First Citizens BancShares downgraded to hold over asset risks and shrinking margins

First Citizens BancShares has been downgraded to a 'hold' rating due to concerns over mixed asset quality and a high percentage (38.3%) of uninsured deposits, which increase risk. While the bank's deposit base and balance sheet have grown, its net interest margin is contracting. Despite a recent net income rise to $508 million driven by lower credit loss provisions, upcoming Q2 2026 results are expected to show declines in revenue and net income, supporting a cautious outlook.