Summary:

• First Citizens Bank has acquired the 17 branches of Silicon Valley Bank (SVB) following its collapse.
• The Federal Deposit Insurance Corporation (FDIC) will continue to manage and sell SVB’s $90bn assets, it also received equity appreciation rights in First Citizens common stock.
• The deal will open the way for First Citizens to provide services to tech, private equity, and venture capital firms.

First Citizens Bank has agreed to buy the collapsed Silicon Valley Bank (SVB). The 17 former SVB branches will now open as First Citizens Bank starting on Monday, March 27.

Details of the deal are still filtering in but the Federal Deposit Insurance Corporation (FDIC), which took control of SVB when it collapsed, said that its $72 billion assets would be sold at a discount on $16.5 billion to the buyer. However, the regulatory agency will continue to manage and sell the $90 billion in securities and other assets.

SVB’s failure will cost nearly $20 billion from the agency’s Deposit Insurance Fund. As part of the deal, the FDIC received equity appreciation rights in First Citizens common stock.

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The bank, which is a major lender to startups, had faced a crisis when depositors made a run on their deposits. While the FDIC stepped in to protect all depositors, the company’s investors were left out.

“First Citizens has a proud history of growing organically and through strategic acquisitions that build our core capabilities in a careful and deliberate manner,” Frank B. Holding, Jr., chairman and CEO of First Citizens, said in a statement.

He added that the deal will open the way for the financial institution to provide services to tech companies as well as private equity and venture capital firms. The bank will maintain the relationship that SVB cultivated all these years.

In the past five days, First-Citizens Bank & Trust Co shares has grown by nearly 10%.

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