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.
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