A California regulator shut down Silicon Valley Bank on Friday and appointed the Federal Deposit Insurance Corporation as receiver, according to the agency’s statement.
Shares of the bank were halted on Friday after they tumbled 66 per cent in pre-market trading.
Silicon Valley Bank is the first FDIC-insured bank to fail in more than two years, the last being Almena State Bank in October 2020.
Silicon Valley Bank had about $209 billion in total assets and $175.4 billion in deposits as of December 31, 2022.
The main office and all branches of Silicon Valley Bank will reopen on March 13 and all insured depositors will have full access to their insured deposits no later than Monday morning, according to the statement.
The startup-focused lender had 17 branches in California and Massachusetts, the FDIC said.