Signature Bank, which has a branch in Melville, became Flagstar Bank on Monday. Signature Bank failed last week following the collapse of Silicon Valley Bank and on Sunday, Signature was taken over by New York Community Bancorp Inc., parent company to Flagstar.
“This announcement is a significant advantage to you and your business, as it highlights a partnership of like-minded, client-forward institutions. This combination provides significant diversification and strength needed in today’s banking system while further advancing NYCB and Flagstar’s strategic plan to transition to a commercial bank model. It also unites two banks with complementary strategies to create a commercial bank powerhouse,” Thomas R. Cangemi, president and chief executive officer of New York Community Bancorp Inc., said in a post to the Signature Bank website. “We would like to thank you for your continued trust and loyalty through these turbulent and challenging times.”
Silicon Valley Bank collapsed on March 10, followed two days later by Signature’s failure. Forbes magazine said Signature was hurt by its investment in crypto-currency and the failure of Silicon Valley Bank. Signature’s collapse was the third-largest bank failure in US history, after Washington Mutual’s in 2008 and Silicon’s.
The New York Department of Financial Services said it forced Signature to shut down because it “failed to provide reliable and consistent data, creating a significant crisis of confidence in the bank’s leadership.”