For immediate publication
WASHINGTON — Silicon Valley Bank, Santa Clara, Calif., was closed today by the California Department of Financial Protection and Innovation, which has appointed the Federal Deposit Insurance Corporation (FDIC) as a trustee. To protect insured depositors, the FDIC created the Deposit Insurance National Bank of Santa Clara (DINB). At the time of closing, the FDIC immediately transferred all insured deposits from Silicon Valley Bank to the DINB as trustee.
All insured depositors will have full access to their insured deposits by Monday morning, March 13, 2023. The FDIC will pay an advance dividend to uninsured depositors in the coming week. Uninsured depositors receive a certificate of guardianship for the remaining amount of their uninsured funds. Since the FDIC sells Silicon Valley Bank’s assets, future dividend payments can be made to uninsured depositors.
Silicon Valley Bank had 17 branches in California and Massachusetts. Silicon Valley Bank headquarters and all branches will reopen on Monday, March 13, 2023. The DINB maintains Silicon Valley Bank’s normal business hours. Banking activities will resume no later than Monday, March 13, including internet banking and other services. The official Silicon Valley Bank checks will continue to clear. Under the Federal Deposit Insurance Act, the FDIC can create a DINB to ensure that customers continue to have access to their insured funds.
As of December 31, 2022, Silicon Valley Bank had approximately $209.0 billion in total assets and approximately $175.4 billion in total deposits. At the time of closing, the amount of deposits above the insurance limits was undetermined. The amount of uninsured deposits will be determined once the FDIC has obtained additional information from the bank and customers.
Customers with accounts over $250,000 should contact the FDIC toll-free at 1-866-799-0959.
The FDIC as receiver will retain all Silicon Valley Bank assets for later sale. Loan customers should continue to make their payments as usual.
Silicon Valley Bank is the first FDIC-insured institution to fail this year. The last FDIC-insured institution to close was Almena State Bank, Almena, Kansas, on October 23, 2020.
FDIC: PR-16-2023
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