First Citizens BancShares Inc said on Monday it will acquire Silicon Valley Bank's deposits and loans as well as certain other assets from the Federal Deposit Insurance Corporation (FDIC).
The FDIC said in a separate statement it has received equity appreciation rights in First Citizens BancShares stock with a potential value of up to $500 million as part of the deal.
Under the deal, unit First–Citizens Bank & Trust Company will assume SVB assets of $110 billion, deposits of $56 billion and loans of $72 billion.
A prudent risk management approach will continue to protect customers and stockholders through all economic cycles and market conditions.
Approximately $90 billion in securities and other assets from SVB will remain in receivership for disposition.
From Monday, SVB's 17 former branches will begin operating as Silicon Valley Bank, a division of First Citizens Bank.
First Citizens has around $109 billion in assets and total deposits of $89.4 billion. costs low.