First Citizens BancShares, Inc. (FCNCA) Business Profile

What it does

First Citizens BancShares is a bank holding company incorporated in 1986. Its banking subsidiary, First-Citizens Bank & Trust Company, serves individuals, businesses and professionals. Frank B. Holding, Jr. is chairman and chief executive officer.

For consumers, the bank offers deposit accounts, loans, wealth management and private banking. For businesses, it provides lending, equipment leasing, capital markets services and financial advice. It also serves private equity and venture capital firms and companies in innovation markets such as technology, life sciences and healthcare.

The company has three reportable segments: General Bank, Commercial Bank and Rail. General Bank serves individuals and businesses through branches and digital channels. Commercial Bank provides business financing and other services, including asset-based lending, factoring and receivables management. Rail leases equipment and provides secured financing to railroads and shippers.

Beyond banking, subsidiaries offer investment products, brokerage, investment advice, trust services, underwriting and private placements. Customers can use branches or digital channels, while the nationwide Direct Bank offers deposit products to consumers. The company also provides banking services to homeowner associations and property management companies.

How it makes money

First Citizens earns interest on loans and other earning assets and incurs interest costs on deposits and borrowings. It also earns income from services and equipment leases. Net interest income was $6.81 billion and net income was $2.21 billion for the year ended December 31, 2025.

General Bank offers deposit products, business and commercial loans, residential mortgages, wealth management and private banking, along with fee-based services. Its wealth activities include brokerage, investment advice and trusts. Commercial Bank provides lending and leasing as well as capital markets and advisory services; it also offers deposits, liquidity management and international products to commercial clients.

The Rail segment owns railcars and locomotives leased to railroads and shippers, and provides secured financing. Rental income from operating leases is reduced by depreciation, maintenance and other operating lease expenses in the company’s measure of net rental income.

Corporate includes the Direct Bank and earning assets such as investment securities and interest-earning deposits at banks. It also includes interest expense on borrowings, Direct Bank deposits and brokered deposits. Corporate noninterest income includes gains or losses on securities sales, fair-value adjustments on marketable equity securities and income from bank-owned life insurance.

Interest rates on loans and deposits are among the factors on which the company competes. In 2025, net interest income fell from the prior year, mainly reflecting lower loan yields, lower average balances and yields on interest-earning deposits at banks, and lower purchase-accounting accretion or amortization. Those effects were partly offset by a decline in the rate paid on interest-bearing deposits and higher average loan and investment-securities balances.

Customers and how it sells

First Citizens serves consumer and commercial customers, from individuals seeking deposits or mortgages to small and middle-market companies seeking financing and advisory services. Its commercial customers also include private equity and venture capital firms and businesses in technology, life sciences and healthcare. Homeowner associations and property management companies use its deposit, cash management and lending services.

The company serves customers through branches and digital channels. Its Direct Bank is a nationwide digital bank offering consumer deposits. Most branches accept deposits, cash checks and meet consumer and commercial cash needs; both consumer and business customers can also transact digitally.

At December 31, 2025, the bank had more than 500 domestic branches and offices, including 209 in North Carolina, 119 in South Carolina and 72 in California. Its locations were predominantly in the Southeast, Mid-Atlantic, Midwest and Western United States.

As of June 30, 2025, its deposit market share was 11.8% in North Carolina, including nationwide Direct Bank deposits, and 9.5% in South Carolina. At December 31, 2025, total uninsured deposits were approximately $61.81 billion, or 38% of total deposits.

Suppliers and costs

Deposits are First Citizens’ primary source of funding rather than a manufacturing input. They represented approximately 82% of total funding at December 31, 2025. The company also uses borrowings, including a purchase money note, Federal Home Loan Bank advances, senior unsecured notes and subordinated notes.

Interest expense includes costs associated with borrowings, Direct Bank deposits and brokered deposits. The company’s Corporate costs include personnel costs not allocated to the business segments, as well as acquisition-related expenses. Rail and Commercial Bank operating leases also incur depreciation, maintenance and other operating lease expenses.

