The 5 Most Interesting Analyst Questions From First Citizens BancShares’s Q2 Earnings Call

August 13, 2025 at 00:00 AM EDT

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First Citizens BancShares' second quarter results were met with a negative market reaction, reflecting concerns about declining sales and muted growth in key lending areas. Management cited the lowest net charge-offs since last year and disciplined expense control, but acknowledged that loan originations remained under pressure, particularly in technology and healthcare portfolios. CEO Frank Holding pointed to ongoing efforts to consolidate platforms and deepen client relationships, while CFO Craig Nix highlighted that sequential net interest income growth was primarily driven by a higher asset base and improved deposit costs. Nix described credit quality as stable, but warned that competition for new loans was fierce and that overall demand remains soft, especially in the branch network.

Is now the time to buy FCNCA? Find out in our full research report (it’s free).

First Citizens BancShares (FCNCA) Q2 CY2025 Highlights:

Revenue: $2.37 billion vs analyst estimates of $2.35 billion (3.5% year-on-year decline, 0.9% beat)
Adjusted EPS: $44.78 vs analyst estimates of $39.09 (14.5% beat)
Adjusted Operating Income: $814 million vs analyst estimates of $882.3 million (34.3% margin, 7.7% miss)
Market Capitalization: $24.07 billion

While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.

Our Top 5 Analyst Questions From First Citizens BancShares’s Q2 Earnings Call

Casey Haire (Autonomous Research) asked about the conservative outlook for loan growth despite a strong SVB pipeline. CEO Frank Holding said utilization rates remain subdued and emphasized caution given underlying demand.
Steven Alexopoulos (TD Cowen) questioned whether recent IPO activity and venture capital trends could spur more growth in SVB. Marc Einerman responded that while there is cautious optimism, most activity is in later-stage deals, and early-stage funding remains muted.
Christopher McGratty (KBW) inquired about expense growth for Category 2 and Category 3 compliance. CFO Craig Nix maintained guidance for mid- to high single-digit expense growth due to risk and technology investments.
Bernard Von Gizycki (Deutsche Bank) pressed on margin outlook under different rate cut scenarios. Nix explained that multiple rate cuts would push net interest margin lower, with a range from the mid-3.10s to high 3.20s depending on the environment.
Nick Holowko (UBS) asked about new entrants in SVB’s ecosystem and potential talent risks. Marc Einerman replied that competition is constant, and First Citizens is well positioned to expand Web3 and digital asset services as the landscape evolves.

Catalysts in Upcoming Quarters

Going forward, our analysts will be watching (1) the pace of loan origination recovery, especially within technology and healthcare banking; (2) expense inflation as investments in risk management and technology accelerate for regulatory compliance; and (3) the success of deposit growth strategies in the face of ongoing industry competition. The performance of the rail and wealth management businesses, along with any shifts in the macroeconomic outlook, will also serve as key indicators for future results.

First Citizens BancShares currently trades at $1,883, down from $2,114 just before the earnings. In the wake of this quarter, is it a buy or sell? See for yourself in our full research report (it’s free).

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The 5 Most Interesting Analyst Questions From First Citizens BancShares’s Q2 Earnings Call

First Citizens BancShares (FCNCA) Q2 CY2025 Highlights:

Our Top 5 Analyst Questions From First Citizens BancShares’s Q2 Earnings Call

Catalysts in Upcoming Quarters

The Best Stocks for High-Quality Investors

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