Regional banking company First Citizens BancShares (NASDAQGS:FCNC.A) reported Q4 CY2025 results beating Wall Street’s revenue expectations, with sales up 9.5% year on year to $2.44 billion. Its non-GAAP profit of $51.27 per share was 17.1% above analysts’ consensus estimates.
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First Citizens BancShares (FCNCA) Q4 CY2025 Highlights:
- Net Interest Income: $1.72 billion vs analyst estimates of $1.71 billion (flat year on year, 0.8% beat)
- Net Interest Margin: 3.2% vs analyst estimates of 3.2% (in line)
- Revenue: $2.44 billion vs analyst estimates of $2.22 billion (9.5% year-on-year growth, 9.9% beat)
- Efficiency Ratio: 64.5% vs analyst estimates of 59.3% (525.9 basis point miss)
- Adjusted EPS: $51.27 vs analyst estimates of $43.79 (17.1% beat)
- Tangible Book Value per Share: $1,674 vs analyst estimates of $1,664 (10.7% year-on-year growth, 0.6% beat)
- Market Capitalization: $27.02 billion
Company Overview
With roots dating back to 1898 and a significant expansion through its 2023 acquisition of Silicon Valley Bank, First Citizens BancShares (NASDAQGS:FCNC.A) is a bank holding company that provides financial services to individuals and businesses through its First-Citizens Bank & Trust Company subsidiary.
Sales Growth
From lending activities to service fees, most banks build their revenue model around two income sources. Interest rate spreads between loans and deposits create the first stream, with the second coming from charges on everything from basic bank accounts to complex investment banking transactions. Over the last five years, First Citizens BancShares grew its revenue at an incredible 38.5% compounded annual growth rate. Its growth beat the average banking company and shows its offerings resonate with customers.
Long-term growth is the most important, but within financials, a half-decade historical view may miss recent interest rate changes and market returns. First Citizens BancShares’s recent performance shows its demand has slowed significantly as its annualized revenue growth of 3.7% over the last two years was well below its five-year trend. 
Note: Quarters not shown were determined to be outliers, impacted by outsized investment gains/losses that are not indicative of the recurring fundamentals of the business.
This quarter, First Citizens BancShares reported year-on-year revenue growth of 9.5%, and its $2.44 billion of revenue exceeded Wall Street’s estimates by 9.9%.
Net interest income made up 76.2% of the company’s total revenue during the last five years, meaning lending operations are First Citizens BancShares’s largest source of revenue.
While banks generate revenue from multiple sources, investors view net interest income as the cornerstone - its predictable, recurring characteristics stand in sharp contrast to the volatility of non-interest income.
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Tangible Book Value Per Share (TBVPS)
The balance sheet drives banking profitability since earnings flow from the spread between borrowing and lending rates. As such, valuations for these companies concentrate on capital strength and sustainable equity accumulation potential.
This is why we consider tangible book value per share (TBVPS) the most important metric to track for banks. TBVPS represents the real, liquid net worth per share of a bank, excluding intangible assets that have debatable value upon liquidation. EPS can become murky due to acquisition impacts or accounting flexibility around loan provisions, and TBVPS resists financial engineering manipulation.
First Citizens BancShares’s TBVPS grew at an incredible 36.2% annual clip over the last five years. TBVPS growth has recently decelerated to 11% annual growth over the last two years (from $1,358 to $1,674 per share).
Over the next 12 months, Consensus estimates call for First Citizens BancShares’s TBVPS to grow by 7.8% to $1,805, paltry growth rate.
Key Takeaways from First Citizens BancShares’s Q4 Results
We were impressed by how significantly First Citizens BancShares blew past analysts’ revenue expectations this quarter. We were also glad its EPS outperformed Wall Street’s estimates. Zooming out, we think this was a solid print. The stock remained flat at $2,215 immediately following the results.
Sure, First Citizens BancShares had a solid quarter, but if we look at the bigger picture, is this stock a buy? The latest quarter does matter, but not nearly as much as longer-term fundamentals and valuation, when deciding if the stock is a buy. We cover that in our actionable full research report which you can read here (it’s free).
