Vantage Point Bank, Horsham, PA, became the fifth banking failure of 2014 as regulators swooped in to close the insolvent bank. Established in December 2007 as real estate values were already collapsing this small community bank quickly ran into financial difficulties with bad loans, declining revenues, troubles with their home mortgage financing programs, and the inability to raise additional capital.
The Pennsylvania Department of Banking closed Vantage Point Bank and appointed the FDIC as receiver. The FDIC was able to sell the failed bank to First Choice Bank, Mercerville, New Jersey, which will assume all deposits and purchase all of the assets of Vantage Point Bank.
Vantage Point Bank was a small bank with only one branch and had total assets at December 31, 2013, of $63.5 million and total deposits of $62.5 million.
All depositors of Vantage Point Bank will automatically become depositors of First Choice Bank with uninterrupted FDIC deposit insurance coverage up to the applicable limits. Over the weekend depositors of Vantage Point Bank can access their money through the use of ATMs, checking accounts, and debit cards.
Under the terms of the purchase and assumption agreement between the FDIC and First Choice Bank, the FDIC will receive a premium of 1.5 percent on the deposits acquired by First Choice.
The cost to the FDIC for the failure of Vantage Point Bank is $8.5 million. Vantage Point Bank becomes the nation’s fifth banking failure of 2014 and the first in Pennsylvania. The previous banking failure in the State was NOVA Bank which failed in October 2012.
Walt Tillman is responding to concerned shareholders who suffered a loss. He can be reached at 215-540-4470 x114 or email wtillman@undspec.com