Conservative NC Bank Takes Over Silicon Valley Bank

First Citizens Bank, based in Raleigh, is known for its conservative management approach and is “closely held”. The announcement that it was buying the failed Silicon Valley Bank culminated nearly a week of speculation.

The Holding family, which founded and runs the bank, produced a recent Republican member of Congress from North Carolina–George Holding.

There used to be a tradition of high quality, conservatively managed, well-run banks from North Carolina– and First Citizens is a reflection of that tradition. BB&T was a great example. Wachovia was also before it went haywire. North Carolina National Bank was another. These gradually succumbed to become part of Truist, Wells Fargo and Bank of America, respectively.

The key ingredient is “risk management”– an important activity in banks. They have to be sure that when they take depositors’ money and invest it or lend it out, they are doing so in a manner that assures the stability of the bank’s assets and deposits. Silicon Valley failed in this regard because of its diversity hires and its DEI/ESG focus.

But First Citizens remains standing, and was in a position to pick up the pieces.