Breaking: First Citizens snaps up Silicon Valley Bank — Branches open Monday

Mar 26. 2023

By Felix NG

The deal was announced on March 26 by the Federal Deposit Insurance Corporation (FDIC).

North Carolina-based First Citizens Bank is set to acquire all deposits and loans of Silicon Valley Bank, according to a statement from the Federal Deposit and Insurance Corporation (FDIC). 

Under the agreement, 17 former branches of Silicon Valley Bank will open as First Citizens Bank and Trust Company on Monday, March 27, while all depositors of SVB will automatically become depositors of First Citizens Bank. 

"As of March 10, 2023, Silicon Valley Bridge Bank, National Association, had approximately $167 billion in total assets and about $119 billion in total deposits. Today’s transaction included the purchase of about $72 billion of Silicon Valley Bridge Bank, National Association’s assets at a discount of $16.5 billion," said the FDIC in a statement.

Approximately $90 billion in securities and other assets will remain in the receivership for disposition by the FDIC. In addition, the FDIC received equity appreciation rights in First Citizens BancShares, Inc., Raleigh, North Carolina, common stock with a potential value of up to $500 million.

The North Carolina-based bank is the 30th largest commercial bank in the United States and has $109.2 billion in assets as of Dec. 31, 2022, according to Federal Reserve data.

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