Park Avenue Bank Follows LibertyPointe Bank Failure; Taken Over By Valley National Bank

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Following the failure of LibertyPointe Bank on Thursday, the FDIC has announced another New York bank failure, The Park Avenue Bank, bringing the 2010 bank failure total to 28.

The bank, which has 4 branches and an estimated $520.1 million in assets as of last year, was closed by the New York State Banking Department late Friday. This failure marks the 28th bank closure of the year, and the second NY bank to fail since July of 2009, after LibertyPointe Bank failed Thursday. All deposits of The Park Avenue Bank will also be transferred to Valley National Bank of Wayne, NJ, which was also the assuming institution of the three branches of LibertyPointe Bank.

The Park Avenue Bank failure is estimated to cost the Deposit Insurance Fund (DIF) approximately $50.7 million. In addition to LibertyPointe Bank, that means a total loss to the DIF of $75.5 million.

All deposits from The Park Avenue Bank accounts will be able to be accessed as usual from Park Avenue Bank ATM’s, and depositors should continue to use their current branch until an announcement is made by Valley National Bank that will open all Valley National branches to new depositors from the Park Avenue Bank. New deposits will continue to be separately insured from any current Valley National Accounts for six months.

(Source: MyBankTracker.com)


4 COMMENTS

  1. I knew this was coming. so now we will see 13th ave ful of valley national banks on every corner…… but empty accounts with current economy and banks not allowing businesses to stay afloat.

  2. Now that there are so many bank closures on 13th Avenue, maybe the rents will come down, and once again be affordable for Mom & Pop shops.