First Citizens Eyes Further Expansion: A Strategic Push Beyond $250 Billion
First Citizens BancShares is actively seeking acquisitions to propel its asset base beyond the $250 billion mark, a threshold that triggers increased regulatory scrutiny. This strategic move, reported by Bloomberg on February 20, 2026, signals a continued appetite for growth following a period of significant expansion through both strategic acquisitions and FDIC-assisted transactions.
The $250 Billion Regulatory Hurdle
Banks exceeding $250 billion in assets face a more rigorous regulatory landscape. The increased oversight often includes stricter capital requirements and enhanced stress testing. To navigate these complexities and maintain profitability, banks frequently pursue acquisitions to achieve a substantial increase in scale.
Recent Acquisitions: Building Momentum
First Citizens has demonstrated a clear acquisition strategy in recent years. At the end of December, the bank held $230 billion in assets. In October 2025, the bank agreed to acquire 138 branches across 11 states from BMO Bank, bolstering its national presence. Perhaps most notably, in March 2023, First Citizens acquired the loans and assets of Silicon Valley Bank (SVB) – a $72 billion portfolio secured for $16 billion – just 17 days after SVB’s collapse.
This acquisition of SVB significantly boosted First Citizens’ income. The bank reported a net income jump to $9.5 billion following the purchase, a substantial increase from the $243 million reported in the previous quarter.
A History of Strategic Growth
First Citizens has a long track record of acquiring distressed banks. The company has completed more FDIC-assisted transactions since 2009 than any other bank, demonstrating a willingness to step in during times of financial instability. Prior to SVB, the bank had purchased 14 failed banks over the preceding 20 years.
The 2020 merger with CIT Group further exemplifies this growth strategy, creating a $100 billion institution and solidifying First Citizens’ position as a major player in the U.S. Banking sector.
Potential Targets and Future Outlook
Reports suggest First Citizens is now exploring additional acquisition targets, with KeyCorp potentially being one of them. The bank’s proactive approach to expansion suggests a commitment to continued growth, even in the face of evolving regulatory challenges.
FAQ
Q: Why is $250 billion in assets a significant threshold for banks?
A: Reaching $250 billion in assets triggers stricter regulations, including increased capital requirements and more frequent stress tests.
Q: What was the value of the assets First Citizens acquired from SVB?
A: First Citizens acquired $72 billion worth of SVB’s assets for $16 billion.
Q: Has First Citizens always been a large bank?
A: First Citizens has grown significantly through strategic acquisitions, including the 2020 merger with CIT Group.
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