Wedbush analyst David Chiaverini maintained a Buy rating on First Citizens BancShares (FCNCA – Research Report) today and set a price target of $1,800.00.
David Chiaverini of Wedbush has offered a Buy rating to First Citizens BancShares based on several elements. The financial institution has recently reported a robust quarter, outperforming predictions for the fourth quarter. Notably, there was a significant rise in deposit growth, driven by the Direct Bank, and loan growth was also better than anticipated. This, coupled with a more favourable net interest margin, resulted in a substantial beat on net interest income. Noninterest income and expense also fared better than expected. Nonetheless, the bank experienced a slight dip in credit quality, with a rise in net charge-offs, but Chiaverini believes this level is still manageable.
The bank’s guidance for the upcoming quarter was also above expectations. Despite the expected decline in global fund banking and tech/life sciences balances, this should be compensated by growth in the General Bank segment. Furthermore, deposit balances are predicted to decrease, but not as severely as previously forecasted. In addition, both fourth quarter net interest income and adjusted noninterest income are projected to be higher than anticipated, while noninterest expense is expected to be lower. The net charge-off rate is expected to be slightly higher, but manageable. Chiaverini’s Buy rating reflects his confidence in the bank’s solid capital base, strong credit quality, and the potential benefits from the successful integration of CIT and SVB acquisitions.
Chiaverini covers the Financial sector, focusing on stocks such as LendingClub, Bok Financial, and Cvb Financial. According to TipRanks, Chiaverini has an average return of -7.6% and a 32.34% success rate on recommended stocks.
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First Citizens BancShares (FCNCA) Company Description:
First Citizens BancShares, Inc. is a bank holding company, which engages in the provision of retail and commercial banking services through its subsidiary. It operates through the following business lines: Card Holder and Merchant Services; Services Charges on Deposit Accounts; Wealth Management Services; Other Service Charges and Fees; Insurance Commissions; ATM Income; and Other. The Card Holder and Merchant Services business lines include interchange fees from customer debut and credit card transactions. The Services Charges on Deposit Accounts business line represent monthly account maintenance and transaction-based service fees. The Wealth Management Services business line comprises sales commissions on various product offerings, transaction fees, and trust and asset management fees. The Other Service Charges and Fees business line encompasses check cashing fees, international banking fees, internet banking fees, wire transfer fees and safe deposit fees. The Insurance Commissions business line focuses in the commissions earned on the issuance of insurance products and services. The ATM income covers customers and non-customers for engaging in an ATM transaction. The Other business line composes several forms of recurring revenue such as FHLB dividends and income earned on changes in the cash surrender value of bank-owned life insurance. The company was founded on August 7, 1986 and is headquartered in Raleigh, NC.
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