First Citizens Bank will buy about $72 billion in assets from the failed Silicon Valley Bank, the Federal Deposit Insurance Corporation said.
Silicon Valley Bank, a regional lender with about $210 billion in assets, collapsed earlier this month. The bank had been the 16th largest bank in the country.
Shares of North Carolina-based First Citizens Bank, the nation's 30th largest bank, rose about 47% in early trading on Monday.
"Today's transaction included the purchase of about $72 billion of Silicon Valley Bridge Bank, National Association's assets at a discount of $16.5 billion," FDIC officials said in a press release.
Seventeen former Silicon Valley Bank branches will open their doors on Monday as First Citizens Bank branches, the FDIC said.
About $90 billion of Silicon Valley Bank's assets will remain in receivership with the FDIC, the regulator said.
The failure of Silicon Valley Bank cost the FDIC an estimated $20 billion, the agency said.
A string of bank collapses earlier this month sent panic rippling through the financial sector, prompting an extraordinary U.S. government intervention to save depositors and a sharp drop for bank stocks in the U.S. and Europe.
Bank stocks appeared resilient in early trading on Monday. Shares of First Republic Bank, an embattled lender that received $30 billion in rescue deposits from larger banks, inched upward. Wells Fargo, JPMorgan Chase and Citi rose slightly in early trading on Monday.
ABC News' Max Zahn contributed to this story.