Key Stats
Founded: May 1, 2001
Headquarters: New York City, NY
Final CEO: Joseph J. DePaolo (2001-2023)
Employees at Closure: Approximately 1,800
Former NASDAQ Ticker: SBNY
Signature Bank operated as a commercial bank headquartered in New York City, serving privately owned businesses, their owners, and senior managers. The bank maintained 40 private client offices across New York, Connecticut, California, Nevada, and North Carolina before its closure in March 2023.
The bank offered commercial lending, real estate financing, private banking, and equipment financing through its subsidiary Signature Financial LLC. At the end of 2022, Signature Bank held total assets of $110.4 billion and deposits of $82.6 billion.
Signature Bank became the third-largest bank failure in U.S. history when regulators closed it on March 12, 2023. Flagstar Bank, a subsidiary of New York Community Bancorp, acquired most of the bank’s deposits and branches following the closure.
Signature Bank History
Signature Bank emerged from the 2000 acquisition of Republic National Bank of New York by HSBC. Former Republic executives Joseph DePaolo and John Tamberlane partnered with investment banker Scott Shay to create a new relationship-focused commercial bank. The founders raised $42.5 million in initial capital, primarily from Bank Hapoalim of Israel.
The bank built its reputation on personalized service and strong client relationships. It refused to advertise and its branches lacked street signs. Signature paid bankers on an “eat-what-you-kill” basis and hired entire teams from competitor banks, bringing their client books along.
2001
Signature Bank opened on May 1 with six branches across the New York City area. Founded by former Republic National Bank executives with $42.5 million in capital.
2003
Reached $950 million in assets within 20 months, ranking in top five percent of U.S. commercial banks. The bank began turning a profit.
2004
Completed initial public offering in March and began trading on NASDAQ under ticker symbol SBNY.
2014
Crain’s New York Business named Signature Bank “New York’s most successful bank.” Stock price had risen 650% since 2004, outperforming the S&P 500 by tenfold.
2017
Total assets approached $50 billion. The bank expanded into equipment finance through its Signature Financial unit and became a major lender to New York law firms.
2018
Expanded to the West Coast with first San Francisco office. Began accepting cryptocurrency company deposits and launched the Signet blockchain payment platform.
2020
Continued Southern California expansion with offices in Newport Beach, Woodland Hills, and Ontario. Assets grew rapidly as cryptocurrency deposits surged.
2021
Stock price peaked near $375 per share during the cryptocurrency boom. Total assets reached $118.4 billion. Cryptocurrency deposits represented 30% of total deposits.
March 12, 2023
New York State Department of Financial Services closed Signature Bank after depositors withdrew over $10 billion following the Silicon Valley Bank collapse.
March 20, 2023
Flagstar Bank acquired $12.9 billion in loans and assumed $38.4 billion in deposits. All Signature Bank branches now operate under the Flagstar name.
Signature Bank Co-founders
Joseph J. DePaolo
President and CEO from founding until closure in 2023. Previously worked at Republic National Bank of New York. Pioneered the single-point-of-contact banking model that drove Signature’s rapid growth.
Scott A. Shay
Chairman of the Board. Former managing director at Salomon Brothers and Ranieri Strategies. Convinced DePaolo and Tamberlane to start a new bank rather than join an existing institution.
John Tamberlane
Vice Chairman and Director. DePaolo’s former supervisor at Republic National Bank. Brought decades of commercial banking experience and helped establish the bank’s relationship-driven culture.
Signature Bank Revenue
Signature Bank generated $2.62 billion in revenue during 2022, representing 34% growth from the prior year. The bank experienced consistent revenue growth throughout its history, driven by expanding commercial real estate lending, fund banking, and digital asset services.
Signature Bank Annual Revenue (in Billions USD)
Signature Bank Marketcap
Signature Bank reached a peak market capitalization of approximately $24 billion in late 2021 when its stock traded near $375 per share. The cryptocurrency boom fueled this surge before the market cap collapsed to $4.4 billion by early 2023 and ultimately zero when regulators closed the bank.
Signature Bank Market Capitalization (in Billions USD)
Signature Bank Competitors
Signature Bank competed with major financial institutions serving wealthy clients and middle-market businesses. Regional banks like First Republic Bank targeted similar clientele, while national banks offered broader services to overlapping customer segments.
| Competitor | Headquarters | Primary Focus |
|---|---|---|
| JPMorgan Chase | New York, NY | Commercial & Investment Banking |
| First Republic Bank | San Francisco, CA | Private Banking & Wealth Management |
| Citigroup | New York, NY | Global Consumer & Institutional Banking |
| Wells Fargo | San Francisco, CA | Commercial & Consumer Banking |
| Goldman Sachs | New York, NY | Investment Banking & Wealth Management |
| Silicon Valley Bank | Santa Clara, CA | Technology & Startup Banking |
| Western Alliance Bancorp | Phoenix, AZ | Commercial & Specialty Banking |
| PNC Bank | Pittsburgh, PA | Regional Commercial Banking |
| Capital One | McLean, VA | Consumer & Commercial Banking |
| Silvergate Bank | La Jolla, CA | Digital Currency Banking |
Signature Bank Acquisitions
Signature Bank pursued a distinctive growth strategy that avoided acquisitions entirely. CEO Joseph DePaolo built the bank organically by hiring complete banking teams from competitors and bringing their client relationships along. This approach allowed Signature to grow from zero to $110 billion in assets over 22 years without a single acquisition.
The bank attracted talent from major institutions including JPMorgan Chase, Capital One, and Republic National Bank. Each team arrived with established client books, enabling rapid deposit and loan growth. By 2015, nearly 150 senior bankers reported directly to DePaolo.
American Banker noted that Signature had grown into a “thriving $21 billion-asset institution” in 2013 “without making a single acquisition.” This organic growth model differentiated Signature from competitors that expanded through mergers and consolidation.
The bank did expand its business lines internally. It launched Signature Financial for equipment financing in 2012, created a Fund Banking Division for private equity clients in 2018, and established the Digital Assets Banking Group that same year. These internal developments represented the bank’s only expansion initiatives beyond its core commercial banking operations.
Following the bank’s closure, various acquirers purchased different pieces. Flagstar Bank acquired the branches, deposits, and most loans. Customers Bancorp purchased the venture banking portfolio and hired 30 former employees from that unit. The FDIC retained $60 billion in loans and $4 billion in digital asset deposits excluded from the Flagstar transaction.
FAQs
When was Signature Bank founded?
Signature Bank was founded on May 1, 2001, by former Republic National Bank executives Joseph DePaolo, Scott Shay, and John Tamberlane. The bank opened with six branches in the New York City area.
What caused Signature Bank to fail?
Signature Bank failed due to a deposit run triggered by the Silicon Valley Bank collapse. Customers withdrew over $10 billion in deposits. The FDIC cited poor management and inadequate risk controls as root causes.
Who acquired Signature Bank after its closure?
Flagstar Bank, a subsidiary of New York Community Bancorp, acquired most of Signature Bank on March 20, 2023. Flagstar assumed $38.4 billion in deposits and purchased $12.9 billion in loans.
What was Signature Bank’s peak market capitalization?
Signature Bank reached a peak market capitalization of approximately $24 billion in late 2021 when its stock traded near $375 per share during the cryptocurrency boom.
How many employees did Signature Bank have?
Signature Bank employed approximately 1,800 people at the time of its closure. The bank operated 40 private client offices across New York, Connecticut, California, Nevada, and North Carolina.