First Citizens BancShares Inc. stock was up 2.4% on Thursday after the Raleigh, N.C.-based lender’s profit nearly tripled, beating Wall Street expectations, with a boost from its high-profile acquisition of Silicon Valley Bank.
In its first full quarter since acquiring Silicon Valley Bank in a deal brokered by the Federal Deposit Insurance Co., First Citizens BancShares
FCNCA,
said its profit for the three months ended June 30 nearly tripled to $667 million, or $45.87 a share, from $238 million, or $14.86 a share, in the year-ago quarter.
Adjusted second-quarter profit rose to $765 million, or $52.60 a share, from $270 million, or $16.86 a share, ahead of the Wall Street analyst estimate of $46.54 a share, according to FactSet data.
Second-quarter revenue jumped to $2.62 billion from $1.12 billion, well ahead of the analyst target of $2.29 billion.
CEO Frank B. Holding, Jr. said the bank began to realize the long-term strategic and financial value of its combination with Silicon Valley Bank (SVB), but said the macroeconomic environment remains uncertain.
First Citizens BancShares stock fell 0.2% on Wednesday. The stock is up 87.4% in 2023 as its valuation climbed after it acquired Silicon Valley Bank in late March. The S&P 500
SPX
is up 8.6% so far in 2023.
During the quarter, First Citizens BancShares named Silicon Valley Bank executive Marc Cadieux as president of SVB’s commercial banking business. First Citizens BancShares said it remains focused on the retention of key talent from SVB.
Net interest margin rose to 4.1% from 3.04% in the year-ago period.
For the third quarter, First Citizens BancShares said it expected net interest income of $1.8 billion to $1.9 billion, compared to the analyst expectation of $1.8 billion.
For 2023, First Citizens BancShares is expecting net interest income of $6.4 billion to $6.6 billion, ahead of the analyst view of $6.27 billion.
In the first quarter, the bank booked a massive profit of $9.5 billion as a result of its Silicon Valley Bank deal.
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This story originally appeared on Marketwatch
