First Citizens gained nearly $10 billion on the value of its purchase of Silicon Valley Bank's assets in a so-called take-under deal that stood out in the Q1...
The $9.5 billion profit posted by First Citizens Bancshares Inc. from a one-time gain on its acquisition of Silicon Valley Bank stands out as the second-largest profit among all banks in the second quarter and is much higher than in any previous quarter for the company.
Also read: First Citizens grows bigger with Silicon Valley Bank deal, but not big enough to move to next regulatory level In a take-under deal in which a bank with $100 million of assets and $10 million in equity is seized by the FDIC and sold for $5 million to a buyer bank, that $5 million discount on the value of the acquired bank’s equity flows through the income statement of the acquiring bank as a one-time gain and boosts the equity on its balance sheet.
Prior to this year, no major take-under deals had taken place since the global financial crisis of 2008. “I would bet that $9.5 billion in profits must be the best regional-bank result ever,” Marenzi said. “Indeed, that would be very respectable earnings for a money-center bank.”
Australia Latest News, Australia Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Silicon Valley luminaries give RFK Jr.’s anti-vaccine message a boostThe views of the leader of a broad anti-vaccine movement who is now running for president are unchallenged in public forums run by several prominent Silicon Valley figures.
Read more »
LIVE: Pres. Biden arrives in Bay Area for visit, Silicon Valley fundraiserThe president plans to visit a nature preserve in Palo Alto and announce more than $600 million for climate adaption projects.
Read more »
WSJ News Exclusive | Silicon Valley’s Newest Unicorn Is a Mining CompanyTech-industry investors are doubling down on a mining startup that uses AI and recently acquired copper reserves in Zambia
Read more »
Biden attends Silicon Valley fundraiser hosted by billionaire who traveled to Jeffrey Epstein's islandLinkedIn co-founder Reid Hoffman hosted a fundraiser for President Biden on Monday. Hoffman was recently found to have visited convicted sex offender Jeffrey Epstein's private island.
Read more »
Vacant Offices Are Piling Up in Silicon ValleyRising office vacancies in Silicon Valley have worried the region’s retailers, restaurants and other small businesses that depend on tech employees
Read more »
AI has given a big boost to stock of this lesser-known Silicon Valley computer makerIn Silicon Valley, a lesser-known computer maker, SuperMicro, has seen its stock jump this year as part of the AI frenzy.
Read more »