Silicon Valley Bank has failed.
The FDIC said on Friday it would take over Silicon Valley Bank (SIVB) and created the Deposit Insurance National Bank of Santa Clara.
All deposits are to be transferred over to the new bank and access to the accounts will be available by March 13, the agency said.
SVB had $209 billion of total assets and about $175.4 billion in total deposits as of Dec. 31, 2022.
The FDIC said the amount of deposits in excess of the insurance limits was undetermined. The FDIC insures depositors up to $250,000.
"The amount of uninsured deposits will be determined once the FDIC obtains additional information from the bank and customers," the regulatory agency said in a statement.
"The FDIC will pay uninsured depositors an advance dividend within the next week," the agency said. "Uninsured depositors will receive a receivership certificate for the remaining amount of their uninsured funds.
"As the FDIC sells the assets of Silicon Valley Bank, future dividend payments may be made to uninsured depositors."
SVB Financial Group shares were halted by officials on the Nasdaq Friday amid an extended collapse for the Santa Clara, Calif., lender.
The move followed a liquidity crunch that triggered an emergency capital increase and raised concerns for the value of billions in Treasury bonds held in bank portfolios around the country.
Silicon Valley Bank has 17 branches in California and Massachusetts.
SVB's main office and all branches will also be open on March 13. Online banking and other services will also be available on Monday.
"Silicon Valley Bank’s official checks will continue to clear," the FDIC said.
SVB is the first bank to fail in 2023. Almena State Bank, Almena, Kan., was the most recent FDIC-insured institution to close, on Oct. 23, 2020.
