For immediate release
WASHINGTON – Silicon Valley Bank, Santa Clara, California, 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 immediately transferred to DINB as receiver all of Silicon Valley Bank’s insured deposits.
All insured depositors will have full access to their insured deposits by Monday morning, March 13, 2023. The FDIC will issue advance dividends to uninsured deposits within the next week. Uninsured depositors will receive a receivership certificate for the balance of uninsured funds. Future dividends will be paid to uninsured depositors as the FDIC sells Silicon Valley bank assets.
Silicon Valley Bank has 17 branches in California and Massachusetts. Silicon Valley Bank’s main office and all branches will reopen on Monday, March 13, 2023. DINB will maintain Silicon Valley Bank’s regular business hours. Banking operations will resume after Monday, March 13, including online banking and other services. Official checks from Silicon Valley Bank will continue to clear. Under the Federal Deposit Insurance Act, the FDIC may create a DINB to ensure that customers have continued 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 in excess of insurance limits is not determined. Once the FDIC receives more information from the bank and customers, the amount of uninsured deposits will be determined.
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 from Silicon Valley Bank for later acquisition. Borrowing customers should continue making payments as usual.
Silicon Valley Bank is the first FDIC-insured institution to fail this year. On October 23, 2020, Almena State Bank in Kansas closed Almena State Bank.