Flagstar Acquires Part Of Signature Bridge Bank Assets

Signature Bank (Photo: Doc. NY Post)

JAKARTA - New York Community Bancorp Inc subsidiary Flagstar Bank admits that it has acquired some of Signature Bridge Bank's assets from the Federal Deposit Insurance Corporation (FDIC).

This transaction marks significant progress in the acceptance of Signature Bank by the FDIC, which was closed by the New York State Department of Financial Services on March 12. The FDIC formed a Signature Bridge Bank on the same day to take over the operations of the Signature Bank.

In particular, Flagstar Bank bought about 38 billion US dollars in assets from Signature Bridge Bank including about 25 billion US dollars in cash and about 13 billion US dollars in loan.

Meanwhile, Flagstar Bank assumed an obligation of around $36 billion in the deal, including about $34 billion in deposits and about $2 billion in other liabilities.

Flagstar Bank also took over all Signature Bridge Bank branches and operated them under the Flagstar Bank brand, according to a press release from Flagstar Bank.

Flagstar Bank purchases commercial and industrial loans from Signature Bridge Bank, excluding digital banking assets or crypto-related deposits, as well as loans and deposits related to the banking fund business.

"The Flagstar Bank does not buy around $4 billion in deposits related to the digital banking business of former Signature Bank and FDIC will provide these deposits directly to customers whose accounts are related to the digital banking business," said a FDIC press release on Sunday (19/3/2023).

After the deal, a loan worth about 60 billion US dollars will remain under the supervision of the curator for the position later by the FDIC.

By the end of 2022, the former Signature Bank had a total deposit of USD 88.6 billion and total assets of USD 110.4 billion.

With nearly 400 branches in nine states in the United States, Flagstar Bank is one of the country's largest regional banks. New York Community Bancorp reported 90.1 billion US dollars in assets and 58.7 billion US dollars in deposits by the end of 2022.

Triggered by concerns over deposit security, the recent massive bank withdrawal has led to the collapse of Silicon Valley Bank and Signature Bank, which ranks second and third-largest bank failures in US history.