First Citizens Bancshares remains a hold amid margin pressure and credit risk despite strong buybacks.

First Citizens Bancshares showed deposit and loan growth in Q1, largely from legacy SVB operations and a strong venture capital environment. However, margin pressure continues with net interest margin expected to bottom in Q3, and reserve coverage has weakened, raising medium-term credit risk concerns. The stock trades at 11.5 times earnings and 1.2 times tangible book value, with fair value estimated between $1925 and $1975. Capital returns are expected to slow as the bank’s CET1 capital ratio approaches its target, leading analysts to maintain a 'hold' rating despite aggressive share buybacks.