First-Citizens Bank

2023 - 3 - 27

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Image courtesy of "NPR"

The FDIC says First Citizens Bank will acquire Silicon Valley Bank (NPR)

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

Mid-sized San Francisco-based First Republic Bank, which serves a similar clientele as Silicon Valley Bank and appeared to be facing a similar crisis, was in turn battered by investors worried that it, too, might collapse. It was the second-largest bank collapse in U.S. The 17 former branches of SVB will open as First Citizens branches Monday.

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Image courtesy of "Reuters"

First Citizens agrees to acquire failed Silicon Valley Bank (Reuters)

March 27 (Reuters) - First Citizens BancShares Inc FCNCA.O said on Monday it would acquire the deposits and loans of failed Silicon Valley Bank, ...

The exact cost will be determined when the FDIC terminates the receivership," it said. First Citizens has around $109 billion in assets and total deposits of $89.4 billion. Employees in the acquired businesses will be retained, it added. First Citizens will not pay cash upfront for the deal. at the end of last year, with about $209 billion in assets. The deal was "momentous" for First Citizens, CEO Frank Holding told investors on a conference call Monday. The combined company will have total assets of $219 billion and $145 billion of deposits, according to a First Citizens presentation. banking system is now facing: deposits leaving smaller banks for larger banks or money market funds," said Redmond Wong, greater China market strategist at Saxo Markets. The deal will accelerate First Citizens' expansion in California and give it wealth management capabilities in the northeast U.S., First Citizens said. First Citizens will assume Silicon Valley Bank's assets of $110 billion, deposits of $56 billion and loans of $72 billion as part of the deal. "First Citizens Bank’s acquisition of the SVB loan book and deposits does not add much to solve the number one issue that the U.S. First Citizens will also receive a line of credit from the FDIC for contingent liquidity purposes and will have an agreement with the regulator to share some losses on commercial loans to protect it against potential credit losses.

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Image courtesy of "CNN"

First Citizens Bank to purchase assets of Silicon Valley Bank (CNN)

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.

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Image courtesy of "The New York Times"

First Citizens to Acquire Failed Silicon Valley Bank (The New York Times)

The Federal Deposit Insurance Corporation, which announced the deal late Sunday, had been looking for a buyer since seizing control of the bank.

After the deal, the bank said it would have more than $40 billion in cash on hand. The fears also spread to [other banks in Europe](https://www.nytimes.com/2023/03/27/business/eu-banks-deutsche-bank.html), prompting officials to emphasize the strength of rules and strictness of oversight in the region. [paid back in full](https://www.nytimes.com/2023/03/12/business/janet-yellen-silicon-valley-bank.html), and some lawmakers have since pushed for raising or even eliminating the $250,000 cap on deposit insurance. The F.D.I.C. The deal included around $38 billion in assets, including $12.9 billion in loans, purchased at a discount of $2.7 billion. First Citizens and the F.D.I.C. The bank regulator estimated that the cost of Silicon Valley Bank’s failure on the government’s deposit insurance fund would be $20 billion. On March 19, New York Community Bancorp acquired parts of Signature Bank a week after the F.D.I.C. For example, the F.D.I.C. The Federal Deposit Insurance Corporation seized control of Silicon Valley Bank on March 10, after a run on deposits left it insolvent, making it the country’s largest bank failure since the 2008 financial crisis. seized it, included the purchase of about $72 billion in loans, at a discount of $16.5 billion, and the transfer of all the bank’s deposits, worth $56 billion. “However, it is our intent to embrace the talents of our legacy SVB employees, embrace their business capabilities and then reiterate to their clients that First Citizens has an unwavering focus on holistic client relationships.”

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Image courtesy of "The Hill"

First Citizens acquiring Silicon Valley Bank (The Hill)

First Citizens Bank & Trust Company will acquire Silicon Valley Bank, which unexpectedly failed earlier this month and rocked the U.S. financial landscape.

