Park National Bank announces completion of First Citizens National Bank merger

First Citizens BancShares’ fourth quarter results were overshadowed by a negative market reaction, despite revenue and adjusted earnings per share both exceeding Wall Street expectations. Management attributed the performance to resilient net interest income and stable credit quality, particularly within their global fund banking and SVB Commercial segments. CEO Frank Holding emphasized the bank’s progress in deepening client relationships and investing in digital capabilities, noting that loan growth was primarily driven by increased activity in the innovation economy. However, he also acknowledged competitive pressures on lending spreads and deposit competition, as well as expense growth linked to technology and personnel investments. The quarter was further marked by continued share repurchases and a strategic focus on optimizing the balance sheet.

First Citizens BancShares (FCNCA) Q4 CY2025 Highlights:

• Revenue: $2.25 billion vs analyst estimates of $2.22 billion (1.2% year-on-year growth, 1.5% beat)
• Adjusted EPS: $51.27 vs analyst estimates of $43.79 (17.1% beat)
• Adjusted Operating Income: $829 million vs analyst estimates of $899.4 million (36.8% margin, 7.8% miss)
• Market Capitalization: $24.17 billion

While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.

Our Top 5 Analyst Questions From First Citizens BancShares’s Q4 Earnings Call

• Chris McGratty (KBW) asked about the cadence of net interest income and margin trends in relation to Fed rate expectations. CFO Craig Nix explained that the baseline forecast assumes two rate cuts, with net interest income expected to trough and recover as technology spending peaks and operational efficiencies are realized.
• Chris McGratty (KBW) also questioned when technology and risk management investment would moderate. CIO Greg Smith confirmed spend will peak in 2026, with much of the technology simplification and data center consolidation already underway, enabling future cost control.
• Anthony Iulian (JPMorgan) sought clarity on expense guidance and its range. Executive Elliot Howard attributed the high end to increased direct bank advertising and timing of technology efficiencies, while faster efficiency gains could lower expenses.
• Anthony Iulian (JPMorgan) inquired about growth in SVB client funds. SVB executive Marc Einerman attributed it to improved venture activity and internal stability, which enhanced the bank’s market execution.
• Casey Haire (Autonomous) pressed for details on the pace of purchase money note repayment and loan growth moderation. CFO Craig Nix said repayments depend on loan collateral run-off and funding cost comparisons, while loan growth is managed in line with deposit generation and liquidity needs.

Catalysts in Upcoming Quarters

In the coming quarters, the StockStory team will be monitoring (1) the pace and effectiveness of technology infrastructure projects and whether expense growth moderates as planned, (2) progress in core deposit acquisition, particularly through direct banking channels, and (3) credit performance in commercial office and equipment finance portfolios. Additionally, we will watch the BMO branch integration and its impact on balance sheet growth.

First Citizens BancShares currently trades at $2,038, down from $2,204 just before the earnings. Is the company at an inflection point that warrants a buy or sell? Find out in our full research report (it’s free).

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Regional banking company First Citizens BancShares (NASDAQGS:FCNC.A) beat Wall Street’s revenue expectations in Q4 CY2025, with sales up 1.2% year on year to $2.25 billion. Its non-GAAP profit of $51.27 per share was 17.1% above analysts’ consensus estimates.

First Citizens BancShares (FCNCA) Q4 CY2025 Highlights:

• Revenue: $2.25 billion vs analyst estimates of $2.22 billion (1.2% year-on-year growth, 1.5% beat)
• Adjusted EPS: $51.27 vs analyst estimates of $43.79 (17.1% beat)
• Adjusted Operating Income: $829 million vs analyst estimates of $899.4 million (36.8% margin, 7.8% miss)
• Market Capitalization: $24.73 billion

StockStory’s Take

First Citizens BancShares’ fourth quarter results were overshadowed by a negative market reaction, despite revenue and adjusted earnings per share both exceeding Wall Street expectations. Management attributed the performance to resilient net interest income and stable credit quality, particularly within their global fund banking and SVB Commercial segments. CEO Frank Holding emphasized the bank’s progress in deepening client relationships and investing in digital capabilities, noting that loan growth was primarily driven by increased activity in the innovation economy. However, he also acknowledged competitive pressures on lending spreads and deposit competition, as well as expense growth linked to technology and personnel investments. The quarter was further marked by continued share repurchases and a strategic focus on optimizing the balance sheet.

Looking forward, management’s guidance for 2026 is shaped by expectations of continued investment in technology, operational efficiency initiatives, and a focus on core deposit growth. CFO Craig Nix outlined plans for disciplined expense management, with technology spending expected to peak in 2026 before normalizing. The company anticipates growth in both commercial and general banking loans, supported by the upcoming BMO branch acquisition, but also highlighted elevated credit losses in certain portfolios. Management cautioned that further Federal Reserve rate cuts and persistent inflation could impact net interest income, stating, “We are prudent in providing a range of expectations as we have done in prior quarters.”

