For immediate release
WASHINGTON – Silicon Valley Bank, Santa Clara, Calif., was closed today by the California Department of Financial Protection and Innovation, which appointed the Federal Deposit Insurance Corporation (FDIC) as receiver. To protect insured depositors, the FDIC created Deposit Insurance National Bank of Santa Clara (DINB). At the time of closing, the FDIC as receiver immediately transferred all insured deposits from Silicon Valley Bank to DINB.
All insured depositors will have full access to their insured deposits by Monday morning, March 13, 2023. The FDIC will pay uninsured depositors an advance dividend within the next week. Uninsured depositors will receive a suspension of payment 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.
Silicon Valley Bank had 17 branches in California and Massachusetts. The main office and all branches of Silicon Valley Bank will reopen on Monday, March 13, 2023. DINB will maintain Silicon Valley Bank’s normal business hours. Banking activities will resume no later than Monday 13 March, including online banking and other services. Silicon Valley Bank’s official checks will continue to clear. Under the Federal Deposit Insurance Act, the FDIC may establish a DINB to ensure that customers have continued access to their insured funds.
Per 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 that exceeded the insurance limits was not determined. The amount of uninsured deposits will be determined when the FDIC obtains 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 assets of Silicon Valley Bank for later disposition. Loan customers should continue to make their payments as normal.
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.