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Deposits: FDIC said depositors of Signature Bridge Bank, other than those related to the digital banking business, will automatically become depositors of the assuming institution. Flagstar Bank’s bid did not include approximately $4 billion of deposits related to the former Signature Bank’s digital banking business, it clarified.

"All deposits assumed by Flagstar Bank, N.A., will continue to be insured by the FDIC up to the insurance limit," it said.

Failure Cost: FDIC estimates the cost of the failure of Signature Bank to its Deposit Insurance Fund to be approximately $2.5 billion. The exact cost will be determined when the FDIC terminates the receivership, it said.

"As of Dec. 31, 2022, the former Signature Bank had total deposits of $88.6 billion and total assets of $110.4 billion. Today’s transaction included the purchase of about $38.4 billion of Signature Bridge Bank, N.A.’s assets, including loans of $12.9 billion purchased at a discount of $2.7 billion," FDIC explained.

About $60 billion in loans will remain in the receivership for later disposition by the FDIC. The FDIC also said it received equity appreciation rights in New York Community Bancorp common stock with a potential value of up to $300 million.

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