Over the last six months, First Citizens BancShares’s shares have sunk to $1,908, producing a disappointing 11.4% loss while the S&P 500 was flat. This was partly driven by its softer quarterly results and may have investors wondering how to approach the situation.
Following the pullback, is this a buying opportunity for FCNCA? Find out in our full research report, it’s free.
Why Does FCNCA Stock Spark Debate?
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.
Two Things to Like:
1. Net Interest Income Skyrockets, Fueling Growth Opportunities
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.
First Citizens BancShares’s net interest income has grown at a 49.8% annualized rate over the last four years, much better than the broader bank industry. Its growth was driven by both an increase in its outstanding loans and net interest margin, which represents how much a bank earns in relation to its outstanding loan book.
2. Outstanding Long-Term EPS Growth
Analyzing the change in earnings per share (EPS) shows whether a company's incremental sales were profitable – for example, revenue could be inflated through excessive spending on advertising and promotions.
First Citizens BancShares’s full-year EPS grew at an astounding 46.8% compounded annual growth rate over the last three years, better than the broader bank sector.
One Reason to be Careful:
Revenue Tumbling Downwards
Long-term growth is the most important, but within financials, a stretched historical view may miss recent interest rate changes and market returns. First Citizens BancShares’s recent performance marks a sharp pivot from its five-year trend as its revenue has shown annualized declines of 19.1% over the last two years. 
Final Judgment
First Citizens BancShares’s merits more than compensate for its flaws. After the recent drawdown, the stock trades at 1.2× forward P/B (or $1,908 per share). Is now a good time to buy? See for yourself in our comprehensive research report, it’s free.
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