First Citizens Bank agrees to buy assets of Silicon Valley Bank

The FDIC says First Citizens Bank and Trust will buy Silicon Valley bank deposits and loans and the deal includes the purchase of about $72 billion in SVB assets at a discount of $16.5 billion. Around $90 billion in securities and other assets will remain in receivership disposition by the FDIC. And the FDIC received equity appreciation rights in first citizen bank shares with a potential value of up to $500 million. First citizens will receive a line of credit from the FDIC for contingent liquidity purposes. It has a loss sharing and kind of a profit sharing agreement with the FDIC to protect further against potential credit losses. And then beginning today, SVB 17 former branches will begin operating as Silicon Valley Bank, a division of First Citizens Bank.

That's interesting. They keep the name too. Yep. First Citizens is going to join us at 7 a.m. Eastern in a first on CNBC interview. Frank Holden Jr.

I think it's a Raleigh-based bank. It's in the top 30 as far as banks. I think 109 billion in assets. SVB was 16 in terms of assets before everything fell apart there. It was 16th. 16th. Yeah, this will put it in the top 25.

And 109 billion was what it had before. So it's one of the fairly big regional banks. At first, the republic is up sharply today. It's back over $15. A lot of the regionals are back. Now I think what the Fed, now it's back to inflation, I guess.

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