Topline
First Citizens Bank has agreed to acquire Silicon Valley Bank and assume control of all its deposits and loans, the company announced early on Monday, a deal that comes weeks after the Federal Deposit Insurance Corporation failed to find a buyer in an earlier auction.
First Citizens Bank will assume control of all of Silicon Valley Bank’s loans and deposits.
Key Facts
As part of the deal, the North Carolina-based First Citizens Bank has agreed to purchase $72 billion worth of SVB’s loans at a $16.5 billion discount from the FDIC.
The deal will also see First Citizens Bank take control of $56 billion in deposits, the lender said in its own statement.
The FDIC said it will continue to retain receivership of around $90 billion worth of SVB’s assets—including securities.
FDIC will also receive equity appreciation rights in First Citizens worth up to $500 million.
This is a developing story.
Source: https://www.forbes.com/sites/siladityaray/2023/03/27/first-citizens-bank-inks-deal-to-acquire-silicon-valley-banks-loans-and-deposits/