First Citizens Bank To Acquire Silicon Valley Bank
According to Federal Deposit Insurance Corporation, First Citizens Bank has purchased the remaining assets, deposits and loans of Silicon Valley Bank.
Customers of SVB will automatically become the customers of First Citizens. The 17 former branches of SVB will also open as First Citizens branches
First Citizens will purchase SVB assets valued at $72 billion at a $16.5 billion discount. Its shares soared by a staggering 53.74%. That's an increase of $582.55 to $894.61.
The acquisition gives FDIC shares in First Citizens worth $500 million. FDIC and First Citizens will share losses and the potential recovery on loans.
The FDIC will keep $90 billion of Silicon Valley Bank’s $167 billion total assets.
It is estimated that the industry-funded Deposit Insurance Fund has lost about $20 billion after Silicon Valley Bank's failure.
First Citizens Bank was established in 1898, having more than $100 billion of total assets and more than 500 branches across 21 states.