Can FCNCA sustain its Q4 2024 earnings growth?

**First Citizens Bancshares (FCNCA) may face challenges in sustaining its Q4 2024 earnings growth** due to several factors:

1. **Economic Sensitivity**: FCNCA is a commercial-oriented bank with a significant asset sensitivity, meaning it is more vulnerable to macroeconomic changes. The bank's loans are skewed towards business loans, which account for over 51% of its loan book, and commercial real estate and leasing, which make up another 25%. In a slowing economy, business loan demand and real estate market conditions can deteriorate, leading to higher loan losses.
2. **Recent Institutional Activity**: Some institutional investors have reduced their stakes in FCNCA. For example, O Shaughnessy Asset Management LLC cut its holdings by 14.9% in Q4, and DnB Asset Management AS trimmed its position by 8.8%. These reductions could indicate a lack of confidence in FCNCA's future performance or a shift in investment priorities.
3. **Market Volatility**: FCNCA's stock has experienced volatility, with concerns about the economy weighing on its performance. The bank's shares have weakened sharply since February 2025, which could reflect broader market concerns or specific bank-related issues that affect investor confidence.
4. **Lack of Preliminary Results**: The absence of preliminary financial results for Q1 2025 leaves investors waiting for detailed insights into the bank's performance. This lack of transparency can create uncertainty and make it difficult for investors to assess the bank's true financial health and the sustainability of its earnings growth.

In conclusion, while FCNCA's Q4 2024 earnings growth was impressive, the bank's high exposure to macroeconomic risks, recent institutional adjustments, and market volatility suggest that sustaining this growth could be challenging. Investors should monitor the bank's performance closely, especially in the context of evolving economic conditions and market perceptions.