First Citizens BancShares, Inc.

First Citizens BancShares completed a $300 million fixed-income offering of non-convertible preferred depositary shares. Each depositary share represents an interest in a class of preferred stock rather than common equity, and the proceeds expand the pool of capital the bank holding company can allocate across its business. The issuance adds a fresh layer of regulatory capital without increasing the common share count, sitting between equity and debt on the balance sheet and leaving room for continued buybacks or dividends. First Citizens BancShares, a US bank holding company with a market value of about $24.2b, operates a broad retail and commercial banking platform, and the new capital can support expansion in its Commercial Bank and SVB Commercial segments. Investors will watch how the $300 million shows up in coming quarterly filings, particularly in capital ratios, funding mix, and commentary on share repurchase capacity and planned loan growth.

BMO Financial Group has closed the sale of 138 branch locations to First-Citizens Bank & Trust Company, a deal first disclosed in October last year. The branches are in North Dakota, South Dakota, Wyoming, Nebraska, Kansas, Missouri, Oklahoma, and Idaho, along with selected branches in Minnesota, Oregon, and Illinois. Under the agreement, First Citizens Bank is taking on about $5.7bn of deposit liabilities and purchasing roughly $1.1bn of loans. BMO said the disposal is part of its plan to adjust its US financial centre network and shift capital and resources towards markets with strong client engagement and long-term growth prospects. Earlier this year, BMO outlined plans to add more than 130 new sites across California and about 15 in Arizona, which would lift its California footprint by more than 50% as part of a multi-year strategy centred on Western US areas.

First Citizens BancShares reported second-quarter 2026 revenue of $2.24 billion, exceeding analyst estimates of $2.16 billion and marking a 1.5% year-on-year increase. Adjusted earnings per share came in at $57.09, a 42.2% beat over the consensus estimate of $40.16. CEO James Reuter attributed the performance to disciplined capital deployment, lower deposit costs, and a deliberate exit from non-relationship and criticized loans. The company achieved its ninth consecutive quarter of net interest margin improvement and increased its share buyback authorization by $150 million, bringing the total to $450 million since inception. Management expects near-term balance sheet contraction from continued non-core loan payoffs but sees improved deposit mix and fixed asset repricing supporting profitability into 2027.

First Citizens BancShares expects to accelerate the paydown of its FDIC purchase money note to between $6 billion and $8 billion in the third quarter of 2026, supported by the anticipated liquidity from its upcoming BMO branch acquisition. CFO Craig Nix said on the Q2 earnings call that recent wholesale funding activities and the positive liquidity event from the BMO deal will drive the faster reduction. The bank prepaid $2.5 billion of the note during the second quarter and an additional $1 billion in July. Adjusted net income reached $691 million, or $57.09 per share, with an adjusted return on equity of 12.94%. The company also narrowed its full-year net interest income guidance to a range of $6.6 billion to $6.75 billion and raised its net charge-off outlook to 30 to 35 basis points.

First Citizens BancShares reported second-quarter non-GAAP earnings per share of $57.09, beating analyst estimates by $16.93. Revenue came in at $2.44 billion, a 2.5% increase year-over-year, exceeding expectations by $280 million. The results were released in the company's earnings press release.

Strata Clean Energy has upsized its revolving loan and letter of credit facility by $150 million, bringing the total to $450 million. The facility, which closed on July 9, 2026, will support the expansion of the company's operational fleet and the commercialization of its development pipeline. Nomura Securities International continues as Sole Bookrunner and Coordinating Lead Arranger, with First Citizens Bank joining as Coordinating Lead Arranger. The original $300 million facility was established in November 2023. Proceeds will fund renewable energy and energy storage projects and provide working capital for Strata's growing EPC and O&M divisions.

Corgi Insurance and Silicon Valley Bank, a division of First Citizens BancShares, announced a partnership to provide SVB's innovation-focused clients with streamlined access to Corgi's digital insurance products and AI-native risk management solutions. The collaboration targets startups and growth-stage companies in sectors like SaaS, AI, and healthcare, offering faster, tailored underwriting and simplified application processes. SVB clients can now utilize coverage options specifically engineered for high-growth firms, reflecting the shared commitment of both companies to support the next generation of technology and healthcare businesses.