FCNCB First Citizen Bancshares Inc (PK)

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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