According to the FDIC, First Citizens Bank has been Approved to Acquire Silicon Valley Bank.

North Carolina-headquartered First Citizens Bank has announced its takeover of recently collapsed financial institution Silicon Valley Bank (SVB), raising concerns throughout the banking industry.

The sale includes the transfer of all of SVB’s deposits and loans to First Citizens Bank and Trust Company, with all SVB customers becoming customers of First Citizens. 17 erstwhile SVB branches will open in the first name of Citizens on Monday.

The collapse of a Silicon Valley bank earlier this month prompted regulators to step in to protect depositors and prevent further financial turmoil. After a rush of withdrawals from depositors worried about the bank’s health, SVB failed, and in 2008 the collapse of Washington Mutual became the second largest bank collapse in US history.

To avoid widespread financial losses, the government agreed to cover deposits, including deposits. A federally insured limit of $250,000 allows depositors at SVB and another bank that recently collapsed, Signature Bank, to access their funds.

First Citizens Bank’s acquisition of SVB gives the FDIC $500 million worth of shares in the bank. Losses and potential recoveries on loans included in the loss share agreement will be shared between First Citizens and the FDIC.

First Citizens Bank’s acquisition of SVB has eased fears of another bank collapse, which initially affected mid-sized San Francisco-based First Republic Bank. To prevent its possible collapse, the 11 largest banks in the US announced a $ 30 billion rescue package.

First Citizens Bank, which has more than $100 billion in assets and more than 500 branches in 21 states, reported a net profit of $243 million last quarter.