First Citizens BancShares is in talks to acquire Silicon Valley Bank (SVB), Reuters reported, citing people with knowledge of the matter.
It is understood that the North Carolina-based bank may reach an agreement for the ownership of SVB from the Federal Deposit Insurance Corp (FDIC) on Sunday (US time).
Currently, First Citizens has approximately $109 billion in assets and $89.4 billion in total deposits.
SVB became the second largest bank to fail due to deposit problems it faced amid a continued rise in US interest rates.
The FDIC, which now controls the bank's assets, was forced to make separate offers for SVB Private and SVB after failing to sell both together over the past two weekends.
First Citizens Bank will acquire all of SVB's deposits and loans from the FDIC through its First-Citizens Bank & Trust Company unit with the purchase of approximately $72 billion of Silicon Valley Bank's assets at a $16.5 billion discount.
The FDIC estimated the cost of Silicon Valley Bank's failure to the Deposit Insurance Fund (DIF) to be approximately $20 billion. The exact cost will be determined when the FDIC finalizes the acceptance.
As a result, 17 former SVB branches will open as First-Citizens banks on Monday.
