RALEIGH, N.C. (WNCN) — As of Monday morning, Silicon Valley Bank began operating as a subsidiary of First Citizens Bank and Trust which is headquartered in downtown Raleigh.

In a move approved by the FDIC, regulators see this as a way to shore up trust in U.S. regional banks after the failure of SVB sent the global industry into days of continued uncertainty.

NC State Treasurer Dale Folwell shared a statement with CBS 17 about his take on the acquisition news.

“As chairman of the State Banking Commission, I was pleased to hear the news this morning that First Citizens BancShares has acquired Silicon Valley Bank. This is a positive reflection on the conservative regulatory environment that we have established in North Carolina,” he said.

Folwell also said, “I believe this cements our place as the second-leading banking center in the United States behind New York. I am proud of North Carolina Commissioner of Banks Katherine Bosken and her staff for all of the efforts that they have put forth in analyzing this transaction and solidifying confidence in our North Carolina state-chartered banks.”

First Citizens has acquired $56 billion in deposits, $72 billion in loans, and $110 billion in SVB assets. Also, it did not purchase any common stock, preferred stock, debt or assets which lowers risk and exposure.

Lee Reiners, lecturing fellow of the Duke University Financial Economics Center, shared what might be the bank’s next step.

“Now their tasks will be convincing those long time SVB clients out there in California to give them a chance to stay with the bank and keep their deposits there and give First Citizens a chance to prove their worth,” said Reiners.

“The FDIC also has a loss sharing arrangement with First Citizens,” said Reiners. “So, if any of the assets First Citizens acquired from SVB were to lose, they would not be on the hook for those. They also left behind all of the securities portfolio as well. So, I think they were very careful to acquire the valuable parts of SVB which is really its franchise when it comes to servicing tech clients, so they got the loan book, and they got the deposits.”

Founded in 1898, First Citizens already had more than 500 branches in 21 states and is family controlled. With combined assets of $218 billion, it will be just under the $250 billion threshold for what’s known as a “too big to fail bank.” Those larger banks come with more heightened regulation and supervision.

“So, you know maybe they’ll grow above that at some point in time, but this is going to be one of the largest regional banks that spans both coasts. So, I think it’s a testament to the confidence that regulators have in the management team at First Citizens,” Reiners said.