New York Community Bancorp Subsidiary Assumes Deposits of Signature Bank, Does Not Include Digital Bank Business

Signature Bridge Bank, the new bank created by the Federal Deposit Insurance Corporation (FDIC) after it took over failed Signature Bank, is effectively being acquired by a subsidiary of New York Community Bancorp.

According to a statement by the FDIC, substantially all deposits and certain loan portfolios of Signature Bridge Bank, National Association, by Flagstar Bank, National Association, Hicksville, New York, a wholly owned subsidiary of New York Community Bancorp, Inc., Westbury, New York.

The 40 former branches of Signature Bank will operate under New York Community Bancorp’s Flagstar Bank as of today.

All deposits assumed by Flagstar Bank, N.A., will continue to be insured by the FDIC up to the insurance limit.

Flagstar Bank’s bid did not include approximately $4 billion of deposits related to the former Signature Bank’s digital banking business. The FDIC will provide these deposits directly to customers whose accounts are associated with the digital banking business.

At the end of 2022, Signature Bank had total deposits of $88.6 billion and total assets of $110.4 billion. Today’s transaction included the purchase of about $38.4 billion of Signature Bridge Bank, N.A.’s assets, including loans of $12.9 billion purchased at a discount of $2.7 billion.

Approximately $60 billion in loans will remain in the receivership for later disposition by the FDIC.

In addition, the FDIC received equity appreciation rights in New York Community Bancorp, Inc., common stock with a potential value of up to $300 million.

Signature Bank was active in the crypto sector.

The failure of Signature Bank is expected to cost the Deposit Insurance Fund $2.5 billion.

Sponsored Links by DQ Promote



Send this to a friend