Citizens Financial is working on bid for Silicon Valley Bank's private banking business

Two people familiar with the matter said on Thursday that Citizens Financial Group Inc is working on a bid to acquire the private banking business of the failed Silicon Valley Bank.

The sources said that Citizens, one of the largest US regional banks, is preparing to submit an offer in the auction of the business, called SVB Private.

The Federal Deposit Insurance Corporation FDIC has set a Friday deadline for offers, according to sources.

The sources cautioned that no deal is certain and asked not to be identified discussing confidential deliberations.

Citizens Financial, the FDIC, and the FDIC, did not respond to the request for comment.

The FDIC tried to sell SVB Private along with Silicon Valley Bank over the last two weekends after the technology-focused lender was taken over by regulators on March 10. It didn't clinch a deal to sell both together.

By March 24 it has asked for separate offers for SVB Private and Silicon Valley Bank. SVB Financial Group, the former parent of Silicon Valley Bank who filed for bankruptcy protection last week, is not part of the process.

SVB Private provides banking, wealth management and trust services to high-net worth individuals. Boston Private, a wealth manager acquired by Silicon Valley Bank in 2021, is a big part of it.

Citizens Financial has been expanding through acquisitions. In February 2022, the purchase of the US East Coast branch network was completed by HSBC Holdings Plc, and two months later it closed a deal to buy Investors Bancorp, which added to its presence between New York City and Philadelphia.

According to regulatory data, Providence, Rhode Island-based lender is the third-largest bank by deposits in the state of Massachusetts. It is ranked among the top 15 banks nationally by deposits in 14 states and the District of Columbia.

Another regional lender, First Citizens BancCitizens Banc shares, has been pursuing a bid to sell the entire Silicon Valley Bank assets, according to a report by the FDIC.