Non-crypto related deposits held by the former Signature Bank, which is now known as Signature Bridge Bank, will be assumed by Flagstar Bancorp, N.A., a subsidiary of New York Community Bancorp, as of Monday in accordance with a purchase and assumption agreement, as stated in a press release that was issued by the FDIC on Sunday morning local time.
Depositors of Signature Bridge Bank, with the exception of depositors associated with the digital banking business, will automatically become depositors of Flagstar and will continue to have their deposits insured by the FDIC up to the insurance maximum.
This will not apply to depositors associated with the digital banking business. This modification will not take place until the conclusion of the adjustment period. The previous Signature Bank’s digital banking activities accounted for four billion dollars in deposits, but Flagstar Bank’s bid did not take those deposits into consideration.
The FDIC will reportedly make these deposits directly into the accounts of the customers whose financial transactions are associated with the digital banking company, as stated in the press release.
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