- The legacy branches will operate as Silicon Valley Bank, a division of First Citizens
- First Citizens has more than 550 branches and offices in 23 states
- BofA Securities is serving as financial advisor to First Citizens
First Citizens Bank has agreed to acquire Silicon Valley Bridge Bank, formerly known as Silicon Valley Bank, in a deal made with the Federal Deposit Insurance Corporation.
The 17 legacy SVB branches now operate as Silicon Valley Bank, a division of First Citizens, which has more than 550 branches and offices in 23 states.
As part of the agreement, First Citizens, which is based in Raleigh, North Carolina, will assume SVB’s assets of $110 billion, deposits of $56 billion and loans of $72 billion, based on the latest information provided by the FDIC. First Citizens will also receive an available line of credit from the FDIC for contingent liquidity purposes.
Silicon Valley Bank, which has said it did business with about half of the nation’s venture-backed start-ups, was seized by regulators on March 10. The California Department of Financial Protection and Innovation closed the 40-year-old bank after it experienced a run on deposits and was unable to secure new funding. It was the largest bank failure since the Global Financial Crisis.
The bank’s holding company, SVB Financial, filed for bankruptcy on March 17 and has been exploring a sale of various business units including SVB Capital, its $9.5 billion fund of funds, Venture Capital Journal previously reported.
BofA Securities Inc is serving as financial advisor to First Citizens, while Smith, Anderson, Blount, Dorsett, Mitchell & Jernigan LLP acted as legal advisor.
Frank B. Holding, Jr., CEO of First Citizens, said in a statement, “First Citizens has a reputation for financial strength, exceptional customer service and prudent lending that spans 125 years. We have partnered with the FDIC to successfully complete more FDIC-assisted transactions since 2009 than any other bank, and we appreciate the confidence the FDIC has placed in us once again.”