First Citizens Bank reaches deal to purchase Silicon Valley Bank

San Francisco: The US Federal Deposit Insurance Corporation (FDIC) has announced that First Citizens Bank and Trust Company of Raleigh, North Carolina entered a purchase agreement for all deposits and loans of Silicon Valley Bridge Bank, National Association.

"The 17 former branches of Silicon Valley Bridge Bank, National Association, will open as First Citizens Bank & Trust Company on Monday, March 27, 2023," Fox Business quoted the FDIC as saying in a statement.

"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," the statement continued.

Depositors of the Santa Clara, California-located bank will automatically become depositors of First Citizens Bank & Trust Company, according to the statement, and all deposits will be assumed and insured by First Citizens Bank & Trust Company, up to the insurance limit, Fox Business reported.

The FDIC said: "As of March 10, 2023, Silicon Valley Bridge Bank, National Association, had approximately $167 billion in total assets and about $119 billion in total deposits. Today's transaction included the purchase of about $72 billion of Silicon Valley Bridge Bank, National Association's assets at a discount of $16.5 billion."

In addition, approximately $90 billion in securities and other assets will remain in the receivership for disposition by the FDIC, Fox Business reported.

With inputs from agencies