First Citizens BancShares Posts $672 Million Profit in Q2 2026

Chairman and CEO Frank B. Holding, Jr. noted that the firm’s return metrics exceeded internal expectations, bolstered by balanced growth in both loans and deposits. During the quarter, the bank returned $600 million to stockholders through share repurchases and continued its balance sheet optimization by prepaying $2.5 billion of its Purchase Money Note. Net interest income reached $1.66 billion, while the company’s net interest margin saw a slight uptick to 3.10%.

Operational expansion remains a primary focus as the company prepares to finalize its acquisition of 138 BMO Bank branches. This transaction, expected to close in the third quarter of 2026, involves the assumption of approximately $5.3 billion in deposits and the acquisition of $700 million in loans. Meanwhile, the company continues to invest heavily in its digital infrastructure and data center modernization to enhance client-facing capabilities, contributing to a controlled increase in noninterest expenses.

Credit quality remains stable, with the bank recording a $10 million benefit for credit losses compared to a $72 million provision in the first quarter. This shift was largely driven by a $74 million reserve release supported by improved credit quality models and growth in lower-risk capital call lines. Capital ratios remain well above regulatory requirements, providing the firm with continued liquidity as it executes its long-term strategic goals.