Monday, the Federal Deposit Insurance Corporation (FDIC) issued a statement announcing that First Citizens Bank & Trust Co will acquire all deposits and loans of Silicon Valley Bank. The FDIC said that it had “entered into an agreement for the purchase and assumption of all deposits and loans of Silicon Valley Bridge Bank, National Association by First–Citizens Bank & Trust Corporation of Raleigh, North Carolina.”
First–Citizens Bank & Trust Corporation will launch 17 Silicon Valley Bridge Bank, National Association branches.
The FDIC stated in a news release that the 17 former branches of Silicon Valley Bridge Bank, National Association would open as First–Citizens Bank & Trust Corporation on March 27, 2023.
Until they get a notification from First Citizens Bank that systems conversions have been completed to enable full–service banking in all of its other branch locations, SVB clients should continue to utilize their present branch.
The regulator stated that depositors of SVB would immediately become depositors of First–Citizens Bank and that any deposits assumed by the latter will continue to be guaranteed by the FDIC up to the insurance limit.
SVB had roughly $167 billion in total assets and $119 billion in total deposits
The FDIC stated that as of March 10, SVB had roughly $167 billion in total assets and $119 billion in total deposits. “Today’s deal comprised the purchase of about $72 billion in assets from Silicon Valley Bridge Bank, National Association at a discount of $16.5 billion,” the statement continued.
“About $90 billion in securities and other assets will remain in the receivership for sale by the FDIC.” In addition, the FDIC obtained equity appreciation rights in the common stock of First Citizens BancShares, Inc., Raleigh, North Carolina, with a potential value of up to $500 million.