Shares of First Republic Bank rose almost 30% in pre-market trading Monday on the news that First Citizens Bank will be acquiring troubled lender Silicon Valley Bank (SVB).
First Citizens has entered into a deal to assume all loans and deposits of Silicon Valley Bridge Bank, the entity created by the Federal Deposit Insurance Corp following the closure of SVB.
Further lifting bank stocks were reports that US authorities were considering expanding a lending facility to bolster banks’ balance sheets.
First Republic shares were up 27.8% at US$12.36 in pre-market trading after losing about 90% of their value this month.
Western Alliance Bancorp was up 6.5%, PacWest Bancorp 3.2%, Bank of America Corporation 2.6%, Citigroup Inc (NYSE:C) 2.4%, and JPMorgan and Chase 1.9%.
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