The family behind First Citizens Bank has recently seen their wealth double to $2.2 billion, thanks to their purchase of Silicon Valley Bank's assets out of bankruptcy. CEO Frank Holding Jr. and his four sisters collectively own about 20% of the bank's stock and have purchased more than 20 failed banks since the 2008 financial crisis.
First Citizens Bank was founded in 1989 and purchased about $72 billion of SVB's assets at a discount of $16.5 billion in March, which helped the bank join the ranks of the 20 largest US banks. Since then, the bank's shares have climbed 7.5% to $1,175, following better-than-expected deposit results.
While the Holdings family doesn't hold a majority stake in First Citizens, they have significant influence through a dual-class structure. Their Class B shares carry 16 voting rights each, allowing them to have more control over the bank's decisions.
Additionally, Holding purchased around $260,000 worth of First Citizens stock in early March when it was valued at around $650 a share. Now, those shares are worth 81% more.
The Holdings family's success in banking can be attributed to their expertise in purchasing failed banks and turning them around. Their strategy has proven effective in growing their wealth and the success of their bank, despite not holding a majority stake.
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