- My Forums
- Tiger Rant
- LSU Recruiting
- SEC Rant
- Saints Talk
- Pelicans Talk
- More Sports Board
- Fantasy Sports
- Golf Board
- Soccer Board
- O-T Lounge
- Tech Board
- Home/Garden Board
- Outdoor Board
- Health/Fitness Board
- Movie/TV Board
- Book Board
- Music Board
- Political Talk
- Money Talk
- Fark Board
- Gaming Board
- Travel Board
- Food/Drink Board
- Ticket Exchange
- TD Help Board
Customize My Forums- View All Forums
- Show Left Links
- Topic Sort Options
- Trending Topics
- Recent Topics
- Active Topics
Started By
Message
First Citizens to take over $72 billion in SVB assets
Posted on 3/27/23 at 11:51 am
Posted on 3/27/23 at 11:51 am
Government still on the hook for $90 billion; with the FDIC agreeing to an 8 year loss sharing agreement on loans taken over by First Citizens.
It legitimately looks like they struggled to find anyone to buy SVB assets.
It legitimately looks like they struggled to find anyone to buy SVB assets.
quote:
LINK
orth Carolina-based First Citizens will buy Silicon Valley Bank, the tech industry-focused financial institution that collapsed earlier this month, rattling the banking industry and sending shockwaves around the world.
The sale involves the sale of all deposits and loans of SVB to First-Citizens Bank and Trust Co., the FDIC said in a statement late Sunday. Customers of SVB automatically will become customers of First Citizens, which is headquartered in Raleigh. The 17 former branches of SVB will open as First Citizens branches Monday.
The collapse of Silicon Valley Bank on March 10 prompted the FDIC and other regulators to act to protect depositors to prevent wider financial turmoil.
quote:
In both cases, the government agreed to cover deposits, even those that exceeded the federally insured limit of $250,000, so depositors at Silicon Valley Bank and Signature Bank were able to access their money.
1
Posted on 3/27/23 at 1:31 pm to dewster
First citizen stock price up 50% today. Go figure.
Posted on 3/27/23 at 4:06 pm to Im4datigers
I don’t know a ton about banking, but one of SVB’s major client bases was Venture Capital based in Silicone Valley where SVB was based right? So now that it’s not based there, would their Venture Capital clients not be looking at other options? I understand that they could still maintain their staff and VC Dept headquarters there but would that be enough?
Posted on 3/27/23 at 4:30 pm to baldona
quote:
I don’t know a ton about banking, but one of SVB’s major client bases was Venture Capital based in Silicone Valley where SVB was based right? So now that it’s not based there, would their Venture Capital clients not be looking at other options?
This was my original thought, too. Lots of Cali people who are going to be confused when their bank is now in the Southeast
I imagine this was the problem in selling SVB b/c this WILL hurt deposits and it seems all the Cali banks are hurting now without SVB
Posted on 3/27/23 at 5:19 pm to SlowFlowPro
quote:
Lots of Cali people who are going to be confused when their bank is now in the Southeast
quote:
The 17 former branches of SVB will open as First Citizens branches Monday.
All the original locations in Silicon Valley will remain, the name will just change to First Citizens. The VC's and PE firms probably won't be dealing with many people at all from Raleigh NC.
Posted on 3/27/23 at 6:06 pm to skewbs
First Citizens is a good bank. They have a niche with doctors, dentists and other professionals. They rarely do commercial investment real estate unless it’s a relationship buying a one off.
If they want a deal, they will not lose it.
They are probably looking to diversify themselves off this niche and the SVB clients are all digital banking people anyway.
First Citizens does not cater to everyone. They know what they want and they know those business lines inside and out. They will do fine with SVB’s clients.
If they want a deal, they will not lose it.
They are probably looking to diversify themselves off this niche and the SVB clients are all digital banking people anyway.
First Citizens does not cater to everyone. They know what they want and they know those business lines inside and out. They will do fine with SVB’s clients.
Posted on 3/27/23 at 8:57 pm to Im4datigers
quote:
First Citizens does not cater to everyone. They know what they want and they know those business lines inside and out. They will do fine with SVB’s clients.
But the SVB clients have their pic of any bank in the world and could have chosen First Citizens anytime. We can say what we want but mergers and acquisitions always try and act like nothing will change but that’s rarely the case. Like I said IdK but I gotta imagine a lot of those guys are shopping around or strongly considering it.
Posted on 3/28/23 at 6:01 am to baldona
quote:
But the SVB clients have their pic of any bank in the world and could have chosen First Citizens anytime. We can say what we want but mergers and acquisitions always try and act like nothing will change but that’s rarely the case. Like I said IdK but I gotta imagine a lot of those guys are shopping around or strongly considering it.
100% agree as banks are never the same after mergers. But FC is a very smart and well led bank. I also have to believe they see value and will likely keep quite a few employees of SVB especially on the west coast.
Let also not forget that there was a sweetheart deal probably done behind the scenes with the FDIC for FC to step in. That’s usually how it works.
Posted on 3/28/23 at 7:32 am to Im4datigers
Hopefully they keep the DEi people! That is crucial
Posted on 3/28/23 at 10:41 am to Im4datigers
quote:
I also have to believe they see value and will likely keep quite a few employees of SVB especially on the west coast.
According to FCB, they will.
quote:
First Citizens CFO Craig Nix said during a call on Monday with investors that the bank will “retain all employees in the acquired businesses.” Nix said the company would “embrace the talent of our legacy SVB employees, and embrace their business capability, and then reiterate to their clients that First Citizens has an unwavering focus on holistic client relationships.”
Posted on 3/28/23 at 3:08 pm to skewbs
As mentioned, here’s the deal that got done behind the scenes.
1. 'First Citizens took over SVB’s...$72 billion in loans at a discount of $16.5 billion.'
2. 'First Citizens was the winner among 18 bidders who put in 27 bids for all or part of SVB.'
FCB was the high bid of a deep bidder pool, and paid 77 cents for #SVB's loan portfolio.
1. 'First Citizens took over SVB’s...$72 billion in loans at a discount of $16.5 billion.'
2. 'First Citizens was the winner among 18 bidders who put in 27 bids for all or part of SVB.'
FCB was the high bid of a deep bidder pool, and paid 77 cents for #SVB's loan portfolio.
Posted on 3/28/23 at 3:40 pm to baldona
quote:First off it's a new day. What may have been the case in the recent past, isn't necessarily reality in the post-SVB world.
But the SVB clients have their pic of any bank in the world
Second, there are exclusivity arrangements many clients signed in order to have SVB bridge their IPO efforts. The clients, and all their money, are contractually bound. Rights were transferred to First Citizens.
This post was edited on 3/28/23 at 4:51 pm
Posted on 3/28/23 at 3:43 pm to Im4datigers
quote:Indeed.
First Citizens is a good bank. They have a niche with doctors, dentists and other professionals. They rarely do commercial investment real estate unless it’s a relationship buying a one off.
Page 1 of 1
Popular
Back to top
Follow TigerDroppings for LSU Football News