In a statement from the FDIC, First Citizens Bank has agreed to take over all deposits and loans of the SVB group under the agreement. Under the agreement, First-Citizens Bank will take over SVB’s $56 billion in deposits and $72 billion in loans. The deal includes the asset purchase of SVB for $72 billion at a discount of $16.5 billion.
About $90 billion in securities and other assets will remain in the liquidation division of the FDIC.
In the FDIC statement, it was stated that all deposits will continue to be FDIC-guaranteed, “The prudent risk management approach will continue to protect customers and shareholders in all economic conjuncture and market conditions.” it was said.
First Citizens has approximately $109 billion in assets and $89.4 billion in deposits.
A trustee was appointed to SVB, the 16th largest bank in the USA, on March 10, making it one of the biggest bankruptcies since the 2008 global financial crisis.