dot gov risk free is a perception, live in your mind rent free. if you were not a us person, even a canadian, you wouldn’t bet gov bond risk free. there is also a time value of money.
First Citizens Buys Much of Silicon Valley Bank
- Thread starter ETJ
- Start date
dot gov risk free is a perception, live in your mind rent free. if you were not a us person, even a canadian, you wouldn’t bet gov bond risk free. there is also a time value of money.
%%
EXACTLY+ I did not mean it was risk free \thus the 10% gov bond loss part of SVB noted .
Time value of money= right [aka opportunity loss].Amazing how much money even a ''good'' bond fund can lose some years.
For a real shocker, a gov bond fund has some real shocker risks disclosed
I assume but dont know\ SVB\ may have been a better than average bond trader??
Stock at record high, First Citizens reports $9B gain from Silicon Valley Bank deal
https://wraltechwire.com/2023/05/10...eports-9b-gain-from-silicon-valley-bank-deal/
RALEIGH – First Citizens BancShares – corporate parent of FirstCitizens Bank – says its March purchase of the failed Silicon Valley Bank is already paying off in big ways. The company reported a first quarter net income of $9.52 billion, smashing Wall Street expectations with much of that tied to gains from the purchase made after SVB was seized by federal regulators and then sold to First Citizens in a auction.
Investors appear to love the news, which beat Wall Street expectations for earnings ($20.09) by more than $7.50 a share. And the one-time boost from the SVB deal produced revenues of more than $1.1 billion, far beyond expectations.
How big was the quarter? In its financial presentation for investors, First Citizens declared: “A Momentous First Quarter”
The bank’s stock hit a record high of $1,107.64 on Tuesday (data from 1996 forward) before closing at $1,074.o6. And after the earnings news hit the wires Wednesday morning shares immediately climbed more than $3. First Citizens shares soared$400 on the day after the SVB deal was announced and have traded at $954 or better since.
‘A Powerful Combination’
In its earning presentation First Citizens broke down the SVB deal “A Powerful Combination) in this chart:
First Citizens, celebrating its 125th year i business, also is now one of the nation’s largest banks with more than $200 billion in assets, the bank says. SVB had ranked 18th before it failed. First Citizens ranked 35th.
The SVB deal not only boosted First Citizens in size of asset and physical reach with multiple banks added from California to New York but is also seen by leaders in the Triangle tech sector as a boost to companies’ access to investment capital.
Although the sale occurred on March 27, First Citizens (stock symbol FCNA) included data from the deal in its quarter ending March 31.
The news elated Chairman and CEO Frank Holding, Jr. who also provided an update on the SVB merger.
“We are pleased with our solid financial performance in the first quarter, marked by continued momentum across all our lines of business,” Holding said in a statement. “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.”
In spelling out costs and benefits of the SVB deal, First Citizens noted:
Read the full earnings report online.
https://wraltechwire.com/2023/05/10...eports-9b-gain-from-silicon-valley-bank-deal/
RALEIGH – First Citizens BancShares – corporate parent of FirstCitizens Bank – says its March purchase of the failed Silicon Valley Bank is already paying off in big ways. The company reported a first quarter net income of $9.52 billion, smashing Wall Street expectations with much of that tied to gains from the purchase made after SVB was seized by federal regulators and then sold to First Citizens in a auction.
Investors appear to love the news, which beat Wall Street expectations for earnings ($20.09) by more than $7.50 a share. And the one-time boost from the SVB deal produced revenues of more than $1.1 billion, far beyond expectations.
How big was the quarter? In its financial presentation for investors, First Citizens declared: “A Momentous First Quarter”
The bank’s stock hit a record high of $1,107.64 on Tuesday (data from 1996 forward) before closing at $1,074.o6. And after the earnings news hit the wires Wednesday morning shares immediately climbed more than $3. First Citizens shares soared$400 on the day after the SVB deal was announced and have traded at $954 or better since.
‘A Powerful Combination’
In its earning presentation First Citizens broke down the SVB deal “A Powerful Combination) in this chart:
First Citizens, celebrating its 125th year i business, also is now one of the nation’s largest banks with more than $200 billion in assets, the bank says. SVB had ranked 18th before it failed. First Citizens ranked 35th.
The SVB deal not only boosted First Citizens in size of asset and physical reach with multiple banks added from California to New York but is also seen by leaders in the Triangle tech sector as a boost to companies’ access to investment capital.
Although the sale occurred on March 27, First Citizens (stock symbol FCNA) included data from the deal in its quarter ending March 31.
The news elated Chairman and CEO Frank Holding, Jr. who also provided an update on the SVB merger.
“We are pleased with our solid financial performance in the first quarter, marked by continued momentum across all our lines of business,” Holding said in a statement. “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.”
In spelling out costs and benefits of the SVB deal, First Citizens noted:
- “The Acquisition included total assets with estimated fair values of approximately $106.60 billion and total loans with estimated fair values of approximately $68.50 billion, including Global Fund Banking, Private Bank, and the Technology & Life Science and Healthcare loan portfolios and $35.28 billion in cash and interest-earning deposits at banks.
