The news follows the collapse of Silicon Valley Bank in early March, which triggered turmoil in the global banking sector
First Citizens Bank has entered into an agreement with the Federal Deposit Insurance Corporation (FDIC) to buy all loans and certain assets of Silicon Valley Bridge Bank, the renamed deposit and loan business of the now collapsed tech and startup specialist.
As part of a deal that finds a buyer for a significant book of business following the failure of Silicon Valley Bank, First Citizens will assume control of assets of $110b, deposits of $56b and loans of $72b.
First Citizens is also keeping 17 former Silicon Valley Bridge Bank branches open, with customers urged to continue with their business as normal.
Frank B Holding Jr, chairman and chief executive officer of First Citizens, said the US bank, which is headquartered in North Carolina and was selected after a bidding process, is committed to “building on and preserving” the strong relationships that Silicon Valley Bank developed with private equity and venture capital firms.
The acquisition also accelerates the expansion plans of First Citizens in California and enables the bank to introduce wealth capabilities in the northeast of the country, with Silicon Valley Bank‘s private wealth business “a natural fit”.
Holding continued: “First Citizens has a proud history of growing organically and through strategic acquisitions that build our core capabilities in a careful and deliberate manner.
“This transaction leverages our solid foundation to add significant scale, geographic diversity, compelling digital capabilities and most importantly, meaningful solutions for customers throughout their lifecycle.”
The news follows the collapse of Silicon Valley Bank in early March, which triggered turmoil in the global banking sector.
UBS agreed to buy Credit Suisse for $3.25b in a Swiss government-backed deal aimed at preventing a banking crisis in Europe.
Image: First Citizens