Today, the New York State Banking Department closed The Park Avenue Bank, headquartered in New York, New York, and the FDIC was named receiver. As receiver, the FDIC entered into a purchase and assumption agreement with Valley National Bank, headquartered in Wayne, New Jersey, to assume all of the deposits of The Park Avenue Bank.

As of December 31, 2009, The Park Avenue Bank had approximately $520.1 million in total assets and $494.5 million in total deposits. Valley National Bank will pay the FDIC a premium of 0.15 % to assume all of the deposits of The Park Avenue Bank. Valley National Bank also agreed to purchase essentially all of the failed bank assets. As part of this transaction, the FDIC will acquire a cash appreciation instrument.

The FDIC estimates that the cost to the Deposit Insurance Fund will be $50.7 million. The Park Avenue Bank is the 28th FDIC-insured institution to fail in the nation this year, and the second in New York.