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☆ First Citizens BancShares records $9.8 bln gain from Silicon Valley Bank purchase
▼ + stars: | 2023-05-10 | by ( ) www.reuters.com time to read: 1 min

May 10 (Reuters) - First Citizen BancShares Inc (FCNCA.O) on Wednesday reported a gain of $9.82 billion in the first quarter from its acquisition of failed lender Silicon Valley Bank in March. The windfall helped drive a surge in its profit to $9.50 billion, or $653.64 per share, for the three months ended March 31 from $264 million, or $16.70 per share, a year earlier. The Raleigh, North Carolina-based lender's first-quarter deposits stood at $140.05 billion, also rising nearly 57% from the end of last year. More than a third of those deposits came from Silicon Valley Bank, which First Citizens had scooped up with the backing of U.S. regulators. Reporting by Siddarth S in Bengaluru; Editing by Anil D'SilvaOur Standards: The Thomson Reuters Trust Principles.

☆ Stocks making the biggest moves midday: Roblox, Icahn Enterprises, Rivian, Airbnb and more
▼ + stars: | 2023-05-10 | by ( Michelle Fox | ) www.cnbc.com time to read: +4 min

On Tuesday, the company reported a smaller-than-expected quarterly loss and said it expects to still meet forward guidance targets. Its revenue of $661 million topped the $652 million expected from analysts polled by Refinitiv. Twilio anticipates between $980 million and $990 million in revenue, while analysts polled by Refinitiv were expecting $1.05 billion in revenue. On Tuesday, the company reported same-store sales and revenue for the first quarter missed analysts' expectations, according to FactSet. On Tuesday, Occidental posted first-quarter adjusted earnings per share of $1.09, which is less than the $1.24 estimate from analysts polled by FactSet.

☆ Wall Street analysts like these regional bank stocks if you can withstand the chaos in the market
▼ + stars: | 2023-05-09 | by ( Jesse Pound | In Jesse-Pound | ) www.cnbc.com time to read: +3 min

The continued slide for regional bank stocks after the failure of First Republic last week has created some buying opportunities in the sector, according to Wall Street analysts. "We believe this recent stock reaction is overdone as there is currently no evidence of accelerating deposit outflows. We see accelerating deposit costs, not accelerating deposit outflows, as the most significant headwind for the midcap banks over the next several quarters," Gosalia wrote. Huntington and Webster also rise to the top of the heap for RBC Capital Markets analyst Jon Arfstrom. Both Huntington and Webster are down about 30% for the year, which is better than the SPDR S & P Regional Banking ETF (KRE).

☆ As earnings season winds down, investors turn to Tuesday's debt ceiling meeting
▼ + stars: | 2023-05-06 | by ( Zev Fima | ) www.cnbc.com time to read: +12 min

With only a small fraction of the S & P 500 left to report quarterly earnings, investors are now turning their focus to another major hurdle for the markets and economy: the debt ceiling crisis. Earlier this week, we looked back to debt limit crisis of 2011 for potential lessons. The protracted fight ultimately ended in an agreement in early August of that year, but it was a choppy summertime ride for investors. Within the portfolio, Wynn Resorts will report Tuesday, after the closing bell, and Disney will report on Wednesday, after the closing bell. Estee Lauder (EL) and Emerson Electric (EMR) reported earnings before the opening bell.

The latest case in point: The Federal Deposit Insurance Corp (FDIC) chose JPMorgan Chase & Co (JPM.N) as the winning bidder in an auction to buy collapsed lender First Republic Bank on Monday. FDIC officials, however, say would-be buyers risk losing out if they allow the value of an acquisition target to deteriorate over time while waiting for an FDIC receivership. SWEETENERSU.S. bank mergers were already sluggish as interest rates rose and recession loomed, analysts at Raymond James wrote in an Apr. The first quarter was the quietest opening to a year for bank deals in a generation, they said. Market volatility stops bank buyers from pulling together enough money to cover writedowns on struggling assets, which would be triggered by a traditional acquisition, said David Sandler, co-head of financial services investment banking at Piper Sandler Companies (PIPR.N).

☆ Wolfe double-upgrades this regional bank stock that's an 'attractive place to hide'
▼ + stars: | 2023-05-03 | by ( Alex Harring | ) www.cnbc.com time to read: +2 min

Prosperity Bancshares is a safe pick in a sector that's been recently defined by risk, according to Wolfe Research. Analyst Bill Carcache double-upgraded the regional bank stock to outperform from underperform, saying the bank has "relative safety on high ground" amid sector turmoil that was initially ignited by the closure of Silicon Valley Bank in March and reignited by the auction won by JPMorgan for First Republic Bank this week. His new target implies the stock could rally 15% from Tuesday's close. That's of increasing importance as industry insiders expect more stringent regulations following the recent bank failures, he said. He said that the bank has historically had fewer write-offs than regional peers.

