Business Relocation/Economic Expansion

TBJ just posted an article that Citrix is trying to sublease the remainder of their building (153k sq ft). Think this has been hinted at before, but don’t think there’s been confirmation until now.

1 Like

At least they aren’t laying off people. While, not the best news, I think it was expected. I wonder if something like Pendo or Red Hat look at the property? I know tech is taking a hit in terms of office space, but it’s not everyone. Office space is still very much in need, and this building is a great structure that can be the centerpiece of a local footprint.

1 Like

And right in the heart of the hotest development area in DTR.

The SVB deal goes through, First Citizen’s subleases it and leases out the space as a startup incubator.

(99.999% unlikely, but a guy can dream)

6 Likes

Unfortunately, they did already conduct a pretty hefty round of layoffs earlier this year. I added it to probably the wrong thread back in January when it was announced.

Update if anyone is curious: it looks like Avaya has since gone bankrupt (for a second time, the first time in 2017), and will be restructuring and moving their HQ to New Jersey.

they were a shell of what they were after moving here…not sure moving to New Jersey will benefit them…

1 Like
7 Likes

Multiple outlets reporting same……IF this happens FCB is about to become a VERY big bank……maybe not JPM or Citi……but big all the same

7 Likes

They will be much bigger, that’s for sure, but keep in mind over half of depositors have left for the safety of JPM and others that are too big to fail. So the impact may not be as great as some may think.

Also, Bay Area startups that have stuck around are likely to leave following the sale, since there will be a pretty significant culture change.

FCB isn’t dumb…they will be very aggressive recruiting those tech companies to get them to stay. They won’t be sending the branch manager from South Carolina for certain to woo those companies.

There will certainly be some runoff but these companies still need a bank…and any bank is going to have to comply with the same regulatory rules….banks are not that different in America.

Also the loans aren’t something you can “walk out of the branch” with. The loans convey & the loans are what really generate revenue.

If I do my math correctly the combined entity will have around $10B in annual revenue….meaning Raleigh will immediately have a new Fortune 500 HQ.

8 Likes

I do like your positive outlook…lol :wink::smiling_face_with_three_hearts:
The only positive thing that I can add this moment would be, perhaps they’ll add more jobs and hopefully keep the ones we have in NC. :crossed_fingers:

2 Likes

Official now it seems:

WASHINGTON – The Federal Deposit Insurance Corporation (FDIC) entered into a purchase and assumption agreement for all deposits and loans of Silicon Valley Bridge Bank, National Association, by First–Citizens Bank & Trust Company, Raleigh, North Carolina.

The 17 former branches of Silicon Valley Bridge Bank, National Association, will open as First–Citizens Bank & Trust Company on Monday, March 27, 2023. Customers of Silicon Valley Bridge Bank, National Association, should continue to use their current branch until they receive notice from First–Citizens Bank & Trust Company that systems conversions have been completed to allow full–service banking at all of its other branch locations.

Depositors of Silicon Valley Bridge Bank, National Association, will automatically become depositors of First–Citizens Bank & Trust Company. All deposits assumed by First–Citizens Bank & Trust Company will continue to be insured by the FDIC up to the insurance limit.

7 Likes

They’re definitely not dumb, but banking and payments partnership for Silicon Valley businesses and start-ups in general is more about appearances than almost anything else.

According to the terms of the deal, First Citizens will acquire assets totaling $110B, compared to SVB’s $209B in assets at the end of Q4. And I think this number will only go down.

I’m not throwing shade at First Citizens, it’s a great deal for them, essentially doubles their size, but not as great as it would seem from the surface when you consider what SVB was just a few weeks ago.

2 Likes

TBJ article confirming as well, for reference.
https://www.bizjournals.com/triangle/news/2023/03/26/first-citizens-nears-deal-silicon-valley-bank-svb.html?utm_source=st&utm_medium=en&utm_campaign=BN&utm_content=ra&ana=e_ra_BN&j=30966973&senddate=2023-03-27

2 Likes

I hadn’t realized California was already the state with the third most First Citizens locations. Will be interested to see how this plays out, but hopefully it works well for them and us.

4 Likes

The purchase includes $119 billion in deposits and about $72 billion of SVB’s loans at a discount of $16.5 billion

What a deal.

3 Likes

The numbers are probably pretty fluid right now, but this will probably make First Citizens the 17th largest bank by assets. Ahead of American Express, Fifth Third, USAA, Ally, and other notable banks.

3 Likes

Didn’t take long for this idea to transpire. Quote from the First Citizens CEO “We are committed to helping innovators enterprises and investors move bold ideas forward this acquisition positions First Citizens to support that growth, both in Silicon Valley’s markets and right here in our own backyard in Research Triangle Park.”

6 Likes

Fifth Third needs to go, if only because of its weird name.

3 Likes