Valley National Bancorp and First Citizens BancShares Inc. are both in the running to acquire the collapsed Silicon Valley Bank, sources close to the matter have confirmed. Both regional banks submitted bids to the Federal Deposit Insurance Corp. (FDIC) before the Friday night deadline.
The FDIC took control of SVB following the bank’s failure two weeks ago and has since been looking to sell SVB. According to sources, the FDIC could select a winning bid as soon as this weekend.
Alternatively, the FDIC could decide to put a hold on the sale of SVB or seek another suitor if both bids are deemed to be insufficient. First Citizens, based in Raleigh, North Carolina, has a market value of $8.4 million while New Jersey-based Valley National has a valuation of $4.7 billion.
SVB collapsed two weeks ago in less than 48 hours after abandoning its plan to boost its capital. The bank incurred large losses from the bulk sale of its securities due to surging interest rates, with investors and depositors alike withdrawing money in response.