New York Community Bancorp's subsidiary Flagstar Bank, N.A. has taken over the non-crypto related deposits of former Signature Bank, now known as Signature Bridge Bank, as per a purchase and assumption agreement confirmed by the FDIC in a press release on Sunday.
With the deal now in place, 40 former branches of Signature Bank will operate under Flagstar Bank from Monday. Depositors, other than those related to digital banking business, will automatically become depositors of Flagstar and continue to be insured by the FDIC.
However, Flagstar Bank's bid did not include $4 billion of deposits related to the digital banking business, which FDIC will provide these deposits directly to customers whose accounts are associated with the digital banking business, according to the press release.
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