ALBANY, N.Y. -- In a prearranged deal, the Federal Deposit Insurance Corp. took over a western Massachusetts savings bank and sold most of it hours later to Albank Financial Corp. for $15.8 million in cash.
Albank bought $236 million of deposits and the nine branches of the former Ludlow Savings Bank, all in the metropolitan Springfield area.
The $227 million-asset Ludlow was "crippled" by nonperforming assets and became insolvent, said Thomas Curry, acting Massachusetts commissioner of banks.
The acquisition boosts Albank's asset size to $3 billion, from $2.8 billion. The move is Albank's initial expansion outside of New York.