The Office of the Comptroller of the Currency (OCC) announced today that it has conditionally approved Flagstar Bank, N.A., Hicksville, New York, to purchase assets and assume certain liabilities of Signature Bridge Bank, N.A., New York, New York.
The transaction includes the purchase by Flagstar Bank of certain loan portfolios from Signature Bridge Bank, N.A., that total $12.9 billion and the assumption of $34 billion in deposits. The OCC imposed conditions on the approval, including to require Flagstar Bank to allocate appropriate resources to the assets and liabilities acquired, and to require a supervisory non-objection prior to paying a dividend to shareholders.
Signature Bank, New York, New York, was closed on March 12, 2023, by the New York State Department of Financial Services, which appointed the Federal Deposit Insurance Corporation (FDIC) as receiver. After its appointment as receiver, the FDIC filed an application with the OCC to establish Signature Bridge Bank, N.A., which was approved by the OCC late that day. The FDIC then transferred substantially all of the assets and liabilities of Signature Bank to Signature Bridge Bank, N.A., operated by the FDIC, as it marketed such assets and deposits to potential bidders.
The FDIC announced on March 19, 2023, that it had entered into a purchase and assumption agreement with Flagstar Bank N.A., for substantially all deposits and certain loan portfolios of Signature Bridge Bank, N.A.
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