First Citizens Bank is acquiring Silicon Valley Bank after its collapse.
The transaction is considered a whole-bank purchase, in which Silicon Valley's assets and liabilities will be transferred to First Citizens.
First Citizens is buying about $72 billion of Silicon Valley's assets, but the FDIC will keep control of another $90 billion. The FDIC had been forced to step in and take control of Silicon Valley's assets when it went bankrupt earlier this month.
"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," First Citizens Chairman and CEO Frank B. Holding said in a press release. "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."
First Citizens said the transaction will bring together the complementary strengths of each bank, and will allow the bank to reach a broader customer base.
Existing customers should continue to conduct business as usual.
"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," First Citizens said in a press release. "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."
First Citizens said a prudent approach to risk management will help the bank protect customers and stockholders through all economic cycles and market conditions.
Silicon Valley's failure impacted banks around the world and sparked fears about the strength of banks in the U.S.
What led to the collapse of Silicon Valley Bank and others?
Like any other bank, it operated by taking a portion of deposits and creating loans — but this only works if there's enough deposited at once.
