Union State Bank Acquires the Deposits of Reliance Bank after Banking Department takes Possession
March 19, 2004
New York, N.Y.: Superintendent of Banks Diana L. Taylor announced today that Union State Bank, a State-chartered bank headquartered in Orangeburg, New York, has acquired all the deposits of Reliance Bank of White Plains, New York, after the Banking Department took possession of Reliance Bank and immediately appointed the Federal Deposit Insurance Company (FDIC) as receiver.
The Superintendent took possession of Reliance Bank in order to protect depositors and the public, finding, among other things, that the Bank was operating in an unsafe and unsound condition.
Reliance Bank’s only office located at 1200 Mamaroneck Avenue, White Plains, New York, will reopen on Monday as a branch of Union State Bank, which acquired the bank’s business from the FDIC. Depositors of Reliance will automatically become depositors of Union State Bank. At the time of closure, Reliance Bank had total deposits of approximately $24 million in about 1,100 accounts.
A toll-free FDIC customer service line, 1-888-206-4662, will be taking calls from bank customers Monday through Friday between 8:30 a.m. and 5:30 p.m. EST.
Union State Bank is a full service New York State chartered commercial bank established in 1969. The bank is a wholly owned subsidiary of U.S.B. Holding Co., Inc. and is the largest independent bank headquartered in Rockland County. The bank offers a wide range of banking services to individuals, municipalities, corporations, and small and medium-size businesses through its retail banking facilities located throughout the Metropolitan area. The bank has 27 locations in Rockland and Westchester Counties and total assets are more than $2.9 billion as of December 31, 2003.
Reliance is the first failure in New York since Golden City Commercial Bank, New York, failed on December 10, 1999.
Congress created the FDIC in 1933 to restore public confidence in the nation’s banking system. The FDIC insures deposits at the nation’s 9,182 banks and savings associations and it promotes the safety and soundness of these institutions by identifying, monitoring and addressing risks to which they are exposed.
The New York State Banking Department is the regulator for all state-chartered banking institutions, including nine of the State’s ten largest banks, and the majority of the United States offices of international banking institutions. The Department licenses and registers all of the State’s mortgage brokers and mortgage bankers. The aggregate assets of the companies and institutions supervised by the Banking Department are more than $2 trillion.