Mon, Mar 27, 2023 6:49 AM
San Francisco — Silicon Valley Bank was purchased.
The FDIC made it official about an hour ago. The new owner is North Carolina-based First Citizens Bank.
According to federal officials, all 17 Silicon Valley bank branches will reopen as Citizens First outlets.
The FDIC said in a statement late Sunday that the sale includes the sale of all deposits and loans from SVB to First Citizens.
The SVB was once a major lender to several tech companies in Silicon Valley before it got into trouble.
The regulator says the purchase price was $72 billion, after deducting $16.5 billion.
In a press release, the FDIC said Silicon Valley bank customers should continue to use their existing branch until they receive notice from First-Citizens Bank. & Trust Company that systems conversions have been completed to allow full banking services at all other branch locations.
The Silicon Valley bank collapse shook the banking industry and prompted the FDIC and other regulators to act to protect depositors to prevent broader financial turmoil.
The bank, based in Santa Clara, California, failed on March 10 after depositors rushed to withdraw money amid concerns about the health of the bank. It was the second largest bank collapse in US history.
The Associated Press contributed to this story.
Stay tuned with ABC7 News for the latest details on this developing story.
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