First Citizens Bancshares Inc., a large U.S. regional lender, is buying a sizable chunk of Silicon Valley Bank’s business more than two weeks after its collapse roiled the banking system.
First Citizens Bancshares Inc. (FCNCA), a large U.S. regional bank, is buying a sizable chunk of Silicon Valley Bank’s business more than two weeks after its collapse roiled the banking system.
First Citizens is buying all of Silicon Valley Bank’s deposits, loans and affiliates, the Federal Deposit Insurance Corp. (FDIC) said. The branches will reopen on Monday morning under new ownership.
The acquisition includes $119 billion in deposits and about $72 billion in SVB loans at a $16.5 billion discount. About $90 billion of Silicon Valley Bank’s securities will remain in receivership.
Regulators took control of Santa Clara, Calif.-based Silicon Valley Bank on March 10. The bank’s collapse at the time sparked panic that led to Signature…
First Citizens Bancshares Inc. (FCNCA), a large U.S. regional bank, is buying a sizable chunk of Silicon Valley Bank’s business more than two weeks after its collapse roiled the banking system.
First Citizens is buying all of Silicon Valley Bank’s deposits, loans and affiliates, the Federal Deposit Insurance Corp. (FDIC) said. The branches will reopen on Monday morning under new ownership.
The acquisition includes $119 billion in deposits and about $72 billion in SVB loans at a $16.5 billion discount. About $90 billion of Silicon Valley Bank’s securities will remain in receivership.
Regulators took control of Santa Clara, California-based Silicon Valley Bank on March 10. The bank’s collapse at the time sparked a panic that led to the collapse of Signature Bank that weekend, prompting immediate and forceful intervention by financial regulators to ease fears of deposit runs at smaller lenders.
The sale of SVB represents a milestone in regulators’ efforts to clean up the mess after two of the largest bank failures in history, at a time when investors are jittery about the health of the global financial system.
Raleigh, North Carolina-based First Citizens is the 30th largest U.S. bank, with $109 billion in assets as of Dec. 31, 2022, according to the Federal Reserve. When Monday’s deal closes, the bank will be among the 25 largest U.S. banks by assets.
The FDIC agreed to share with First Citizens any losses on Silicon Valley Bank’s business loans and share any proceeds. Overall, the FDIC estimated that SVB’s failure would cost a federal insurance fund it oversees a loss of about $20 billion, about 10% of the bank’s pre-failure assets.