- “BancShares also assumed approximately $55.96 billion in customer deposits and entered into a five-year note payable to the FDIC (the “Purchase Money Note”) of approximately $35.15 billion, bearing an interest rate of 3.50%. The deposits were acquired without a premium and the assets were acquired at a discount of $16.45 billion.”
Read the full earnings report online.
First Citizens lays off hundreds of workers at recently acquired Silicon Valley Bank
https://wraltechwire.com/2023/05/24...ers-at-recently-acquired-silicon-valley-bank/
https://wraltechwire.com/2023/05/24...ers-at-recently-acquired-silicon-valley-bank/
of course they do, they want balanced sheet assets, not the dumbf*k.
Silicon Valley Bank To Sell $9.8 Billion Venture Capital Arm For $340 Million, A Year After $1.8 Billion Collapse
https://finance.yahoo.com/news/silicon-valley-bank-sell-9-172906491.html
After the collapse of Silicon Valley Bank (SVB), the parent company, SVB Financial Group, is nearing the sale of its venture capital arm, SVB Capital.
SVB Capital, which was not included in the sale of SVB’s lending and wealth management units to North Carolina-based First Citizens Bank, has continued to manage approximately $9.8 billion in assets for its limited partners under its parent company.
Now, it is in the final stages of being purchased by a new entity backed by Brookfield and Sequoia Heritage. This deal, however, is still subject to bankruptcy court approval.
Court documents filed on May 2 indicate that the sale will be executed for an upfront cash price of $340 million and a termination fee of $15 million. The transaction marks a significant step in the aftermath of SVB’s collapse, potentially providing a stable future for SVB Capital and its stakeholders.
Earlier in January of this year, the company announced that retaining the SVB Capital business as a part of SVB Financial Group would result in superior value-creation opportunities.
"We believe that retaining SVB Capital under a reorganized company is the best path forward to maximize its value in the current environment," said William Kosturos, Chief Restructuring Officer of SVB Financial Group. "SVB Financial Group and its creditors recognize the strong foundation on which SVB Capital has been built, thanks largely to Aaron, Sulu and Beau’s outstanding leadership and partnership, with the significant support and contributions of the entire SVB Capital team.
Aaron, Sulu and Beau’s vision for the future of this business is closely aligned with our creditor group, and all parties are focused on preserving the value of the business, meeting obligations to partners and positioning the platform to capitalize on future opportunities."
However, it is now evident that the company believes that selling the fund is a better way forward.
SVB Capital invests in fund managers and private technology and life science companies throughout the innovation economy worldwide.
The successful sale of SVB Capital will ensure a more secure and prosperous future for its investment operations and the broader financial community.
SVB’s downfall a year ago sent shock waves through the financial community, highlighting the vulnerabilities in the banking sector’s exposure to interest rate risks. Since its acquisition, the company has recovered and continues working with startups to regain its trust.
https://finance.yahoo.com/news/silicon-valley-bank-sell-9-172906491.html
After the collapse of Silicon Valley Bank (SVB), the parent company, SVB Financial Group, is nearing the sale of its venture capital arm, SVB Capital.
SVB Capital, which was not included in the sale of SVB’s lending and wealth management units to North Carolina-based First Citizens Bank, has continued to manage approximately $9.8 billion in assets for its limited partners under its parent company.
Now, it is in the final stages of being purchased by a new entity backed by Brookfield and Sequoia Heritage. This deal, however, is still subject to bankruptcy court approval.
Court documents filed on May 2 indicate that the sale will be executed for an upfront cash price of $340 million and a termination fee of $15 million. The transaction marks a significant step in the aftermath of SVB’s collapse, potentially providing a stable future for SVB Capital and its stakeholders.
Earlier in January of this year, the company announced that retaining the SVB Capital business as a part of SVB Financial Group would result in superior value-creation opportunities.
"We believe that retaining SVB Capital under a reorganized company is the best path forward to maximize its value in the current environment," said William Kosturos, Chief Restructuring Officer of SVB Financial Group. "SVB Financial Group and its creditors recognize the strong foundation on which SVB Capital has been built, thanks largely to Aaron, Sulu and Beau’s outstanding leadership and partnership, with the significant support and contributions of the entire SVB Capital team.
Aaron, Sulu and Beau’s vision for the future of this business is closely aligned with our creditor group, and all parties are focused on preserving the value of the business, meeting obligations to partners and positioning the platform to capitalize on future opportunities."
However, it is now evident that the company believes that selling the fund is a better way forward.
SVB Capital invests in fund managers and private technology and life science companies throughout the innovation economy worldwide.
The successful sale of SVB Capital will ensure a more secure and prosperous future for its investment operations and the broader financial community.
SVB’s downfall a year ago sent shock waves through the financial community, highlighting the vulnerabilities in the banking sector’s exposure to interest rate risks. Since its acquisition, the company has recovered and continues working with startups to regain its trust.
This investment was worth 3.5 cents to the dollar. It must have been a horrific investment.