Spain's Banco Sabadell acquired nearly all of the assets and certain liabilities of Florida-based Lydian Private Bank under the terms of an agreement with the Federal Deposit Insurance Corporation (FDIC).
Barcelona: Spain's Banco Sabadell acquired nearly all of the assets and certain liabilities of Florida-based Lydian Private Bank under the terms of an agreement with the Federal Deposit Insurance Corporation (FDIC).
The FDIC closed down Palm Beach-based Lydian Private Bank Friday and reached a loss-share agreement with Banco Sabadell under which the Spanish bank's Sabadell United Bank unit will take over the failed institution.
The FDIC will be responsible for absorbing 80 percent of the losses on certain loans acquired by Sabadell United Bank, Banco Sabadell said.
Sabadell United Bank is getting certain assets worth approximately USD 1.6 billion with a discount of nearly USD 176 million and assumes certain liabilities totaling around USD 1.6 billion, including deposits of some USD 1.2 billion.
Lydian Private Bank's six offices will open Monday as Sabadell United Bank branches, giving the Spanish bank a network of 25 branches.
Sabadell United Bank, which already had branches in South Florida's Miami-Dade, Broward and Palm Beach counties, is adding the Lydian Private Bank branches in the cities of Palm Beach, Palm Beach Gardens, Tampa, Sarasota, Naples and Coral Gables.
"This is a strategic acquisition that will give us a broader geographic service area, and expanded private banking services. Lydian Private Bank's business model fits in well with our commitment to be a trusted advisor for professionals, commercial enterprises and high-net-worth individuals," Sabadell United president and CEO Mario Trueba said.
The deal for Lydian Private Bank, which had about USD 1.7 billion in total assets and USD 1.24 billion in total deposits, "will give us locations on Florida's West Coast, expands our 20-year presence in Palm Beach County, and is part of our strategy to seek acquisitions and become a significant statewide bank", Trueba said.
Sabadell United has made several acquistions in Florida in recent years, buying TransAtlantic Bank in 2007, BBVA's international private banking business in 2008 and Mellon United National Bank in 2010.
"This acquisition is a great fit for us, for Lydian Private Bank's customers and for the communities we serve," Sabadell's chairman of the Americas, Fernando Perez-Hickman, said.
Sabadell United has been trying to expand in Florida, focusing on professionals, small- and mid-sized businesses and high-net-worth individuals.
"Sabadell's total business volume in Florida will be approximately USD 10.7 billion (USD 7.3 billion in deposits and assets under management and USD 3.4 billion in loans)," Perez-Hickman, said.