New York (EFE).- Flagstar Bank, a subsidiary of New York Community Bancorp, has reached an agreement to acquire the majority of Signature Bank after its collapse and intervention by the authorities.
Starting this Monday, the 40 branches that Signature had will operate as Flagstar Bank, which has taken over practically all of the entity’s deposits and part of its loan portfolio, as announced late on Sunday by the Federal Insurance Corporation of Deposits (FDIC).
The FDIC, which took control of the bank this month after also intervening in Silicon Valley Bank (SVB), explained in a statement that most of the clients will be automatically transferred to Flagstar Bank, an entity with a large mortgage portfolio.
Meanwhile, the operation does not include some 4,000 million dollars in deposits that were part of the Signature’s digital banking business and that will continue in the hands of the FDIC, which will be in charge of responding to the requests of these clients.
A deal for almost 40,000 million dollars for the Signature
The purchase includes the total acquisition of about $38.4 billion of Signature assets, including loans of about $12.9 billion, for a discounted price of $2.7 billion, according to the announcement.
In addition, the FDIC will receive up to $300 million from New York Community Bancorp, Flagstar’s parent, and will keep about $60 billion in loans from the Signature, which it could still sell in the future.
The institution said that it expects that the final cost of the collapse of the Signature that the guarantee fund will assume will be around 2,500 million dollars.
At the end of 2022, Signature had about $88.6 billion in deposits and total assets of about $110.4 billion, about half of what the SVB had, for which the FDIC has so far found no buyer.