In 2025, net income declined from the prior year because of lower net interest income, higher noninterest expense and a higher provision for credit losses, partly offset by higher noninterest income and lower income tax expense. The company employed 18,141 people at December 31, 2025.

First Citizens’ operational priorities include optimizing processes and systems, simplifying its information technology operating environment and improving its data infrastructure.

Competitive position

First Citizens competes with national, regional and local financial services providers, as well as non-bank companies that offer services previously limited to commercial banks. Its non-bank businesses also compete with insurance companies, investment firms and brokerage firms. Competition includes customer service, product range, price, reputation, loan and deposit interest rates, and convenience.

In North Carolina, Bank of America and Truist Bank had more deposits than First Citizens as of June 30, 2025. In South Carolina, Bank of America, Wells Fargo and Truist Bank had more deposits. First Citizens’ deposit market shares at that date were 11.8% in North Carolina, including its nationwide Direct Bank deposits, and 9.5% in South Carolina.

Our reading: The branch network and Direct Bank provide a meaningful distribution base, but customers can choose among many traditional and nontraditional providers. Our reading: Its range of services for businesses, investment firms and innovation-sector clients supports customer relationships, although those services also face competition from banks and non-banks. Our reading: The bank’s deposit positions in the Carolinas provide a regional foothold rather than insulation from larger competitors.

Growth opportunities

First Citizens has pursued growth through new branches and acquisitions, alongside organic growth. Its strategic priorities include expanding capabilities and products, growing core deposits, and streamlining systems and processes. The company also provides financing and other services to private equity and venture capital firms and to businesses in innovation markets.

At the end of 2025, First Citizens had an agreement to acquire 138 branches from BMO Bank N.A. across the Midwest, Great Plains and West. It was reported on 24 October 2026 that the company acquired those branches on September 4, along with approximately $4.9 billion in deposits and roughly $650 million in loans.

The company also acquired substantially all loans and certain other assets and assumed customer deposits and certain other liabilities of Silicon Valley Bridge Bank in 2023. It maintains the Silicon Valley Bank brand as a division of its bank.

In 2025, deposit growth included savings accounts in the Direct Bank, money-market accounts in the General Bank branch network and deposits in the Commercial Bank’s Global Fund Banking business. The company’s balance-sheet priorities include managing its funding and liquidity profile while growing core deposits.

Structural risks

• Credit: Failure to manage credit risk effectively could harm the business and its financial condition. The company lends to consumers and businesses across several industries, including innovation markets.
• Interest rates: Failure to manage interest-rate sensitivity within the company’s risk appetite could adversely affect earnings. Net interest income declined in 2025, mainly because of lower yields and other changes in earning assets, partly offset by lower rates paid on interest-bearing deposits.
• Liquidity and funding: Significant pressure on balance-sheet liquidity could affect the company’s ability to meet depositor withdrawals, repay creditors and fund operations. Uninsured deposits were approximately $61.81 billion at December 31, 2025.
• Acquisitions and operations: Acquisitions can involve integration difficulties, cost overruns, loss of employees or customers, and failure to realize projected benefits. The company also faces operational risks and may fail to maintain appropriate infrastructure and oversight.
• Regulation and capital: The company is subject to enhanced prudential standards. Further growth could bring additional regulatory requirements and scrutiny; changes in laws or regulations, or failures to comply, may adversely affect operations.

Leadership

Members of the Holding family have served in board and executive roles and have remained stockholders owning a large percentage of the company’s common stock. The company has two classes of common stock, including Class B shares entitled to 16 votes per share.

Bottom line

Our reading

Our reading: First Citizens combines a branch and digital deposit franchise with commercial banking, investment services and rail leasing. Its regional deposit presence and range of business services support customer relationships, while competition limits the protection those positions offer. Its exposure rests on credit quality, interest rates and access to funding, with acquisitions adding integration demands and growth potentially bringing additional regulatory requirements.