Photo Credit: Tony Webster / Wikimedia
Silicon Valley Bank offices at the Hayden Ferry Lakeside I building in Tempe, Arizona on January 10, 2020

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.


Previous articleNetanyahu Addresses Nation on Future of Judicial Reform
Next articleCiting Solomon’s Trial, Netanyahu Suspends Judicial Reform
Hana Levi Julian is a Middle East news analyst with a degree in Mass Communication and Journalism from Southern Connecticut State University. A past columnist with The Jewish Press and senior editor at Arutz 7, Ms. Julian has written for, and other media outlets, in addition to her years working in broadcast journalism.