- First Citizens acquires Silicon Valley Bank.
- 17 branches transform, depositors switch.
- $72 billion assets purchased, discounted.
In a bold move, North Carolina’s First Citizens Bank has announced its plans to acquire all deposits and loans of the renowned Silicon Valley Bank, as confirmed by a statement from the Federal Deposit and Insurance Corporation (FDIC).
As part of the March 26 purchase and assumption agreement, 17 branches of Silicon Valley Bank will undergo a transformation, reopening their doors as First Citizens Bank and Trust Company branches on March 27. In a seamless transition, all Silicon Valley Bank depositors will automatically find themselves as depositors of First Citizens Bank.
This momentous transaction includes the acquisition of approximately $72 billion worth of assets from Silicon Valley Bridge Bank, National Association, at a discounted price of $16.5 billion, as stated by the FDIC.
But that’s not all. Around $90 billion in securities and other assets will remain under the receivership of the FDIC for future disposition. Moreover, the FDIC has also secured equity appreciation rights in First Citizens BancShares, Inc. common stock, with a potential value reaching up to a staggering $500 million.
First Citizens Bank, which already holds the title of the 30th largest commercial bank in the United States, is set to expand its impressive portfolio, boasting $167 billion in total assets and $119 billion in deposits as of March 10.
In other news, in a dramatic turn of events, the co-founder of Terraform Labs, Do Kwon, was arrested in Montenegro for attempting to board a plane with false passports. This extraordinary turn of events has spurred South Korean officials to intensify their pursuit of Daniel Shin, also known as Shin Hyun-Seong, the second co-founder of Terra.
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