The Federal Deposit Insurance Corporation (FDIC) has confirmed the acquisition of $72 billion in assets from Silicon Valley Bank’s failure by First Citizens Bancshares, Inc. This acquisition is a significant milestone for First Citizens, as it marks the largest acquisition in the bank’s history.
Silicon Valley Bank, a California-based financial institution, was closed by the FDIC on March 6, 2020. The bank had been struggling with financial difficulties for some time, and the FDIC was forced to step in to protect depositors’ funds. As part of the closure, the FDIC was tasked with finding a buyer for the bank’s assets.
First Citizens Bancshares, Inc., a North Carolina-based bank, was selected as the winning bidder for Silicon Valley Bank’s assets. The acquisition includes $72 billion in assets, including loans, deposits, and other financial instruments. The acquisition will significantly expand First Citizens’ presence in California and other western states.
The acquisition is a significant win for First Citizens, as it will allow the bank to expand its customer base and increase its market share in key regions. The bank has been focused on expanding its presence in California and other western states for some time, and this acquisition will help to accelerate that growth.
In a statement, First Citizens CEO Frank Holding Jr. said, “We are excited to welcome Silicon Valley Bank’s customers and employees to the First Citizens family. This acquisition is a significant milestone for our bank, and we look forward to working with our new customers to provide them with the exceptional service and support that First Citizens is known for.”
The acquisition is also a win for the FDIC, as it allows the agency to protect depositors’ funds and minimize the impact of Silicon Valley Bank’s failure on the broader financial system. The FDIC has been working tirelessly to find buyers for failed banks’ assets, and this acquisition is a testament to the agency’s efforts.
Overall, the acquisition of $72 billion in assets from Silicon Valley Bank’s failure by First Citizens Bancshares, Inc. is a significant milestone for both the bank and the FDIC. It will allow First Citizens to expand its presence in key regions and provide exceptional service to new customers, while also protecting depositors’ funds and minimizing the impact of the bank’s failure on the broader financial system.