Key Insights from Management’s Remarks

Management credited loan growth and client fund expansion in the innovation economy as key drivers for the quarter, while expense increases tied to technology and deposit acquisition weighed on margins.

• Innovation economy momentum: SVB Commercial’s loan growth was supported by higher utilization rates and increased venture activity, with management citing improved market stability and the ability to capture new client funds.
• Technology investments impact costs: The bank made significant investments in technology infrastructure, including data center consolidation and platform modernization. CIO Greg Smith noted that technology spending is expected to peak in 2026, which contributed to near-term expense growth but is aimed at improving long-term operational efficiency.
• Deposit mix shift: Management highlighted a strategic focus on growing core deposits, particularly through direct bank channels and marketing efforts. This shift was designed to support liquidity and fund loan growth, though it resulted in higher marketing and acquisition costs.
• Credit quality improvement: Provision for credit losses declined due to lower net charge-offs and reserve releases, particularly driven by higher-quality loan portfolios and a better macroeconomic outlook. However, management expects credit losses to remain elevated in select commercial portfolios in the near term.
• Leadership transition: The upcoming retirement of Chief Risk Officer Lori Rupp and her replacement by Treasurer Tom Eckland was announced, signaling continuity in risk management amid ongoing operational and regulatory changes.

Drivers of Future Performance

Management expects further technology investments, deposit acquisition strategies, and loan portfolio diversification to drive performance, while interest rate trends and expense control will influence profitability.

• Technology spend at its peak: Management stated that 2026 will mark the high point for technology investment, after which spending is expected to level off. This is part of a multiyear plan to modernize systems and reduce operational complexity, supporting future efficiency gains and scalability.
• Deposit growth strategies: The company is prioritizing core deposit growth, especially through direct banking and new market initiatives, to support loan expansion and repayment of the purchase money note. Elevated marketing and promotional expenses are anticipated in the near term, but management believes falling interest rates may reduce funding costs over time.
• Credit and macroeconomic risks: While credit quality improved in Q4, management remains cautious about elevated losses in commercial office and equipment finance portfolios. The impact of further rate cuts and inflation remains uncertain, and strategic loan sales may be used to optimize liquidity and capital deployment.

Catalysts in Upcoming Quarters

In the coming quarters, the StockStory team will be monitoring (1) the pace and effectiveness of technology infrastructure projects and whether expense growth moderates as planned, (2) progress in core deposit acquisition, particularly through direct banking channels, and (3) credit performance in commercial office and equipment finance portfolios. Additionally, we will watch the BMO branch integration and its impact on balance sheet growth.

First Citizens BancShares currently trades at $2,018, down from $2,204 just before the earnings. At this price, is it a buy or sell? Find out in our full research report (it’s free).

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What Happened?

Shares of regional banking company First Citizens BancShares (NASDAQGS:FCNC.A) fell 8.7% in the morning session after it reported fourth-quarter results which revealed underlying signs of weakness in profitability and future growth. 

The bank posted adjusted earnings of $51.27 per share on revenue of $2.44 billion, comfortably ahead of analyst estimates. However, the positive headline numbers were overshadowed by concerns about profitability. The bank's efficiency ratio, a key measure of costs relative to revenue where lower is better, came in at 64.5%, missing analyst expectations and worsening from the prior year. This indicated that the bank's core operations were becoming less profitable. The report also pointed to a weaker outlook, with revenue expected to deteriorate and net interest income projections described as weak for the upcoming year, suggesting future growth could be under pressure.

What Is The Market Telling Us

First Citizens BancShares’s shares are not very volatile and have only had 6 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful, although it might not be something that would fundamentally change its perception of the business.

The biggest move we wrote about over the last year was 3 months ago when the stock dropped 5.1% on the news that disclosures from two lenders raised concerns about deteriorating loan quality across the industry. 

The drop was triggered by specific incidents that have spooked investors. Zions Bancorp announced a $50 million charge-off—a debt the bank doesn't expect to collect—on a single loan. Separately, Western Alliance Bancorp revealed it was dealing with a borrower who had failed to provide proper collateral. These events are compounding existing anxieties about the regional banking sector, which is already under pressure from elevated interest rates and declining commercial real estate values. The news heightened investor concerns that more cracks could appear in borrowers' creditworthiness, potentially leading to increased loan losses and reduced profitability for other banks in the sector.

First Citizens BancShares is down 7.4% since the beginning of the year, and at $1,999 per share, it is trading 10.2% below its 52-week high of $2,225 from January 2025. Investors who bought $1,000 worth of First Citizens BancShares’s shares 5 years ago would now be looking at an investment worth $3,184.

Regional banking company First Citizens BancShares (NASDAQGS:FCNC.A) reported Q4 CY2025 results beating Wall Street’s revenue expectations, with sales up 9.5% year on year to $2.44 billion. Its non-GAAP profit of $51.27 per share was 17.1% above analysts’ consensus estimates.

