First Citizens Bank, which bought the failed lender Silicon Valley Bank (SVB) in March, has reported a profit of more than $9 billion due to the takeover.
First Citizens made a preliminary gain of $9.82 billion on the acquisition, according to the bank’s May 10 earnings release (pdf) detailing its first-quarter performance. As a result of the business takeover, First Citizens’ net income available for common stockholders for the first quarter of 2023 came in at $9.50 billion, or $653.64 per diluted common share. This is over 39 times higher than the $243 million in net income, or $16.67 per share, First Citizens had made in fourth quarter 2022.
At the end of March 31, 2023, First Citizens reported deposits of $140.05 billion, up by over $50 billion from $89.41 billion by December-end. The bank attributed the increase to the integration of SVB deposits. Meanwhile, loans rose by more than $67 billion, to $138.29 billion….