New York Community Bank acquires Signature Bank in bankruptcy

In the US Federal Deposit Insurance Corporation (FDIC) statement, it was reported that 40 Signature Bank branches will operate under Flagstar Bank, which is a 100% subsidiary of New York Community Bank , from Monday.

In the statement, it was indicated that all deposits made by Flagstar Bank will continue to be insured by the FDIC within limits.

Noting that Flagstar Bank’s offer does not include approximately $4 billion in deposits related to Signature Bank’s digital banking business, the FDIC will reportedly provide these deposits directly to customers whose accounts are associated with its digital banking business.

LOANS AND ASSETS WILL BE RECEIVED

Recalling that the failed Signature Bank had $88.6 billion in deposits and $110.4 billion in total assets, the transaction included approximately $12.9 billion in loans purchased at a discount of $2.7 billion. It was noted that it included the acquisition of $38.4 billion in assets.

In the statement, it was indicated that approximately $60 billion of the loan will remain with the trustee for later disposition by the FDIC. (AA)