Four Banks Closed March 11, 12

2010 Talley: 34 Failed Banks and Credit Unions Four more banks were closed by state and federal regulators on March 11 and 12.

These latest closings raise the year's tally of failed institutions to 34 banks and credit unions.

Here is a rundown of the latest failures:

The Park Avenue Bank
The Park Avenue Bank, New York, New York, was closed by the New York State Banking Department, which appointed the Federal Deposit Insurance Corporation (FDIC) as receiver. To protect the depositors, the FDIC entered into a purchase and assumption agreement with Valley National Bank, Wayne, New Jersey, to assume all of the deposits of The Park Avenue Bank.

The four branches of The Park Avenue Bank were to reopen during normal business hours beginning Saturday as branches of Valley National Bank. Depositors of The Park Avenue Bank will automatically become depositors of Valley National Bank.

As of December 31, 2009, The Park Avenue Bank had approximately $520.1 million in total assets and $494.5 million in total deposits.

As part of this transaction, the FDIC will acquire a cash appreciation instrument. The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) will be $50.7 million.

Old Southern Bank
Old Southern Bank, Orlando, Florida, was closed by the Florida Office of Financial Regulation, which appointed the FDIC as receiver. To protect the depositors, the FDIC entered into a purchase and assumption agreement with Centennial Bank, Conway, Arkansas, to assume all of the deposits of Old Southern Bank.

The seven branches of Old Southern Bank will reopen on Monday as branches of Centennial Bank. Depositors of Old Southern Bank will automatically become depositors of Centennial Bank.

As of December 31, 2009, Old Southern Bank had approximately $315.6 million in total assets and $319.7 million in total deposits.

The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) will be $94.6 million.

Statewide Bank
Statewide Bank, Covington, Louisiana, was closed by the Louisiana Office of Financial Institutions, which appointed the FDIC as receiver. To protect the depositors, the FDIC entered into a purchase and assumption agreement with Home Bank, Lafayette, Louisiana, to assume all of the deposits of Statewide Bank.

The six branches of Statewide Bank were to reopen on Saturday as branches of Home Bank.

As of December 31, 2009, Statewide Bank had approximately $243.2 million in total assets and $208.8 million in total deposits.

The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) will be $38.1 million.

LibertyPointe Bank
LibertyPointe Bank, New York, New York, was closed March 11 by the New York State Banking Department, which appointed the FDIC as receiver. To protect the depositors, the FDIC entered into a purchase and assumption agreement with Valley National Bank, Wayne, New Jersey, to assume all of the deposits of LibertyPointe Bank.

The three branches of LibertyPointe Bank reopened on March 12 as branches of Valley National Bank. Depositors of LibertyPointe Bank will automatically become depositors of Valley National Bank.

As of December 31, 2009, LibertyPointe Bank had approximately $209.7 million in total assets and $209.5 million in total deposits.

The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) will be $24.8 million.





Around the Network

Our website uses cookies. Cookies enable us to provide the best experience possible and help us understand how visitors use our website. By browsing bankinfosecurity.co.uk, you agree to our use of cookies.