Founding & The Private Client Model

Signature Bank opened its doors on May 1, 2001, founded by former executives from Republic National Bank of New York—including Joseph J. DePaolo (President & CEO), Scott A. Shay (Chairman), and John Tamberlane (Vice Chairman). Backed initially by Bank Hapoalim, the founders identified a major void in the New York market following mega-mergers among large money-center banks.

Rather than maintaining retail branches, Signature Bank pioneered a model where seasoned banker teams ("Private Client Groups") functioned as single points of contact for middle-market business clients, law firms, accounting practices, and commercial real estate investors.

IPO & Rapid Commercial Real Estate Growth

In March 2004, Signature Bank went public on the NASDAQ under the ticker SBNY. Over the next decade, the bank became one of the primary commercial lenders in the New York metropolitan area, specializing in multifamily rent-stabilized apartment financing, commercial mortgages, and specialized lines of credit.

By avoiding subprime residential mortgages during the 2007–2008 Great Financial Crisis, Signature Bank gained a reputation for disciplined underwriting and experienced substantial asset and deposit growth while peers struggled.

Digital Innovation: The Signet Platform & National Expansion

In 2018, Signature Bank launched Signet, a proprietary blockchain-based digital payments platform approved by New York regulators that permitted commercial clients to settle US dollar transactions in real-time 24/7/365 without clearing delays.

This innovation brought in significant institutional liquidity from digital asset platforms, trading desks, and venture firms. Concurrent with this, the bank opened private client offices in California, Connecticut, Nevada, and North Carolina. By year-end 2022, Signature Bank had amassed $110.4 billion in assets and $88.6 billion in deposits across 40 offices.

Contagion, Liquidity Crisis & Receivership

In early March 2023, the voluntary liquidation of Silvergate Bank followed by the sudden run and seizure of Silicon Valley Bank (SVB) on March 10 ignited severe contagion throughout the regional banking sector.

On Friday, March 10, Signature Bank experienced an unprecedented wave of deposit withdrawal requests exceeding $10 billion. On Sunday evening, March 12, 2023, the New York State Department of Financial Services (NYDFS) took possession of the bank to protect depositors, appointing the FDIC as receiver.

Creation of Signature Bridge Bank, N.A. (SBBNA)

The Secretary of the Treasury, FDIC Board, and Federal Reserve Board invoked the Systemic Risk Exception. The FDIC chartered Signature Bridge Bank, N.A. to assume all deposits (insured and uninsured) and substantially all assets of Signature Bank.

Under FDIC oversight, the bridge bank reopened all 40 branches on Monday morning, March 13, 2023, ensuring continuous operations, check clearance, and account access.

Acquisition by Flagstar Bank & Orderly Resolution

On Sunday, March 19, 2023, the FDIC executed a Purchase and Assumption agreement with Flagstar Bank, N.A. (subsidiary of New York Community Bancorp, Inc.). Flagstar assumed $34 billion in deposits and purchased $38.4 billion of assets ($12.9B loans, $25B cash).

On Monday, March 20, 2023, the 40 branches reopened as Flagstar Bank branches. Approximately $60 billion in loans remained in FDIC receivership for structured liquidation.

Transaction 1 of 6: PNC Bank — $16.6B Capital Call & Private Equity Facility Sale

In the first major disposition from the $27 billion corporate and private equity loan book, financial advisor Newmark Group orchestrated an all-cash sale to PNC Bank, N.A.

The transaction encompassed a $16.6 billion portfolio of select capital commitment facilities ($9.02 billion funded, $7.58 billion unfunded commitments) primarily comprising capital call subscription lines extended to private equity funds, clearing at over 99 cents on the dollar.

Transaction 2 of 6: Goldman Sachs — $15.4B Subscription Credit Facility Sale

The FDIC completed the second non-real-estate asset disposition, transferring a $15.4 billion loan portfolio to Goldman Sachs Group Inc. ($8.96 billion funded debt, $6.44 billion unfunded commitments) in an all-cash sale priced north of 99 cents on the dollar.

Transaction 3 of 6: Axos Bank — $1.25B CRE & Multifamily Carve-Out Sale

Axos Bank acquired two performing commercial real estate and multifamily loan portfolios with an aggregate unpaid principal balance of $1.25 billion, procured at approximately 63% of par value.

Transaction 4 of 6: CPC & Related — $5.8B Rent-Stabilized Affordable Housing JV

To fulfill statutory affordable housing obligations, the FDIC formed a public-private joint venture holding $5.8 billion in rent-regulated debt (870+ loans, 1,100+ NYC properties, ~59,000 units). A consortium led by non-profit Community Preservation Corporation (CPC), Related Fund Management, and Neighborhood Restore HDFC acquired a 5% equity stake for asset management, with the FDIC retaining a 95% majority equity interest.

Transaction 5 of 6: Blackstone Consortium — $16.8B SIG CRE 2023 Venture LLC

The $16.8 billion market-rate commercial real estate portfolio (office, retail, market-rate multifamily across ~2,600 loans) was transferred to SIG CRE 2023 Venture LLC. A consortium led by Blackstone (BREDS/BREIT), Rialto Capital, and CPP Investments purchased a 20% equity stake for $1.2 billion, while the FDIC retained the remaining 80% majority equity interest.

Transaction 6 of 6: Santander Bank — $9.0B Rent-Stabilized Multifamily Joint Venture

Santander Bank, N.A. acquired a 20% equity interest for $1.1 billion in a joint venture holding $9.0 billion in rent-stabilized and rent-controlled debt (nearly 2,000 properties, over 56,000 units across 1,370 loans), with the FDIC retaining an 80% majority stake. With this final closing, the entire $60 billion loan portfolio was successfully liquidated.

Flagstar & NYCB Breach of Purchase & Assumption Agreement (90-Day Cure)

In January 2024, Flagstar Bank and its parent company, New York Community Bancorp (NYCB), breached their Purchase & Assumption (P&A) Agreement with regulatory authorities.

Facing mounting loan loss provisions, credit downgrades, and capital depletion tied to their inherited and existing commercial books, Flagstar and NYCB were formally granted a 90-day window to procure additional capital and execute an emergency balance-sheet restructuring.

JPMorgan Acquisition Agreement: Exit from Mortgage Warehouse Lending

In May 2024, amid severe financial pressure and a massive corporate restructuring at NYCB/Flagstar under new executive leadership, the bank made the strategic decision to completely exit the mortgage warehouse lending space.

The divestment was designed to eliminate volatile warehouse lines of credit, unlock vital liquidity, and significantly boost regulatory common equity capital ratios to meet oversight demands.

The Final Sale: JPMorgan Chase Acquires $5.9B in Mortgage Warehouse Loans

In July 2024, JPMorgan Chase officially completed the purchase of approximately $5.9 billion in mortgage warehouse loans at par value from NYCB/Flagstar.

The all-cash par-value purchase provided immediate, non-dilutive liquidity to Flagstar/NYCB, transferring the performing mortgage warehouse asset portfolio directly to JPMorgan Chase and successfully concluding this phase of balance sheet de-risking.