Subsidiary of New York Community Bank Acquires Some of Signature Bank's Assets

On Sunday, the Federal Deposit Insurance Corporation (FDIC) announced that it had sold some assets of Signature Bank (now Signature Bridge Bank) to Flagstar Bank, a subsidiary of New York Community Bancorp, Inc.

Flagstar Bank, N.A., the operating company of Flagstar Bank, acquired approximately $38.4 billion of Signature Bank's assets, including approximately $25 billion in deposits and approximately $12.9 billion in loans.

According to the announcement, Flagstar Bank acquired $12.9 billion of loans for a low price of $2.7 billion.

The FDIC will continue to have custody of the remaining about $60 billion of assets and dispose of them at a later date.

Effective immediately, all 40 branches previously owned by Signature Bank will be operated by Flagstar Bank, N.A. and will be open to customers during regular business hours. The FDIC will provide insurance coverage for depositors up to the maximum insurance limit, and Signature Bank customers may continue to conduct business at the current branches if no special notice is given.

However, Flagstar Bank has not acquired the $4 billion in assets associated with the digital banking business. And the FDIC will provide deposit directly to customers associated with this business.