First Citizens Bank buys Silicon Valley Bank

First Citizens Bank of NC (FCNCA) is buying most of the assets of the failed Silicon Valley Bank of CA. The FDIC will have some equity in FCNCA and a loss-sharing agreement with FCNCA. The FDIC deposit insurance fund will take a big hit.

"...As of March 10, 2023, Silicon Valley Bridge Bank, National Association, had approximately $167 billion in total assets and about $119 billion in total deposits. Today's transaction included the purchase of about $72 billion of Silicon Valley Bridge Bank, National Association's assets at a discount of $16.5 billion. Approximately $90 billion in securities and other assets will remain in the receivership for disposition by the FDIC. In addition, the FDIC received equity appreciation rights in First Citizens BancShares, Inc., Raleigh, North Carolina, common stock with a potential value of up to $500 million...The FDIC and First–Citizens Bank & Trust Company entered into a loss–share transaction on the commercial loans it purchased of the former Silicon Valley Bridge Bank, National Association...The FDIC estimates the cost of the failure of Silicon Valley Bank to its Deposit Insurance Fund (DIF) to be approximately $20 billion..."
https://www.fdic.gov/news/press-releases/2023/pr23023.html