First Citizens: Credit Trends Cap Upside

First Citizens Bancshares remains a 'hold' as margin pressure, under-reserved credit risk, and software exposure limit upside despite strong buybacks. Q1 saw deposit and loan growth, driven by legacy SVB operations and a robust VC environment, but deposit trends may reverse as tech companies burn cash. Net interest margin continues to decline, with NIM expected to bottom in Q3; reserve coverage has weakened, raising medium-term credit risk concerns.