Lingering Uncertainty in the Aftermath of Signature Bank’s Acquisition
Although Long Island-based New York Community Bank (NYCB) purchased roughly $38.4 billion of Signature Bank’s $110.4 billion in total assets reported on December 31, 2022 following the recent takeover of Signature Bank by U.S. regulators, roughly $60 billion of the bank’s loans remain in receivership, to be sold off by the FDIC over time. The impact on New York City’s commercial real estate (CRE) sector is yet fully known; however, as the third-largest CRE lender in the city, the “bank’s demise presents a big liquidity blow” to the sector. According to reported data there is about $20 billion in New York City loans, including around $15 billion in multifamily properties, of which 46% were in the city’s rent-stabilized multifamily space.
Source – https://commercialobserver.com/2023/03/signature-acquired-what-happens-remaining-loans/