New York Community Bancorp Takes Over Signature Bridge Bank Deposits

Washington – The Federal Deposit Insurance Corporation (FDIC) has officially transferred the deposits of Signature Bridge Bank, N.A., to Flagstar Bank, National Association, a subsidiary of New York Community Bancorp, Inc. The deal marks a significant step in stabilizing the financial sector following the closure of Signature Bank earlier this year.

Under the agreement, customers of Signature Bridge Bank will automatically become depositors of Flagstar Bank. All deposits, excluding those related to digital-asset banking, will continue to be insured by the FDIC up to the insurance limit. The transaction excludes approximately $4 billion in digital-assets banking deposits, which will be directly provided to affected customers.

Signature Bridge Bank was established by the FDIC on March 12, 2023, to take over operations from Signature Bank after it was closed by the New York State Department of Financial Services. As of December 31, 2022, Signature Bank held total deposits of $88.6 billion and assets of $110.4 billion.

The FDIC estimates the cost of Signature Bank’s failure to its Deposit Insurance Fund at approximately $2.5 billion. The remaining loans valued at about $60 billion will be disposed of later by the FDIC.

Customers seeking more information can visit the FDIC’s website at https://www.fdic.gov/resources/resolutions/bank-failures/failed-bank-list/signature-ny.html.