June 1, 2023

La Ronge Northerner

Complete Canadian News World

FDIC: PR-21-2023 3/19/2023

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WASHINGTON – The Federal Deposit Insurance Corporation (FDIC) has entered into an agreement to purchase and assume 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 the New York Community Bancorp, Inc., Westbury, New York.


The 40 former Signature Bank branches of Flagstar Bank will be operating in New York Community Bancorp, NA, on Monday, March 20, 2023. The branches will be open during normal business hours. Signature Bridge Bank, NA customers must continue to use their existing branch until they receive notice from the institution assuming full banking services are available at Flagstar Bank, NA branches


Depositors at Signature Bridge Bank, NA, unlike those associated with the digital banking business, will automatically become depositors for the putative institution. All deposits assumed by Flagstar Bank, NA, will continue to be insured by the FDIC up to the insurance limit. Flagstar Bank’s bid did not include the nearly $4 billion in deposits related to Signature Bank’s former digital banking business. FDIC will make these deposits available directly to customers whose accounts are connected to the digital banking business. 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, NY, after the New York State Department of Financial Services closed the bank and designated the FDIC as the recipient..

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As of December 31, 2022, former Signature Bank has 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 assets, including $12.9 billion in loans purchased at a discount of $2.7 billion. Approximately $60 billion in loans will remain in receivership for later disposal by the FDIC. In addition, the FDIC obtained stock appreciation rights in New York Community Bancorp, Inc. Ordinary shares with a potential value of up to $300 million.


The FDIC estimates the cost of the signature bank failure of the Deposit Insurance Fund at approximately $2.5 billion. The exact cost will be determined when the FDIC ends the receivership.


Customers who would like 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