New York State Banking Department Closes Waterford Village Bank
July 24, 2009
New York N.Y.: Richard H. Neiman, Superintendent of Banks for New York State, announced that the Banking Department closed Waterford Village Bank in Clarence, New York, citing inadequate capital. Superintendent Neiman took possession of the business and property of Waterford Village Bank in order to protect depositors and the public. Waterford Village Bank, which is a single office bank, had total assets of approximately $62 million and total deposits of approximately $58 million, as of May 31, 2009.
The Federal Deposit Insurance Corporation (FDIC) was appointed as receiver and has entered into a purchase and assumption agreement with Evans Bank, N.A., Angola, New York to assume all deposits of the bank. Depositors of Waterford Village Bank automatically become depositors of Evans Bank, N.A. effective immediately.
“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 Neiman. “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 who have questions about today's transaction can call the FDIC toll-free at 1-800-323-6111. The phone number will be operational this evening until 9:00 p.m., Eastern Daylight Time (EDT); on Saturday from 9:00 a.m. to 6:00 p.m., EDT; on Sunday from noon to 6:00 p.m., EDT; and thereafter from 8:00 a.m. to 8:00 p.m., EDT. Interested parties can also visit the FDIC's Web site at http://www.fdic.gov/bank/individual/failed/waterford.html.
Waterford Village Bank is the first failure in New York since 2004.
The U. S. Congress created the Federal Deposit Insurance Corporation (FDIC) in 1933 to restore public confidence in the nation's banking system. The FDIC insures deposits at the nation's 8,246 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 FDIC receives no federal tax dollars – insured financial institutions fund its operations.The New York State Banking Department is the regulator for all state-chartered banking institutions, virtually all of the United States offices of international banking institutions, all of the State’s mortgage brokers, mortgage bankers, check cashers, money transmitters and budget planners. The aggregate assets of the depository institutions supervised by the Banking Department are more than $2.4 trillion.
In addition to regulating banking institutions, the Banking Department is active in informing and educating all New Yorkers on banking matters. To contact the Banking Department, please call 1-877-BANK-NYS or visit our Web site at www.banking.state.ny.us.