Shares of First Citizens BancShares (NASDAQ:FCNCA) rose on Thursday after the company topped its Q3 bottom and top estimates, benefitting from robust revenue growth and disciplined cost management.
Shares in the company up 87% on a year to date basis, and up 8.07% at $1,406.68 on Thursday.
Earlier in Oct., Wedbush analyst David Chiaverini had started coverage on the firm with an “outperform” rating on the expectation that the firm will benefit from its acquisition of the failed Silicon Valley Bank.
The company, in March, had through its banking unit assumed all customer deposits and certain other liabilities and acquired substantially all loans and some other assets of Silicon Valley Bridge Bank.
Deposits in the SVB segment totaled $39.97B at Sept. 30, 2023 compared to $40.86B as of June 30, 2023.
“SVB provides a virtually unique growth opportunity for First Citizens; not only was it a leader in banking to emerging tech-driven companies, but it also complements the deposit-hungry CIT operations,” SA contributor Stephen Simpson, had said earlier in the month.
FCNCA also saw its Q3 net interest income climb to $1.99B, up from $1.96B in the prior quarter due to a $157M rise in interest income, partially offset by a $128M hike in interest expense.
Q3 net interest margin- a key measure of a bank’s underlying profitability- was 4.07%, a decrease of 3 basis points compared to the second quarter.
The firm also saw a rise in its provisions for credit losses and added provision for loan and lease losses increased $43M compared to the second quarter as a result of deterioration in macroeconomic factors, credit quality, and higher net charge-offs.
