First Citizen submits proposal for all failed SVBs: Sources
Photo Illustration: Pavlo Gonchar/SOPA Images/LightRocket via Getty Images
First Citizens Bankshares Inc. has submitted an offer to buy all of the failed Silicon Valley Bank, according to a person familiar with the matter.
why it matters: A buyer for the entire company would help the FDIC in its effort to stabilize the business and get SVB out of receivership.
Description: The person said First Citizens, the Raleigh, North Carolina-based lender, submitted an offer on Sunday to buy all of SVB. What price First Citizens is willing to pay, or the structure of the offer, was not immediately clear. Bloomberg was the first to report the news of the first civilian bid.
- First Citizen is a 125 year old bank that operates in 23 different states.
- According to the FDIC, it is the 30th largest commercial bank in the US with $109 billion in assets.
of note: The FDIC has been trying to find a buyer for SVB, technically known as Silicon Valley Bridge Bank, since the regulator took it into receivership on March 9. It is also trying to sell SVB Private Bank, which is part of the commercial bank.
- On Monday, the FDIC said it had received substantial interest from several parties interested in purchasing SVB, adding that it was still accepting bids from qualified financial institutions for the entire company.
- The FDIC said that to expand the pool of bidders, it is breaking up the bidding process for commercial bank and private bank.
- The FDIC is seeking bids for the Silicon Valley private bank until 8 p.m. ET on Wednesday. Bids for Silicon Valley Bridge Bank are due by 8 p.m. ET on Friday.
- The regulator said that Bridge Bank continues to operate as a chartered bank under its receivership.
zoom in: A source familiar with the matter said First Citizens plans to submit an offer for just the commercial bank and just the private bank, in addition to its full company bid.
What they are saying: “It is First Citizens Bank’s policy not to comment on market rumors or speculation,” a company spokesperson said in a statement.
- A spokesperson for SVB did not immediately respond to a request for comment.