WASHINGTON -- The Federal Deposit Insurance Corp. has approved the assumption of the insured deposits of Malden. (Mass.) Trust Co. by Eastern Bank of Lynn, Mass.
Eight of the failed bank's nine offices reopened as branches of Eastern Bank.
Eastern Bank took over $232.8 million in about 37,900 deposit accounts and agreed to pay a premium of $9.26 million for the right to receive the deposits. It also will purchase $33.9 million of Malden Trust assets and has an option to purchase other loans.
To facilitate the transaction, the FDIC said it was advancing about $189.6 million to Eastern Bank and would retain assets of the failed bank with a book
value of about $222.9 million.
Fifty-four Maiden accounts exceeded the $100,000 federal insurance limit by a total of $1.6 million. The FDIC said its board voted to make an advance payment to unsecured creditors, including uninsured depositors, equal to 75% of uninsured claims, based on the estimated value of assets to be liquidated.