March 15, 2010 (FinancialWire) — Valley National Bancorp (NYSE: VLY) said that its Valley National Bank subsidiary, has assumed all deposits, except certain brokered deposits, and received certain assets of New York City-based The Park Avenue Bank from the Federal Deposit Insurance Corp., which was appointed the receiver for Park Avenue Bank.

Park Avenue Bank’s five locations will reopen on their normally scheduled next business day and operate as branches of Valley National Bank.

Under the terms of the agreement with the FDIC, Valley assumed around $450 million in deposits and $30 million in other borrowings and liabilities, and received around $370 million of loans, which are subject to a loss-share agreement with the FDIC. It also received cash, investment securities and other assets totaling around $110 million.

The acquired loans mainly consist of commercial loans and loans collateralized by commercial real estate. Valley paid a 0.15 percent deposit premium on the assumed deposits.

As part of the consideration for the Park Avenue Bank transaction, Valley issued an equity appreciation instrument to the FDIC.

New Jersey-based Valley is a regional bank holding company whose principal subsidiary, Valley National Bank, currently operates 206 branches in 136 communities serving 14 counties throughout northern and central New Jersey and Manhattan, Brooklyn and Queens.

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