First Citizens BancShares, the parent company of First Citizens Bank, has agreed to acquire Silicon Valley Bank. This news was confirmed in a statement from the Federal Deposit Insurance Corporation (FDIC).
The statement read: “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.”
Silicon Valley Bridge Bank, National Association depositors will now be seamlessly transferred to First–Citizens Bank & Trust Company. All deposits assumed by First–Citizens Bank & Trust Company will remain insured by the FDIC up to applicable insurance limits. This transition will be automatic and seamless for depositors.
A breakdown of Silicon Valley Bank’s assets deposits
Silicon Valley Bank (SVB) was among the first three American banks to collapse, leading to widespread financial turmoil. However, depositors and investors now have cause for relief with First Citizens Bank stepping in as a rescue. On Monday, March 27th, 17 former SVB branches will reopen as First-Citizens Bank & Trust Company, while customers of the bank will continue to use their current branch and receive a notice from First-Citizens Bank & Trust Company once the systems conversion has been completed.
As of March 10, 2023, SVB had approximately $167 billion in total assets and $119 billion in total deposits. The FDIC purchased around $72 billion worth of assets from SVB at a discounted rate of $16.5 billion. The FDIC will keep around $90 billion worth of securities and other assets in receivership for future disposal, along with equity appreciation rights in First Citizens BancShares, Inc., Raleigh, North Carolina, valued at up to $500 million.
