FDIC APPROVES ASSUMPTION OF INSURED DEPOSITS OF LUDLOW SAVINGS BANK, LUDLOW, MASSACHUSETTS
FOR IMMEDIATE RELEASE
David Barr (202) 898-6992
The Board of Directors of the Federal Deposit Insurance Corporation has
approved the assumption of insured deposits of Ludlow Savings Bank, Ludlow, Massachusetts, by Ludlow Savings, a Division of Albany Savings Bank, FSB, Albany, New York. Ludlow Savings Bank, with total assets of $255.7 million, was closed today by Thomas Curry, Massachusetts Commissioner of Banks, and the FDIC was named receiver.
Ludlow Savings Bank's nine offices will reopen as new branches of Ludlow
Savings, a Division of Albany Savings Bank, FSB, on Saturday, October 22. The failed bank's insured depositors will automatically become depositors of the assuming bank.
Ludlow Savings, a Division of Albany Savings Bank, FSB, will assume about
$236.1 million in about 41,800 deposit accounts, including about $14.0 million in 813 accounts that exceeded the FDIC insurance limit of $100,000. The Depositors Insurance Fund, a corporation established to provide financial assistance and deposit insurance to Massachusetts' savings banks, will provide the FDIC approximately $900,000 to facilitate the assumption of the uninsured deposits.
The assuming bank will pay a premium of $15.8 million for the right to
receive the failed bank's deposits and will purchase $18.5 million of the
failed bank's assets.
The Board of Directors approved the deposit assumption under its
authority to do so whenever it determines that such a transaction will reduce the potential loss to the FDIC. The FDIC notes that its claim on recoveries from the sale of the failed bank's assets will have priority over non-depositor creditors of the failed bank.