First Citizens Bancshares agreed last night to buy most of Silicon Valley Bank at a discount from the Federal Deposit Insurance Corp., marking a coup for North Carolina banking.
The Holding family’s bank will buy all of SVB’s deposits, loans and 17 branches, effective today. That involves $119 billion in deposits, and $72 billion of loans that come at a $16.5 billion discount. Meanwhile, about $90 billion of securities held by SVB and investment management business will remain in receivership.
First Citizens shares, which trade as FCNCA on Nasdaq, increased sharply in pre-market trading. It had a market cap of about $11.9 billion as of Friday.