Customers of SVB should continue to use their current branch until First Citizens Bank notifies them that system conversions to allow full-service banking at all of its other branch locations have been completed, it added.
Digital Desk: First Citizens Bank & Trust Co will purchase all of Silicon Valley Bank's deposits and loans from the Federal Deposit Insurance Corporation (FDIC), the regulator announced on Monday. According to the FDIC, "First-Citizens Bank & Trust Company, Raleigh, North Carolina, has entered into a purchase and assumption agreement for all deposits and loans of Silicon Valley Bridge Bank, National Association."
"On Monday, March 27, 2023, the 17 former branches of Silicon Valley Bridge Bank, National Association will reopen as First-Citizens Bank & Trust Company," the FDIC said in a press release.
Customers of SVB should continue to use their current branch until First Citizens Bank notifies them that system conversions to allow full-service banking at all of its other branch locations have been completed, it added.
SVB depositors will automatically become First-Citizens Bank depositors, and all deposits assumed by the latter will continue to be insured by the FDIC up to the insurance limit, according to the regulator.
According to the FDIC, as of March 10, SVB had approximately $167 billion in total assets and approximately $119 billion in total deposits. Today's transaction included the purchase of approximately $72 billion of Silicon Valley Bridge Bank, National Association's assets at a $16.5 billion discount," it added.
"Around $90 billion in securities and other assets will remain in receivership for FDIC disposition." Furthermore, the FDIC received equity appreciation rights in First Citizens BancShares, Inc. common stock in Raleigh, North Carolina, with a potential value of up to $500 million."
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