First Citizens has agreed to buy out Silicon Valley Bank.

First Citizens BancShares Inc said on Monday that it will purchase the deposits and loans of insolvent Silicon Valley Bank, completing one chapter in the global financial markets’ confidence crisis.

The Federal Deposit Insurance Corporation (FDIC), which assumed control of SVB earlier this month, said in a separate statement that as part of the arrangement, it got equity appreciation rights in First Citizens BancShares stock worth up to $500 million.

According to First Citizens, the acquisition was structured to protect the business’s strong financial position, and the merged company would be resilient with a varied loan portfolio and deposit base.

Under the terms of the agreement, First-Citizens Bank & Trust Corporation will take $110 billion in SVB assets, $56 billion in deposits, and $72 billion in loans.

First Citizens Bank will also obtain a line of credit from the FDIC for contingency liquidity reasons, as well as a loss-sharing arrangement with the regulator to give further downside protection against potential credit losses, according to the company.

When California authorities shuttered SVB on March 10, it was the largest bank to fail since the 2008 financial crisis, causing huge market upheaval and heightened stress across the banking sector internationally.

The regulator noted that around $90 billion in securities and other assets from SVB will remain in receivership pending disposal.

SVB’s 17 former locations will reopen on Monday as Silicon Valley Bank, a part of First Citizens Bank.

First Citizens has around $109 billion in assets and $89.4 billion in deposits.

4 thoughts on “First Citizens has agreed to buy out Silicon Valley Bank.

  1. Write more; that’s all I have to say. It seems as though you relied on the video to make your point. You know what you’re talking about, why waste your intelligence on just posting videos to your blog when you could be giving us something enlightening to read?

  2. I’m not sure exactly why but this blog is loading extremely slow for me. Is anyone else having this problem or is it a issue on my end? I’ll check back later on and see if the problem still exists.

  3. Hey would you mind letting me know which hosting company you’re utilizing? I’ve loaded your blog in 3 completely different internet browsers and I must say this blog loads a lot quicker then most. Can you recommend a good hosting provider at a reasonable price? Cheers, I appreciate it!

  4. Thanks for your article on this blog site. From my own personal experience, often times softening way up a photograph could provide the professional photographer with a little bit of an artsy flare. Oftentimes however, this soft blur isn’t just what exactly you had planned and can sometimes spoil an otherwise good photo, especially if you intend on enlarging it.

Leave a Reply

Your email address will not be published. Required fields are marked *