Flagstar Bank owner New York Community Bank has agreed to buy most of the operations of Signature Bank, the failed New York City-based lender. As part of the Signature deal, the FDIC said NYCB would acquire “substantially all” of the deposits of Signature Bank and just over a third of its assets, including nearly $13b in loans, which were sold at a discount. NYCB will also take over all 40 of Signature’s bank branches, which will be rebranded as Flagstar branches.
“Flagstar has gotten a very fair deal,” said Christopher Whalen, a banking analyst and chair of Whalen Global Advisors. “And it doesn’t surprise me that the FDIC is going to have to take a loss, in part because of the low quality of the remaining assets.”