First Citizens Bank enters into whole bank purchase of Silicon Valley Bank

SME Banking
27/03/2023 News

First Citizens Bank, a subsidiary of Raleigh-headquartered First Citizens BancShares, Inc., announced that it has entered into an agreement with the Federal Deposit Insurance Corporation (FDIC) to purchase out of FDIC receivership substantially all loans and certain other assets, and assume all customer deposits and certain other liabilities of Silicon Valley Bridge Bank, N.A. The transaction is structured as a whole bank purchase with loss share coverage. First Citizens was selected to complete this transaction through a competitive bidding process.

Frank B. Holding, Jr., chairman and CEO of First Citizens, said: "First Citizens has a reputation for financial strength, exceptional customer service and prudent lending that spans 125 years. We have partnered with the FDIC to successfully complete more FDIC-assisted transactions since 2009 than any other bank, and we appreciate the confidence the FDIC has placed in us once again. We look forward to building relationships with our new customers and positioning our company for continued success as we affirm our commitment to support the integrity of our nation's banking system."

As part of the agreement, First Citizens Bank will assume Silicon Valley Bridge Bank, N.A. assets of $110 billion, deposits of $56 billion and loans of $72 billion, based on latest information provided by the FDIC. First Citizens Bank will additionally receive an available line of credit from the FDIC for contingent liquidity purposes. In addition, First Citizens Bank has entered into a loss share agreement with the FDIC to provide further downside protection against potential credit losses. First Citizens Bank will not acquire any of the assets, common stock, preferred stock, debt or assume any other obligations of SVB Financial Group, the former holding company of Silicon Valley Bank ("SVB").

On March 27, 2023, the 17 legacy Silicon Valley Bridge Bank, N.A. branches will begin operating as Silicon Valley Bank, a division of First Citizens Bank.

There will be no immediate change to customers' current accounts, and they will be able to continue to access their accounts as they do today — through their current websites, mobile apps and branch locations. They can continue to use their checks and cards and will still have ATM and online access to their accounts. Loan customers should continue making loan payments as usual. Customers will be notified of any future account changes in advance.

"First Citizens has a proud history of growing organically and through strategic acquisitions that build our core capabilities in a careful and deliberate manner," said Holding. "This transaction leverages our solid foundation to add significant scale, geographic diversity, compelling digital capabilities and most importantly, meaningful solutions for customers throughout their lifecycle. Specifically, we are committed to building on and preserving the strong relationships that legacy SVB's Global Fund Banking business has with private equity and venture capital firms. This transaction also will accelerate our expansion in California and introduce wealth capabilities in the Northeast. SVB's Private Wealth business is a natural fit for our high-touch and sophisticated level of high-net-worth customer service and approach."

Related news & insights

Digital Reinvention
26/03/2024 Article

Intesa Sanpaolo wins the gold award for European Innovator of the Year and announces a new initiative

Intesa Sanpaolo's recent victory at the Qorus Reinvention Awards - Europe 2024, where it secured the Gold Award for European...

SME Banking
26/03/2024 News

CaixaBank's AgroBank Hub transforms agricultural industry

AgroBank, the specialized agri-food division of CaixaBank, has launched the AgroBank Hub, a digital platform aimed at revolutionizing Spain's agricultural...

SME Banking
26/03/2024 News

Centime redefines SME banking with FNBO partnership

Centime, a Boston-based fintech serving small- to midsize-businesses (SMBs), has launched a groundbreaking banking product in partnership with FNBO (First...

Digital Reinvention
26/03/2024 News

BNY Mellon leads financial sector in AI integration

BNY Mellon, a global financial powerhouse with a 240-year legacy, has partnered with NVIDIA to deploy advanced AI infrastructure, accelerating...

SME Banking
21/03/2024 Article

Recognizing excellence in SME banking: Highlights from the 4th SME Banking Awards ceremony

The fourth edition of the SME Banking Awards ceremony celebrated remarkable achievements and innovation in catering to SMEs worldwide. This...

Digital Reinvention
21/03/2024 Article

European innovation excellence in the spotlight at the Qorus Reinvention Awards in Vienna

Qorus, a global association for retail financial institutions, announced the winners of its first-ever Qorus Reinvention Awards – Europe during...

Digital Reinvention
21/03/2024 Study

Innovation Radar: Reinvention Awards Europe winners 2024

Discover the most innovative projects from banks and insurance companies in Europe.

SME Banking
20/03/2024 Study

Unleashing SME banking potential with embedded finance: Simplifying financial services to create unprecedented convenience for SMEs

In this paper, we will unravel the key challenges that banks need to address to not only navigate the upcoming...