First Citizens BancShares, Inc. (FCNCA)

First Citizens BancShares, Inc. (FCNCA) Financial Services Profile

First Citizens BancShares, Inc., founded in 1898, provides comprehensive banking services, including retail, commercial, and wealth management, through its First-Citizens Bank & Trust Company subsidiary. With a significant branch presence across 19 states and a focus on customer service, FCNCA competes with regional and national banks in the financial services sector.

What Is the Investment Thesis for FCNCA?

First Citizens BancShares, Inc. presents a compelling investment case based on its established market presence, diverse service offerings, and consistent profitability. With a P/E ratio of 11.2 and a profit margin of 15.6%, FCNCA demonstrates financial stability and efficient operations. The company's expansion into new markets and continued investment in digital banking platforms are expected to drive future growth. A dividend yield of 0.41% provides a modest return for investors. Ongoing: Successful integration of acquired entities and strategic deployment of capital will be crucial for sustaining long-term value creation. Upcoming: Monitoring interest rate sensitivity and managing credit risk in a changing economic environment are essential for maintaining financial health.

Based on FMP financials and quantitative analysis

FCNCA Key Highlights

• Market capitalization of $24.53B reflects substantial investor confidence in First Citizens BancShares.
• Profit margin of 15.6% indicates efficient operations and strong profitability compared to the industry average.
• Gross margin of 62.8% showcases the company's ability to manage costs effectively and generate revenue.
• Beta of 0.65 suggests lower volatility compared to the overall market, making it a relatively stable investment.
• Dividend yield of 0.41% provides a steady income stream for investors.

Who Are FCNCA's Competitors?

FCNCA is benchmarked below against 8 industry peers on price, market cap, and our AI MoonshotScore.

AI Score by Stock Expert AI · Price data: FMP / Yahoo Finance

What Are FCNCA's Key Strengths?

• Strong financial performance with a profit margin of 15.6%.
• Extensive branch network across 19 states.
• Diverse range of financial products and services.
• Established brand reputation and customer loyalty.

What Are FCNCA's Weaknesses?

• Exposure to interest rate risk.
• Dependence on traditional banking services.
• Limited international presence.
• Potential for increased competition from fintech companies.

What Could Drive FCNCA Stock Higher?

• Continued expansion into new geographic markets, driving loan and deposit growth.
• Investments in digital banking platforms, enhancing customer experience and efficiency.
• Potential acquisitions of smaller banks, expanding market share and service offerings.
• Increasing focus on wealth management services, generating higher fee income.
• Development of specialized lending programs, attracting new customers and diversifying loan portfolio.

What Are the Key Risks for FCNCA?

• Financial-distress signal — its Altman Z-Score of -0.45 sits in the distress zone (elevated bankruptcy risk).
• Economic downturn leading to increased credit losses.
• Rising interest rates impacting net interest margin.
• Regulatory changes increasing compliance costs.
• Cybersecurity threats and data breaches.
• Increased competition from fintech companies and online lenders.

What Are the Growth Opportunities for FCNCA?

• Expansion into High-Growth Markets: First Citizens has the opportunity to expand its presence in high-growth markets such as Florida and Texas. By opening new branches and increasing its marketing efforts in these regions, the company can attract new customers and increase its market share. The population growth and economic development in these states provide a favorable environment for banking services, potentially increasing loan and deposit volumes by 10-15% over the next three years.
• Enhancement of Digital Banking Platforms: Investing in and enhancing its digital banking platforms can attract and retain tech-savvy customers. By offering a seamless online and mobile banking experience, First Citizens can improve customer satisfaction and reduce operational costs. The digital banking market is projected to grow by 8-10% annually, and a strong digital presence can help First Citizens capture a significant share of this growth.
• Strategic Acquisitions: Pursuing strategic acquisitions of smaller banks and financial institutions can expand First Citizens' geographic footprint and service offerings. By acquiring companies with complementary businesses, First Citizens can achieve synergies and increase its overall profitability. The mergers and acquisitions market in the banking sector is active, and First Citizens can leverage its financial strength to capitalize on attractive opportunities. Target timeline: 2-3 acquisitions within the next 5 years.
• Increased Focus on Wealth Management Services: Expanding its wealth management services can generate higher fee income and diversify its revenue streams. By offering personalized financial planning, investment management, and trust services, First Citizens can attract high-net-worth individuals and families. The wealth management market is growing at a rate of 6-8% annually, driven by increasing affluence and demand for financial advice.
• Development of Specialized Lending Programs: Creating specialized lending programs for specific industries or customer segments can differentiate First Citizens from its competitors. By offering tailored financing solutions for businesses in sectors such as healthcare, technology, and real estate, First Citizens can attract new customers and increase its loan portfolio. The specialized lending market is underserved, and First Citizens can establish a niche position by developing expertise in these areas.

What Opportunities Does FCNCA Have?

• Expansion into high-growth markets.
• Enhancement of digital banking platforms.
• Strategic acquisitions of smaller banks.
• Increased focus on wealth management services.

What Threats Does FCNCA Face?

• Economic downturn and credit risk.
• Regulatory changes and compliance costs.
• Cybersecurity threats and data breaches.
• Increased competition from online lenders.

