The FDIC announced a deal to sell “substantially all deposits and certain loan portfolios” of Signature Bank to Flagstar Bank, a subsidiary of New York Community Bancorp.
The agency said Signature’s 40 former branches will begin operating under Flagstar’s name on Monday.
The agreement involves $38.4 billion of Signature’s assets, including $12.9 billion of loans the FDIC said were bought at a discount of $2.7 billion.
It said, however, Flagstar’s bid did not include the roughly $4 billion in deposits related to Signature’s digital banking business. The agency said it will provide those deposits directly to digital banking customers. The FDIC also said about $60 billion in loans will remain in receivership.
This article was originally published by CNBC.