First Citizens Bank to Expand Presence in Silicon Valley with Acquisition of Deposits and Loans from Silicon Valley Bank
First Citizens Bank has announced a deal to acquire the deposits and loans of Silicon Valley Bank,
a move that could give the Charlotte-based lender a larger presence in the technology-focused markets of California and New York.
The agreement will see First Citizens Bank acquire $14.5 billion in deposits from the Silicon Valley Bank, giving it the ability to increase its outreach to tech companies across both states.
First Citizens is aiming for an improved market position in areas that are home to many of America's leading technology companies.
First Citizens Bank CEO Frank B. Holding Jr. said that acquiring Silicon Valley Bank would build on an already robust nationwide presence and strengthen their ability to meet the needs of fast-growing startups and established technology firms alike.
"This transaction is an important step forward in our strategy to invest in the growth of our core banking activities," Holding said in a statement released Tuesday morning.
The acquisition will also give First Citizens Bank control over more than 40 branches currently operated by Silicon Valley Bank, including locations in San Francisco, Los Angeles, New York City, Seattle, Boston and Austin.
This will allow them greater access to deep venture capital networks throughout these key metropolises that have fueled much of America's innovation over recent years.
Silicon Valley Bank chief executive Greg Becker said that joining forces with First Citizens would provide both banks with new opportunities for growth as well as increased efficiency for customers working with both organizations.
"This combination will allow us to expand our capabilities...by leveraging the strength and reach of [First Citizens'] branch network," Becker said in Tuesday's announcement.
"We look forward to further serving our clients together."
First Citizens' purchase of Silicon Valley Bank is subject to regulatory approval but is expected to close by July 2021 if no obstacles arise along the way.
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