Sidhu’s Customers Bancorp weighs making an offer for Silicon Valley Bank

CUSTOMERS Bancorp, a small Pennsylvania lender whose holding company is led by Jay Sidhu, is exploring a deal for all or part of the failed Silicon Valley Bank, according to people familiar with the matter.

The bank has been seeking potential co-investors for a deal for Silicon Valley Bank, said the people, who asked to not be identified because the matter isn’t public. A final decision hasn’t been made and Customers Bancorp could opt against pursuing a deal, the people added.

The Federal Deposit Insurance Corporation (FDIC), which seized Silicon Valley Bank this month, has been seeking to unload the lender for about two weeks now. The FDIC is seeking bids this Friday for the company, people familiar with the matter said this week.

A representative for Customers Bancorp declined to comment. A spokesperson for the FDIC didn’t immediately respond to a request for comment.

First Citizens BancShares, one of the biggest buyers of failed US lenders, is also exploring a deal for Silicon Valley Bank, Bloomberg News reported this week.

Customers Bancorp, with a market value of US$549 million, has a regional bank that offers business and home loans in the Northeastern US and also operates nationally through its corporate speciality banking and digital banking units, according to an investor presentation in January.

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Sidhu used to run Sovereign Bancorp, a large regional bank in the Northeastern US now owned by Spain’s Banco Santander. BLOOMBERG