☆ Here are Wednesday's biggest analyst calls: Apple, Chewy, Disney, Wells Fargo, AMD, Coinbase & more
▼ + stars: | 2023-05-03 | by ( Michael Bloom | ) www.cnbc.com time to read: +7 min

Bank of America upgrades Pearson to buy from underperform Bank of America said the selloff in the British education company is overdone. Bank of America upgrades Cogent to buy from underperform Bank of America upgraded the internet services provider and says it sees "new sales growth." Bernstein upgrades Marriott to outperform from market perform Bernstein said the hotel giant has the "highest quality" earnings stream. " Evercore ISI reiterates Wells Fargo as outperform Evercore said it's sticking with the larger banks as regional concerns continue. Berenberg upgrades HSBC to buy from hold Berenberg said in its upgrade of the UK bank that it's "structurally attractive."

If the Fed opts to pause, Treasury yields are expected to decline. Stocks that could gain on falling interest rates Here are the top stocks that are poised to move higher if the Fed signals it will pause rate increases. The gold miner benefits from a rise in gold prices, and in general, gold tends to rise when interest rates fall. Meanwhile, genetics company Illumina should gain if interest rates fall, according to its correlation to the SHY ETF. Stocks poised to gain on rate increases However, if the Fed suggests rate hikes will continue, short-term Treasury yields will likely go up, benefiting these stocks.

☆ Online banks sweeten CD rates as institutions compete for deposits
▼ + stars: | 2023-05-03 | by ( Darla Mercado | Cfp | ) www.cnbc.com time to read: +3 min

Online banks are boosting rates on savings accounts and certificates of deposits as fear of deposit flight plagues regional institutions. Bread offers an annual percentage yield (APY) of 5.2% on a one-year CD and 4.65% APY on savings accounts. Capital One has an APY of 3.75% on its savings account, and it pays 4.15% APY for a one-year online CD. Other online institutions paying attractive rates on one-year CDs include Synchrony Financial, which pays 4.75% APY, and Ally Bank, which offers a 4.5% APY. Analysts expect higher rates from online banks to spur other institutions to raise their deposit betas – that is, the amount by which rates paid to customers increases following a boost in the fed funds rate.

☆ A Timeline of How the Banking Crisis Has Unfolded
▼ + stars: | 2023-05-01 | by ( Madeleine Ngo | ) www.nytimes.com time to read: +9 min

March 9Gregory Becker, the chief executive of Silicon Valley Bank, urged venture capital firms to remain calm on a conference call. March 10In the biggest bank failure since the 2008 financial crisis, Silicon Valley Bank collapsed after a run on deposits . Regional bank stocks plunged after the unexpected seizure of Silicon Valley Bank and Signature Bank , with shares of First Republic tumbling 60 percent. The Treasury secretary believed the actions by the private sector would help underscore confidence in the stability of the banking system. April 28The Fed released a report faulting itself for failing to “take forceful enough action” ahead of Silicon Valley Bank’s collapse.

☆ Banks are finally admitting they have a problem with billions of dollars in looming real-estate defaults
▼ + stars: | 2023-05-01 | by ( Daniel Geiger | ) www.businessinsider.com time to read: +7 min

This earnings season, some major banks bucked tumult in the sector by raking in record revenues and surpassing Wall Street expectations. The bank separately disclosed $725 million of "non-accrual loans" tied to office assets — debts that are already delinquent on payments. That was a nearly fourfold increase in dollar volume of bad office loans over the previous quarter held by the bank. Even some loans tied the nation's robust market for apartment buildings have faltered recently. Anderson said about $760 billion of office loans were held by banks, which amounts to roughly 35% of their commercial-real-estate debt.

☆ SVB's former parent may need new funding after $2bln cash seizure
▼ + stars: | 2023-04-26 | by ( Dietrich Knauth | ) www.reuters.com time to read: +2 min

The FDIC has also not fully explained why the cash was seized, Bromley said. FDIC's attorney, Derek Baker, told Glenn that SVB Financial's bank accounts were properly seized as part of FDIC's takeover of the failed bank. The cash is being held as a set-off against the regulator's costs in stepping in to protect SVB customer deposits, and FDIC is working to provide more detail about its claims against SVB Financial, Baker said. Glenn said he needed more information about the FDIC's authority to seize cash and how disputes related to the seizure should be resolved. SVB Financial is also still waiting for the full return of financial records that were seized as part of the bank takeover.

