Bank Failure Friday Part II

Busy Friday night for the FDIC-Lou

Friday, July 24, 2009

First NY Bank Failure Announced Since 200

The Empire State's first bank failure since 2004 was announced late Friday afternoon.  Waterford Village Bank in Clarence, N.Y., was closed by the Banking Department of the Superintendent of Banks for the state of New York for insufficient capital.  

The bank is a single-branch bank which held $62 million in total assets and $58 million in deposits, as of May 31 of this year.

According to a release issued by the New York Superintendent of Banks a "purchase and assumption agreement" has been struck between the Federal Deposit Insurance Corporation, which was named receiver of the bank, and with Evans Bank, N.A., in Angola, New York, which will take on all of Waterford's deposits.  Depositors will automatically become depositors of Evans Bank, N.A.

“It is a top priority of the New York State Banking Department to protect the deposits of customers of New York State banks and ensure the safety and soundness of the banking system in the state,” said Richard H. Neiman, Superintendent of Banks for New York State, in a press release. “We determined that the management team’s inability to adequately and timely address problems outlined in a Feb. 12 Cease and Desist Order led to the bank being critically undercapitalized.”

Customers of Waterford Village Bank can contact the FDIC with questions at 1-800-323-6111, or visit the FDIC's Web site about the failure. 

New Yorkers can contact the Banking Department of the New York Superintendent of Banks by calling 1-877-BANK-NYS or visiting its Web site.

Waterford Village Bank is the 58th U.S. bank to fail this year.