Regional banking company First Citizens BancShares (NASDAQGS:FCNC.A) reported Q3 2026 results exceeding the market’s revenue expectations, with revenue up 8% year on year to $2.43 billion. Its non-GAAP profit of $55.37 per share was 20.4% above analysts’ consensus estimates.

For more on First Citizens BancShares, read our free full research report.

Revenue growth

Net interest income and fee-based revenue are the two pillars supporting bank earnings. The former captures profit from the gap between lending rates and deposit costs, while the latter encompasses charges for banking services, credit products, wealth management and trading activities. Over the last five years, First Citizens BancShares grew its revenue at a 34.7% compounded annual growth rate. Its growth beat the average banking company and shows its offerings resonate with customers.

Long-term growth matters most, but within financials, a half-decade historical view may miss recent interest rate changes, market returns and industry trends. First Citizens BancShares’s recent performance shows its demand has slowed significantly as its revenue was flat over the last two years. Note: Quarters not shown were determined to be outliers because they were 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 8%, and its $2.43 billion of revenue exceeded Wall Street’s consensus estimates by 9.2%.

Net interest income made up 76.1% of the company’s total revenue during the last five years, meaning lending operations are First Citizens BancShares’s largest source of revenue.

Net interest income commands greater market attention due to its reliability and consistency, whereas non-interest income is often seen as lower-quality revenue that lacks the same dependable characteristics.

Tangible book value per share (TBVPS)

Banks operate as balance sheet businesses, with profits generated through borrowing and lending activities. Valuations reflect this reality, emphasizing balance sheet strength and long-term book value compounding ability.

This is why tangible book value per share (TBVPS) is 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 annual rate of 33.8% over the last five years. However, TBVPS growth has recently decelerated to 5.9% annually over the last two years (from $1,505 to $1,687 per share).

Over the next 12 months, consensus estimates call for First Citizens BancShares’s TBVPS to grow by 13.3% to $1,911, a decent growth rate.

Key takeaways from First Citizens BancShares’s Q3 results

Revenue well above Wall Street’s consensus and EPS ahead of analysts’ consensus estimates made this a good quarter for First Citizens BancShares. Tangible book value per share, however, missed expectations. Shares remained flat at $2,181 immediately after the results.

Is First Citizens BancShares an attractive investment at the current price? That decision calls for considering its valuation, business quality and latest quarterly results. For more on those factors, read the full research report here (it’s free).