since the 2008 financial crisis, and was followed shortly by the closure of New York’s Signature Bank in what became the second-largest bank failure in that period. [Business](https://thehill.com/business/) [Business](https://thehill.com/business/) [Business](https://thehill.com/business/) [Senate](https://thehill.com/homenews/senate/) [See All](https://thehill.com/business/banking-financial-institutions/) [banking](https://thehill.com/tag/banking/) [FDIC](https://thehill.com/tag/fdic/) [First Citizens bank](https://thehill.com/tag/first-citizens-bank/) [Silicon Valley Bank](https://thehill.com/tag/silicon-valley-bank/) [See all Hill.TV](https://thehill.com/hilltv) [See all Video](https://thehill.com/video) [announced](https://newsroom.firstcitizens.com/2023-03-27-First-Citizens-Bank-Enters-into-Whole-Bank-Purchase-of-Silicon-Valley-Bridge-Bank,-N-A) on Monday an agreement with the Federal Deposit Insurance Company (FDIC) to acquire all of Silicon Valley Bank’s deposits and loans, which had been moved to an FDIC-created bridge bank after the collapse, in a move that could calm anxious investors. [Banking & Financial Institutions](https://thehill.com/business/banking-financial-institutions/)

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Image courtesy of "Fortune"

Failed Silicon Valley Bank will be bought by North Carolina-based ... (Fortune)

The sale involves the sale of all deposits and loans of SVB to First-Citizens, the FDIC said in a statement late Sunday.

Two days later, New York-based [Signature Bank](https://fortune.com/company/signature-bank/) was seized by regulators in the third-largest bank failure in the U.S. The acquisition gives the FDIC shares in First Citizens worth $500 million. Earlier this month, shares of and faith in Swiss bank Credit Suisse fell so much that regulators brokered a [takeover of by rival UBS](https://apnews.com/article/credit-suisse-ubs-banking-collapse-svb-4eb7f8e70849072b13d067382230d448). After First Republic Bank came under heavy selling by panicked investors, 11 of the biggest banks in the country announced a $30 billion rescue package. It is one of the top 20 U.S. It was the second-largest bank collapse in U.S. [European shares opened higher](https://apnews.com/article/shares-stocks-markets-dollar-recession-imf-9b5931a91b6cc2137fbedf8eaffaaeb9) Monday, with German lender Commerzbank AG up 2.4% and [BNP Paribas](https://fortune.com/company/bnp-paribas/) up 1.2%. It reported net profit of $243 million in the last quarter. The 17 former branches of SVB will open as First Citizens branches Monday, the FDIC said. [collapsed March 10](https://apnews.com/article/svb-fed-bonds-rates-banks-inflation-a24b28b3caeede91c76cd120aa9b7966) after depositors rushed to withdraw money amid fears about the bank’s health. Investors worry that other banks also may crumble under the pressure of higher interest rates. bank would be able to access all of their money.

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Image courtesy of "PBS NewsHour"

First Citizens strikes deal to acquire troubled Silicon Valley Bank (PBS NewsHour)

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.

First-Citizens Bank compra oficialmente Silicon Valley Bank, dice la ... (KESQ)

Gonzalo Jimenez. (CNN) — First-Citizens Bank & Trust Company compró oficialmente Silicon Valley Bridge Bank y todos sus depósitos y préstamos, ...

La FDIC y First-Citizens Bank & Trust Company han entrado en una transacción de pérdidas compartidas sobre los préstamos comerciales que fueron comprados, según el comunicado de prensa. Todos los depósitos asumidos por First-Citizens Bank & Trust Company seguirán estando asegurados por la FDIC hasta el límite del seguro”, dice el comunicado de prensa. “Se prevé que la transacción de pérdidas compartidas maximice las recuperaciones de los activos al mantenerlos en el sector privado. También se espera que la transacción minimice las perturbaciones para los clientes de préstamos. Además, la FDIC recibió derechos de revalorización de acciones ordinarias de First Citizens BancShares, Inc., Raleigh, Carolina del Norte, con un valor potencial de hasta US$ 500 millones”, dice el comunicado de prensa. Aproximadamente US$ 90.000 millones en valores y otros activos permanecerán en la administración judicial para su disposición por parte de la FDIC.

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Image courtesy of "Crow River Media"

First Citizens Purchases Failed Silicon Valley Bank (Crow River Media)

First Citizens Bank bought the deposits and loans of failed Silicon Valley Bank in a deal announced Sunday by the Federal Deposit Insurance Corporation.

First Citizens BancShares compra parte de Silicon Valley Bank (La Prensa)

Así lo anunció la Corporación Federal de Depósitos de los Estados Unidos (FDIC, por sus siglas en inglés), tras dos semanas después del mayor colapso bancario ...

