First Citizens Bank, the primary subsidiary of North Carolina-based First Citizens BancShares, has acquired the banking operations of Washington-based Venture Bank.
Reportedly, First Citizens Bank has entered into an agreement with the Federal Deposit Insurance Corporation (FDIC) to purchase substantially all of Venture Bank’s assets and assume the majority of its liabilities. The FDIC serves as receiver of the institution and deposits will be assumed by First Citizens Bank. The bank has said that the branches of Venture Bank will open as branches of First Citizens Bank.
Additionally, the loans and other real estate owned by Venture Bank purchased by First Citizens are covered by a loss share agreement between the FDIC and First Citizens, which provides protection against losses to First Citizens Bank. The agreement only covers the assets and liabilities of Venture Bank. However, assets, liabilities and common stock of Venture Bank’s former parent company, Venture Financial Group have not been purchased or assumed by First Citizens Bank.
Frank Holding, chairman and CEO of First Citizens Bank, said: “We want to welcome our new clients to the First Citizens family. We also want to assure them that their deposits are safe, sound, accessible and still protected by FDIC insurance.”
