First Citizens' Acquisition of SVB Results in $500 Million Gain for FDIC

The Federal Deposit Insurance Corp. (FDIC) is set to receive a $500 million profit from First Citizens BancShares Inc.'s acquisition of Silicon Valley Bank. The FDIC exercised its equity-appreciation rights related to First Citizens, which surged 54% after the acquisition was sealed. The cash will help rebuild the FDIC's deposit insurance fund, which was depleted by the failure of SVB and Signature Bank. The FDIC also exercised its option to buy shares of New York Community Bancorp Inc. following its deal to sell billions of dollars of Signature Bank's deposits to NYCB.