Following the closure of Signature Bank last week by financial regulators, this Sunday the Federal Deposit Insurance Corporation (FDIC) announced that New York Community Bancorp will absorb the bank.
The fall of Signature Bank, the third after Silicon Valley Bank, also caused great anxiety within the banking system. In a statement, the FDIC noted that “a purchase and assumption agreement was entered into for substantially all of the 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,” he said.
Signature Bridge Bank was created by the FDIC to take over the operations of Signature Bank who in 2022 had more than $110,000 million dollars in assets and deposits that reached $88,600 million dollars.
According to the FDIC report, the estimated cost after the fall of Signature Bank was $2.5 billion dollars, this for its Deposit Insurance Fund, although it has been made clear that the exact amount will be determined when the FDIC receivership ends. “Approximately $60 billion in loans will remain in receivership for further disposition by the FDIC,” he said.
On the other hand, the regulator stressed that “Signature Bridge Bank customers should continue to use their current branch until they receive notice from the institution in charge that full banking service is available at Flagstar Bank, NA branches,” he said.
As to New York Community Bancorp detailed that until now it will operate normally in the 40 branches of Signature Bank under the name of Flagstar Bank. “Today’s transaction included the purchase of approximately $38.4 billion of Signature Bridge Bank’s assets including $12.9 billion of loans purchased at a discount of $2.7 billion,” the FDIC reported.
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Source: La Opinion
