The family behind First Citizens Bank have seen their fortunes soar since taking over the assets of SVB.
CEO Frank Holding Jr. and his sisters’ combined wealth doubled to $2.2 billion, according to Bloomberg.
The Holding family has bought over 20 bankrupt banks since 2008.
The family behind First Citizens Bank has seen its wealth double to $2.2 billion since buying the assets of Silicon Valley Bank following 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 shares of the Raleigh-based company.
Shares of the lender soared 7.5% to $1,175 on Wednesday after announcing filings that eclipsed estimates following the SVB deal. The rise in share price brought 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, bought the assets of the collapsed SVB at a steep discount in March. It bought about $72 billion in assets from SVB at a $16.5 billion discount, which helped propel First Citizens into the ranks of the top 20 US banks.
SVB wasn’t First Citizens’ first rodeo. The North Carolina-based lender has purchased more than 20 smaller, failing banks since the 2008 financial crisis.
Holding and its sisters do not hold a majority stake in First Citizens. But they exerted influence via a two-class structure; their Class B shares carry 16 votes each.
Additionally, Holding spent about $260,000 to buy First Citizens stock in early March at about $650 per share, according to Bloomberg. Now those stocks are worth 81% more.
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