Silicon Valley Bank sold to First Citizens Bank

First Citizens BancShares Inc has agreed to buy the Silicon Valley Bank, which is under the control of the US regulator the Federal Deposit Insurance Corp (FDIC) after it collapsed due to a liquidity crisis.

The Raleigh, North Carolina-based lender entered into a purchase and assumption agreement for all deposits and loans of SVB, the FDIC said in a statement.

The transaction covers $119 billion in deposits and $72 billion in assets, and "SVB's 17 branches will open as First Citizens" on Monday, it said.

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The regulator said that all the deposits assumed by the First Citizens from the SVB would continue to be insured by the FDIC up to the insurance limit.

“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 in a statement.

Approximately $90 billion in securities and other assets will remain in the receivership for disposition by the FDIC, the statement added.

First Citizens in advanced talk to BUY COLLAPSED Silicon Valley Bank

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

For the last two weekends, the FDIC has been trying to find a buyer for the SVB Private and Silicon Valley Bank, but it failed to reach a deal to sell them together.Since then, it has been asking for separate offers for SVBPrivate and Silicon Valley Bank.

According to a Bloomberg report on Saturday, Valley National Bancorp was also a bidder for Silicon Valley Bank.

SVB—16th biggest bank by assets and a key lender to startups in the US since the 1980s — broke down after a sudden outlfow of deposits, prompting regulators to seize control.

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