Silicon Valley Bank acquired by First Citizens
First Citizens, a US small and medium-sized bank headquartered in North Carolina, is acquiring Silicon Valley Bank (SVB).
According to Cointelegraph on the 26th (local time), the Pension Deposit Insurance Corporation (FDIC) announced that First Citizens will take over all of SVB’s deposits and loans. On this day, according to the purchase and acquisition agreement, 17 branches of SVB, which were previously operated, will be opened and operated as First Citizens trust companies. In addition, all depositors of SVB automatically become depositors of First Citizens. “First Citizens bought SVB for $72 billion, a discount of $16.5 billion,” the FDIC said. Some of the $90 billion in SVB assets seized by the FDIC shortly after SVB’s bankruptcy will not be handed over to First Citizens and will remain in court receivership.
First Citizens is classified as a small and medium-sized bank, ranking 30th among commercial banks in the United States as of the end of last year. After SVB’s bankruptcy, FDIC searched for a buyer for two weeks, and First Citizens and Valley National Bancorp emerged as the most likely candidates. Since then, the two banks have competed to acquire SVB. First Citizens’ market value is $8.4 billion, $3.7 billion more than Valley National’s Bancorp.