Most of Silicon Valley Bank bought by First Citizens, in latest bid to contain banking crisis, FDIC says

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First Citizens Bank has agreed to purchase all of failed California lender Silicon Valley Bank's deposits and loans plus a big share of its assets, the Federal Deposit Insurance Corporation (FDIC) said late Sunday. All 17 Silicon Valley Bank branches will open Monday as First Citizens banks, operating as "Silicon Valley Bank, a division of First Citizens Bank," the FDIC said.

The purchase of SVB is the latest effort by federal regulators and private banks to stem the flight of cash from midsize lenders after the March 10 collapse of SVB, based in Santa Clara, and the subsequent teetering of San Francisco-based Signature Bank. The current banking crisis centers on regional banks with fewer in $250 billion assets, below the threshold of higher scrutiny by bank regulators. The FDIC said last week that New York Community Bancorp had agreed to buy "substantially all" of Signature Bank's deposits and some of its loans.

First Citizens, a regional lender based in Raleigh, North Carolina, will buy $119 billion in SVB deposits and $72 billion in loans, at a discount of $16.5 billion. Another $90 billion of SVB securities and other assets will remain under FDIC control. First Citizens, the 30th biggest U.S. bank with $109 billion in assets before the deal, will rise to No. 25, The Wall Street Journal reports. The FDIC said it will share First Citizens losses or potential gains from SVB's commercial loans, and forecast that SVB's collapse will cost the federal Deposit Insurance Fund about $20 billion.

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"We look forward to building relationships with our new customers and positioning our company for continued success as we affirm our commitment to support the integrity of our nation's banking system," First Citizens CEO Frank Holding Jr. said in a news release.

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Peter has worked as a news and culture writer and editor at The Week since the site's launch in 2008. He covers politics, world affairs, religion and cultural currents. His journalism career began as a copy editor at a financial newswire and has included editorial positions at The New York Times Magazine, Facts on File, and Oregon State University.