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 (nearly 20% of its deposit base in hours). Over the weekend, while bank leadership explored private recapitalization and liquidity alternatives, regulatory authorities determined that the institution faced a terminal liquidity shortfall for the Monday opening.

On Sunday evening, March 12, 2023, the New York State Department of Financial Services (NYDFS) exercised its statutory authority under New York Banking Law Section 606 to take possession of the bank to protect depositors, appointing the FDIC as receiver.

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

Simultaneously on March 12, the Secretary of the Treasury, upon unanimous recommendation of the FDIC Board and Federal Reserve Board, invoked the Systemic Risk Exception. The FDIC chartered Signature Bridge Bank, N.A. as a full-service bridge bank 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. Customers retained full access to accounts, checks were honored, ATM facilities remained active, and existing loan arrangements functioned without interruption. Former Signature Bank staff continued daily operations under bridge bank administration.

Acquisition by Flagstar Bank & Orderly Resolution

On Sunday, March 19, 2023, the FDIC executed a Purchase and Assumption (P&A) agreement with Flagstar Bank, N.A., a wholly owned subsidiary of New York Community Bancorp, Inc. (NYCB), Hicksville, NY.

Under the agreement, Flagstar Bank assumed substantially all deposits (approximately $34 billion, excluding approximately $4 billion in digital asset-related deposits) and purchased $38.4 billion of Signature Bridge Bank’s assets, including $12.9 billion in loans and $25 billion in cash.

On Monday, March 20, 2023, the 40 former branch locations officially reopened as branches of Flagstar Bank. Approximately $60 billion in commercial real estate loans remained in FDIC receivership for subsequent structured disposition.

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, consisting of $9.02 billion in funded loans and $7.58 billion in additional unfunded commitments. These facilities primarily comprised capital call subscription credit lines extended to private equity funds.

Transaction Structure & Pricing: An all-cash direct acquisition that achieved pricing north of 99 cents on the dollar, seamlessly migrating premier institutional private fund lending relationships to PNC Bank.

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

Concurrent with the PNC transaction on October 3, 2023, the FDIC completed the second non-real-estate asset disposition, transferring a $15.4 billion loan portfolio to Goldman Sachs Group Inc.

The portfolio comprised $8.96 billion in funded corporate and subscription debt alongside more than $6.44 billion in unfunded commitments, covering subscription lines and middle-market commercial facilities previously originated by Signature Bank.

Transaction Structure & Pricing: Executed as an all-cash transaction achieving competitive pricing above 99 cents on the dollar, clearing non-real-estate credit facilities from the receivership book.

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

Kicking off the real estate portfolio disposition, Axos Bank (a subsidiary of Axos Financial, Inc.) entered into an all-cash purchase agreement to acquire two discrete performing loan packages formerly held by Signature Bridge Bank.

The sale involved an aggregate unpaid principal balance of $1.25 billion in commercial real estate and multifamily mortgages.

Transaction Structure & Pricing: Direct all-cash carve-out transaction procured at approximately 63% of par value, shifting debt administration to Axos Bank.

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

To fulfill the FDIC’s statutory mandate to protect low-income housing and preserve tenant protections, the $14.8 billion rent-stabilized debt pool was segregated from market-rate debt. On December 15, 2023, the FDIC closed a public-private joint venture holding $5.8 billion of rent-regulated loans.

A mission-driven partnership led by the non-profit Community Preservation Corporation (CPC), alongside Related Fund Management and Neighborhood Restore HDFC, acquired a 5% equity stake in the venture. The portfolio encompassed more than 870 loans secured by over 1,100 New York City residential properties comprising nearly 59,000 units (approximately 80% rent-regulated).

Transaction Structure: The FDIC retained a 95% majority equity interest, while CPC and its non-profit partners serve as asset manager and loan servicer to safeguard long-term housing affordability and prevent predatory foreclosure practices.

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

Covering the $16.8 billion market-rate commercial real estate bucket, the FDIC closed the largest single real estate joint-venture transaction in the disposition process.

The portfolio—comprising roughly 2,600 loans secured by retail, office, and market-rate multifamily assets primarily across the New York metropolitan area (approximately 90% fixed-rate)—was transferred to SIG CRE 2023 Venture LLC.

Transaction Structure & Pricing: A consortium led by Blackstone (Blackstone Real Estate Debt Strategies / BREIT), alongside Rialto Capital and the Canada Pension Plan Investment Board (CPP Investments), acquired a 20% equity stake for $1.2 billion. The FDIC retained the remaining 80% majority equity interest.

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

Completing the resolution of the rent-stabilized debt, the FDIC executed the final joint-venture transaction with Santander Bank, N.A. on December 20, 2023.

Santander acquired a 20% equity interest for $1.1 billion in a joint venture holding $9.0 billion in rent-controlled and rent-stabilized loans. The collateral comprises three pools covering nearly 2,000 multifamily properties across New York State, representing over 56,000 individual residential units across 1,370 loans.

Transaction Structure & Outcome: The FDIC retained an 80% equity interest, with Santander managing and servicing the portfolio. Through these six structured transactions orchestrated by Newmark Group, the entire $60 billion loan portfolio was successfully cleared from the Signature Bridge Bank receivership without triggering a disruptive fire sale in the New York real estate market.

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 terms of their Purchase & Assumption (P&A) Agreement with regulatory authorities.

Under mounting credit provisions and severe capital pressure tied to their inherited commercial portfolio, Flagstar and NYCB were formally granted a 90-day window to procure additional capital and execute a mandatory 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 planned divestment was aimed at eliminating volatile credit lines, unlocking regulatory capital, and boosting liquidity reserves.

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 infused critical non-dilutive liquidity into Flagstar/NYCB, transferring the performing mortgage warehouse portfolio cleanly to JPMorgan Chase and concluding this major phase of corporate restructuring.