Relief to the customers of the bankrupt Silicon Valley Bank, this bank took responsibility for all deposits and loans

Pankaj Prasad
Silicon Valley Bridge Bank
Silicon Valley Bridge Bank

The FDIC said in a press release that the 17 former branches of Silicon Valley Bridge Bank will open as First-Citizens Banks on March 27, 2023 (Monday).

The FDIC said in a press release that the 17 former branches of Silicon Valley Bridge Bank will open as First-Citizens Banks on March 27, 2023 (Monday). The regulator (Federal Deposit Insurance Corporation) said in a statement on Monday that First Citizens Bank & Trust Company will purchase all of the Silicon Valley bank's deposits and loans from the Federal Deposit Insurance Corporation (FDIC). The Trust Company, on behalf of Raleigh, North Carolina, has entered into an agreement to purchase all deposits and loans of Silicon Valley Bridge Bank, National Association.

17 branches of SVB will now open as First Citizen Bank

The 17 former branches of the Silicon Valley Bridge Bank National Association will open as First-Citizens Bank & Trust Company on Monday, March 27, 2023. SVB customers should continue to use their current branch until they receive notice from First Citizens Bank that the system conversion has been completed to allow full banking service at all of its other branches.

Depositors of SVB will automatically become depositors of First Citizens Bank

Only First Citizens will become a depositor of the bank and all deposits accepted by the bank will continue to be insured by the FDIC. As of March 10, the SVB had about $167 billion in total assets and about $119 billion in total deposits. According to the FDIC, "Today's transactions included the purchase of Silicon Valley Bridge Bank for approximately $72 billion, including the National Association discount of $16.5 billion.ย 

About $90 billion in securities and other assets will remain in receivership for disposal by the FDIC. In addition, the FDIC received equity shares of First Citizens Bank in Raleigh, North Carolina, with a potential value of approximately $500 million.