Valley National Bancorp today announced that its wholly-owned subsidiary, Valley National Bank, assumed  all deposits and received certain assets of Manhattan-based LibertyPointe Bank from the Federal Deposit Insurance Corporation (“FDIC”), which was appointed the receiver for LibertyPointe Bank.

Gerald H. Lipkin, Chairman, President and CEO commented that, “We welcome LibertyPointe Bank customers to Valley National Bank and are pleased to provide a safe and secure home to these customers. Our primary focus is to assure customers that their deposits are safe and remain readily accessible to them. Valley has served the northern and central New Jersey and New York metropolitan areas for over 80 years and has a healthy balance sheet, and strong capital and liquidity positions.

LibertyPointe Bank’s three locations will reopen on Friday morning, March 12, 2010 and operate as branches of Valley National Bank.  The acquisition was effective immediately and depositors of LibertyPointe Bank are now depositors of Valley National Bank and their deposits continue to be insured by the FDIC as they were before.  Customers can continue to bank at any of the three branches, and access their money by writing checks or using their ATM or debit cards.  Furthermore, checks drawn on LibertyPointe Bank will continue to be processed, and loan customers can, and should, continue to make their payments as usual.

Once Valley consolidates LibertyPointe Bank and Valley’s computer operating systems, all customers will have access to Valley’s branch network of 201 locations, including 30 in the New York City metropolitan area; our Bank by Phone customer service center, which is open 7 days a week; Online Banking and our ATM network.”

Under the terms of the agreement with the FDIC, Valley assumed approximately $200 million in deposits and received approximately $180 million of loans which are subject to a loss-share agreement with the FDIC and cash and other assets totaling approximately $20 million.  The acquired assets include loans which are primarily collateralized by commercial real estate.  Valley paid a 0.15 percent deposit premium on the assumed deposits.

“The loss-sharing agreement with the FDIC mitigates significant credit risk that could be assumed in a more traditional bank acquisition,” adds Lipkin. “Consistent with our well-established approach to strategic growth, the acquisition of LibertyPointe Bank is expected to provide us with immediate earnings accretion and an opportunity to leverage our capital base while deploying some of our excess liquidity caused, in part, by the current economy and low level of interest rates.”

Customers who have questions about today’s transaction can call the FDIC toll-free at  1-800-591-2820.  The phone number will be operational this evening until 9 p.m., ET; on Friday from 9 a.m. to 6 p.m., ET; on Saturday from 9 a.m. to 3 p.m., ET; Sunday 9 a.m. to 3 p.m., ET; and thereafter from 8 a.m. to 8 p.m., ET.

(Source: PR Newswire / Valley National Bancorp)