WASHINGTON — The FDIC Board recently approved the assumption of the insured deposits of Metropolitan Savings Bank in Pittsburgh, Pa. by Allegheny Valley Bank of Pittsburgh, Pa.
The Pennsylvania Department of Banking closed the approximately $15.8 million bank Feb. 2, the first FDIC-insured institution in the country to fail since June 25, 2004. Allegheny Valley has agreed to assume approximately $12.0 million of insured deposits of the failed bank. At the time of closure, Metropolitan Savings had approximately $1.2 million in deposits in 70 accounts that potentially exceed the federal deposit insurance limit.
The failed bank's sole office will continue to operate as a branch of Allegheny Valley. Deposit customers of Metropolitan Savings will automatically become depositors of the assuming bank. All depositors will continue to have immediate access to their insured funds.
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Customers with deposits exceeding the FDIC limits should call the insurer at 1-877-289-2088. Additional information is available to Metropolitan customers at the FDIC's Web site at www.fdic.gov/bank/individual/failed/MetropolitanSB.html.
Allegheny Valley has agreed to pay the FDIC a premium of six percent of the assumed deposits and purchased certain assets in the form of cash equivalents, securities, and loans secured by deposits.
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