First Citizens Bank reaches deal to purchase Silicon Valley Bank

SAN FRANCISCO: The US Federal Deposit Insurance Corporation (FDIC) has announced that First Citizens Bank and Trust Company of Raleigh, North Carolina entered a purchase agreement for all deposits and loans of Silicon Valley Bridge Bank, National Association.

"The 17 former branches of Silicon Valley Bridge Bank, National Association, will open as First-Citizens Bank & Trust Company on Monday, March 27, 2023," Fox Business quoted the FDIC as saying in a statement.

"Customers of Silicon Valley Bridge Bank, National Association, should continue to use their current branch until they receive notice from First-Citizens Bank & Trust Company that systems conversions have been completed to allow full-service banking at all of its other branch locations," the statement continued.

Depositors of the Santa Clara, California-located bank will automatically become depositors of First-Citizens Bank & Trust Company, according to the statement, and all deposits will be assumed and insured by First-Citizens Bank & Trust Company, up to the insurance limit, Fox Business reported.

The FDIC said: "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."

In addition, approximately $90 billion in securities and other assets will remain in the receivership for disposition by the FDIC, Fox Business reported.