For publication
WASHINGTON – The Federal Deposit Insurance Corporation (FDIC) entered into a purchase and assumption agreement for 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.
The 40 former Signature Bank branches will operate under New York Community Bancorp’s Flagstar Bank, NA, on Monday, March 20, 2023. The branches will open during their regular business hours. Customers of Signature Bridge Bank, NA should continue to use their current branch until they receive notification from the assumed institution that full-service banking is available at branches of Flagstar Bank, NA
Depositors of Signature Bridge Bank, NA, other than depositors related to the digital banking business, automatically become depositors of the receiving institution. All deposits accepted by Flagstar Bank, NA will continue to be insured by the FDIC up to the insurance limit. Flagstar Bank’s bid did not include about $4 billion in deposits related to the former Signature Bank’s digital banking business. The FDIC will make these deposits directly to customers whose accounts are linked to the digital banking service. Questions can be directed to (866) 744-5463.
Signature Bridge Bank, NA, was created 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.
Per 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 Signature Bridge Bank, NA’s assets, including $12.9 billion in loans purchased at a $2.7 billion discount. Approximately $60 billion in loans will remain in receivership pending disposition by the FDIC. In addition, the FDIC received appreciation rights in New York Community Bancorp, Inc., common stock with a potential value of up to $300 million.
The FDIC estimates the cost of Signature Bank’s failure to its Deposit Insurance Fund to be approximately $2.5 billion. The exact costs will be determined when the FDIC ends the foreclosure.
Customers who would like more information about today’s transaction can visit the FDIC’s website at: https://www.fdic.gov/resources/resolutions/bank-failures/failed-bank-list/signature-ny.html.
FDIC: PR-21-2023