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Understanding First Citizens Bank’s acquisition of Silicon Valley Bank

Raleigh-based First Citizens Bank doubled its size with the deal.

The exterior of First Citizens Bank.

There’s a First Citizens Bank location in the Village District.

Photo by RALtoday

When Silicon Valley Bank collapsed after a bank run earlier this month, it became the second biggest bank failure in the US. Now, one of NC’s oldest family-owned banks is picking up the pieces.

On Monday, March 27, Raleigh-based First Citizens Bank purchased the California-based lender. First Citizens’ acquisition of all SVB deposits and loans doubled its size. Here’s what else you need to know:

Fast facts

  • SVB customers’ funds are protected — even amounts not insured by the Federal Deposit Insurance Corporation.
  • SVB customers automatically became First Citizens customers on Monday.
  • There will be no immediate changes to the accounts of SVB customers.
  • First Citizens will share SVB’s debt with the FDIC.
  • With the help of the FDIC, First Citizens has acquired more than 20 small failed banks since 2008.
  • First Citizens was founded in 1898 and is celebrating 125 years.
  • SVB was established in 1983 with a focus on the tech industry.

By the numbers

  • First Citizens assumed $110 billion in assets, $56 billion in deposits, and $72 billion in loans with the deal.
  • The FDIC still retains approx. $90 billion of SVB assets.
  • According to WRAL Techwire, the deal caused the local bank’s shares to increase 52% on Monday.
  • On Monday, SVB’s 17 banks opened as First Citizens branches.
  • Before the acquisition, First Citizens was worth $109 billion.
  • Now, First Citizens is worth more than $219 billion and is one of the 20 largest banks in America with 500+ branches in 23 states.

Read more about the acquisition and listen to a breakdown of SVB’s closing.

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