Signature Bank Taken Over By Michigan-Based Flagstar Bank After Failure
Michigan-based Flagstar Bank, a subsidiary of New York Community Bancorp, has agreed to purchase substantially all deposits and certain loan portfolios of Signature Bridge Bank, after the New York-based bank failed nearly a week ago and was taken over by the Federal Deposit Insurance Corporation (FDIC).
Signature Bank was taken over by the FDIC along with Silicon Valley Bank of California after both financial institutions failed, which led to concerns of greater economic fallout. Government officials and bankers have said that the banking sector remains strong, saying that the two financial institutions faced a unique set of problems that do not appear to be widespread.
“The 40 former branches of Signature Bank will operate under New York Community Bancorp’s Flagstar Bank, N.A., on Monday, March 20, 2023. The branches will open during their normal business hours. Customers of Signature Bridge Bank, N.A., should continue to use their current branch until they receive notice from the assuming institution that full-service banking is available at branches of Flagstar Bank, N.A.,” the FDIC said in a media release published on its website Saturday evening.