It’s official! First Citizens Bank (NASDAQ:FCNCA) has agreed to buy Silicon Valley Bank’s (NASDAQ:SIVB) deposits and loans, confirming an earlier report that surfaced on Sunday night.
“The 17 former branches of Silicon Valley Bridge Bank, National Association, will open as First–Citizens Bank & Trust Company on Monday, March 27, 2023. Customers of Silicon Valley Bridge Bank, National Association, should continue to use their current branch until they receive notice from First–Citizens Bank & Trust Company that systems conversions have been completed to allow full–service banking at all of its other branch locations,” according to a press release from the FDIC.
“As of March 10, 2023, Silicon Valley Bridge Bank, National Association, had approximately $167B in total assets and about $119B in total deposits. Today’s transaction included the purchase of about $72B of Silicon Valley Bridge Bank, National Association’s assets at a discount of $16.5B. Approximately $90B 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 $500M.”
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