First Citizens considers acquiring Silicon Valley Bank

Oluwanifemi Ojo
Oluwanifemi Ojo
Silicon Valley Bank

First Citizens BancShares Inc is considering the acquisition of the Silicon Valley Bank that was closed down by the United State regulators on March 10, 2023, owing to several factors including high-interest rate and the inability of the bank to sustain investment causing a bank run.

Bloomberg News on Saturday reported that the information was according to people familiar with the matter. It noted that there is at least one other potential buyer for the failed bank.

Reuters previously reported that the Federal Deposit Insurance Corp who took over the bank had asked banks interested in acquiring Silicon Valley Bank and Signature Bank to submit bids by March 17.

The sources, who asked not to be named, noted that the Raleigh, North Carolina-based lender is among a handful of other potential buyers in the data room.

Offers are due on Sunday morning, and the FDIC will decide on whether to pursue a full sale or breakup based on any bids received, according to one of the sources.
The sources have stated that no final decision has been made yet, and First Citizens may opt against making a bid.

Meanwhile, representatives for both First Citizens and the FDIC have not yet responded to requests for comment outside of regular business hours.

The FDIC took over Silicon Valley Bank and Signature Bank last Friday and Sunday, respectively, after the collapses of the two mid-sized US lenders sparked concerns of a contagion in global financial markets.

This will be the FDIC’s second attempt at selling Silicon Valley Bank after a failed effort a week ago. According to sources, the FDIC retained investment bank Piper Sandler to run a new auction.

Last year, First Citizens acquired commercial lender CIT Group Inc. for more than $2 billion in a deal that closed.

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