| Valuation method | Value, $ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 1296.09 | 5791 |
| Intrinsic value (DCF) | 2730.63 | 12312 |
| Graham-Dodd Method | 2328.61 | 10485 |
| Graham Formula | 4945.07 | 22378 |
First Citizens BancShares, Inc. (NASDAQ: FCNCO) is a leading regional bank holding company headquartered in Raleigh, North Carolina, with a rich history dating back to 1898. Operating through its subsidiary, First-Citizens Bank & Trust Company, it provides a comprehensive suite of retail and commercial banking services, including deposit accounts, commercial and consumer loans, treasury services, wealth management, and investment advisory services. The bank serves individuals, businesses, and professionals across 19 states, supported by a network of 529 branches and robust digital banking platforms. With a market capitalization of approximately $24.25 billion, First Citizens BancShares has established itself as a key player in the U.S. regional banking sector, known for its conservative lending practices and strong customer relationships. The company’s diversified revenue streams and focus on community banking position it well in the competitive financial services landscape.
First Citizens BancShares presents a compelling investment case due to its strong regional presence, conservative risk management, and consistent profitability, with a net income of $2.78 billion in its latest fiscal year. The bank’s low beta of 0.639 suggests lower volatility compared to the broader market, appealing to risk-averse investors. However, risks include exposure to regional economic fluctuations and competitive pressures from larger national banks. The company’s solid dividend yield and strong capital position (cash and equivalents of $22.18 billion) provide downside protection, but investors should monitor its debt levels ($37.04 billion) and interest rate sensitivity.
First Citizens BancShares competes in the highly fragmented U.S. regional banking sector, where differentiation is driven by customer service, digital capabilities, and localized expertise. Its competitive advantage lies in its deep regional roots, particularly in the Southeast and Western U.S., where it has cultivated long-term customer relationships. The bank’s conservative underwriting standards have historically resulted in lower non-performing loans, enhancing its resilience during economic downturns. However, its digital banking offerings may lag behind those of larger national banks, which invest heavily in fintech innovation. First Citizens’ acquisition strategy, including its takeover of failed banks like Silicon Valley Bank’s assets, has expanded its footprint but also introduced integration risks. Its wealth management and commercial banking services provide higher-margin revenue streams, though competition from specialized firms and credit unions remains intense.