State banking regulators have closed New York-based LibertyPointe Bank, and the Federal Deposit Insurance Corp. (FDIC), acting as receiver, has entered into a purchase-and-assumption agreement with in Wayne, N.J.-based Valley National Bank.
Valley has received approximately $180 million of loans that are subject to a loss-share agreement with the FDIC, and cash and other assets totaling approximately $20 million. The acquired assets include loans that are primarily collateralized by commercial real estate, Valley says. Valley paid a 0.15% deposit premium on the assumed deposits.
The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) will be $24.8 million. LibertyPointe Bank is the 27th FDIC-insured institution to fail in the nation this year, and the first in New York.