> ## Content Index > Fetch the complete content index at: https://www.bullished.co/llms.txt > Use this file to discover other available public pages before exploring further. # First Citizens' Fund Banking Unit Booked Close To $6 Billion In New Deals, But Growth Will Slow - URL: https://www.bullished.co/first-citizens-fund-banking-unit-booked-close-to-6-billion-in-new-deals-but-growth-will-b5989475/ - Published: 2026-10-23T14:41:16.000Z - Updated: 2026-10-23T14:41:16.000Z - Description: Executives said the capital-call lending business is winning share from rivals, while utilization should ease from a multiyear high near 40%. - Author: Matteo Parrino - Tags: Earnings, FCNCA, Industry: Financials [First Citizens BancShares](https://www.bullished.co/tag/fcnca/) said its fund banking unit is taking market share, with loans in the business up [$4.4 billion, or 11%](https://markets.ft.com/data/announce/detail?dockey=600-202610230630PR%5FNEWS%5FUSPRX%5F%5F%5F%5FNY79459-1&ref=bullished.co), from the prior quarter, Chief Financial Officer Craig Nix said on the bank's third-quarter earnings call Friday. Executives also warned that growth should slow from that pace. ## Share gains and a near-$6 billion quarter Fund banking, which lends to private funds against their investors' capital commitments, was the engine of a quarter in which total loans rose $6.2 billion, or 4.1%, Nix said. Frank Holding, the bank's chairman and chief executive, said the loan growth was led by the unit. Asked whether demand came only from existing customers, Jesse, a fund banking executive whose last name was not provided, said it came from existing clients and from share gains. The unit booked close to $6 billion in new deals in the third quarter, he said, helped by production from the first half of the year, which let loan balances grow past the bank's original expectations. Utilization of facilities, the share of committed lines clients actually draw, ran around 40%, Jesse said. That is the highest in the last few years and just below the highs of 2021 and 2022. ## Why the pace should cool Jesse said utilization is out of the bank's control and should normalize somewhat given a different macro and liquidity backdrop. The bank still forecasts continued loan growth, "albeit maybe at a slower pace than Q3." Nix said the pipeline averaged $10 billion in the quarter and that balance growth should moderate from the third-quarter pace. Jesse also said spread compression in fund finance has slowed, though competition has not. Rising rates could slow high-leverage private equity deals, he said, but it would take substantially higher rates to slow things materially because sponsors hold a lot of dry powder. ## Venture and exit signals Mark, another fund banking executive whose last name was not provided, spoke to venture investment rather than fund banking loans. A rising rate environment can be a headwind for venture investment, he said, and the bank will quite likely see some slowdown after an extraordinary pace this year. He said he has not detected any dampening of enthusiasm. Answering a JPMorgan analyst, Mark said third-quarter exits improved, but about half of the exit value came from one transaction. IPOs remain below what the bank would hope for, though secondaries are providing some liquidity. ## The wider quarter Holding said adjusted net income was [$652 million](https://markets.ft.com/data/announce/detail?dockey=600-202610230630PR%5FNEWS%5FUSPRX%5F%5F%5F%5FNY79459-1&ref=bullished.co), or $55.37 a share. The bank raised its fourth-quarter loan guidance to $158 billion to $161 billion, and said it repurchased $600 million of stock in the quarter and plans about $300 million in the fourth. It prepaid another $8 billion of the FDIC purchase money note in the quarter and $1.5 billion in October. Its market value was $24.8 billion in Friday morning trading. Nix said the bank expects fourth-quarter net interest income to land between $1.7 billion and $1.77 billion, assuming one more rate hike this year. ### Sources - [First Citizens BancShares (FCNCA) Surpasses Q3 Earnings and Revenue Estimates](https://finance.yahoo.com/news/first-citizens-bancshares-fcnca-surpasses-105002059.html?.tsrc=rss&ref=bullished.co) — Yahoo Finance - [First Citizens BancShares Reports Third Quarter 2026 Earnings, Announces Additional Share Repurchase Plan – Company Announcement - FT.com](https://markets.ft.com/data/announce/detail?dockey=600-202610230630PR%5FNEWS%5FUSPRX%5F%5F%5F%5FNY79459-1&ref=bullished.co) — Financial Times - [First Citizens BancShare stock climbs on impressive Q3 beat, $1.2B buyback plan (FCNCA:NASDAQ) | Seeking Alpha](https://seekingalpha.com/news/4656535-first-citizens-bancshare-stock-climbs-on-impressive-q3-beat-12b-buyback-plan?ref=bullished.co) — seekingalpha.com - [First Citizens (FCNCA): Is the SVB-Boosted Bank Still Undervalued for the S&P 500 Index?](https://finance.yahoo.com/markets/stocks/articles/first-citizens-fcnca-svb-boosted-172438579.html?ref=bullished.co) — Yahoo Finance - [First Citizens: Q3 Earnings Snapshot | wusa9.com](https://www.wusa9.com/article/syndication/associatedpress/first-citizens-q3-earnings-snapshot/616-7db58665-9e06-4a2b-81d0-7a9dcd23c101?ref=bullished.co) — Associated Press ### More on First Citizens BancShares - [First Citizens Plans To Retire Its Remaining FDIC Note By End Of 2027, Prepaying $3.5 Billion To $4 Billion A Quarter](https://www.bullished.co/first-citizens-plans-to-retire-its-remaining-fdic-note-by-end-of-2027-prepaying-3-5-be81ea0b/) - [First Citizens Profit Slips To $606 Million As BMO Branches Lift Deposits $11.84 Billion](https://www.bullished.co/first-citizens-profit-slips-to-606-million-as-bmo-branches-lift-deposits-11-84-billion-8524190b/) [All First Citizens BancShares (FCNCA) coverage →](https://www.bullished.co/tag/fcnca/)