Failed Silicon Valley Bank finds new owner

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First Citizens Bank, a publicly listed banking firm based in North Carolina, has bought Silicon Valley Bridge Bank from the Federal Deposit Insurance Corporation (FDIC).

Silicon Valley Bridge Bank is a temporary firm created by the FDIC to take over the assets and liabilities of Silicon Valley Bank, a tech-focused bank that recently collapsed.

With the deal, First Citizens Bank will assume US$110 billion in assets, US$56 billion in deposits, and US$72 billion in loans from Silicon Valley Bridge Bank. The deal also gave the FDIC some of First Citizens Bank’s common stock – valued at up to US$500 million – as equity appreciation rights.

See also: Timeline of a bank run: What happened to Silicon Valley Bank?

Customers of Silicon Valley Bank will not see any immediate changes to their accounts and can access them as usual.

First Citizens Bank said that the acquisition will help it grow its customer base, geographic reach, digital capabilities, and product offerings. It has over US$219 billion in assets and more than 550 branches across 23 states.