IM Deals Blog

First Citizens to Acquire SVB

Written by admin | Apr 03, 2023

On March 27, 2023 First Citizens BancShares Inc. announced an agreement to buy the commercial banking business of Silicon Valley Bank, including its SVB Private wealth management and private banking operations. 

Under the terms of the transaction, First Citizens BancShares Inc. (“First Citizens”) will acquire the commercial banking business of Silicon Valley Bank (“SVB”) after its collapse in March. On March 10, the Federal Deposit Insurance Corp. (the “FDIC”) seized the assets of SVB following a bank run by its depositors. First Citizens will acquire $72 billion of SVB’s assets at a discount of $16.5. First Citizens has also entered into a loss-share agreement with the FDIC of up to 50% on loan losses greater than $5 billion. The investment banking firm Piper Sandler advised the FDIC on the transaction with First Citizens.

SVB, based in Santa Clara, California, was a commercial bank primarily serving technology firms and venture-based startups. SVB was the parent company of SVB Private, which oversaw $17 billion in assets. SVB Private offered wealth management, private banking, lending, and investment advisory services to private equity and venture capital professionals as well as to vineyard developers. SVB Private will be sold separately from the commercial and investment bank divisions. 

First Citizens, based in Raleigh, North Carolina is a commercial bank with $109 billion in assets under management as of December 31, 2022.  Following the announcement of this transaction, First Citizens’ share price markedly increased, and the bank became one of the 15 largest in the United States.

To read the press release: please click here.