First Citizens (NYSE:FCNCA) stock is trending and soaring more than 40% today on news that the FDIC has reached a deal with the bank to buy assets from SVB Financial. SVB, a California-based bank, was closed earlier this month after many depositors rushed to withdraw their money from it. That bank run resulted in the FDIC stepping in and temporarily taking over SVB.
First Citizens’ Deal With the FDIC
First Citizens will obtain SVB’s “deposits, loans and branches,” The Wall Street Journal reported. First Citizens bought “about $72 billion of SVB’s loans at a discount of $16.5 billion,” the newspaper added. Further, the FDIC will receive part of the gains on a portion of the commercial loans and compensate FCNCA for any losses on them.
Additionally, under the deal, the FDIC may receive up to $500 million based on the appreciation of FCNCA stock.
The Top Five Owners of FCNCA Stock
Here are the top five holders of First Citizens shares as of the end of last year:
- Blackrock (NYSE:BLK) had 1.6 million shares and an 11.95% stake.
- Vanguard had 998,400 shares and a 7.4% stake.
- UK-based Egerton Capital had 710,380 shares and a 5.26% stake.
- State Street (NYSE:STT) had 310,300 shares and a 2.45% stake.
- Alua Capital had 309,600 shares and a 2.3% stake.
Background on First Citizens
Based in Raleigh, North Carolina, First Citizens Bank was founded in 1898. It had over 10,300 employees before today’s deal and a market capitalization of $8.42 billion.
Before today’s trading, FCNCA stock had sunk 21.4% over the last month but had risen 3.5% over the previous five trading days.
On the date of publication, Larry Ramer did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.