New York Community Bancorp unit to buy Signature Bank assets, FDIC says

WASHINGTON, March 19 (Reuters) – A subsidiary of New York Neighborhood Bancorp (NYCB.N) has entered into an settlement with U.S. regulators to purchase deposits and loans from New York-based Signature Financial institution (SBNY.O), which was closed per week in the past.

The Federal Deposit Insurance coverage Company (FDIC) mentioned the deal would see the subsidiary, Flagstar Financial institution, assume considerably all of Signature Financial institution’s deposits, a few of its mortgage portfolios and all 40 of its former branches. Roughly $60 billion of Signature Financial institution’s loans and $4 billion of its deposits would stay with it in receivership, the company mentioned.

The Sunday announcement addresses one in every of two failed banks the FDIC is holding below receivership.

The assertion didn’t discuss with the opposite, Silicon Valley Financial institution (SVB) , a a lot bigger financial institution that regulators took over two days earlier than Signature.

Signature had $110.36 billion in property, whereas SVB had $209 billion.

Reuters reported earlier on Sunday that the FDIC would relaunch its public sale for SVB’s property after failing to draw patrons for the entire financial institution.

Below the association for Signature Financial institution property, Flagstar will purchase $12.9 billion of loans at a reduction of $2.7 billion.

The FDIC estimated the deal would price its Deposit Insurance coverage Fund roughly $2.5 billion. The company beforehand reported that the fund had held $128.2 billion on the finish of 2022.

Reporting by Pete Schroeder; Enhancing by Christopher Cushing and Bradley Perrett

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