First Citizens Bank to Buy Most Assets of Silicon Valley Bank

<p>First-Citizens Bank &amp&semi; Trust Company&comma; a subsidiary of <span class&equals;"xn-location">Raleigh<&sol;span>-NC based First Citizens BancShares&comma; Inc&period;&comma; has entered into an agreement with the Federal Deposit Insurance Corporation &lpar;FDIC&rpar; to purchase out of FDIC receivership substantially all loans and certain other assets&comma; and assume all customer deposits and certain other liabilities of Silicon Valley Bridge Bank&comma; N&period;A&period;<&sol;p>&NewLine;<p>The transaction is structured as a whole bank purchase with loss share coverage&period; First Citizens was selected to complete this transaction through a competitive bidding process&period;<&sol;p>&NewLine;<p>Silicon Valley Bank collapsed on Friday&comma; March 10 and was taken over by the FDIC which also guaranteed all depositors their money&period;<&sol;p>&NewLine;<p><span class&equals;"xn-person">Frank B&period; Holding&comma; Jr&period;<&sol;span>&comma; chairman and CEO of First Citizens&comma; said&colon; &&num;8220&semi;First Citizens has a reputation for financial strength&comma; exceptional customer service and prudent lending that spans 125 years&period; We have partnered with the FDIC to successfully complete more FDIC-assisted transactions since 2009 than any other bank&comma; and we appreciate the confidence the FDIC has placed in us once again&period; We look 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&&num;8217&semi;s banking system&period;&&num;8221&semi;<&sol;p>&NewLine;<p>As part of the agreement&comma; First Citizens Bank will assume Silicon Valley Bridge Bank&comma; N&period;A&period; assets of <span class&equals;"xn-money">&dollar;110 billion<&sol;span>&comma; deposits of <span class&equals;"xn-money">&dollar;56 billion<&sol;span> and loans of <span class&equals;"xn-money">&dollar;72 billion<&sol;span>&comma; based on latest information provided by the FDIC&period; First Citizens Bank will additionally receive an available line of credit from the FDIC for contingent liquidity purposes&period; In addition&comma; First Citizens Bank has entered into a loss share agreement with the FDIC to provide further downside protection against potential credit losses&period; First Citizens Bank will not acquire any of the assets&comma; common stock&comma; preferred stock&comma; debt or assume any other obligations of SVB Financial Group&comma; the former holding company of Silicon Valley Bank &lpar;&&num;8220&semi;SVB&&num;8221&semi;&rpar;&period;<&sol;p>&NewLine;<p>On <span class&equals;"xn-chron">March 27&comma; 2023<&sol;span>&comma; the 17 legacy Silicon Valley Bridge Bank&comma; N&period;A&period; branches will begin operating as Silicon Valley Bank&comma; a division of First Citizens Bank&period;<&sol;p>&NewLine;<p>There will be no immediate change to customers&&num;8217&semi; current accounts&comma; and they will be able to continue to access their accounts as they do today — through their current websites&comma; mobile apps and branch locations&period; They can continue to use their checks and cards and will still have ATM and online access to their accounts&period; Loan customers should continue making loan payments as usual&period; Customers will be notified of any future account changes in advance&period;<&sol;p>&NewLine;<p>As of March 10&comma; 2023&comma; Silicon Valley Bridge Bank&comma; National Association&comma; had approximately &dollar;167 billion in total assets and about &dollar;119 billion in total deposits&period; The First Citizens transaction included the purchase of about &dollar;72 billion of Silicon Valley Bridge Bank&comma; National Association&&num;8217&semi;s assets at a discount of &dollar;16&period;5 billion&period; Approximately &dollar;90 billion in securities and other assets will remain in the receivership for disposition by the FDIC&period; In addition&comma; the FDIC received equity appreciation rights in First Citizens BancShares&comma; Inc&period; common stock with a potential value of up to &dollar;500 million&period;<&sol;p>&NewLine;<figure id&equals;"attachment&lowbar;3952" aria-describedby&equals;"caption-attachment-3952" style&equals;"width&colon; 400px" class&equals;"wp-caption alignnone"><img class&equals;"size-full wp-image-3952" src&equals;"http&colon;&sol;&sol;jpq&period;a9a&period;mytemp&period;website&sol;wp-content&sol;uploads&sol;2023&sol;03&sol;frankholding&period;jpg" alt&equals;"" width&equals;"400" height&equals;"418" &sol;><figcaption id&equals;"caption-attachment-3952" class&equals;"wp-caption-text">Frank Holding Jr&period;<&sol;figcaption><&sol;figure>&NewLine;<p>&&num;8220&semi;First Citizens has a proud history of growing organically and through strategic acquisitions that build our core capabilities in a careful and deliberate manner&comma;&&num;8221&semi; said Holding&period; &&num;8220&semi;This transaction leverages our solid foundation to add significant scale&comma; geographic diversity&comma; compelling digital capabilities and most importantly&comma; meaningful solutions for customers throughout their lifecycle&period; Specifically&comma; we are committed to building on and preserving the strong relationships that legacy SVB&&num;8217&semi;s Global Fund Banking business has with private equity and venture capital firms&period; This transaction also will accelerate our expansion in <span class&equals;"xn-location">California<&sol;span> and introduce wealth capabilities in the Northeast&period; SVB&&num;8217&semi;s Private Wealth business is a natural fit for our high-touch and sophisticated level of high-net-worth customer service and approach&period;&&num;8221&semi;<&sol;p>&NewLine;<p>First Citizens has a network of more than 550 branches and offices in 23 states&semi; commercial banking expertise delivering best-in-class lending&comma; leasing and other financial services coast to coast&semi; and a nationwide direct bank&period;<&sol;p>&NewLine;

Editor

Wispr Scores $25 Million Series A Extension

SAN FRANCISCO -- Wispr, the voice-to-text AI that turns speech into clear, polished writing in every…

1 day

Numeric Dials Up $51 Million Series B

SAN FRANCISCO -- Numeric, an AI accounting automation platform, has raised a $51 million Series…

1 day

Apple Names 45 Finalists for App Store of the Year Awards

Apple has announced 45 finalists for this year’s App Store Awards, recognizing the best apps…

2 days

UC Reaches Agreement With Nurses, Strike Canceled

The University of California (UC) and the California Nurses Association (CNA) have reached a tentative…

4 days

HouseRX Rakes In $55 Million Series B

SAN FRANCISCO -- House Rx, a health tech company focused on making specialty medications more accessible and…

4 days

King Charles Honors NVIDIA’s Jensen Huang

Britain's King has given an award to the King of NVIDIA! NVIDIA founder and CEO…

4 days