Silicon Valley Bank bought by First-Citizens Bank, FDIC says

SAN FRANCISCO– The Silicon Valley Bank was bought.

The FDIC made it official about an hour ago. The new owner is North Carolina-based First Citizens Bank.

According to the Feds, all 17 branches of Silicon Valley Bank will reopen as First Citizens branches.

The sale includes the sale of all SVB deposits and loans to First-Citizens, the FDIC said in a statement late Sunday.

SVB was once a top lender to many Silicon Valley tech companies before it ran into trouble.

The regulator says the purchase price was $72 billion, discounted by $16.5 billion.

In a press release, the FDIC said Silicon Valley Bank customers should continue to use their current branch until they receive notice from First-Citizens Bank & Trust Company that system conversions have been completed to enable full service banking at all other branch locations.

The collapse of Silicon Valley Bank shook the banking industry, prompting the FDIC and other regulators to take depositor-protection measures to avert greater financial turmoil.

The Santa Clara, California-based bank failed on March 10 after depositors rushed to withdraw funds fearing for the health of the bank. It was the second largest bank collapse in US history.

The Associated Press contributed to this story.

Stay tuned to ABC7 News for the latest details on this developing story.

The video in the media player above has nothing to do with the current story. The ABC7 News Bay Area 24/7 streaming channel allows you to see news throughout the day.