First Citizens Repays $8.5 Billion of SVB-Related FDIC Debt

Silicon Valley Bank collapsed on March 10, 2023, prompting the Federal Deposit Insurance Corporation to sell its core banking operations to First Citizens Bank under a deal announced later that month. First Citizens took on about $72 billion of loans and $56.5 billion of deposits, financing the acquisition partly through a purchase money note issued to the FDIC. Paying down that obligation lowers borrowing costs and strengthens the lender’s post-acquisition funding profile.

First Citizens BancShares said on July 23, 2026, that it prepaid $2.5 billion during the second quarter and another $1 billion in July, bringing cumulative repayments tied to the SVB acquisition to $8.5 billion. Quarterly net interest income rose $35 million sequentially to $1.66 billion, beating market expectations, while net income increased to $672 million from $534 million. Management said it plans to continue repaying between $500 million and $1 billion each month.