News Update

Advanced Talks: First Citizens Set to Acquire Silicon Valley Bank

• ByStartupStory     |    March 27, 2023

According to recent reports, First Citizens BancShares Inc is in the advanced stages of negotiations to acquire Silicon Valley Bank from the Federal Deposit Insurance Corp (FDIC). A deal between the two entities could be reached in the near future. Bloomberg News initially reported on this development.

With approximately $109 billion in assets and $89.4 billion in total deposits, First Citizens BancShares Inc is among the largest purchasers of distressed US banks. As per recent reports, the company is currently in talks to acquire Silicon Valley Bank from the Federal Deposit Insurance Corp (FDIC). No comments have been received from either First Citizens or the FDIC on this matter yet.

Bloomberg News reported that First Citizens BancShares Inc had presented an offer for Silicon Valley Bank soon after its failure, and also participated in the data room that was arranged by the Federal Deposit Insurance Corp (FDIC) for another sale procedure. At the conclusion of 2022, the bank was listed as the 30th largest commercial bank in the United States by assets, according to Federal Reserve data.

Efforts by the Federal Deposit Insurance Corp (FDIC) to sell both Silicon Valley Bank and its subsidiary, SVB Private, together in the past two weekends were unsuccessful, leading to a request for separate offers for each entity by March 24. In a deal worth over $2 billion, First Citizens BancShares Inc acquired CIT Group Inc last year. 

As per a Bloomberg report, First Citizens BancShares Inc has purchased over 20 FDIC-assisted banks across the United States since 2009, including locations ranging from Washington to Wisconsin to Pennsylvania, following the financial crisis. Valley National Bancorp (VLY.O) was also reported to have submitted a bid for Silicon Valley Bank, according to a separate Bloomberg report on March 25. 

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