FDIC: First Citizens Bank To Acquire Silicon Valley Bank's Deposits And Debt

On March 26, local time, the Federal Deposit Insurance Corporation (FDIC) said that First Citizens Bank will buy the deposits and debt of Silicon Valley Bank, according to the Consumer News & Business Channel (CNBC).

The deal includes the purchase of approximately $72 billion worth of Silicon Valley Bank's assets at a discount of $16.5 billion, but approximately $90 billion in securities and other assets that will remain in "bankruptcy at the disposal of the FDIC."

First Citizens Bank was founded in 1898 in North Carolina, 125 years ago. According to its official website, the bank has more than 10,000 employees and more than 500 branches throughout the United States. According to the Federal Reserve, First Citizens Bank, headquartered in Raleigh, N.C., is the 30th largest commercial bank in the United States by the end of 2022.

Previously, U.S. regulators had transferred all deposits and assets of Silicon Valley Bank to a new "bridge bank" to protect depositors of the failed bank.

According to CNN, First Citizens Bank said that the 17 branches previously affiliated with Silicon Valley Bank will operate as "Silicon Valley Bank, a division of First Citizens Bank" on Monday. At the same time, First Citizens said in a statement that it will inherit $110 billion in assets, $56 billion in deposits, and $72 billion in loans from Silicon Valley Bank. First Citizens has also signed an agreement with the FDIC to provide protection against potential credit losses.

Silicon Valley Bank was shut down by U.S. regulators on March 10 due to a liquidity crisis that saw its customers withdraw $42 billion in a single day. This is the second largest bank failure in U.S. history, after Washington Mutual in 2008.