First Citizens Bank Acquires Silicon Valley Bank, Takes Over Its Loans And Deposits

First Citizens has $109 billion in assets and $89.4 billion as total deposits. After the collapse of Silicon Valley Bank, First Citizens submitted a bid to acquire it

The closure of Silicon Valley Bank is seen as the largest bank failure in the US since Washington Mutual during the height of the 2008 financial crisis.

First Citizens Bank & Trust Company (FDIC) will acquire all deposits and loans of SVB Financial Group’s Silicon Valley Bank, according to a report by news agency Bloomberg on Monday. According to the report, the purchase by unit First Citizens Bank & Trust Company includes the purchase of about $72 billion of Silicon Valley Bank's assets at a discount of $16.5 billion, the FDIC said.

According to news reports, First Citizens has around $109 billion in assets and total deposits of $89.4 billion. First Citizens Bancshares is a bank holding company founded and now based in Raleigh, North Carolina, US. Its main subsidiary is First Citizens Bank and it is one of the largest banks in the US.

Frank Holding, Junior is the Chairman and CEO of First Citizens BancShares, Inc., and its subsidiary First-Citizens Bank & Trust Company, The bank has more than 500 branches in 22 US states. The company is one of the biggest buyers of failed US lenders.

First Citizens has $109 billion in assets and $89.4 billion as total deposits. After the collapse of Silicon Valley Bank, First Citizens submitted a bid to acquire it.

In 2022, First Citizens was the 30th largest commercial bank in the US by assets. First Citizens acquired CIT Group Inc. in a deal valued at more than $2 billion in 2022. Since 1971, it has acquired more than 35 banks in the US.

Two weeks back Silicon Valley Bank was seized by California banking regulators on Friday. The Federal Deposit Insurance Corporation (FDIC) in its order said that the move is aimed “to protect insured depositors”.

The closure of SVB is seen as the largest bank failure in the US since Washington Mutual during the height of the 2008 financial crisis. According to a report by Associated Press, the bank failed after depositors, mostly technology workers and venture capital-backed companies, began withdrawing their money from the bank.

The FDIC ordered the closure of Silicon Valley Bank and immediately took the possession of all deposits at the bank. "To protect insured depositors, the FDIC created the Deposit Insurance National Bank of Santa Clara (DINB). At the time of closing, the FDIC as receiver immediately transferred to the DINB all insured deposits of Silicon Valley Bank," the order stated.