Flagstar Bank, a subsidiary of New York Community Bancorp, has entered into an agreement with the Federal Deposit Insurance Corporation (FDIC), to purchase deposits and loans from New York-based Signature Bank.

Flagstar Bank will assume substantially all of Signature Bank’s deposits, some of its loan portfolios and all 40 of its former branches.

Roughly $60 billion of Signature Bank’s loans and $4 billion of its deposits would remain with it in receivership.

Under the arrangement for Signature Bank assets, Flagstar Bank will buy $12.9 billion of loans at a discount of $2.7 billion.

The FDIC estimated the deal would cost its Deposit Insurance Fund approximately $2.5 billion. The agency previously reported that the fund had held $128.2 billion at the end of 2022.

Crypto-friendly Signature Bank was shut down by regulators on Sunday, March 12 marking the third such bank closure to occur this month.

The FDIC announced on March 12 that Signature Bank had been closed by the New York Department of Financial Services (NYDFS). The FDIC said it would act as receiver and move funds to a bridge bank, allowing customers to access insured funds.

Signature’s closure marks the third crypto-adjacent bank failure to occur this month. The competing crypto-friendly Silvergate Bank voluntarily halted operations on March 8. Later, the startup-focused Silicon Valley Bank was closed by regulators on March 13.