Signature Bank, the parent company of equipment financier Signature Financial, entered Federal Deposit Insurance Corp. receivership Sunday following the collapse of Silicon Valley Bank on Friday.
Signature Bank was closed by the New York State Department of Financial Services on Sunday and the FDIC was then appointed the receiver. The FDIC established Signature Bridge Bank N.A. as successor while it looks to sell off the former bank’s assets.
“Depositors and borrowers will automatically become customers of Signature Bridge Bank, N.A. and will continue to have uninterrupted customer service and access to their funds by ATM, debit cards, and writing checks in the same manner as before,” according to the FDIC. “Loan customers should continue making loan payments as usual.”
The FDIC also appointed former Fifth Third Bank Chairman and Chief Executive Greg Carmichael as CEO of Signature Bridge Bank. Carmichael, executive chairman of Fifth Third’s board of directors, served as chairman and CEO from January 2018 to July 2022.
Melville, N.Y.-based Signature Financial originated nearly $2.3 billion in new business volume in 2022, $5.3 billion in managed assets and 149 employees at yearend, making it the 29th largest equipment financier according to the Monitor 100. Signature Bank had total assets of $110.4 billion and total deposits of $88.6 billion as of Dec. 31, 2022, according to the FDIC.
Signature Bank stocks landed at $70 as of market close Friday, down 22.87% or $20.76, after declining 37.1% or $41.27 last week. Signature Bank had a market capitalization of $4.41 billion.
Signature Bank had $21.1 billion in amortized costs of securities available for sale as of Dec. 31, 2022, on the bank’s fourth-quarter financial statements, up 21.1% year over year.
The FDIC closed the bank Sunday despite updated financial figures released by Signature Thursday, which included stated deposit balances of $89.17 billion, up $576 million since yearend 2022.
Representatives from Signature Bank declined to comment on the future of Signature Financial.