More than two weeks after it collapsed in a span of just 48 hours, Silicon Valley Bank is set to be acquired by First Citizens Bank, which is among the biggest banks in the US.?
First Citizens Bank's holding company First Citizens BancShares has agreed to buy Silicon Valley Bank, which was seized by US regulators earlier this month.
SVBĄ¯s 17 former branches will open as First Citizens outlets from Monday, the Federal Deposit Insurance Corporation said.
First Citizens, based in Raleigh, North Carolina, calls itself the nationĄ¯s largest family-controlled bank and has been one of the biggest buyers of troubled lenders in recent years.
This announcement comes after First Citizens Bank yesterday held advanced talks to acquire Silicon Valley Bank, Reuters reported.
The transaction included the purchase of about $72bn of SVB assets, discounted by $16.5bn, the regulator said, adding that as of March 10, SVB had about $167bn in total assets and $119bn in total deposits.?Approximately $90 billion in securities and other assets will remain in the receivership for disposition by the FDIC, the statement said.
In addition, the FDIC received equity appreciation rights in First Citizens BancShares, Inc., Raleigh, North Carolina, a common stock with a potential value of up to $500 million.
The depositors of Silicon Valley Bank will automatically become depositors of First¨CCitizens Bank & Trust Company. "All deposits assumed by First¨CCitizens Bank & Trust Company will continue to be insured by the FDIC up to the insurance limit," the government corporation said in a press release today.
In 1898, First Citizens Bank was founded in North Carolina as the Bank of Smithfield, with just $10,000 of capital. Currently, it is one of the largest banks in the US.?For three generations, the bank has been led by the family of Robert Powell Holding, who joined the bank in 1918 and rose to president in 1935.
Also Read:?Hindenburg Trolled For Failing To Detect?SVB?Crisis
1971- | The Haynes Bank of Cliffside, North Carolina |
1974- | The Bank of Coleridge in Ramseur, North Carolina and The Bank of Commerce in Charlotte, North Carolina |
1979- | Bank of Conway in Conway, North Carolina |
1981- | Commercial & Farmers Bank of Rural Hall, North Carolina and Commercial & Savings Bank of Boonville, North Carolina |
1983- | Peoples Bank of North Carolina in Madison, North Carolina |
1985- | First State Bank of Winterville, North Carolina, Farmers Bank of Pilot Mountain, North Carolina, and Farmers Bank of Sunbury in Sunbury, North Carolina |
1990- | Heritage Federal Savings and Loan Association of Monroe, North Carolina and North Carolina Savings and Loan Association of Charlotte, North Carolina |
1991- | Mutual Savings and Loan Association of Charlotte, North Carolina and First Federal Savings Bank of Hendersonville, North Carolina |
1993- | Caldwell Savings Bank of Lenoir, North Carolina, Surety Federal Savings and Loan Association, FA of Morganton, North Carolina, and Pioneer Savings Bank of Rocky Mount, North Carolina |
1994- | The Bank of Bladenboro in Bladenboro, North Carolina, Edgecomb Homestead Savings Bank of Tarboro, North Carolina, and First Republic Savings Bank of Roanoke Rapids, North Carolina |
1995- | First Investors Savings Bank of Whiteville, North Carolina and State Bank of Fayetteville, North Carolina |
1996- | First-Citizens Bank & Trust Company of Lawrenceville, Virginia, Peoples Savings Bank of Wilmington, North Carolina, and Summit Savings Bank of Sanford, North Carolina |
1997- | First Savings Bank of Rockingham County in Reidsville, North Carolina |
1998- | First Citizens Bank & Trust Company of White Sulphur Springs, West Virginia |
2003- | Avery County Bank of Newland, North Carolina |
2009- | U.S. Bancorp acquired the bond trustee business of First Citizens Bank |
2009- | Temecula Valley Bank of Temecula, California |
2009- | Venture Bank of Lacey, Washington |
2010- | Sun American Bank of Boca Raton, Florida |
2010- | First Regional Bank of Los Angeles, California |
2011- | United Western Bank of Denver, Colorado |
2011- | Colorado Capital Bank of Castle Rock, Colorado |
2011- | In-house merger with IronStone Bank |
2013- | 1st Financial Corp. of Hendersonville, North Carolina |
2014- | First Citizens Bank of South Carolina |
2015- | Capitol City Bank and Trust Company of Atlanta, Georgia |
2016- | North Milwaukee State Bank of Milwaukee |
2016- | Cordia Bancorp Inc. of Midlothian, Virginia |
2016- | First CornerStone Bank of King of Prussia, Pennsylvania |
2017- | Harvest Community Bank of Pennsville, New Jersey |
2017- | Guaranty Bank of Milwaukee, Wisconsin |
2018- | Palmetto Heritage Bancshares Inc. of Pawleys Island, South Carolina |
2019- | Biscayne Bank of Coconut Grove |
2019- | First South Bancorp, Inc. of Spartanburg, South Carolina |
2020- | Entegra Financial Corp. |
2020- | Community Financial Holding Company, Inc. and Gwinnett Community Bank |
2022- | CIT Group |
2023- | Silicon Valley Bank's deposits and loans following its collapse |
SVB has not been the only bank that has collapsed in recent weeks, with Signature bank, Credit Suisse and Silvergate also collapsing.?Silvergate was a bank heavily tied to the US crypto economy. SwitzerlandĄ¯s second-biggest bank?Credit Suisse has been taken over by its bigger rival UBS. more than 8% last Friday following a spike in credit default swaps Thursday night, as concerns about the stability of European banks persisted.
There have also been fresh concerns surrounding Germany's largest bank Deutsche Bank, whose shares suddenly plummeted.
Deutsche bank stock was down 14% at one point during the session but trimmed losses to close 8.6% lower on Friday.?
Also Read:?UBS-Credit Suisse?Merger Creates A Bank Twice As Big As?Swiss Economy
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