N.Y. Regulator Gives Go-Ahead for Sale To Marine Midland

River Bank America, the parent of East River Savings Bank, received conditional approval from the New York State Banking Department to sell its branch network and most of its assets to Buffalo- based Marine Midland Banks.

The sale, already approved by River Bank's shareholders, is expected to close by June 28.

River Bank plans to go out of business. The Banking Department said it must apply for approval of its dissolution plan within one year of the branch sale. The thrift must also apply to the state Supreme Court for a closing order within 13 months of the sale, and for a final order of dissolution within another five months.

The department also imposed various reporting requirements.

Marine Midland, a unit of HSBC Holdings PLC, will receive 11 branches, $1.1 billion in assets, and $1.2 billion in deposits in the sale. River Bank will retain $300 million in mortgages and foreclosed properties.