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Silicon Valley Bank Acquired by First Citizen Bank


Latest update have emerged that the crypto friendly Silicon Valley Bank (SVB) worth $40 billion a year ago has been acquired for $500 million at a 99% discount.

First Citizen BankShares the holding company of First Citizen Bank was in advanced talks as it edged closer to acquiring SVB from the Federal Deposit Insurance Corp (FDIC) on Monday. The acquisition has already calmed investors over the concerns about credit crunch and broader systemic banking crisis.

New release by the FDIC detailed that the 17 Silicon Valley Bridge Bank, National Association branches are set to open as First Citizen Bank and Trust Company as on March 27,2023. FDIC stated that both First Citizen Bank and Trust Co will buy Silicon Valley deposits and loans from the regulator.

SVB had approximately $167 billion total assets, $119 billion deposits in which the acquisition includes $72 billion of Silicon Valley Bridge assets purchased for discount of $16.5 billion and the FDIC will remain a receiver of $90 billion in securities and other assets.

Meanwhile Silicon Valley Bank costs due to ifs failure resulted in nearly $20 billion to its Deposit Insurance Fund (DIF) according to FDIC and the exact cost will be revealed after the termination of the FDIC receivership.