First Citizens Bank Soars on SVB Asset Purchase

Motley Fool Hidden Gems Investing

The Motley Fool

Investing, Business

4.3 • 3.1K Ratings

🗓️ 27 March 2023

⏱️ 18 minutes

🔗️ Recording | iTunes | RSS

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Summary

Shares of the Raleigh, NC-based bank rose more than 50%. (0:20) Jason Moser discusses: - First Citizens Bank buying (at a discount) $72 billion worth of Silicon Valley Bank's assets - Four tools (two free, two with a subscription fee) he uses in his investing research - The balance of weighing a company's information with the financial media's reporting on that information (10:30) Buck Hartzell talks with Michael Kehoe, CEO of Kinsale Capital Group, about the specialty insurance landscape and his company's competitive advantage. Send your investing questions to podcasts@fool.com Companies discussed: FCNCA, KNSL Host: Chris Hill Guests: Jason Moser, Buck Hartzell, Michael Kehoe Producer: Ricky Mulvey Engineer: Tim Sparks Learn more about your ad choices. Visit megaphone.fm/adchoices

Transcript

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0:00.0	We got a couple of ideas to help with your investing research.
0:08.5	Motleyful money starts now.
0:14.1	I'm Chris Hill joining me today, Motleyful Senior Analyst, Jason Moser.
0:17.6	Good to see you.
0:18.6	Hey, thanks for having me.
0:20.3	We're going to start in Raleigh, North Carolina, which is the home of First Citizens Bank.
0:26.6	This morning, the FDIC announced that First Citizen will buy $72 billion worth of Silicon
0:33.2	Valley bank assets.
0:35.2	They are doing so at a discount.
0:37.9	And I am assuming they are doing this at a discount that is viewed by some investors
0:43.3	as an outright steal because shares of First Citizens Bank are up 50% as you and I
0:48.7	are talking right now.
0:49.9	Yeah.
0:50.9	I mean, it definitely feels like it's a good solution to what is obviously a bit of very
0:54.4	difficult problem here.
0:55.4	Remindersen of what we saw back in 2008, 9 and 10, right?
0:58.4	When the FDIC really kind of had to jump in there and make these offers a bit more enticing
1:03.6	so that healthier institutions could roll up all of these failed institutions without having
1:09.4	to really take so much risk on.
1:11.5	Right now, faithfully, in this case, this is a much smaller situation in that it is not
1:16.9	as many banks.
1:17.9	But I mean, it is something that I got to keep reminding myself.
	...

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