First Citizens BancShares Shares Leap Premarket on Silicon Valley Deal
March 27 2023 - 07:09AM
Dow Jones News
By Colin Kellaher
Shares of First Citizens BancShares Inc. surged 20% in premarket
trading Monday after the bank holding company said it would acquire
a large chunk of the failed Silicon Valley Bank in a deal that
roughly doubles its assets.
The Raleigh, N.C., company said it is assuming Silicon Valley
assets of $110 billion and deposits of $56 billion from the Federal
Deposit Insurance Corp., which took control of the bank earlier
this month.
The FDIC said the deal includes the purchase of about $72
billion of Silicon Valley loans at a discount of $16.5 billion.
First Citizens said Silicon Valley's 17 branches will begin
operating Monday as Silicon Valley Bank, a division of First
Citizens Bank.
First Citizens, which reported total assets of around $109
billion at the end of 2022, said its assets now top $219
billion.
First Citizens shares, which closed Friday at $582.55, were
recently up 20% to $700 in premarket trading.
Write to Colin Kellaher at colin.kellaher@wsj.com
(END) Dow Jones Newswires
March 27, 2023 06:54 ET (10:54 GMT)
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