UPDATED: FDIC Establishes Signature Bridge Bank, N.A., as Successor to Signature Bank, New York, NY
Press Release | March 13, 2023
UPDATE: The FDIC, as
receiver for Signature Bank, has also transferred all Qualified
Financial Contracts (as defined in 12 USC 1821(e)) of the failed bank
to the bridge bank.
FDIC Establishes Signature Bridge Bank,
N.A., as Successor to Signature Bank, New York, NY
WASHINGTON
-- Signature Bank, New York, NY, was closed today by the New York
State Department of Financial Services, which appointed the Federal
Deposit Insurance Corporation (FDIC) as receiver. To protect
depositors, the FDIC transferred all the deposits and substantially
all of the assets of Signature Bank to Signature Bridge Bank, N.A., a
full-service bank that will be operated by the FDIC as it markets the
institution to potential bidders.
Signature Bank had 40
branches across the country in New York, California, Connecticut,
North Carolina, and Nevada. Banking activities will resume Monday,
March 13, 2023, including on-line banking. Depositors and borrowers
will automatically become customers of Signature Bridge Bank, N.A. and
will continue to have uninterrupted customer service and access to
their funds by ATM, debit cards, and writing checks in the same manner
as before. Signature Bank’s official checks will continue to clear.
Loan customers should continue making loan payments as
usual.
The transfer of all the deposits was completed under the
systemic risk exception approved earlier today. All depositors of the
institution will be made whole. No losses will be borne by the
taxpayers. Shareholders and certain unsecured debt holders will not
be protected. Senior management has also been removed. Any losses to
the Deposit Insurance Fund (DIF) to support uninsured depositors will
be recovered by a special assessment on banks, as required by
law.
The receiver for Signature Bank has also transferred all
Qualified Financial Contracts (as defined in 12 USC 1821(e)) of the
failed bank to the bridge bank.
These actions will protect
depositors and preserve the value of the assets and operations of
Signature Bank, which may improve recoveries for creditors and the
DIF.
Signature Bank had total assets of $110.4 billion and
total deposits of $82.6 billion as of December 31, 2022. As receiver,
the FDIC will operate Signature Bridge Bank, N.A. to maximize the
value of the institution for a future sale and to maintain banking
services in the communities formerly served by Signature
Bank.
A bridge bank is a chartered national bank that operates
under a board appointed by the FDIC. It assumes the deposits and
certain other liabilities and purchases certain assets of a failed
bank. The bridge bank structure is designed to “bridge” the gap
between the failure of a bank and the time when the FDIC can stabilize
the institution and implement an orderly resolution.
The FDIC
named Greg D. Carmichael as CEO of Signature Bridge Bank, N.A. Mr.
Carmichael recently served as president and CEO of Fifth Third
Bancorp.
MEDIA
CONTACT:
[email protected]
FDIC:
PR-18-2023
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