David Chiaverini, an analyst from Wedbush, maintained the Buy rating on First Citizens BancShares (FCNCA – Research Report). The associated price target was raised to $2,150.00.
David Chiaverini has given his Buy rating due to a combination of factors which include First Citizens BancShares’s strong quarterly performance and positive outlook on net interest income (NII) and net charge-offs (NCOs). The bank has reported better than expected deposit and loan growth with a stable and even increasing balance in deposits from the innovation economy sectors. Additionally, the bank’s asset-sensitive balance sheet positions it well to benefit from interest rate environments, and the performance of NII was favorable when compared to consensus estimates.
Furthermore, Chiaverini’s confidence in First Citizens BancShares is reinforced by the bank’s guidance updates, which are net positive. The bank’s prudent financial strategies, such as the deployment of cash into the securities portfolio and the plan for share repurchases, aim to normalize the cash level and capital ratios. The bank’s strong credit quality, solid capital base, and the anticipated accretion benefits from successful integrations of acquisitions like CIT and SVB contribute to the analyst’s positive outlook. These factors, combined with the robust core pre-provision net revenue and the company’s owner-operator mindset, underpin the Outperform rating.
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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.
