Analysis of Multifamily Lender Signature Bank’s Collapse

We’re no longer in the “what if” phase.

On Sunday, citing systemic risk, regulators shut down Signature Bank, one of New York’s most important multifamily lenders. Signature is FDIC-insured, with total assets of $110 billion and total deposits of $89 billion — much of it landlords’ money — as of Dec. 31. Crucially, the government said that Signature’s customers will get all of their deposits back.

Signature’s real estate book was about $36 billion, just under half of the bank’s total loans, according to its most recent regulatory filings. But fallout from the cryptocurrency crash — Signature had made crypto industry banking a big part of its business — left the bank scrambling to reassure investors that its exposure was not a threat.

In the video above, The Real Deal’s Hiten Samtani breaks down what we know so far about the sudden collapse of Signature Bank, and what might be coming down the pike.

“It’ll be interesting to see which big player thinks there’s money to be made in those loans — and which ones want to stay far, far away,” Samtani said. “At a time like this, perception becomes paramount. Banks will not want to be seen taking on anything that’s perceived as high-risk.”