First Citizens Bank, has concluded plans to acquire most of the assets of the United States tech lender, Silicon Valley Bank, SVB.
Interpreting this move for the bank consumers, the acquisition means that customers of SVB will automatically become customers of First Citizens, which is headquartered in Raleigh, North Carolina.
The development comes as Federal Deposit Insurance Corp, FDIC, and other regulators had already taken extraordinary steps to head off a wider banking crisis by guaranteeing that depositors in SVB and Signature Bank would be able to access all of their money.
In a statement, FDIC hinted that the 17 former branches of SVB will open as First Citizens branches, going forward. It added that the sale of Silicon Valley Bank involves the sale of all deposits and loans of SVB to First-Citizens Bank and Trust Co.
Reportedly, First Citizens Bank has more than $100 billion in total assets, with more than 500 branches in 21 states as well as a nationwide bank. It reported a net profit of $243 million in the last quarter and is the largest family-controlled bank in the country.
Recall that Silicon Valley Bank collapsed in a bank run on March 10 after customers rushed to withdraw money due to fears over the bank’s solvency. Its collapse made it the second-largest bank to crash in U.S. history after the 2008 failure of Washington Mutual.
