Bank failures are usually announced at the end of the day Friday, but this week state regulators were ready to go Thursday evening, with the announcement of the 27th bank failure of 2010, LibertyPointe Bank.
The bank, which has three branches located in New York, NY and estimated total assets of $209.7 million as of December, was closed by the New York State
Banking Department. The FDIC was appointed as receiver.
LibertyPointe Bank branches will reopen today as branches of Valley National Bank of Wayne, NJ, the “assuming institution.” Depositors of LibertyPointe Bank will be able to continue to use their usual banking and ATM locations over the weekend, and will be notified once they are able to use other Valley National Bank branches.
The Deposit Insurance Fund
The cost of the failure to the Deposit Insurance Fund (DIF) is estimated to be around $24.8 million. Deposits transferred to Valley National Bank from LibertyPointe will remain separately insured from any other Valley National Bank accounts for up to six months.
This marks the 27th bank failure this year. For more information and to view a complete list of bank failures in 2010, view our Failed Bank List here.