First Citizens surges to record high on deal to save failed lender SVB

First Citizens Bancshares (Tennessee)

27/03/2023 14:26

** Shares of regional bank First Citizens BancShares Inc
 FCNCA.O  rise ~62% to all-time high of $949 premarket 
    ** 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
    ** FCNCA, a generally lightly-traded stock with an average
90-day volume of 115,000 shares, recorded about 180,000 shares
change hands premarket
    ** Stock was down ~23% as of last close, YTD
    

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