July 9, 2010 – USA Bank, Port Chester, New York, was closed today by the New York State Banking Department, which appointed the FDIC as receiver. USA Bank was acquired by New Century Bank, Phoenixville, PA, under a purchase and assumption agreement with the FDIC.
New Century will assume all of the deposits and all of the assets of failed USA Bank. USA Bank at March 31, 2010 had a total of $193.3 million in assets and $189.9 million in deposits. The FDIC and New Century also entered into a loss-share transaction on $159.1 million of USA Bank’s assets, to limit potential losses by New Century Bank.
The one branch of USA Bank will reopen on Monday as a new branch of New Century.
USA Bank was recently founded in 2005 and operated as a community bank in the Port Chester, New York, area. The bank went public in late 2006, during a period of surging real estate values and increasing banking profits. The initial price of USA Bank’s stock price declined steadily from its IPO price and at Friday’s closing was quoted at 20 cents per share.
USA Bank, Port Chester, New York, became the nation’s 89th banking failure. The cost to the FDIC for closing USA Bank is estimated at $61.7 million. USA Bank is the third banking failure in New York this year.