First Citizen BancShares Inc, based in Raleigh, North Carolina, reported a significant gain of $9.82 billion in the first quarter following its acquisition of Silicon Valley Bank in March. This acquisition contributed to a remarkable surge in the bank’s profit, which reached $9.50 billion, or $653.64 per share, for the three-month period ending on March 31. In comparison, the bank had earned $264 million, or $16.70 per share, during the same period the previous year.
The first-quarter deposits for First Citizen amounted to $140.05 billion, representing a substantial increase of nearly 57% from the previous year.A significant portion of the deposits received by First Citizen came from Silicon Valley Bank, which the bank acquired with the support of U.S. regulators. Silicon Valley Bank had encountered severe financial troubles, leading to its rapid unraveling within 48 hours in early March.
The bank experienced a wave of customer withdrawals, resulting in substantial losses due to the sale of devalued securities caused by increasing interest rates.First Citizens has a history of acquiring struggling financial institutions, having purchased over 20 FDIC-assisted banks since 2009. These acquisitions were made in the aftermath of the financial crisis and spanned locations from Washington to Wisconsin to Pennsylvania.In summary, First Citizen BancShares Inc experienced a significant financial gain in the first quarter due to its successful acquisition of Silicon Valley Bank. This acquisition, along with a surge in deposits, propelled the bank’s profit to a remarkable $9.50 billion for the three-month period.