A purchase agreement was entered into between First Citizens Bank and Trust Company of Raleigh, North Carolina and Silicon Valley Bridge Bank, National Association, according to the US Federal Deposit Insurance Corporation (FDIC).
In a major development in the on-going US banking crisis, First Citizens has acquired Silicon Valley Bank (SVB). As per updates, the Federal Deposit Insurance Corp (FDIC) has entered into an agreement with the First Citizens and acquired SVB as the bank navigates tricky waters after its collapse (SVB crash).
As reported in the media, all deposits assumed by First Citizens Bank & Trust Company, the new owner of SVB, will still be covered by the Federal Deposit Insurance Corporation. After First Citizens acquired SVB from FDIC, all of its assets will also be under its control.
The FDIC announced in a statement that 17 former Silicon Valley Bank branches will open as FirstCitizens Bank & Trust Company on March 27, 2023.
Until First Citizens Bank & Trust Company notified Silicon Valley Bridge Bank, National Association that systems conversions have been completed to allow full service banking at all of its other branch locations, Silicon Valley Bridge Bank, National Association customers should continue using their current branch.
Those who deposit at the Santa Clara bank will automatically become depositors of First Citizens Bank & Trust Company, according to the statement, and all deposits will be assumed and insured, up to the insurance limit, Fox Business reported.
As of March 10, 2023, Silicon Valley Bridge Bank, National Association had a total of $167 billion in assets and a total of $119 billion in deposits, according to the FDIC. Silicon Valley Bridge Bank, National Association’s assets were acquired at a discount of $16.5 billion in today’s transaction.”
The FDIC will dispose of approximately $90 billion in securities and other assets in the receivership, Fox Business reported.
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