First Citizens Acquires SVB’s Loans and Deposits After Collapse

In early March 2023, Silicon Valley Bank (SVB) failed after a bank run triggered by rising interest rates and unrealized losses on its long‑term bond portfolio. Regulators placed SVB into receivership, creating uncertainty for thousands of tech startups that relied on its services.

First Citizens BancShares, a Raleigh‑based bank, evaluated the distressed assets and negotiated a purchase of SVB’s loan portfolio and deposit base. The FDIC announced the deal late Sunday night, March 12, 2023, under which First Citizens acquired about $72 billion of loans and $56 billion of deposits at a discount, while $90 billion of securities remained in receivership.

The 17 former SVB branches reopened as First–Citizens Bank & Trust Co., giving First Citizens an immediate footprint in the technology‑banking market. The acquisition helped retain many of SVB’s venture‑capital clients, diversified the bank’s revenue beyond traditional retail, and was praised by regulators for stabilizing the financial system.

$72 billion in loans, $56 billion in deposits, and 17 branches, expanding First Citizens’ tech‑banking presence

The collapse of SVB created a fire‑sale of high‑quality loan and deposit assets at a discount.

First Citizens had excess capital and strategic interest in expanding its technology‑sector banking presence.

Regulators encouraged a private‑sector solution to avoid broader contagion, providing a clear path for approval.

In a banking crisis, swift acquisitions of distressed but valuable assets can turn systemic risk into market share gains, provided regulatory approval and clear integration planning are secured.

The deal closed quickly; the 17 former Silicon Valley Bridge Bank branches reopened as First–Citizens Bank & Trust Co. First Citizens added about $72 billion in loans and $56 billion in deposits, boosting assets and expanding its tech‑banking footprint. The acquisition let the bank keep many of SVB’s venture‑capital clients, keep serving startups, and diversify revenue beyond traditional retail. Regulators praised the deal for stabilizing the financial system, and First Citizens has integrated the portfolios while maintaining credit standards.