North Carolina-based First Citizens has agreed to buy Silicon Valley bank from us regulators, the Fedral Deposit Insurance Corporation (FDIC) which took over the lender earlier this month as depositors raced to withdraw money.
First Citizens also agreed to buy all of SVB’s deposits and loans, as well as a large portion of its assets, leaving about $90 billion in securities and other assets under the control of the FDIC, the regulator said.
The failure of Silicon Valley Bank is estimated to incur a loss of about $20 billion to the Deposit Insurance Fund, the regulator adder.
SVB, based in Santa Clara, California, collapsed March 10 after depositors rushed to withdraw money amid fears about the bank’s health. It was the second-largest bank collapse in U.S. history after the 2008 failure of Washington Mutual.
Meanwhile, the First Citizens Bank Which was founded in 1898 says it has more than $100 billion in total assets, with more than 500 branches in 21 states as well as a nationwide bank. It reported net profit of $243 million in the last quarter. It is one of the top 20 U.S. banks and says it is the largest family-controlled bank in the country.
However, First Citizens’ chairman and chief executive, Frank B. Holding Jr., said in a statement that the bank was “looking forward to building relationships with our new customers and positioning our company for continued success as we affirm our commitment to support the integrity of our nation’s banking system.”
He also added that the acquisition of Silicon Valley Bank will strengthen First Bank’s ability to serve firms in private equity, venture capital and technology sectors.