- Valley National Bank Assumes All the Deposits of LibertyPointe Bank
- March 26, 2010 | Author: Darren M. Cooper
- Law Firm: Alston & Bird LLP - Washington Office
Today, the New York State Banking Department closed LibertyPointe Bank, headquartered in New York, New York, and appointed the FDIC as receiver. The FDIC entered into a purchase and assumption agreement with Valley National Bank, headquartered in Wayne, New Jersey, to assume all the deposits of LiberyPointe. Valley National Bank will pay the FDIC a premium of 0.15% to assume the deposits of LibertyPointe Bank and has agreed to purchase essentially all of the failed bank's assets. The FDIC and Valley National Bank entered into a loss-share transaction on $181.5 million of LibertyPointe Bank's assets. The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) will be $24.8 million.
As of December 31, 2009, LibertyPointe Bank had approximately $209.7 million in total assets and $209.5 million in total deposits.
LibertyPointe Bank is the 27th FDIC-insured institution to fail this year and the first in New York since Waterford Village Bank in July 2009.