First Citizens Bancshares, Inc (NC) - 5.625% PRF PERPETUAL USD 25 - 25 Ser C

Earnings Performance: First Citizens reported adjusted earnings of $44.86 per share for Q1 2026, down $6.41 per share from the previous quarter. The decline was mainly attributed to lower interest rates impacting net interest margin (NIM), which fell by 11 basis points to 3.09%. Despite the drop in earnings, noninterest expense decreased, helping to cushion the overall impact.

Loan and Deposit Growth: Loans grew by $762 million (0.5% sequentially), primarily driven by a $1 billion increase in global fund banking. Conversely, general bank loans decreased by $591 million largely due to strategic balance sheet optimizations. On the deposit front, total deposits increased by 5.7%, or $9.3 billion sequentially, supported primarily by growth in tech and healthcare sectors.

Credit Quality: The provision for credit losses was $103 million, up $46 million from the previous quarter, but net charge-offs improved to 30 basis points, down 9 basis points sequentially. This suggests a stable credit environment, but nonaccrual loans increased slightly, raising concerns about specific credits, particularly in the general office and multifamily sectors.