First Citizens Bank CEO on Silicon Valley bank asset purchasing

First Citizens Bank CEO on Silicon Valley bank asset purchasing

After a period of stress in the banking sector, things are looking up, as First Citizens Bank announces its purchase of a large portion of Silicon Valley Bank’s assets, totaling around $72 billion. Frank Holding, Chairman and CEO of First Citizens Bank, joined the discussion to talk about the acquisition and its implications.

Holding sees this move as an opportunity to instill confidence in the deposit system, and for regulators and banks to come together to protect deposits. First Citizens Bank has a lot of experience in acquisitions, including their most recent completed acquisition in early 2022. Holding feels excited about this new transaction, and the stability and expertise that his bank can bring to it, adding stability to the industry.

When asked about the short amount of time it took to complete the acquisition, Holding acknowledges the FDIC for its leadership and recognizes the challenging process. He feels that the outcome was positive for all parties involved.

As for the business that Silicon Valley Bank was in, Holding believes that his conservative relationship bank has much in common with Silicon Valley Bank’s passion for customer service. They look forward to learning and listening to the venture market and adding associates to expand their capabilities.

However, this acquisition does not include SVB’s private banking business, which the Feds are still looking to sell.