Research · Sep 3, 2026
[FCNCA] First Citizens Thesis 2026: SVB Franchise Stabilizes as Purchase Accounting Normalizes
First Citizens completed its first full year of SVB integration in FY2025 with revenue of ~$9.8B and adjusted EPS of ~$88, as purchase accounting accretion moderated and underlying organic earnings power became visible. SVB's technology banking deposit franchise grew ~3-5% as the venture ecosystem recovered. ROTCE of ~13% trails peers but reflects rapid tangible book growth from acquisition-era gains. The FY2026 thesis test is SVB deposit franchise organic growth rate and normalized EPS visibility as FDIC loss-share mechanics clarify.