Customers Bancorp Reportedly Seeks Potential Co-Investors for Silicon Valley Bank
Customers Bancorp is reportedly working to put together an offer for Silicon Valley Bank.
The Pennsylvania-based bank is exploring such a deal and seeking potential co-investors, Bloomberg reported Thursday (March 23), citing unnamed sources.
There’s been no financial decision, and Customers Bancorp could choose not to continue with the project, according to the report.
Reached by PYMNTS Friday (March 24), a spokesperson for Customers Bancorp declined to comment on the report.
The Federal Deposit Insurance Corporation (FDIC), which was appointed as receiver of Silicon Valley Bank March 10 and has been working to sell it, said Monday (March 20) that it was seeing “substantial interest” in the bank and extended the bidding process to Friday.
“There has been substantial interest from multiple parties, and the FDIC and the bidders need more time to explore all options in order to maximize value and achieve an optimal outcome,” the FDIC said at the time.
It was reported the same day that First Citizens Bank — which has bought 20 failed banks over the last 14 years — had submitted an offer to buy Silicon Valley Bank and might also participate in this week’s auction for the bank.
There’s no certainty First Citizens Bank or any other bidder will reach a deal with the FDIC to acquire Silicon Valley Bank, Bloomberg reported Monday.
A representative of First Citizens Bank told Bloomberg: “It is First Citizens Bank’s policy not to comment on market rumors or speculation.”
Bids on the whole bank or on the deposits or assets of Silicon Valley Bridge Bank, N.A. and Silicon Valley Private Bank will be accepted from qualified, insured banks and qualified, insured banks in alliance with nonbank partners, while bids on the asset portfolios will be accepted from bank and nonbank financial firms, the FDIC said Monday.
In the meantime, the bank is open for business and actively opening new accounts, Silicon Valley Bridge Bank CEO Tim Mayopoulos said in a Tuesday (March 14) update posted on the bank’s website.
The bank is working to rebuild, win back customers’ confidence and “continue supporting the innovation economy,” Mayopoulos said in the update.