A First Citizens Bank branch in Raleigh, North Carolina. First Citizens Bank has acquired assets from Silicon Valley Bank.
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The family behind First Citizens Bank has seen its fortune soar since buying SVB’s assets.
CEO Frank Holding Jr. and his sisters’ combined wealth has doubled to $2.2 billion, per Bloomberg.
The Holding family has purchased more than 20 failed banks since 2008.
The family behind First Citizens Bank has seen its wealth double to $2.2 billion since it bought Silicon Valley Bank’s assets out of bankruptcy.
First Citizens CEO Frank Holding Jr. and his four sisters – Olivia Holding, Hope Bryant, Carson Brice and Claire Bristow – collectively own about 20% of the Raleigh-based company’s stock.
The lender’s shares climbed 7.5% to $1,175 on Wednesday after it reported deposits that eclipsed estimates following the SVB deal. The stock-price increase lifted the value of the family’s combined stake in the bank’s parent company to about $2.2 billion, according to Bloomberg.
First Citizens, founded in 1989, snapped up the assets of collapsed SVB at a steep discount in March. It purchased about $72 billion of SVB’s assets at a discount of $16.5 billion, which helped propel First Citizens into the ranks of the 20 largest US banks.
SVB was not First Citizens’ first rodeo. The North Carolina-based lender has purchased more than 20 collapsed small banks since the 2008 financial crisis.
Holding and his sisters don’t hold a majority stake in First Citizens. But they have exerted influence via a dual-class structure; their Class B shares carry 16 voting rights each.
What’s more, Holding spent about $260,000 purchasing First Citizens stock in early March at around $650 a share, per Bloomberg. Now, those shares are worth 81% more.