Signature Bank that collapsed last week in the wake of Silicon Valley Bank’s failure, will be taken over by New York Community Bancorp, the Federal Deposit Insurance Corporation (FDIC) announced Sunday.
With deposits of $88.6 billion and more than $110 billion in assets at the end of 2022, Signature Bank’s collapse is considered the third-largest bank failure in U.S. history.
“The (FDIC) entered into a purchase and assumption agreement for substantially all deposits and certain loan portfolios of Signature Bridge Bank, National Association, Hicksville, New York, a wholly owned subsidiary of New York Community Bancorp, lnc., Westburg New York,” the FDIC said in a statement.
Signature Bridge Bank was created by the FDIC to take over Signature Bank’s operations; it was closed by New Yorker state regulators last week.
New York Community Bancorp will operate the former Signature Bank’s branches under the name Flagstar Bank–one of the company’s subsidiaries beginning Monday, and the FDIC has assured depositors that the bank will be operating like normal.