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Friday, Mar 29, 2024


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International News

    Title: First Citizens agrees to buy Silicon Valley Bank
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    First Citizens Agrees To Buy Silicon Valley Bank 31284
    Description: First Citizens BancShares Inc (FCNCA.O) said on Monday it will acquire Silicon Valley Bank's (SIVB.O) deposits and loans as well as certain other assets from the Federal Deposit Insurance Corporation (FDIC). The FDIC said in separate statement it has received equity appreciation rights in First Citizens BancShares stock with a potential value of up to $500 million as part of the deal. First Citizens said the transaction was structured to preserve its solid financial position and the combined company remains resilient with a diverse loan portfolio and deposit base. Under the deal, unit First–Citizens Bank & Trust Company will assume SVB assets of $110 billion, deposits of $56 billion and loans of $72 billion. "Prudent risk management approach will continue to protect customers and stockholders through all economic cycles and market conditions," the statement said. The FDIC said the purchase of about $72 billion of SVB's assets came at a discount of $16.5 billion. "The FDIC estimates the cost of the failure of Silicon Valley Bank to its Deposit Insurance Fund (DIF) to be approximately $20 billion. The exact cost will be determined when the FDIC terminates the receivership," it said. Approximately $90 billion in securities and other assets from SVB will remain in receivership for disposition, the regulator added. From Monday, SVB's 17 former branches will begin operating as Silicon Valley Bank, a division of First Citizens Bank. First Citizens has around $109 billion in assets and total deposits of $89.4 billion.
    Published Date: 27-Mar-2023
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