Valley National Bancorp (VLY) has acquired the deposits and part of the assets of Liberty Pointe Bank from the Federal Deposit Insurance Corporation (FDIC). The FDIC was named receiver for Liberty Pointe Bank after the bank was closed by the New York State Banking Department on March 11, 2010.
Valley National Bancorp entered a loss sharing agreement with the FDIC as part of the transaction. Under that agreement, Valley National Bancorp assumed approximately $200 million in deposits, and $180 million in loans. The FDIC agreed to share losses with Valley National Bancorp on the loan portfolio up to an undisclosed limit.
Gerald H. Lipkin, the CEO of Valley National Bancorp, said, “We welcome Liberty Pointe 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.”
Valley National Bancorp is a bank holding company that owns the Valley National Bank. Valley National Bank has 201 branches in New York and New Jersey with over $14 billion in assets.