For publication
WASHINGTON – The Federal Deposit Insurance Corporation (FDIC) has entered into an agreement to purchase and assume substantially all of the 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.
All 40 former Signature Bank branches will operate under New York Community Bancorp’s Flagstar Bank, NA on Monday, March 20, 2023. Branches will open during their regular business hours. Signature Bridge Bank, NA customers should continue to use their current branch until they receive notice from the assuming institution that full banking services are available at Flagstar Bank, NA branches.
Depositors of Signature Bridge Bank, NA, other than depositors related to digital banking, will automatically become depositors of the assuming institution. All deposits supported by Flagstar Bank, NA will continue to be FDIC insured up to the limit of insurance. Flagstar Bank’s offer did not include approximately $4 billion in deposits tied to the former Signature Bank’s digital banking business. The FDIC will provide these deposits directly to customers whose accounts are associated with digital banking activity. Questions can be directed to (866) 744-5463.
Signature Bridge Bank, NA, was established by the FDIC on March 12, 2023 to take over the operations of Signature Bank, New York, New York, after the New York State Department of Financial Services closed the bank and appointed the FDIC as receiver.
As of December 31, 2022, the former Signature Bank had total deposits of $88.6 billion and total assets of $110.4 billion. Today’s transaction included the purchase of approximately $38.4 billion of assets from Signature Bridge Bank, NA, including $12.9 billion in loans purchased at a discount of $2.7 billion. dollars. About $60 billion in loans will remain in escrow for later disposition by the FDIC. In addition, the FDIC received stock appreciation rights on New York Community Bancorp, Inc., common stock with a potential value of up to $300 million.
The FDIC estimates the cost of the Signature Bank failure to its Deposit Insurance Fund at about $2.5 billion. The exact cost will be determined when the FDIC terminates the receivership.
Customers who want more information about today’s transaction can visit the FDIC website at: https://www.fdic.gov/resources/resolutions/bank-failures/failed-bank -list/signature-ny.html.
FDIC: PR-21-2023