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Silicon Valley Bank Changes Hands First Citizens BancShares, a family-run bank in North Carolina, announced last Sunday that it was acquiring Silicon Valley Bank, capping off a tumultuous month for the California lender whose collapse touched off a wider banking crisis.
A loan agreement, sometimes used interchangeably with terms like note payable, term loan, IOU, or promissory note, is a binding contract between a borrower and a lender that formalizes the loan process and details the terms and schedule associated with repayment.
Companies such as Airbnb, Cisco, Fitbit, Pinterest, and Block, Inc. have been clients of the bank. In addition to financing venture-backed companies, SVB was well known as a source of private banking, personal credit lines, and mortgages to tech entrepreneurs, and specialized lending money to higher-risk new companies.
Based in Santa Clara, California, the bank was shut down after its investments greatly decreased in value and its depositors withdrew large amounts of money, among other factors. Later in March, First Citizens Bank bought up all deposits and loans of the failed bank.
The California Department of Financial Protection and Innovation closed SVB of Santa Clara, Calif., on March 10, 2023, and appointed the FDIC as receiver. Afterward, the FDIC transferred all the deposits of the former Silicon Valley Bank to Silicon Valley Bridge Bank, N.A., operated by the FDIC.
First Citizens has purchased all loans and deposits from SVB and will take over managing them. The 17 former branches of SVB now operate under the First Citizens name. Depositors already had extraordinary protection from the Federal Deposit Insurance Corp., which backstopped all money in the bank for any amount.
Silicon Valley Bank was acquired by First Citizens Bank on March 27, 2023. Silicon Valley Bank is open and operating as a division of First Citizens Bank serving the same investor and innovation economy clients that it has for the past 40 years.
Those potential buyers include SkyBridge Capital, and Atlas Merchant Capital ? both working together ? and Vector Capital. SkyBridge was founded by Anthony Scaramucci, famous for serving as President Donald Trump's communications director for just 10 days.