Flagstar Bank, N.A., a subsidiary of Long Island-based New York Community Bancorp, has agreed to assume substantially all the deposits and purchase certain loan portfolios of Signature Bridge Bank, N.A., the FDIC said today. The bridge bank was set up a week ago to facilitate the receivership of Signature Bank after state regulators closed it. The deal excludes $4 billion in digital asset banking deposits out of Signature’s $88.6 billion in deposits; the crypto deposits will be provided directly to depositors by the FDIC.
Under the agreement, Signature’s 40 branches will become Flagstar branches effective March 20. Non-digital asset depositors will automatically become depositors of Flagstar. Flagstar purchased $38.4 billion of Signature’s assets, leaving approximately $60 billion in loans in receivership for future disposition by the FDIC.
The FDIC estimated that Signature’s failure will cost the Deposit Insurance Fund approximately $2.5 billion.