First Citizens BancShares, Inc. Class A (FCNCA) has disclosed a new risk, in the Costs category.
First Citizens BancShares, Inc. Class A (FCB) faces increased financial exposure due to the potential for rising deposit insurance premiums. Should the frequency of bank failures escalate or the expense of resolving such failures swell, the Federal Deposit Insurance Corporation (FDIC) may augment fees to bolster the Deposit Insurance Fund (DIF), directly impacting FCB’s operational costs. The recent special assessment by the FDIC, which levied $64 million against FCB, exemplifies this risk. The company’s future contributions to the DIF could surge if market conditions deteriorate or regulatory frameworks mandate higher premiums.
Overall, Wall Street has a Strong Buy consensus rating on FCNCA stock based on 4 Buys and 1 Hold.
To learn more about First Citizens BancShares, Inc. Class A’s risk factors, click here.
