First Citizens Bank & Trust Company will purchase all of Silicon Valley Bank’s deposits and loans from the Federal Deposit Insurance Corporation (FDIC), Reuters reported Monday.
First Citizens Bank has around $109 billion in assets, and total deposits of $89.4 billion, according to the report.
The bank will buy about $72 billion worth in assets from the failed bank, at the reduced cost of $16.5 billion, the FDIC announced.
“The FDIC estimates the cost of the failure of Silicon Valley Bank to its Deposit Insurance Fund (DIF) to be approximately $20 billion,” the statement read.
“The exact cost will be determined when the FDIC terminates the receivership.”
As part of the agreement, the FDIC received rights to First Citizens BancShares stock with a potential value of up to $500 million, according to the announcement.
Approximately $90 billion in securities and other SVB assets are to remain in receivership for future distribution, the FDIC said.
Seventeen former SVB branches opened Monday as First Citizen Bank branches.