10 Best Bank Stocks To Invest In For the Long Term

8. First Citizens BancShares, Inc. (NASDAQ:FCNCA)

Number of Hedge Fund Investors In Q3 2024: 46

First Citizens BancShares, Inc. (NASDAQ:FCNCA) is a regional bank based in North Carolina. As was the case with the broader banking sector, its shares soared by 18% after the November election. The stock is up 53% year-to-date as it enjoys tailwinds from First Citizens BancShares, Inc. (NASDAQ:FCNCA)’s prudent moves during the 2023 mini-crisis in the banking industry. The firm used this opportunity to buy Silicon Valley Bank and add a large set of customers to its portfolio. However, the share price growth means that First Citizens BancShares, Inc. (NASDAQ:FCNCA) is trading at 42% over its book-value-per-share, which creates questions about whether the stock can appreciate further or if future growth is already priced into the shares. The bank’s decision to buy SVB’s assets also means that in a low interest rate era that stimulates venture capital activity, First Citizens BancShares, Inc. (NASDAQ:FCNCA) can see greater tailwinds from SVB’s presence in the technology industry.

During the Q3 2024 earnings call, First Citizens BancShares, Inc. (NASDAQ:FCNCA)’s management shared details about what might happen in the venture capital market as rates come down:

“So recognizing we’re not providing preliminary guidance on ‘25 at this point, there continues to be a substantial amount of dry powder, capital that’s been committed to venture capital, general partners that has yet to be invested. I think the stat for the third quarter is something like $328 billion or something like that. So a lot of money on the sidelines waiting to be invested. We’ve just seen the first 50 basis point rate cut with the expectation of potentially more. And that we believe that I think Craig said in his opening remarks, we hope we’ll begin to unstick this market, right? That things will continue to thaw and given that we’re now nine, 10 quarters in to what has been a very significant downturn in the innovation economy space. And so while I can’t predict the future and nobody knows exactly when that investment activity will pick back up, I think again, we remain well positioned for that inevitability when it occurs.”