First Citizens Bank to buy all deposits, loans of SVB, says FDIC

The 17 former branches of Silicon Valley Bridge Bank will open as First–Citizens Bank on Monday, March 27, 2023, the FDIC said in a press release.

Depositors of SVB will automatically become depositors of First–Citizens Bank and all deposits assumed by the latter will continue to be insured by the FDIC up to the insurance limit, the regulator said. (File image)

First Citizens Bank & Trust Co will buy all deposits and loans of Silicon Valley Bank from the Federal Deposit Insurance Corporation (FDIC), the regulator said in a statement on Monday. The FDIC said it has “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.”

“The 17 former branches of Silicon Valley Bridge Bank, National Association, will open as First–Citizens Bank & Trust Company on Monday, March 27, 2023,” the FDIC said in a press release.

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SVB customers should continue to use their current branch until they receive notice from First Citizens Bank that systems conversions have been completed to allow full–service banking at all of its other branch locations, it added.

As of March 10, SVB had approximately $167 billion in total assets and about $119 billion in total deposits., the FDIC said. It added, “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.”

“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.”