It's the first FDIC insured bank failure since 2004. No reason given for why this small Pennsylvania bank became "impaired", or failed...
FDIC Approves the Assumption of the Insured Deposits of Metropolitan Savings Bank, Pittsburgh, Pennsylvania
FOR IMMEDIATE RELEASEFebruary 2, 2007
Media Contact:David Barr (202) 898-6992mailto:firstname.lastname@example.org
The Board of Directors of the Federal Deposit Insurance Corporation (FDIC) today approved the assumption of the insured deposits of Metropolitan Savings Bank, Pittsburgh, Pennsylvania, by Allegheny Valley Bank of Pittsburgh, Pittsburgh, Pennsylvania.
Metropolitan Savings, with total assets of approximately $15.8 million at the end of the third quarter 2006, was closed today by the Pennsylvania Department of Banking, and the FDIC was named receiver.
Allegheny Valley has agreed to assume approximately $12.0 million of insured deposits of the failed bank. At the time of closure, Metropolitan Savings had approximately $1.2 million in deposits in 70 accounts that potentially exceed the federal deposit insurance limit.
The failed bank's sole office will reopen Monday as a branch of Allegheny Valley. Deposit customers of Metropolitan Savings will automatically become depositors of the assuming bank. All depositors will continue to have immediate access to their insured funds.
Customers with more than the insurance limit on deposit at the failed bank should contact the FDIC toll-free at 1-877-289-2088. The toll-free number will be operational on Saturday from 8:00 a.m. to 5:00 p.m., Eastern Time; on Sunday from noon to 5:00 p.m.; and Monday through Friday from 8:00 a.m. to 6:00 p.m. For additional information on today's transaction, customers of the failed bank can visit the FDIC's Web site at www.fdic.gov/bank/individual/failed/MetropolitanSB.html.
Allegheny Valley has agreed to pay the FDIC a premium of six percent of the assumed deposits and purchased certain assets in the form of cash equivalents, securities, and loans secured by deposits.
Metropolitan Savings is the first FDIC-insured institution failure in the country since June 25, 2004, and the first in Pennsylvania since Pulaski Savings Bank, Philadelphia, was closed on November 14, 2003.
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