FIs closed: The Park Avenue Bank, New York, USA
On Friday, 12 March, 2010, The Park Avenue Bank, New York, NY was closed by the New York State Banking Department, and the Federal Deposit Insurance Corporation (FDIC) was named 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 will reopen during normal business hours beginning today as branches of Valley National Bank.
As of 31 December, 2009, The Park Avenue Bank had approximately USD520.1 million in total assets and USD494.5 million in total deposits.
Valley National Bank will pay the FDIC a premium of 0.15 percent to assume all of the deposits of The Park Avenue Bank.
The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) will be USD50.7 million.
The Park Avenue Bank is the 28th FDIC-insured institution to fail in the USA this year, and the second in New York.
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