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FDIC Shutters Silicon Valley Bank

Silicon Valley Bank has been taken over by the government&period;&NewLine;The Santa Clara-based bank was closed today by the California Department of Financial Protection and Innovation, which appointed the Federal Deposit Insurance Corporation (FDIC) as receiver&period; To protect insured depositors, the FDIC created the Deposit Insurance National Bank of Santa Clara (DINB)&period; At the time of closing, the FDIC as receiver immediately transferred to the DINB all insured deposits of Silicon Valley Bank&period;&NewLine;All insured depositors will have full access to their insured deposits no later than Monday morning, March 13, 2023&period; The FDIC will pay uninsured depositors an advance dividend within the next week&period; Uninsured depositors will receive a receivership certificate for the remaining amount of their uninsured funds&period; As the FDIC sells the assets of Silicon Valley Bank, future dividend payments may be made to uninsured depositors&period;&NewLine;Silicon Valley Bank had 17 branches in California and Massachusetts&period; The main office and all branches of Silicon Valley Bank will reopen on Monday, March 13, 2023&period; The DINB will maintain Silicon Valley Bank’s normal business hours&period; Banking activities will resume no later than Monday, March 13, including on-line banking and other services&period; Silicon Valley Bank’s official checks will continue to clear&period; Under the Federal Deposit Insurance Act, the FDIC may create a DINB to ensure that customers have continued access to their insured funds&period;&NewLine;As of December 31, 2022, Silicon Valley Bank had approximately &dollar;209&period;0 billion in total assets and about &dollar;175&period;4 billion in total deposits&period; At the time of closing, the amount of deposits in excess of the insurance limits was undetermined&period; The amount of uninsured deposits will be determined once the FDIC obtains additional information from the bank and customers&period;&NewLine;Customers with accounts in excess of &dollar;250,000 should contact the FDIC toll-free at 1-866-799-0959&period;&NewLine;The FDIC as receiver will retain all the assets from Silicon Valley Bank for later disposition&period; Loan customers should continue to make their payments as usual&period;&NewLine;Silicon Valley Bank is the first FDIC-insured institution to fail this year&period; The last FDIC-insured institution to close was Almena State Bank, Almena, KS, on October 23, 2020&period;&NewLine;Shares in SVB Financial, the holding company for Silicon Valley Bank, have been halted for trading on Friday&period;&NewLine;

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