New Liberty Bank
May 14, 2010
New Liberty Bank of Plymouth, Michigan failed today according to this FDIC Press Release:
New Liberty Bank, Plymouth, Michigan, was closed today by the Michigan Office of Financial and Insurance Regulation, which appointed the Federal Deposit Insurance Corporation (FDIC) as receiver. To protect the depositors, the FDIC entered into a purchase and assumption agreement with Bank of Ann Arbor, Ann Arbor, Michigan, to assume all of the deposits of New Liberty Bank.
The sole branch of New Liberty Bank will reopen on Saturday as a branch of Bank of Ann Arbor. Depositors of New Liberty Bank will automatically become depositors of Bank of Ann Arbor. Deposits will continue to be insured by the FDIC, so there is no need for customers to change their banking relationship to retain their deposit insurance coverage. Customers should continue to use their existing branch until they receive notice from Bank of Ann Arbor that it has completed systems changes to allow other Bank of Ann Arbor branches to process their accounts as well.
This evening and over the weekend, depositors of New Liberty Bank can access their money by writing checks or using ATM or debit cards. Checks drawn on the bank will continue to be processed. Loan customers should continue to make their payments as usual.
As of March 31, 2010, New Liberty Bank had approximately $109.1 million in total assets and $101.8 million in total deposits. Bank of Ann Arbor did not pay the FDIC a premium for the deposits of New Liberty Bank. In addition to assuming all of the deposits of the failed bank, Bank of Ann Arbor agreed to purchase essentially all of the assets.
The FDIC and Bank of Ann Arbor entered into a loss-share transaction on $95.2 million of New Liberty Bank’s assets. Bank of Ann Arbor will share in the losses on the asset pools covered under the loss-share agreement. The loss-share transaction is projected to maximize returns on the assets covered by keeping them in the private sector. The transaction also is expected to minimize disruptions for loan customers.