{"id":1004654034,"date":"2023-03-29T02:16:45","date_gmt":"2023-03-29T10:16:45","guid":{"rendered":"https:\/\/www.commercialsearch.com\/news\/?p=1004654034"},"modified":"2023-03-29T05:36:46","modified_gmt":"2023-03-29T13:36:46","slug":"will-first-citizens-acquisition-of-svb-calm-fears","status":"publish","type":"post","link":"https:\/\/www.commercialsearch.com\/news\/will-first-citizens-acquisition-of-svb-calm-fears\/","title":{"rendered":"Will First Citizens\u2019 Acquisition of SVB Calm Fears?"},"content":{"rendered":"
\"George<\/a>

George Vail, Principal, Avison Young. Image courtesy of Avison Young<\/em><\/p><\/div>\n

Following a competitive bid process, First Citizens Bank<\/strong>, of Raleigh, N.C., has agreed to purchase out of Federal Deposit Insurance Corp. receivership \u201csubstantially all loans and certain other assets\u201d of the recently defunct Silicon Valley Bank<\/strong><\/a>.<\/p>\n

\u201cThe purchase of SVB was a great purchase by First Citizens, as evidenced by their stock being up over 50 percent by the close of the stock market on Monday. This acquisition will enable First Citizens to expand its business with private equity and technology firms,\u201d George Vail, principal in the Capital Markets Group, Debt & Equity, Avison Young<\/strong>, told Commercial Property Executive<\/em>.<\/p>\n

\u201cEven though SVB was sold at a discount, this should be a step in the right direction in helping calm fears concerning regional and community banks, which account for 80 percent of all commercial real estate lending,\u201d Vail added.<\/p>\n

He cautioned, however: \u201cAll bets are off if the Fed continues raising interest rates that could lead to additional bank failures.\u201d<\/p>\n

Terms of the agreement<\/h2>\n

Under the agreement, First Citizens will assume the Silicon Valley Bridge Bank, N.A. assets of $110 billion, deposits of $56 billion and loans of $72 billion (all amounts based on FDIC figures).<\/p>\n

\n

READ ALSO<\/strong>: What the UBS-Credit Suisse Deal Means for CRE<\/a><\/p>\n

\n

First Citizens will also receive an available line of credit from the FDIC for contingent liquidity purposes. Further, First Citizens Bank has entered into a loss-share agreement with the FDIC \u201cto provide further downside protection against potential credit losses.\u201d<\/p>\n

\"Frank<\/a>

Frank Holding Jr., Chairman & CEO, First Citizens Bank. Image courtesy of First Citizens Bank<\/em><\/p><\/div>\n

First Citizens Bank noted that it will not acquire any of the assets, common stock, preferred stock or debt, nor assume any other obligations of SVB Financial Group, Silicon Valley Bank\u2019s former holding company.<\/p>\n

Frank Holding Jr., chairman & CEO of First Citizens, remarked in a prepared statement that First Citizens has \u201cpartnered with the FDIC to successfully complete more FDIC-assisted transactions since 2009 than any other bank\u2026.\u201d<\/p>\n

He added that First Citizens gains significant scale, geographic diversity and compelling digital capabilities from the transaction, including additional relationships with private equity and venture capital firms.<\/p>\n","protected":false},"excerpt":{"rendered":"

This move could help bolster confidence in regional and community banks, one analyst says.<\/p>\n","protected":false},"author":882,"featured_media":1004172073,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[21825,21783,23891,21742],"tags":[33022,33278,51705],"class_list":["post-1004654034","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-finance","category-investment","category-national","category-latest","tag-avison-young","tag-first-citizens-bank","tag-silicon-valley-bank"],"acf":[],"yoast_head":"\nWill First Citizens\u2019 Acquisition of SVB Calm Fears? - Commercial Property Executive<\/title>\n<meta name=\"description\" content=\"First Citizens Bank has purchased out of Federal Deposit Insurance Corp. receivership all loans and other assets of Silicon Valley Bank.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.commercialsearch.com\/news\/will-first-citizens-acquisition-of-svb-calm-fears\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Will First Citizens\u2019 Acquisition of SVB Calm Fears?\" \/>\n<meta property=\"og:description\" content=\"First Citizens Bank has purchased out of Federal Deposit Insurance Corp. receivership all loans and other assets of Silicon Valley Bank.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.commercialsearch.com\/news\/will-first-citizens-acquisition-of-svb-calm-fears\/\" \/>\n<meta property=\"og:site_name\" content=\"Commercial Property Executive\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/CPExecutive\" \/>\n<meta property=\"article:published_time\" content=\"2023-03-29T10:16:45+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2023-03-29T13:36:46+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2017\/04\/George-Vail.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"800\" \/>\n\t<meta property=\"og:image:height\" content=\"600\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Scott Baltic\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@cpexecutive\" \/>\n<meta name=\"twitter:site\" content=\"@cpexecutive\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.commercialsearch.com\/news\/will-first-citizens-acquisition-of-svb-calm-fears\/\",\"url\":\"https:\/\/www.commercialsearch.com\/news\/will-first-citizens-acquisition-of-svb-calm-fears\/\",\"name\":\"Will First Citizens\u2019 Acquisition of SVB Calm Fears? - Commercial Property Executive\",\"isPartOf\":{\"@id\":\"https:\/\/www.commercialsearch.com\/news\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\/\/www.commercialsearch.com\/news\/will-first-citizens-acquisition-of-svb-calm-fears\/#primaryimage\"},\"image\":{\"@id\":\"https:\/\/www.commercialsearch.com\/news\/will-first-citizens-acquisition-of-svb-calm-fears\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2017\/04\/George-Vail.jpg\",\"datePublished\":\"2023-03-29T10:16:45+00:00\",\"dateModified\":\"2023-03-29T13:36:46+00:00\",\"author\":{\"@id\":\"https:\/\/www.commercialsearch.com\/news\/#\/schema\/person\/61ac1450f3ffaa0e850b834c28526555\"},\"description\":\"First Citizens Bank has purchased out of Federal Deposit Insurance Corp. receivership all loans and other assets of Silicon Valley Bank.\",\"breadcrumb\":{\"@id\":\"https:\/\/www.commercialsearch.com\/news\/will-first-citizens-acquisition-of-svb-calm-fears\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/www.commercialsearch.com\/news\/will-first-citizens-acquisition-of-svb-calm-fears\/\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/www.commercialsearch.com\/news\/will-first-citizens-acquisition-of-svb-calm-fears\/#primaryimage\",\"url\":\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2017\/04\/George-Vail.jpg\",\"contentUrl\":\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2017\/04\/George-Vail.jpg\",\"width\":800,\"height\":600,\"caption\":\"George Vail, Principal, Avison Young. 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