Pennsylvania-based Customers Bancorp (NYSE:CUBI) is exploring a deal for acquiring all or part of the failed Silicon Valley Bank (SVB), Bloomberg reported. As per people familiar with the matter, Customers Bancorp, which has over $20.9 billion in assets, is looking for potential co-investors for the deal.
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However, a final decision hasn’t been made and Customers Bancorp could back out. Regulators shut down SVB earlier this month and its assets were seized by the Federal Deposit Insurance Corp. (FDIC). The FDIC has since then been looking for potential bidders for the collapsed bank. Earlier this week, Bloomberg reported that First Citizens BancShares (FCNCA) is also exploring a deal for SVB.
Meanwhile, Reuters reported that Citizens Financial Group (CFG) is working on a bid to purchase the private banking business of SVB. The FDIC failed to strike a deal to sell SVB’s private banking business and Silicon Valley Bank together over the last two weekends. Since then, it has been seeking separate offers for SVB Private and SVB.
Earlier this week, a unit of New York Community Bancorp agreed to buy the deposits and some of the loans of Signature Bank, another regional bank shut down by regulators days after SVB’s collapse.
Is CUBI Stock a Good Buy?
Wall Street has a Strong Buy consensus rating for Customers Bancorp based on three unanimous Buys. The average CUBI stock price target of $48.33 implies 178.2% upside potential.
