Subsidiary of New York Community Bancorp, Inc., to Assume Deposits of Signature Bridge Bank, N.A., From the FDIC
Press Release | March 19, 2023
Subsidiary of New York
Community Bancorp, Inc., to Assume Deposits of Signature Bridge Bank,
N.A., from the FDIC
WASHINGTON – The Federal Deposit Insurance
Corporation (FDIC) entered into a purchase and assumption agreement
for 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, N.A., on Monday, March 20, 2023. The branches
will open during their normal business hours. Customers of Signature
Bridge Bank, N.A., should continue to use their current branch until
they receive notice from the assuming institution that full-service
banking is available at branches of Flagstar Bank, N.A. Depositors of
Signature Bridge Bank, N.A., other than depositors related to the
digital banking business, will automatically become depositors of the
assuming institution. 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.
Questions may be directed to (866) 744-5463. Signature Bridge Bank,
N.A., 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. 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 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.The FDIC estimates the
cost of the failure of Signature Bank to its Deposit Insurance Fund to
be approximately $2.5 billion. The exact cost will be determined when
the FDIC terminates the receivership. 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.
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