Citizens Financial Group Inc. (CFG.N) is considering a proposal to acquire SVB Private, the private banking business of the failed Silicon Valley Bank, according to two sources familiar with the matter. Citizens Financial, a leading regional bank in the United States, is expected to submit a bid in the ongoing auction for the private banking business, according to Reuters

The Federal Deposit Insurance Corporation (FDIC) is overseeing the auction process, with a deadline for bids set on Friday. The sources, who requested anonymity due to the confidential nature of the discussions, emphasized that no deal is guaranteed at this stage.

Both the FDIC, which currently controls the assets of Silicon Valley Bank, and Citizens Financial have declined to comment on the matter. The FDIC had initially attempted to sell SVB Private along with Silicon Valley Bank after the technology-focused lender was taken over by regulators on March 10. However, a combined deal did not materialize.

Bidders are now asked to submit separate offers for SVB Private and Silicon Valley Bank by March 24. The former parent company of Silicon Valley Bank, SVB Financial Group (SIVB.O), which filed for bankruptcy protection last week, is not involved in the process.

SVB Private offers banking, wealth management, and trust services to high-net-worth individuals, with a significant portion of the business consisting of Boston Private, a wealth manager acquired by Silicon Valley Bank in 2021.

Citizens Financial has been growing through a series of acquisitions. In February 2022, it completed the purchase of HSBC Holdings Plc's (HSBA.L) U.S. East Coast branch network, followed by the acquisition of Investors Bancorp two months later, which expanded its presence between New York City and Philadelphia.

The Providence, Rhode Island-based bank ranks as the third-largest by deposits in Massachusetts, according to regulatory data. It operates in 14 states and the District of Columbia and is among the top 15 banks in the nation by deposits.

As previously reported by Reuters, First Citizens BancShares (FCNCA.O), another regional lender, has also been pursuing a bid for the entirety of Silicon Valley Bank's assets available for sale by the FDIC.