Archive · 24 Jan 2026
First Citizens BancShares Forecasts Lower Interest Income
First Citizens BancShares, a regional bank, said they expect to make less money from loans in 2026 than people on Wall Street thought they would.
This made their stock price go down by more than 9%.
The bank thinks the Federal Reserve will cut interest rates a few times in 2026, which will make it harder for them to earn as much money from loans.
Even though their stock went down, they actually made a little more money in the last three months of 2025 compared to the same time last year.
Other bank stocks also went down because of this news.
First Citizens BancShares projected 2026 interest income below analysts' expectations.
Shares dropped over 9% following the forecast.
Expected Federal Reserve rate cuts in 2026 to pressure loan yields.
Fourth-quarter profit rose to $634 million, up from $628 million a year earlier.
Provisions fell over 65% compared to the previous year.
- Who
- First Citizens BancShares, a regional lender
- What
- Projected full-year interest income below Wall Street expectations
- When
- Forecast for 2026, reported on January 23, 2026
- Where
- United States
- Why
- Expected rate cuts by the Federal Reserve in the second half of 2025
- Company
- First Citizens BancShares
- Projected 2026 Interest Income
- $6.5 billion to $6.9 billion
- Analysts' Expectations
- $6.92 billion
- Stock Decline
- More than 9%
- Fourth-Quarter Profit
- $634 million
- Provisions Decrease
- Over 65% from last year
- Expected Rate Cuts
- Zero to four cuts of 25 basis points in 2026
- KBW Nasdaq Regional Banking Index Decline
- About 3%