Why Is First Citizens Bank Stock Skyrocketing Today?

First Citizens FCNCA shares are trading higher on Monday after First-Citizens Bank & Trust Company entered an agreement to purchase all deposits and loans of Silicon Valley Bank.

As part of the agreement, First Citizens Bank will assume Silicon Valley Bridge Bank, N.A. assets of $110 billion, deposits of $56 billion and loans of $72 billion, based on latest information provided by the FDIC. First Citizens Bank will additionally receive an available line of credit from the FDIC for contingent liquidity purposes.

In addition, First Citizens Bank has entered into a loss share agreement with the FDIC to provide further downside protection against potential credit losses.

The transaction brings together complementary strengths of both banks' middle market commercial banking and private banking capabilities and leverages common platforms, vendor partners and technologies. Prudent risk management approach will continue to protect customers and stockholders through all economic cycles and market conditions.

Frank B. Holding, Jr., chairman and CEO of First Citizens, said: "We have partnered with the FDIC to successfully complete more FDIC-assisted transactions since 2009 than any other bank, and we appreciate the confidence the FDIC has placed in us once again. We look forward to building relationships with our new customers and positioning our company for continued success as we affirm our commitment to support the integrity of our nation's banking system."

FCNCA Price Action: First Citizens has a 52-week high of $885.15 and a 52-week low of $505.15.

First Citizens shares are up 51.1% at $880.38 at the time of writing, according to Benzinga Pro.