CORRECT: New York Regulators Close The Park Avenue Bank
March 12 2010 - 8:14PM
Dow Jones News
New York regulators on Friday closed the Park Avenue Bank,
bringing to 28 the total number of financial institutions that have
failed in the U.S. this year.
The Park Avenue Bank had total assets of $520.1 million and
total deposits of $494.5 million as of the end of 2009, the Federal
Deposit Insurance Corp. said.
The FDIC has arranged to sell all of the bank's deposits and
almost all of its assets to Valley National Bank (VLY), based in
Wayne, N.J. Valley National Bank has agreed to pay a premium of
0.15% to assume the deposits.
The FDIC has agreed to share in losses on a $379.8 million pool
of assets sold to Valley National Bank.
The Park Avenue Bank branches will reopen as branches of Valley
National Bank starting Saturday.
The Park Avenue Bank, headquartered just blocks from Manhattan's
ritzy Fifth Avenue shopping strip, is the second to fail in New
York this year.
State regulators closed LibertyPointe Bank Thursday. That bank
had total assets of $209.7 million and total deposits of $209.5
million as of December's end, the FDIC said.
The FDIC expects the two failures to cost its deposit insurance
fund a combined $75.5 million.
The FDIC also arranged to sell all of LibertyPointe Bank's
deposits and most of its assets to Valley National Bank, which
received $300 million through the government's Troubled Asset
Relief Program and has since repaid those funds.
Valley National Bank agreed to pay a premium of 0.15% for
LibertyPointe's deposits. The FDIC has agreed to share in losses on
$181.5 million of the assets the bank is purchasing from
LibertyPointe.
-By Meena Thiruvengadam, Dow Jones Newswires; 202-862-6629;
meena.thiruvengadam@dowjones.com
Valley National Bancorp (NASDAQ:VLY)
Historical Stock Chart
From Mar 2024 to Apr 2024
Valley National Bancorp (NASDAQ:VLY)
Historical Stock Chart
From Apr 2023 to Apr 2024