[Reserva Federal](https://www.federalreserve.gov/espanol.htm) recalcar que enfrentará esta situación bancaria y el problema de la inflación al mismo tiempo, atendiéndolos como dos eventos diferentes. Así lo anunció la Corporación Federal de Seguros de Depósitos de los Estados Unidos (FDIC, por sus siglas en inglés), este lunes, 27 de marzo del 2023. También señala que el sistema bancario dentro de los Estados Unidos es completamente sólido y que no hay nada de que preocuparse. El First Citizens BancShares comprará partes de los depósitos y préstamos de Silicon Valley Bank, una identidad bancaria estadounidense que quedó en bancarrota, junto con otros bancos dentro de la nación. Cabe destacar que Estados Unidos indicó que la quiebra que sufrió el Silicon Valley Bank se pagaría con fondos especiales y que no habría afectaciones financieras para los ciudadanos comunes. incluye la compra de $72 mil millones de dólares, aproximadamente; con un descuento de $16,500 millones.

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Image courtesy of "Telemundo New York"

CNBC: First Citizens Bank comprará gran parte del fallido Silicon ... (Telemundo New York)

El acuerdo hará que First Citizens Bank compre alrededor de $ 72000 millones de activos de Silicon Valley Bank con un descuento de $ 16500 millones.

Para más de CNBC entra [aquí](http://CNBC.com). "Los clientes de Silicon Valley Bridge Bank, National Association, deben continuar usando su sucursal actual hasta que reciban un aviso de First–Citizens Bank & Trust Company de que se completaron las conversiones de sistemas para permitir la banca de servicio completo en todas sus otras sucursales." "Las 17 antiguas sucursales de Silicon Valley Bridge Bank, National Association, abrirán como First–Citizens Bank & Trust Company el lunes 27 de marzo de 2023", dijo el comunicado el lunes.

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Image courtesy of "Los Angeles Times"

First Citizens Bank comprará el quebrado Silicon Valley Bank (Los Angeles Times)

El banco First Citizens, con sede en Carolina del Norte, comprará buena parte del Silicon Valley Bank, una entidad centrada en la industria tecnológica cuya ...

Es uno de los 20 bancos más grandes de Estados Unidos y dice ser el banco más grande del país controlado por una familia. Fue la segunda quiebra bancaria más grande de la historia de Estados Unidos tras la de Washington Mutual en 2008. Las 17 antiguas oficinas de SVB abrirían el lunes como oficinas de First Citizens, indicó la FDIC.

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Image courtesy of "Lexington Dispatch"

First Citizens to acquire troubled Silicon Valley Bank (Lexington Dispatch)

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

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Image courtesy of "Axios"

First Citizens eyes more influence in tech industry with SVB purchase (Axios)

Why it matters: The sale is a step toward stabilizing America's regional banking sector, after a month of tumult. It's also a show of might by a Raleigh bank ...

- FDIC estimates that SVB will cost up to a $20 billion loss from its Deposit Insurance Fund (which is backed by insured banks, not taxpayers). - It's also a bit of FDIC full circle for First Citizens. Now, it is poised to absorb much of an institution that had been the 16th largest. - First Citizens had $109 billion in assets at the end of last year. The intrigue: It's remarkable that a Raleigh bank now owns Silicon Valley's namesake financial institution, Axios' Dan Primack writes. "Instead of flowing into Austin, Raleigh now becomes quite attractive."

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Image courtesy of "El Economista"

Acciones de First Citizens se disparan casi 50% tras comprar ... (El Economista)

Las acciones de First Citizens BancShares, la matriz de First-Citizens Bank, llegaban a subir este lunes más de un 49% en el Nasdaq, después de que la ...

Las acciones de First Citizens BancShares, la matriz de First-Citizens Bank, llegaban a subir este lunes más de un 49% en el Nasdaq, después de que la entidad haya Las acciones de First Citizens BancShares, la matriz de First-Citizens Bank, llegaban a subir este lunes más de un 49% en el Nasdaq, después de que la entidad haya adquirido todos los depósitos y préstamos del Silicon Valley Bridge Bank. El fuerte avance de los títulos de First Citizens servía de empuje a la cotización de otros bancos regionales, los más castigados durante las turbulencias de las ultimas semanas, incluyendo las acciones del First Republic Bank, que se anotaban una subida de casi el 20 por ciento.

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Image courtesy of "Forbes"

SVB's New Owners, The Billionaire North Carolina Family Behind ... (Forbes)

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.

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Image courtesy of "CNBC"

CNBC Daily Open: First Citizens struck a great bargain (CNBC)

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.

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