The collapsed Silicon Valley Bank will be acquired by First Citizens BancShares Inc (NASDAQ: FCNCA), after regulators took control of the tech lender earlier this month in wake of a run on deposits.

First Citizens on Monday announced SVB is reopening under a new owner, after the regional bank bought the tech lender’s deposits and loans, which totalled $119 billion and $72 billion, respectively. The Federal Deposit Insurance Corp (FDIC), which put SVB into receivership on March 10, also confirmed First Citizens submitted equity appreciation rights in its stock valued at around $500 million as part of the acquisition. Still, approximately $90 billion worth of SVB securities will remain in receivership with the FDIC.

As part of the deal, the regulator also agreed to take on all losses or gains stemming from the SVB acquisition now that the failed bank is under First Citizens’ control, with the FDIC unveiling the receivership will cost roughly $20 billion. “Prudent risk management approach will continue to protect customers and stockholders through all economic cycles and market conditions,” said First Citizens in a statement seen by Reuters.

However, according to some analysts in the sector, the acquisition will do little to improve the inherent problem: a broader confidence crisis in the US banking sector sparked by the rapid and sharp rise in interest rates.

“I think First Citizens Bank’s acquisition of the SVB loan book and deposits does not add much to solve the number one issue that the U.S. banking system is now facing: deposits leaving smaller banks for larger banks or money market funds,” explained Saxo Markets strategist Redmond Wong to Reuters.

Information for this briefing was found via Reuters and the sources mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.