☆ SVB's former parent may need new funding after $2 billion cash seizure
▼ + stars: | 2023-04-26 | by ( Dietrich Knauth | ) www.reuters.com time to read: +2 min

April 26 (Reuters) - Silicon Valley Bank's former owner may need to take out a bankruptcy loan amid uncertainty about the U.S. Federal Deposit Insurance Company's seizure of $2 billion in cash from the company, its attorney said Wednesday. The FDIC has also not fully explained why the cash was seized, Bromley said. FDIC's attorney, Derek Baker, told Glenn that SVB Financial's bank accounts were properly seized as part of FDIC's takeover of the failed bank. Glenn said he needed more information about the FDIC's authority to seize cash and how disputes related to the seizure should be resolved. SVB Financial is also still waiting for the full return of financial records that were seized as part of the bank takeover.

☆ SVB CEO, CFO resign, company appoints turnaround expert as interim finance head
▼ + stars: | 2023-04-21 | by ( ) www.reuters.com time to read: +1 min

April 21 (Reuters) - SVB Financial Group's CEO and chief financial officer resigned this week while the collapsed lender's restructuring committee appointed a turnaround expert as interim CFO, according to a regulatory filing on Friday. CEO Gregory Becker resigned on April 19, while finance chief Daniel Beck left the company on April 18, SVB said. The two top executives were sued in March by shareholders who accused them of concealing how rising interest rates would leave its Silicon Valley Bank unit "particularly susceptible" to a bank run. The restructuring committee appointed Nicholas Grossi of A&M as the company's interim chief financial officer on April 20, according to the filing. The regulators then agreed to backstop a deal for regional lender First Citizens BancShares (FCNCA.O) to acquire Silicon Valley Bank.

☆ SVB says CEO, CFO resigned this week
▼ + stars: | 2023-04-21 | by ( ) www.reuters.com time to read: +1 min

April 21 (Reuters) - SVB Financial Group CEO Gregory Becker and financial chief Daniel Beck resigned this week, the collapsed lender said in a regulatory filing on Friday. Becker resigned on April 19, while Beck left the company on April 18, SVB said. The two top executives were sued in March by shareholders who accused them of concealing how rising interest rates would leave its Silicon Valley Bank unit "particularly susceptible" to a bank run. The restructuring committee appointed Nicholas Grossi of A&M as the company's interim chief financial officer on April 20, according to the filing. The regulators then agreed to backstop a deal for regional lender First Citizens BancShares (FCNCA.O) to acquire Silicon Valley Bank.

☆ Morning Bid: Oil price relapse
▼ + stars: | 2023-04-20 | by ( ) www.reuters.com time to read: +4 min

Although oil prices have not yet reversed all their gains from OPEC move, Brent is down more than 5% over the past week and the year-on-year deflation in oil prices is running at 24%. And there's also signs oil loading from Russia's western ports this month is rising to the highest since 2019 -= despite Moscow's pledge to cut output. Tesla (TSLA.O) shares dropped 2% after the electric-vehicle maker's sixth U.S. price cut this year. Helped by the oil price retreat, 2-year U.S. Treasury yields fell back almost 10 basis points to 4.19%. VIX and bear marketsShare price performance, earnings and sales for TeslaReuters GraphicsReuters GraphicsBy Mike Dolan, <a href="mailto:mike.dolan@thomsonreuters.com" target="_blank">mike.dolan@thomsonreuters.com</a>.

☆ Deposit flight at U.S. regional banks blights interest income gains
▼ + stars: | 2023-04-20 | by ( ) www.reuters.com time to read: +2 min

The flight of deposits at Fifth Third Bancorp (FITB.O), Comerica (CMA.N), Truist Financial Corp (TFC.N) and KeyCorp (KEY.N) dampened gains that the lenders made in their interest income benefiting from the U.S. Federal Reserve's aggressive monetary policy tightening through the past year. Only, Huntington Bancshares Inc (HBAN.O), among banks reporting on Thursday, managed to grow average total deposits by $472 million from the prior quarter. In the aftermath, the KBW Regional Banking Index (.KRX) has tumbled 19.4% this year, through previous close. Clients are expected to continue the shift toward other assets that bring in higher returns unless the banks increase returns, analysts have said. Citizens Financial (CFG.N) on Wednesday cut its forecast for net interest income, expecting an increase in the rate it pays out for deposits to clients.

☆ Huntington Bank CEO on strong Q1 earnings
▼ + stars: | 2023-04-20 | by ( ) www.cnbc.com time to read: 1 min

Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailHuntington Bank CEO on strong Q1 earningsHuntington Bancshares CEO Steve Steinour joins 'Power Lunch' to discuss how Huntington Bank's business is doing, the company's loan growth, and more.

