North Carolina-based First Citizens Bank saw a $9.5 billion profit in the first quarter after receiving discounts from federal regulators when it agreed to acquire loans and assume deposits from Silicon Valley Bank after its collapse.
“We are pleased with our solid financial performance in the first quarter, marked by continued momentum across all our lines of business,” First Citizens Chairman and CEO Frank Holding, Jr. said in the first quarter report. “Since the completion of our acquisition of certain assets and liabilities of Silicon Valley Bridge Bank, N.A. on March 27, 2023, we have made strides to integrate our two companies, including meaningful engagement with key Silicon Valley Bank leaders and clients. Building on the considerable strengths Silicon Valley Bank brings to the business, including exceptional talent and expertise, significant scale, geographic diversity, and meaningful solutions for customers, we are confident we will continue to deliver long-term value for our shareholders. In an environment of macroeconomic challenges and uncertainties, we continue to operate with solid capital and liquidity positions. We remain encouraged by the resiliency of our clients in the face of elevated inflation and rising interest rates and we look forward to continuing to support them.”
Following the acquisition, First Citizens reports a preliminary gain of $9.82 billion (net of tax) and a net income of $9.52 billion for the quarter which ended March 31, compared with $257 million for the three months ended Dec. 31, 2022.
Net income available to common stockholders for the three months ended March 31 was $9.50 billion, or $653.64 per diluted common share, compared with $243 million, or $16.67 per diluted common share in the fourth quarter of 2022.
The substantial gain made First Citizens the second-most profitable bank for the first quarter of 2023, behind only JPMorgan Chase which reported $12.6 billion in quarterly earnings.