First Citizens BancShares (FCNCA) Q4 CY2025 Highlights:

• Net Interest Income: $1.72 billion vs analyst estimates of $1.71 billion (flat year on year, 0.8% beat)
• Net Interest Margin: 3.2% vs analyst estimates of 3.2% (in line)
• Revenue: $2.44 billion vs analyst estimates of $2.22 billion (9.5% year-on-year growth, 9.9% beat)
• Efficiency Ratio: 64.5% vs analyst estimates of 59.3% (525.9 basis point miss)
• Adjusted EPS: $51.27 vs analyst estimates of $43.79 (17.1% beat)
• Tangible Book Value per Share: $1,674 vs analyst estimates of $1,664 (10.7% year-on-year growth, 0.6% beat)
• Market Capitalization: $27.02 billion

Company Overview

With roots dating back to 1898 and a significant expansion through its 2023 acquisition of Silicon Valley Bank, First Citizens BancShares (NASDAQGS:FCNC.A) is a bank holding company that provides financial services to individuals and businesses through its First-Citizens Bank & Trust Company subsidiary.

Sales Growth

From lending activities to service fees, most banks build their revenue model around two income sources. Interest rate spreads between loans and deposits create the first stream, with the second coming from charges on everything from basic bank accounts to complex investment banking transactions. Over the last five years, First Citizens BancShares grew its revenue at an incredible 38.5% compounded annual growth rate. Its growth beat the average banking company and shows its offerings resonate with customers.

Long-term growth is the most important, but within financials, a half-decade historical view may miss recent interest rate changes and market returns. First Citizens BancShares’s recent performance shows its demand has slowed significantly as its annualized revenue growth of 3.7% over the last two years was well below its five-year trend.

This quarter, First Citizens BancShares reported year-on-year revenue growth of 9.5%, and its $2.44 billion of revenue exceeded Wall Street’s estimates by 9.9%.

Net interest income made up 76.2% of the company’s total revenue during the last five years, meaning lending operations are First Citizens BancShares’s largest source of revenue.

While banks generate revenue from multiple sources, investors view net interest income as the cornerstone - its predictable, recurring characteristics stand in sharp contrast to the volatility of non-interest income.

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Tangible Book Value Per Share (TBVPS)

The balance sheet drives banking profitability since earnings flow from the spread between borrowing and lending rates. As such, valuations for these companies concentrate on capital strength and sustainable equity accumulation potential.

This is why we consider tangible book value per share (TBVPS) the most important metric to track for banks. TBVPS represents the real, liquid net worth per share of a bank, excluding intangible assets that have debatable value upon liquidation. EPS can become murky due to acquisition impacts or accounting flexibility around loan provisions, and TBVPS resists financial engineering manipulation.

First Citizens BancShares’s TBVPS grew at an incredible 36.2% annual clip over the last five years. TBVPS growth has recently decelerated to 11% annual growth over the last two years (from $1,358 to $1,674 per share).

Over the next 12 months, Consensus estimates call for First Citizens BancShares’s TBVPS to grow by 7.8% to $1,805, paltry growth rate.

Key Takeaways from First Citizens BancShares’s Q4 Results

We were impressed by how significantly First Citizens BancShares blew past analysts’ revenue expectations this quarter. We were also glad its EPS outperformed Wall Street’s estimates. Zooming out, we think this was a solid print. The stock remained flat at $2,215 immediately following the results.

Sure, First Citizens BancShares had a solid quarter, but if we look at the bigger picture, is this stock a buy? The latest quarter does matter, but not nearly as much as longer-term fundamentals and valuation, when deciding if the stock is a buy. We cover that in our actionable full research report which you can read here (it’s free).

Regional banking company First Citizens BancShares (NASDAQGS:FCNC.A) will be announcing earnings results this Friday morning. Here’s what investors should know.

First Citizens BancShares beat analysts’ revenue expectations by 1.7% last quarter, reporting revenues of $2.25 billion, flat year on year. It was a strong quarter for the company, with a decent beat of analysts’ revenue estimates and a narrow beat of analysts’ net interest income estimates.

Is First Citizens BancShares a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.

This quarter, analysts are expecting First Citizens BancShares’s revenue to be flat year on year at $2.22 billion, improving from the 6% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $43.79 per share.

Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. First Citizens BancShares has missed Wall Street’s revenue estimates three times over the last two years.

Looking at First Citizens BancShares’s peers in the regional banks segment, some have already reported their Q4 results, giving us a hint as to what we can expect. Live Oak Bancshares delivered year-on-year revenue growth of 29.9%, beating analysts’ expectations by 14.9%, and ServisFirst Bancshares reported revenues up 20.7%, topping estimates by 5%. Live Oak Bancshares traded down 85% following the results.

Read our full analysis of Live Oak Bancshares’s results here and ServisFirst Bancshares’s results here.

There has been positive sentiment among investors in the regional banks segment, with share prices up 5% on average over the last month. First Citizens BancShares’s stock price was unchanged during the same time and is heading into earnings with an average analyst price target of $2,335 (compared to the current share price of $2,189).