FDIC Announces New York Community Bank Purchase of Signature Bank Assets, Deposits in Largest U.S. Bank Failure in History

Signature Bank, one of the largest banks in the United States, has failed, with the Federal Deposit Insurance Corporation (FDIC) announcing Sunday that New York Community Bancorp has purchased substantially all of Signature’s deposits and a total of $38.4 billion worth of the company’s assets.

Signature Bank had deposits of $88.6 billion and more than $110 billion in assets at the end of last year, making it the third-largest bank failure in U.S. history. The FDIC said in a statement that New York Community Bank purchased $12.9 billion of Signature’s loans at a steep discount, paying just $2.7 billion for them.

In addition, New York Community Bank paid the FDIC stock that could be worth up to $300 million. The FDIC said that Flagstar Bank, a subsidiary of New York Community Bank, has taken over substantially all deposits and certain loan portfolios of Signature Bridge Bank, National Association.

The FDIC said it is working to ensure that customers of Signature Bank will have access to their deposits and that the transition will be as seamless as possible. The FDIC said it is also working with New York Community Bank to ensure that customers of Signature Bank will continue to receive the same level of service they have come to expect.

The FDIC said it will continue to monitor the situation and provide updates as needed.