First Citizens Bank

The Federal Deposit Insurance Corporation has announced that First-Citizens Bank & Trust Company will purchase all deposits and loans of Silicon Valley ...

It expects to have deposits of $145 billion in the combined bank. “The FDIC estimates the cost of the failure of Silicon Valley Bank to its Deposit Insurance Fund to be approximately $20 billion. [(CS)](https://money.cnn.com/quote/quote.html?symb=CS&source=story_quote_link), has been the largest casualty of the current crisis. The bank has also entered into an agreement with the FDIC that will protect the bank against potential losses on the SVB commercial loans it is buying. As part of the deal, First Citizens is not taking on most of the $90 billion in US Treasuries that SVB was holding when regulators took over. Regulators shut SVB down on Friday, March 10, after clients withdrew $42 billion in a single day. Now, with the purchase, First Citizens is receiving SVB assets of $110 billion, deposits of $56 billion and loans of $72 billion, based on the latest information from the FDIC. But SVB customers should continue to use their current branch until they hear from First Citizens. It was the second-largest bank failure in US history, after only Washington Mutual in 2008. Other bank stocks also rose in morning trading. It was the drop in value of those bonds — rather than losses on the loans that SVB had made — that created problems for SVB and the overall banking system. With assets of $109 billion as of December 31, First Citizens was the 30th largest US bank according to the Federal Reserve.

The Federal Deposit Insurance Corp. and other regulators had already taken extraordinary steps to head off a wider banking crisis by guaranteeing that ...

The acquisition gives the FDIC shares in First Citizens worth $500 million. Two days later, New York’s Signature Bank was seized by regulators in the third-largest bank failure in the U.S. It was the second-largest bank collapse in U.S. Anxiety over contagion in the banking sector quickly spread to Europe this month and regulators there brokered a takeover by UBS of troubled Swiss bank Credit Suisse. Customers of SVB will automatically become customers of First Citizens, which is headquartered in Raleigh, North Carolina. receivership, the First Citizens deal announced late Sunday, at least initially, seemed to achieve what regulators have sought: a shoring up of trust in U.S.

Family-owned company's acquisition of tech-focused lender's deposits and loans follows sale of collapsed Signature Bank.

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First Citizens will assume ownership of branches, deposits and loans as of Monday morning.

The acquisition will push First Citizens from the 30th largest U.S. The Raleigh, N.C.-based bank took over SVB’s 17 branches, which reopened Monday under the new ownership, as well as $119 billion in deposits and $72 in loans. First Republic and Other Regional Bank Stocks Rally.

Shares of First Citizens BancShares (FCNCA) are skyrocketing after the regional bank purchased a large portion of collapsed Silicon Valley Bank.

In addition, today’s gains have put shares of First Citizens in positive territory for the year. First Citizens added it will not acquire any of the assets, common stock, First Citizens noted that as part of the deal, it will assume assets of $110 billion, deposits of $56 billion, and loans of $72 billion.

North Carolina-based First Citizens will buy Silicon Valley Bank, the tech industry-focused financial institution that collapsed earlier this month.

Like the 20th Century transformation of NCNB into Bank of America, First Citizens' Frank Holding Jr. is building another North Carolina super regional with ...

Frank Holding Jr., 61, who went to school at the University of North Carolina at Chapel Hill and earned an MBA from the University of Pennsylvania’s Wharton School, has spent his whole professional career at the bank, became its president in 1994 and took over as CEO from his uncle Lewis in 2008. NCNB was renamed Nationsbank in 1991 and ultimately acquired San Francisco's Bank of America, growing assets from $12 billion in 1983 to more than $640 billion by the end of McColl’s tenure in 2000. Many of SVB’s associates with experience in banking the technology industry will join the combined bank. “I think as more investors see the merits of this deal, this stock is still headed a lot higher.” Holding’s sister Hope Bryant is the vice chairwoman of First Citizens, and his brother-in-law Peter Bristow is its president. According to regulatory filings, First Citizens had 32% of its $91 billion in deposits uninsured as of the end of 2022. “We believe there are long term secular tailwinds supporting technology and healthcare businesses that will continue to drive growth in the future.” “It developed a bit of a specialty in that area,” says Peter Gwaltney, CEO of the North Carolina Bankers Association, referring to First Citizens’ purchases of failing banks. “Frank Holding is one of the most opportunistic bank buyers out there,” says Brady Gailey, a managing director at KBW. First Citizens is taking on $110 billion in assets, $56 billion in deposits and $72 billion in loans from SVB, becoming one of the 20 largest banks in America now with $219 billion in assets. It went bankrupt during the financial crisis in 2008, and emerged in 2010 under the leadership of former Goldman Sachs executive and Merrill Lynch CEO John Thain, who retired in 2016. At the end of 2008, First Citizens had assets of $16.7 billion.

Investors liked First Citizens Bank's deal to buy Silicon Valley Bank's deposits and loans so much that they pushed its stock 53.74% higher.

[rose Monday](https://www.cnbc.com/2023/03/26/stock-futures-are-up-slightly-as-wall-street-looks-to-build-on-winning-week.html)as [regional banks rallied](https://www.cnbc.com/2023/03/27/first-republic-rebounds-by-25percent-on-monday-to-lead-regional-bank-comeback.html)on improved sentiment. Less than two weeks ago, Al-Khudairy said [SNB could not provide Credit Suisse with additional funding](https://www.cnbc.com/2023/03/15/credit-suisse-shares-slide-after-saudi-backer-rules-out-further-assistance.html). Major indexes — with the exception of the Nasdaq Composite (more on that in a moment) — closed the day in the green too. That's not a sign we're back in the pandemic days of sky-high tech valuation, but it's something to keep an eye on as the banking crisis (hopefully) gets contained. What you need to know today [First Citizens Bank agreed to buy Silicon Valley Bank's](https://www.cnbc.com/2023/03/27/first-citizens-bank-to-buy-silicon-valley-banks-deposits-and-loans.html)deposits and loans. Charles Schwab's Liz Ann Sonders noted the S&P 500 information technology sector's valuation, relative to the performance of the companies, has risen more than 30%. Likewise, bank stocks in Europe rose 1.4% — Deutsche Bank, in particular, climbed 6.29% — helping the pan-European [Stoxx 600 index close 1.1% higher](https://www.cnbc.com/2023/03/27/european-markets-live-updates-stocks-news-data-and-earnings.html). There's hope, then, of reviving a dead bank — something that can happen only in an environment conducive to such miraculous feats. authorities were considering giving the bank more time to shore up its liquidity. Analysts think it's a sign Beijing's loosening its grip on the technology sector in its pursuit of economic growth this year. More crucially, it signaled to markets that, despite SVB's financial difficulties, there was still value in SVB's reputation and relationship with its clients. Investors liked the bargain First Citizens struck — its shares skyrocketed a staggering 53.74% on the news.

North Carolina-based First Citizens will buy Silicon Valley Bank, the tech industry-focused financial institution that collapsed earlier this month.

With his deal to buy the assets of Silicon Valley Bank, Frank B. Holding Jr. has now scooped up at least a dozen failed banks since 2008.

We'll send you a myFT Daily Digest email rounding up the latest US banks news every morning. A week before Silicon Valley Bank was seized by the Federal Deposit ...

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