FDIC announces Signature Bank buyer

The FDIC announced a purchase-and-assumption agreement with Flagstar Bank of Hicksville, N.Y., for substantially all deposits and certain loan portfolios of Signature Bridge Bank.

DIF Cost: The FDIC estimated the cost of the failure of Signature Bank to its Deposit Insurance Fund to be approximately $2.5 billion. The exact cost will be determined when the FDIC terminates the receivership.

Details: The FDIC said:

• The 40 former branches of Signature Bank will operate under New York Community Bancorp's Flagstar Bank subsidiary starting today.

• Flagstar's bid did not include approximately $4 billion of deposits related to the former Signature Bank's digital banking business, so the FDIC will provide these deposits directly to customers with associated accounts.

• As of Dec. 31, the former Signature Bank had total deposits of $88.6 billion and total assets of $110.4 billion.

• The newly announced transaction included the purchase of roughly $38.4 billion of Signature Bridge Bank's assets, including $12.9 billion in loans purchased at a discount of $2.7 billion.

• Approximately $60 billion in loans will remain in the receivership for later disposition by the FDIC.

• The FDIC received equity appreciation rights in New York Community Bancorp Inc. common stock with a potential value of up to $300 million.