Deposits are the lifeblood of a commercial bank and the primary source of funds for lending. How

did SVB end up with excess deposits? Why excess deposit$-$based investments in long$-$term treasuries

and Mortgage$-$Backed securities $($MBSs$),$ largely classified using the hold$-$to$-$maturity $($HTM$)$

accounting, were fatal decisions potentially leading to the bank run?

Hint: The percentage of SVB$\text{'}$ total deposits that were not insured by the FDIC$-$around $94\%--$was

far greater than typically seen in the banking industry. Consider exploiting the Exhibits attached.