Silicon Valley Bank Client FAQs (2024)

Is Silicon Valley Bank still operating?

SVB is open, serving clients and accepting new business. What our clients need and expect from SVB is still here – dedicated, knowledgeable and specialized teams, comprehensive products and services, exceptional service and a deep understanding of our clients’ unique businesses.

What's happening with Silicon Valley Bank?

SVB is open and operating. As a division of First Citizens Bank, it is operating under the name Silicon Valley Bank and continues to provide private equity investors and the innovation economy the same services and commitment that it has for the last 40 years.

Is SVB now a part of First Citizens Bank?

Silicon Valley Bank was acquired by First Citizens Bank on March 27, 2023. Silicon Valley Bank is open and operating as a division of First Citizens Bank serving the same investor and innovation economy clients that it has for the past 40 years.

Who is First Citizens Bank?

First Citizens Bank helps personal, business, commercial and wealth clients build financial strength that lasts. Founded in 1898 and headquartered in Raleigh, N.C., First Citizens is the largest family-controlled bank in the United States, providing a unique legacy of strength, stability and long-term thinking that has spanned generations. First Citizens now offers an array of general banking services including a network of more than 550 branches in 23 states; commercial banking expertise delivering best-in-class lending, leasing and other financial services coast to coast; and a nationwide direct bank. Parent company First Citizens BancShares, Inc. (NASDAQ: FCNCA) is a top 20 U.S. financial institution with more than $219 billion in assets. Visit firstcitizens.com to learn more.

What will happen to the Silicon Valley Bank name?

Silicon Valley Bank branches and offices are now operating as Silicon Valley Bank, a division of First Citizens Bank.

Will Silicon Valley Bank customers have access to First Citizens Bank products and services, including branches and ATMs?

At this time, Silicon Valley Bank customers will not have access to First Citizens Bank products and services, including branches and ATMs. Silicon Valley Bank customers should continue to bank and access their accounts as they always have.

Is First Citizens Bank committed to supporting the innovation and technology sectors?

Yes, First Citizens is committed to continuing to help innovators, enterprises and investors move bold ideas forward.

Will First Citizens continue to invest in Silicon Valley Bank’s Global Fund Banking business?

Silicon Valley Bank’s large portfolio of client relationships across private equity and venture capital firms and their portfolio companies nicely complements First Citizens’ existing customer base. We recognize the importance of legacy SVB’s Global Fund Banking business in providing banking, payments, FX and capital call lines to private equity and venture capital clients as well as deposit products, treasury management products and several FX solutions to facilitate cross-border capital flows for private equity/venture capital clients. We are committed to building on and investing in Silicon Valley Bank’s Global Fund Banking business to preserve these strong relationships and serve as their leading provider of banking, payments, FX and capital call lines.

What is the status of SVB’s products and solutions?

Why should we consider staying with SVB?

SVB is open and here to serve you as we always have – focused and specialized in the innovation economy. As a division of First Citizens, SVB is running as SVB, and our clients do not need to change anything to receive the services they know and expect from the team with the deepest bench of innovation economy expertise and a team that serves the innovation economy better than any other financial institution. What our clients in every sector, segment and life stage of the innovation economy need and expect from SVB is still here – dedicated and knowledgeable teams, comprehensive products and services, exceptional service and a deep understanding of our clients’ unique businesses. We remain dedicated to the success of the investors and innovators who are literally inventing the future, and now we have the full backing, credit appetite, authority to serve our clients and financial support of 125-year old First Citizens Bank to continue to pursue that mission.

What is the status of SVB’s international businesses?

Clients with US accounts and TIN numbers will be able to maintain accounts (as was already the case for clients from our overseas lending operations) and have no changes to their credit facilities. Our Global Gateway group is still actively supporting investors and innovators globally that need US banking. What we no longer have are operations to service international clients in country. As stated, those companies can work with us via our US operations and our US-based clients can transact globally as before. Silicon Valley Bank’s UK subsidiary was purchased by HSBC and continues to operate.

What can you say about SVB’s security and stability as well as trustworthiness?

Will the client support teams be the same?

SVB’s dedicated and specialized client service team, relationship advisors, product advisors and relationship management teams are still operating as they have been at SVB. We have the deepest bench of experts serving the innovation economy that has also been through several market cycles. No doubt with more competitors, our clients have choices and despite our expertise, size and decades in this business, we know will have to earn their trust and their business every day. We understand the unique banking and tailored lending needs of the innovation economy better than any other financial institution. Other banks will try to replicate what we have built over the decades, but Founders, Entrepreneurs, VCs and private equity firms who need our services don’t have time to wait.

Is Silicon Valley Bank accepting new clients and new business?

Silicon Valley Bank is open for business, processing payments, funding loans and serving our clients, now as a division of First Citizens Bank. Your relationship managers are the same people you have always worked with and they are here to answer your questions and provide you with business solutions as they always have. We are accepting new clients and new business.

Is Silicon Valley Bank FDIC insured?

First Citizens Bank, and its divisions including Silicon Valley Bank, is a member of the FDIC. Client deposits in the US continue to be insured by the FDIC up to the maximum amount allowed by law. This maximum amount is $250,000 per depositor, per insured bank, for each account ownership category.

Will deposit interest continue to be paid out?

Yes

How will Letters of Credit (LC) be managed?

All obligations of Silicon Valley Bank, including letters of credit supporting leases or other commercial transactions, are backed by First Citizens Bank.

Does this acquisition affect my FDIC insurance coverage?

Your deposits will continue to be insured by the FDIC up to the maximum amount allowed by law. This maximum amount is $250,000 per depositor, per insured bank, for each account ownership category.

Are you honoring debt facilities?

Yes, we are honoring drawn and undrawn facilities.

Are you originating new ones?

Yes, for new and existing clients.

What happens to term sheets issued and refinances?

We are ready, willing and able to pick these up right where we left off and want to get them done.