New York Community Bancorp's Acquisition of Signature Bank's Assets Will Be Transformative. Here's Why
Over the last few weeks, three banks have collapsed, triggering fears that there could be broader contagion within the banking sector. But distress also creates opportunity, and New York Community Bancorp (NYSE: NYCB) has seized the day with its acquisition of certain assets and liabilities from Signature Bank (NASDAQ: SBNY).
The deal has many complexities, but NYCB will buy about $34 billion of Signature's remaining deposits after Signature experienced a huge run on deposits before closing on March 11. Additionally, NYCB will take over all of Signature's 40 bank branches and more than $38 billion of assets, which includes more than $25 billion of cash and close to $13 billion of loans. The deal does not include Signature's crypto banking or fund finance businesses, and NYCB may end up servicing other Signature loans it didn't acquire.
The acquisition of these assets and liabilities from Signature is going to be transformational for NYCB, which has been working over the last few years to change its business model. Here's why.
Source Fool.com