What Are FCNCA's Competitive Advantages?

• Established brand reputation and customer loyalty.
• Extensive branch network across multiple states.
• Strong capital base and financial stability.
• Diverse range of financial products and services.

What Does FCNCA Do?

First Citizens BancShares, Inc., established in 1898, is the holding company for First-Citizens Bank & Trust Company. The bank offers a broad spectrum of retail and commercial banking services to individuals, businesses, and professionals. Its deposit products include checking, savings, money market, and time deposit accounts. The loan portfolio encompasses commercial construction and land development, commercial mortgage, commercial and industrial loans, lease financing, and Small Business Administration Paycheck Protection Program loans. Consumer loan offerings include residential and revolving mortgages, construction and land development loans, consumer auto loans, and other consumer loans. Beyond traditional banking, First Citizens provides treasury services, cardholder and merchant services, and wealth management. Investment products include annuities, discount brokerage services, third-party mutual funds, investment management, and advisory services. The company also offers defined benefit and defined contribution plans, insurance, private banking, trust, fiduciary, philanthropy, and special asset services. First Citizens delivers its products and services through a widespread branch network, digital banking platforms, telephone banking, and ATM networks. As of December 31, 2021, the company operated 529 branches across 19 states, including Arizona, California, Colorado, Florida, Georgia, Kansas, Maryland, Missouri, North Carolina, New Mexico, Oklahoma, Oregon, South Carolina, Tennessee, Texas, Virginia, Washington, Wisconsin, and West Virginia. Headquartered in Raleigh, North Carolina, First Citizens BancShares continues to expand its footprint and enhance its service offerings to meet the evolving needs of its diverse customer base.

What Products and Services Does FCNCA Offer?

• Provides retail banking services to individuals.
• Offers commercial banking services to businesses.
• Provides a variety of deposit products, including checking and savings accounts.
• Offers commercial and industrial loans.
• Provides residential and commercial mortgage loans.
• Offers wealth management and trust services.
• Provides digital and mobile banking services.

How Does FCNCA Make Money?

• Generates revenue through interest income on loans.
• Earns fees from wealth management and trust services.
• Collects service charges on deposit accounts.
• Profits from investment activities.

What Industry Does FCNCA Operate In?

First Citizens BancShares operates in the regional banking sector, which is characterized by increasing competition from both traditional banks and fintech companies. The industry is influenced by factors such as interest rate fluctuations, regulatory changes, and technological advancements. The regional banking market is expected to grow moderately, driven by increasing demand for loans and financial services from small and medium-sized businesses. First Citizens competes with national and regional banks, as well as credit unions and online lenders. Competitors include U.S. Bancorp and M&T Bank Corporation.

Who Are FCNCA's Key Customers?

• Individuals seeking personal banking services.
• Small and medium-sized businesses.
• Large corporations.
• High-net-worth individuals seeking wealth management services.

Net buyingInsider Activity

Over the past six months, First Citizens BancShares, Inc. insiders filed 30 SEC Form 4 transactions — 0 sales and 30 purchases. On net that is roughly 847 shares acquired (about $1.6M) — insiders putting money in tends to read as conviction.

FCNCA Valuation & Market Position

With a $24.53B market cap, First Citizens BancShares, Inc. sits in the large-cap segment of the market. Relative to its peer group, FCNCA's quantitative score of 73/100 is roughly in line with the peer average of 71/100.

ROE 10%Key Financial Metrics

Return on equity for First Citizens BancShares, Inc. stands at 10.2%, a gauge of how efficiently it converts shareholder capital into profit. Return on assets is 1.0%, showing how much profit it generates from its asset base. FCNCA trades at a trailing price-to-earnings ratio of 11.19, below the Financial Services sector average of ~18x. Its free cash flow yield is 9.1%, a gauge of the cash the business throws off relative to its market value. A current ratio of 0.15 means current liabilities exceed short-term assets, a liquidity point worth watching. Its earnings yield is 8.9%, the inverse of the P/E and a quick read on earnings relative to price.

F-Score 7/9Financial Health

First Citizens BancShares, Inc.'s Piotroski F-Score is 7/9, a 9-point checklist of profitability, leverage and efficiency — signaling solid underlying fundamentals. Its Altman Z-Score of -0.45 places it in the distress zone, a signal of elevated financial risk.

FY2026 estForward Outlook

Wall Street analysts project First Citizens BancShares, Inc. revenue of about $8.79B for fiscal 2026, with EPS near $177.83. The estimate reflects 5 contributing analysts.

Company Profile

First Citizens BancShares, Inc. operates in the Banks - Regional industry within the Financial Services sector. It is headquartered in Raleigh, US. The company is led by CEO Frank Brown Holding Jr.. FCNCA has traded publicly since 1986.

FCNCA Financials

FCNCA Latest News

FCNCA Analyst Consensus

FCNCA MoonshotScore

What Investors Ask About First Citizens BancShares, Inc. (FCNCA) — Financial Services

Disclaimer: This content is for informational purposes only and does not constitute investment advice. Always do your own research and consult a financial advisor.

Official Resources