FCNCA Stock Forecast & Price Target

First Citizens BancShares has demonstrated impressive loan growth of 9.9% on a loan-to-qtr annualized basis, driven by strength in global fund banking, which positions the bank favorably for future profitability. The acquisition of Silicon Valley Bridge Bank is expected to enhance liquidity and support organic deposit growth, thus providing capital deployment flexibility and improving efficiency metrics while maintaining a robust NIM recovery potential. With a balanced strategy of expanding into new markets and deepening client relationships, First Citizens is poised for continued modest expansion in 2026, bolstered by strong fundamentals and increasing earnings.

First Citizens BancShares is experiencing a negative outlook due to a projected decrease in net interest income (NII) and narrowing net interest margin (NIM), leading to downward adjustments in earnings estimates for 2026. Despite an increase in retail and commercial banking revenues, the bank is facing challenges with EOP deposit contraction, raising concerns over its funding strategy to repay the purchase money note. Additionally, the anticipated slowdown in share buybacks and rising expenses further compounds the uncertainty surrounding the bank's financial stability and future performance.