☆ Earnings from Club consumer, health and bank stocks will be our main focus in the week ahead
▼ + stars: | 2023-04-15 | by ( Zev Fima | ) www.cnbc.com time to read: +7 min

Corporate earnings won't have to share the spotlight with major inflation data in the week ahead as they did during this past week's up-and-down market. From Morgan Stanley, we suspect Friday's bank earnings foreshadow a good release. This past week, we spoke about the importance of listening to what industry players aside from those you're invested in as a way to analyze the competitive landscape. Here are some of those other earnings reports and the economic numbers out in the week ahead. Club trades of the week We made just one trade this past week, in a market that was overbought , purchasing 25 shares of Palo Alto Networks (PANW).

☆ Next week's stock market moves hinge on the longer-term outlook for earnings
▼ + stars: | 2023-04-14 | by ( Scott Schnipper | ) www.cnbc.com time to read: +7 min

Next week's market action could be dictated by how well the latest quarterly reports from corporate America are received. Expectations about the immediate earnings outlook have been down for so long, the actual numbers themselves could look like up to investors. Earnings for all financials in the S & P 500 are actually expected to expand in the first quarter by 4.3%. ET: NAHB Housing Market Index (April) Earnings: Charles Schwab, M & T Bank, State Street, J.B. Hunt Transport Tuesday 8:30 a.m. ET: Philadelphia Fed President Patrick Harker speaks on the economic outlook Earnings: AT & T, American Express, D.R.

☆ First Citizens Won the SVB Auction. Can It Win Over SVB’s VC and Startup Clients?
▼ + stars: | 2023-04-12 | by ( Marc Vartabedian | ) www.wsj.com time to read: 1 min

While First Citizens Bancshares Inc. may not have the record of Silicon Valley Bank in serving the startup ecosystem, venture capitalists and entrepreneurs who are familiar with the Raleigh, N.C.-based bank say its emphasis on customer relations fits well with SVB’s flexible approach to serving clients. Venture and startup players had wondered about the fate of SVB since the Federal Deposit Insurance Corp. took ownership of it in March and put it up for auction. First Citizens has since taken on most of the assets and liabilities...

☆ Jim Cramer's top 10 things to watch in the stock market Wednesday
▼ + stars: | 2023-04-12 | by ( Jim Cramer | ) www.cnbc.com time to read: +4 min

Deutsche Bank named industrial Club holding Honeywell (HON) a short-term investment idea, citing its "highly attractive portfolio at this point in the cycle." The firm maintained an overweight rating on JNJ stock and a price target of $195 per share. Susquehanna maintained a positive rating on the stock and price target of $260 per share. As a subscriber to the CNBC Investing Club with Jim Cramer, you will receive a trade alert before Jim makes a trade. Jim waits 45 minutes after sending a trade alert before buying or selling a stock in his charitable trust's portfolio.

☆ Stocks making the biggest moves midday: Nvidia, Palantir, Western Alliance, Johnson & Johnson and more
▼ + stars: | 2023-04-05 | by ( Samantha Subin | ) www.cnbc.com time to read: +4 min

The Western Alliance Bancorporation logo is seen in this photo illustration on 13 March, 2023 in Warsaw, Poland. This development would give U.S. government customers and industry partners access to enterprise-grade capabilities by Palantir and Microsoft. Western Alliance also said it has enough liquidity to cover the remaining uninsured deposits. Johnson & Johnson — Shares rose about 3%. Conagra Brands — The packaged goods food company rose 3% after topping Wall Street's expectations on the top and bottom lines for the recent quarter, according to FactSet.

☆ Here are Wednesday's top analyst calls of the day: Disney, Apple, Amazon, Dutch Bros, Meta & more
▼ + stars: | 2023-04-05 | by ( Michael Bloom | ) www.cnbc.com time to read: +6 min

Here are Wednesday's biggest calls on Wall Street: Bank of America reiterates Disney as buy Bank of America said Disney remains "best-in-class." Piper Sandler reiterates Apple as overweight Piper said its survey checks show Apple is still a top pick for teens. Bank of America upgrades Livent to buy from neutral Bank of America said the lithium company's "value proposition" has increased. " Wedbush upgrades Dutch Bros to outperform from neutral Wedbush upgraded the coffee chain and said it sees more upside. Bank of America reiterates Apple as buy Bank of America raised its price target on Apple to $168 per share from $158 and said it sees iPhone trends stabilizing.

First Citizens Bancshares ' acquisition of Silicon Valley Bank should result in a higher-quality earnings stream, according to UBS. Analyst Brody Preston double upgraded shares to buy from sell. The U.S. Federal Deposit Insurance Corporation announced March 27 that First Citizens would buy Silicon Valley Bank's deposits and loans less than three weeks after the collapse of the venture-capital focused bank . "We view the balance sheet as more well positioned to handle a recession going forward given the low loss nature of the SIVB loan portfolio, which should result in a higher quality earnings stream," Preston wrote in a Wednesday note. FCNCA YTD mountain First Citizens Bancshares stock —CNBC's Michael Bloom contributed to this report.

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