New York Community Bank has agreed to buy a significant share of the recently failed Signature Bank for $2.7bn.

The Federal Deposit Insurance Corp confirmed the news on Sunday (19 March), one week after it took control of Signature.

In total, 40 branches of Signature Bank will become Flagstar Bank, starting Monday (20 March), a subsidiary of New York Community Bank.

SVB's parent company files for 'reorganisation' bankruptcy

The deal will include the purchase of $38.4bn in Signature Bank's assets, a little more than a third of Signature's total when the bank failed a week ago.

However, it does not include Signature's crypto unit Signet, which facilitates the buying and selling of digital currencies. The FDIC stated it would seek to return those assets to account holders but could still sell the Signet business.

The FDIC said $60bn in Signature Bank's loans will remain in receivership and are expected to be sold off in time.

Customers at Signature Bank were spooked by the sudden breakdown of Silicon Valley Bank, and withdrew more than $10bn in deposits, according to reports from CNBC.

The run on deposits quickly led to the bank's breakdown and following take over by FDIC.