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.
