First Citizens Agrees to Buy Collapsed Silicon Valley Bank

First Citizens Bankers said on Monday that it would take over the deposits and loans of the collapsed Silicon Valley bank, concluding a chapter of a crisis of confidence that caused turmoil in global financial markets.

In a separate statement, the Federal Deposit Insurance Corporation, which took control of Silicon Valley this month, said it had acquired stock appreciation rights in First Citizens with a potential value of up to $500 million as part of the deal.

First Citizens said the deal was aimed at preserving its strong financial position, and the new company would remain resilient and have a diversified loan portfolio and deposit base.

Under the deal, First Citizens Bank & Trust will acquire $110 billion in Silicon Valley assets, $56 billion in deposits and $72 billion in loans.

Starting Monday, 17 former Silicon Valley branches will begin operating as a unit of First Citizens Bank.

First Citizens has about $109 billion in assets and total deposits of $89.4 billion.