FIRST Citizens BancShares Inc will acquire all of Silicon Valley Bank's deposits and loans from the Federal Deposit Insurance Corporation (FDIC), according to the regulator.
The acquisition by unit First-Citizens Bank & Trust Company includes the purchase of about $72 billion of Silicon Valley Bank's assets at a discount of $16.5 billion, the FDIC said in a statement.
"The FDIC estimates the cost of the failure of Silicon Valley Bank to its Deposit Insurance Fund (DIF) to be approximately $20 billion. The exact cost will be determined when the FDIC terminates the receivership," the statement on Monday said.
The FDIC has received rights in First Citizens BancShares stock with a potential value of up to $500 million as part of the deal, the statement said.
The 17 former branches of SVB will open as First-Citizens banks on Monday.
Approximately $90 billion in securities and other assets from SVB will remain in receivership for dispersal, the regulator added.
First Citizens has around $109 billion in assets and total deposits of $89.4 billion. - Reuters
