First Citizens shares hit record high in wake of SVB purchase

First Citizens Bancshares (Tennessee)

28/03/2023 20:08

March 28 (Reuters) - Shares of First Citizens BancShares
Inc  FCNCA.O  climbed to a record high on Tuesday, extending
gains for a second day after scooping up the assets of failed
peer Silicon Valley Bank.
    
    First Citizens rallied as much as 7.2%, briefly hitting an
all-time peak of $959.99 before paring gains. It was last up
almost 2%.
    Trading in other bank stocks on Wall Street remained tepid,
with the S&P 500 banks index  .SPXBK  dipping 0.1% and down over
20% in March.
    First Citizens, which has built a reputation of buying
troubled rivals, on Monday bought all of SVB's loans and
deposits, giving the Federal Deposit Insurance Corp (FDIC)
equity rights in its stock worth as much as $500 million in
return.
    Investors sent a record net $236 million into the iShares
Regional Bank ETF  IAT.P  over the last two weeks, evidence that
some investors are betting on a rebound in fundamentally strong
regional lenders following the recent sell-off. The ETF was up
0.3% on Tuesday.
    SVB's collapse has triggered the worst banking shock since
the 2008 crisis. Policymakers, regulators and central banks have
emphasized that the turmoil is not a precursor to another global
financial crisis. 
    "Essentially, the risk model was not at all aligned with
reality," Michael Barr, the Federal Reserve's vice chairman for
supervision, told lawmakers on Tuesday, speaking of SVB. 
    Shares of SVB Financial Group  SIVB.PK , which operated
Silicon Valley Bank, traded on Tuesday as an over-the-counter
stock and were last at 28 cents per shares, down from about $268
before the bank's collapse, an all but complete loss for its
shareholders.

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First Citizens BancShares rebounds to record high    https://tmsnrt.rs/3lOAsK9
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 (Reporting by Noel Randewich
Editing by Marguerita Choy)
 ((noel.randewich@tr.com; Twitter: @randewich;))