Much of failed Silicon Valley Bank's assets to be sold to First Citizens, FDIC says
Seventeen SVB branches will open as First Citizens Bank branches on Monday.
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.