First-Citizens Bank and Trust Company, based in Raleigh, North Carolina, has entered a purchase and assumption agreement with the Federal Deposit Insurance Corporation (FDIC) to acquire all loans and deposits of the recently failed Silicon Valley Bridge Bank in the United States. The FDIC established Silicon Valley Bridge Bank, National Association after the California Department of Financial Protection and Innovation closed down Silicon Valley Bank.
More About The First Citizens Bank and Silicon Valley Bank Deal:
The bridge bank received all assets, including substantially all Qualified Financial Contracts, and both insured and uninsured deposits from Silicon Valley Bank.
The 17 former branches of Silicon Valley Bank will operate under the name First-Citizens Bank and Trust Company. Customers of Silicon Valley Bridge Bank, National Association, are advised to continue using their existing branch until they are notified by First-Citizens Bank & Trust Company that system conversions have been finalized, allowing for full-service banking at all branch locations.
Significance of The First Citizens Bank and Silicon Valley Bank Deal:
The establishment of Silicon Valley Bridge Bank, National Association, was aimed at providing the FDIC with an opportunity to stabilize the failed Silicon Valley Bank, which was one of the leading lenders in the technology startup world. On March 10, following a depositors’ run, the struggling Silicon Valley Bank collapsed.