A subsidiary of New York Community Bancorp has entered into an agreement with US regulators to buy deposits and loans from Signature Bank of New York, which closed a week ago.
The FDIC said the deal sees the company, called Flagstar Bank, take over substantially all of Signature Bank’s deposits, some of its loan portfolios and all 40 of its former subsidiaries.
The foundation said Signature Bank’s nearly $60 billion in loans and $4 billion in deposits would remain under its jurisdiction.
The announcement, which was made on Sunday, concerns one of two collapsed banks that the institution assumes judicial custody over.
The statement made no mention of the other bank, Silicon Valley Bank, a much larger bank that entered custody two days before Signature.
Signature had assets of $110.36 billion, while Silicon Valley Bank had assets of $209 billion.
Reuters reported earlier on Sunday that the corporation would re-bid its Silicon Valley assets after failing to attract buyers for the entire bank.
Under the Signature Bank assets arrangement, Flagstar will buy $12.9 billion worth of loans at a $2.7 billion discount.
The corporation estimates that the deal will cost its Deposit Insurance Fund about $2.5 billion.
