Holding’s sister Hope Bryant is the vice chairwoman of First Citizens, and his brother-in-law Peter Bristow is its president. Frank Holding Jr., 61, who went to school at the University of North Carolina at Chapel Hill and earned an MBA from the University of Pennsylvania’s Wharton School, has spent his whole professional career at the bank, became its president in 1994 and took over as CEO from his uncle Lewis in 2008.
serving as an executive alongside his brother. His son Lewis Holding became CEO for a half-century after the patriarch died in 1957, with Frank Holding Sr. Frank Jr.’s grandfather Robert Powell Holding arrived as an employee in 1918 and became president in 1935. “They first made their very good investments during the Depression and right after the Depression, and they've always been smart about picking up things in hard times.”įirst Citizens was founded in 1898 as the Bank of Smithfield serving farmers in Johnston County, North Carolina. “The Holdings have been very smart people for 100 years,” says McColl, 87, now the retired cofounder and chairman emeritus of private equity firm Falfurrias Capital. turned North Carolina's NCNB into a banking giant in the late 20th century that merged with Bank of America. NCNB was renamed Nationsbank in 1991 and ultimately acquired San Francisco's Bank of America, growing assets from $12 billion in 1983 to more than $640 billion by the end of McColl’s tenure in 2000. The Holding family’s expansion in banking is reminiscent of the rise of another “super” regional bank out of North Carolina, NCNB, under the leadership of Hugh McColl Jr., a former marine who made hundreds of acquisitions in the 1980s and 1990s. Tangible book value per share could double with this deal.” “He’s creating an enormous amount of shareholder value, and the math on this acquisition is just eye-popping. “Frank Holding is one of the most opportunistic bank buyers out there,” says Brady Gailey, a managing director at KBW. According to regulatory filings, First Citizens had 32% of its $91 billion in deposits uninsured as of the end of 2022. The ailing bank had more than 85% of its $175 billion in deposits uninsured.
In early March, SVB experienced a bank run as its tech startup customers rushed to withdraw more than $40 billion in deposits.
The $72 billion loan portfolio was acquired at a $16.5 billion discount, the FDIC said in its press release, and an SEC filing said First Citizens received a $35 billion five-year loan from the FDIC at a 3.5% fixed rate to finance the deal. It has more than 500 branches in 21 states, heavily concentrated in the fast-growing Southeast and California. First Citizens is taking on $110 billion in assets, $56 billion in deposits and $72 billion in loans from SVB, becoming one of the 20 largest banks in America now with $219 billion in assets.
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