New York Community Bank has agreed to acquire about a third of the assets of Signature Bank, the regional New York-based bank that collapsed and was shut down by federal regulators last week.

The Federal Deposit Insurance Corp. announced a $2.7B deal on Sunday in which Community Bank agreed to purchase assets worth $38.4B from Signature, according to a report in the New York Post.

Beginning this morning, Signature's 40 bank branches will become Flagstar Bank outlets, a subsidiary of New York Community Banks. The balance of Signature's assets, more than $60B,  will remain in receivership until they are sold off, FDIC said.

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