First Citizens Bank enters deal with FDIC to buy Silicon Valley Bank (SVB) assets and liabilities
The US Federal Deposit Insurance Corporation (FDIC) has entered into a purchase and assumption agreement with First Citizens Bank & Trust Company, for all deposits and loans of collapsed lender Silicon Valley Bank (SVB).
This means that North Carolina-based First Citizens Bank & Trust Co will buy all deposits and loans of SVB from FDIC, which earlier took control over assets and liabilities of SVB to protect depositors’ interests.
AS a part of this agreement, the FDIC and First Citizens BancShares will share losses and potential recoveries on the loans covered.
The First Citizens will buy assets of $110 billion, deposits of $56 billion and $72 billion of SVB’s loans at a discount of $16.5 billion.
Around $90 billion in securities and other assets will remain in the receivership for disposition by the FDIC.
The 17 branches of Silicon Valley Bridge Bank, National Association, will now operate as First–Citizens Bank & Trust Company with effect from March 27, 2023.