Citizens Financial eyes bid for SVB’s non-public financial institution – sources

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NEW YORK — Citizens Financial Group Inc is engaged on a bid to amass the non-public banking enterprise of failed Silicon Valley Bank, two folks aware of the matter stated on Thursday.

Citizens, one of many largest U.S. regional banks, is making ready to submit a suggestion within the public sale of the enterprise, which is named SVB Private, the sources stated.

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The public sale is being dealt with by the Federal Deposit Insurance Corporation (FDIC), which has set a Friday deadline for affords, the sources added.

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The sources cautioned that no deal is definite and requested to not be recognized discussing confidential deliberations.

The FDIC, which now controls the Silicon Valley Bank property, and Citizens Financial declined to remark.

The FDIC tried to promote SVB Private alongside Silicon Valley Bank over the past two weekends after the technology-focused lender was taken over by regulators on March 10. But it did not clinch a deal to promote them each collectively.

It has since requested for separate affords for SVB Private and Silicon Valley Bank by March 24. SVB Financial Group, the previous father or mother of Silicon Valley Bank which filed for chapter safety final week, shouldn’t be a part of the method.

SVB Private gives banking, wealth administration and belief companies to high-net price people. An enormous a part of it contains Boston Private, a wealth supervisor acquired by Silicon Valley Bank in 2021.

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Citizens Financial has been increasing via acquisitions. It accomplished the acquisition of the U.S. East Coast department community of HSBC Holdings Plc in February 2022, and two months later closed a deal to purchase Investors Bancorp, which added to its presence between New York City and Philadelphia.

The Providence, Rhode Island-based lender is the third-largest financial institution by deposits within the state of Massachusetts, in keeping with regulatory knowledge. It has a presence in 14 states and the District of Columbia, and is ranked among the many prime 15 banks nationally by deposits.

Reuters has reported that one other regional lender, First Citizens BancShares, has been pursuing a bid for the whole thing of the Silicon Valley Bank property up on the market by the FDIC.

(Reporting by David French and Saeed Azhar in New York Additional reporting by Pete Schroeder in Washington Editing by Matthew Lewis)