Silicon Valley Bank purchased by First-Citizens Bank, FDIC says

SAN FRANCISCO — Silicon Valley Bank has been purchased.

The FDIC made it official just about an hour ago. The new owner is North Carolina-based First Citizens Bank.

According to the Feds, all 17 branches of Silicon Valley Bank will re-open as First Citizens outlets.

The sale involves the sale of all deposits and loans of SVB to First-Citizens, the FDIC said in a statement late Sunday.

SVB was once a top lender to many tech firms in Silicon Valley before it ran into trouble.

The regulator says the purchase price was $72 billion, discounted by $16.5 billion.

In a press release, the FDIC said that customers of Silicon Valley Bank 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 collapse of Silicon Valley Bank rattled the banking industry and led the FDIC and other regulators to act to protect depositors to prevent wider financial turmoil.

The bank, based in Santa Clara, California, failed on March 10 after depositors rushed to withdraw money amid fears about the bank’s health. It was the second-largest bank collapse in U.S. history.

The Associated Press contributed to this story.

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