New York Community Bank Agrees to Purchase Significant Portion of Failed Signature Bank in $2.7 Billion Deal

The Federal Deposit Insurance Corporation (FDIC) announced late Sunday that New York Community Bank has agreed to purchase a significant portion of the failed Signature Bank in a $2.7 billion deal. The purchase will include $38.4 billion in Signature Bank’s assets, representing a little more than a third of the bank’s total assets when it failed a week ago.

The FDIC also noted that $60 billion in Signature Bank’s loans will remain in receivership and are expected to be sold off in time. This is the second bank to fail in the current banking crisis, following the collapse of Silicon Valley Bank roughly 48 hours prior.

Starting Monday, the 40 branches of Signature Bank will become Flagstar Bank. The FDIC will provide $1.9 billion in loss-share protection to New York Community Bank, which will help to minimize the cost of the acquisition.

The FDIC has been working to ensure that the transition is as seamless as possible for customers of Signature Bank. The FDIC has also been working to ensure that customers of the failed bank will continue to have access to their deposits and other banking services.

The FDIC is confident that the acquisition of Signature Bank by New York Community Bank will help to stabilize the banking system and provide a more secure environment for customers. The FDIC will continue to monitor the situation and provide assistance as needed.