First Citizens eyes record gain on deal to save failed lender SVB

First Citizens Bancshares (Tennessee)

27/03/2023 15:10

(Updates)
    ** Shares of regional bank First Citizens BancShares Inc
 FCNCA.O  rise ~44% to $838.50 - the biggest single-day
percentage gain
    ** FCNCA acquires deposits and loans of failed start
up-focused lender Silicon Valley Bank  SIVB.O  for a $500 mln
stock deal
    ** The move eases fears of an impending banking crisis,
which started early March after the sudden collapse of SIVB and
Signature Bank  SBNY.O , followed by Credit Suisse's  CSGN.S 
crisis and its sale to UBS  UBSG.S 
    ** FCNCA says the combined bank will be resilient through a
diverse loan portfolio and deposit base 
    ** FCNCA will also receive a line of credit from the Federal
Deposit Insurance Corporation (FDIC) for contingent liquidity
reasons and can share losses with the regulator on commercial
loans
    ** "We see the sale of SVB to a regional bank as politically
helpful to the banks. It allows industry to argue that large
regionals can be resolved without help from the mega banks" - TD
Cowen on the sale 
        ** Brokerage KBW sees possible accretion to FCNCA EPS
  
    ** FCNCA, a generally lightly traded stock with an average
90-day volume of 115,000 shares, records more than 580,000
shares trade on Monday
    ** Stock up ~11% YTD
    

 (Reporting by Anirban Chakroborti in Bengaluru)
 ((Anirban.Chakroborti@thomsonreuters.com;))