SAN FRANCISCO: The United States Federal Deposit Insurance Corporation (FDIC) has announced that First Citizens Bank and Trust Company of Raleigh, North Carolina entered a procure agreement for all deposits and loans of Silicon Valley Bridge Bank, National Association.

According to a statement from the FDIC, "the 17 former branches of Silicon Valley Bridge Bank, National Association will open as First-Citizens Bank & Trust Corporation on Monday, March 27, 2023."

 Silicon Valley Bridge Bank, National Association customers "should continue to use their current branch until they receive notice from First-Citizens Bank & Trust Company that systems conversions have been completed to allow full-service banking at all of its other branch locations."

The customers of the bank in Santa Clara, California will automatically become customers of First-Citizens Bank & Trust Company, and all deposits will be taken over and insured by First-Citizens Bank & Trust Company, up to the insurance limit.

FDIC stated: "Silicon Valley Bridge Bank, National Association has around USD 167 billion in total assets as of March 10, 2023, and over $119 billion in total deposits. In today's deal, assets worth around $72 billion from Silicon Valley Bridge Bank, National Association were purchased for a USD 16.5 billion discount." A further USD 90 billion in securities and other assets will stay in the receivership for the FDIC to sell, as per reports.

The Federal Deposit Insurance Corporation had tried to sell SVB Private alongside Silicon Valley Bank over the last two weekends, however, it failed to reach a deal to sell them both together. It has since asked for separate offers for SVB Private and Silicon Valley Bank by March 24.

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