Banking: First Citizens BancShares Q2 profit boosted by addition of Silicon Valley Bank

by | Aug 3, 2023 | Stock Market

First Citizens BancShares Inc. stock was up 2.4% on Thursday after the Raleigh, N.C.-based lender’s profit nearly tripled, beating Wall Street expectations, with a boost from its high-profile acquisition of Silicon Valley Bank. In its first full quarter since acquiring Silicon Valley Bank in a deal brokered by the Federal Deposit Insurance Co., First Citizens BancShares
said its profit for the three months ended June 30 nearly tripled to $667 million, or $45.87 a share, from $238 million, or $14.86 a share, in the year-ago quarter.

Adjusted second-quarter profit rose to $765 million, or $52.60 a share, from $270 million, or $16.86 a share, ahead of the Wall Street analyst estimate of $46.54 a share, according to FactSet data. Second-quarter revenue jumped to $2.62 billion from $1.12 billion, well ahead of the analyst target of $2.29 billion. CEO Frank B. Holding, Jr. said the bank began to realize the long-term strategic and financial value of its combination with Silicon Valley Bank (SVB), but said the macroeconomic environment remains uncertain. First Citizens BancShares stock fell 0.2% on Wednesday. The stock is up 87.4% in 2023 as its valuation climbed after it acquired Silicon Valley Bank in late March. The S&P 500
is up 8.6 …

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