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The two financial institutions which purchased from the US Federal Deposit Insurance Corporation (FDIC) the bridge banks of Signature Bank and Silicon Valley Bank (SVB) that failed in March 2023 experienced significant increases in their letter of credit values for the latest quarterly reporting period.
First Citizens Breaks Top 10 in US LC Issuance
At the close of first quarter 2023, First Citizens more than doubled the value of its outstanding LCs from USD 2.5 billion at year-end 2022 to USD 5.7 billion after its acquisition of SVB on 27 March, propelling First Citizens into the Top 10 (9th) for this quarter from its prior quarterly ranking of 16th.
Flagstar Leaps to 26th Spot
By the end of first quarter 2023, Flagstar Bank, a subsidiary of New York Community Bancorp, which acquired the former Signature Bank on 20 March saw its LC portfolio and ranking jump from USD 540 million (41st among US banks) for 4Q22 to USD 1 billion (26th) for 1Q23.
The latest installment of DCW’s reporting of quarterly LC statistics and analysis for US banks appears on page 32 of the June 2023 issue. Not yet a subscriber? You can subscribe here or contact us at info@iiblp.org to make arrangements.
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This update was taken from the June 2023 issue of Documentary Credit World. Sign up for a free trial issue here.
