First Citizens Bank Announces Acquisition of Silicon Valley Bridge Bank, N.A.

Acquisition Highlights - First Citizens Bank acquired Silicon Valley Bridge Bank, N A , expanding its nationwide franchise and adding scale in attractive West Coast and Northeast markets[4,9] - The acquisition includes approximately $110 1 billion in assets and $56 5 billion in deposits[24,33] - First Citizens has the option to purchase or lease 17 branches and private banking offices from Silicon Valley Bridge Bank[11] Financial Details and Downside Protection - The transaction involves a $16 5 billion discount bid on assets[33] - A five-year loss share agreement stipulates that the FDIC will reimburse First Citizens for 50% of losses on commercial loans exceeding $5 billion[21] - First Citizens entered into a five-year $35 billion note payable to the FDIC with an annual interest rate of 3 50%[23] Strategic Benefits - The acquisition diversifies First Citizens' client base and expands its portfolio, unlocking new business opportunities[15,27] - It enhances First Citizens' wealth business by adding the digital capabilities, talent, and solutions of SVB Private[13] - The combined company has total liquidity that covers uninsured deposits by over 175%[50]