First Citizens Bancshares, Inc (NC) - 5.375% PRF PERPETUAL USD 25 - Ser A(1/40th Dep Sh)

Strong First Quarter Performance: First Citizens reported adjusted earnings per share of $44.86, with an adjusted return on equity (ROE) of 10.39% and return on assets (ROA) of 0.97%. The quarterly net income totaled $560 million, although this was down by $6.41 per share sequentially due to lower interest rates impacting net interest margins (NIM).

Deposit Growth and Funding Strategy: Deposits grew 5.7% sequentially, up by $9.3 billion, driven primarily by the tech and healthcare sectors alongside global fund banking. The bank utilized $1.8 billion in broker deposits to maintain liquidity and manage costs effectively amidst competitive deposit pricing, with brokered deposits providing a lower all-in cost compared to direct bank rates.

Outlook on Loans and Credit Quality: While the bank anticipates loan growth within the range of $149 billion to $152 billion for Q2 2026, CEO Frank Holding noted a cautious stance on general market trends. Adjusted loan guidance for the full year remains at $153 billion to $157 billion. Credit quality remains stable with a net charge-off ratio of 30 basis points, although an uptick in nonaccrual loans raised concerns about some specific credits mainly within multifamily and innovation sectors.