The FDIC announced a purchase-and-assumption agreement with Flagstar Bank of Hicksville, N.Y., for substantially all deposits and certain loan portfolios of Signature Bridge Bank.
DIF Cost: The FDIC estimated 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.
Details: The FDIC said:
The 40 former branches of Signature Bank will operate under New York Community Bancorp's Flagstar Bank subsidiary starting today.
Flagstar's bid did not include approximately $4 billion of deposits related to the former Signature Bank's digital banking business, so the FDIC will provide these deposits directly to customers with associated accounts.
As of Dec. 31, the former Signature Bank had total deposits of $88.6 billion and total assets of $110.4 billion.
The newly announced transaction included the purchase of roughly $38.4 billion of Signature Bridge Bank's assets, including $12.9 billion in loans purchased at a discount of $2.7 billion.
Approximately $60 billion in loans will remain in the receivership for later disposition by the FDIC.
The FDIC received equity appreciation rights in New York Community Bancorp Inc. common stock with a potential value of up to $300 million.