Silicon Valley Bank (SVB)
– Photo: Social Media
The FDIC said in a press release that the 17 former branches of Silicon Valley Bridge Bank will open as First-Citizens Banks on March 27, 2023 (Monday). The regulator (Federal Deposit Insurance Corporation) said in a statement on Monday that First Citizens Bank & Trust Company will purchase all of the Silicon Valley bank’s deposits and loans from the Federal Deposit Insurance Corporation (FDIC). The Trust Company, on behalf of Raleigh, North Carolina, has entered into an agreement to purchase all deposits and loans of Silicon Valley Bridge Bank, National Association.
# 17 branches of SVB will now open as First Citizen Bank
The FDIC said in a press release, “17 former Silicon Valley Bridge Bank National Association branches will open as First-Citizens Bank & Trust Company on Monday, March 27, 2023. SVB customers should continue to use their current branch until until they receive notice from First Citizens Bank that the system conversion has been completed to allow full banking service at all of its other branches.
# Depositors of SVB will automatically become depositors of First Citizens Bank
The regulator said that depositors of SVB would automatically become depositors of First Citizens Bank and all deposits accepted by the bank would continue to be insured by the FDIC. As of March 10, the SVB had about $167 billion in total assets and about $119 billion in total deposits. According to the FDIC, “Today’s transactions included the purchase of Silicon Valley Bridge Bank for approximately $72 billion, including the National Association discount of $16.5 billion.
“Approximately $90 billion in securities and other assets will remain in receivership for disposal by the FDIC,” the report said. In addition, the FDIC received equity shares of First Citizens Bank in Raleigh, North Carolina, with a potential value of approximately $500 million.