0 percentage points. Operating margin also declined to 24.7% from 31.9%, a decrease of 7.2 percentage points, despite revenue growth of 51.9%. This places the quality of revenue growth and the efficiency of its conversion into operating profit among the most important items that the 2026-10-22 report should clarify.

Company Profile