First Citizens Bank has agreed to buy Silicon Valley Bank’s (SVB) deposits and loans, the Federal Deposit Insurance Corporation (FDIC) announced on Monday.
Seventeen former branches of SVB will open as First–Citizens Bank & Trust Company on Monday, a FDIC statement said.
It said that SVB had some $167 billion in total assets and about $119 billion in total deposits as of March 10, adding that First Citizens Bank will Purchase around $72 billion of SVB’s assets at a discount of $16.5 billion.
The statement said: “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.”
Earlier this month, SVB sold its bond portfolio worth $21 billion at a loss of $1.8 billion to meet its customers’ cash demand. Then federal regulators stepped in and shut the bank down.