Failed Bank Information
Information for Lydian Private Bank, Palm Beach, FL
- Press Release
- Acquiring Financial Institution
- Question and Answer Guide
- Banking Services
- Loan Customers
- Possible Claims Against the Failed Institution
- Priority of Claims
- Dividend Information
- Brokered Deposits
- Purchase and Assumption Agreement (11 MB PDF File - PDF Help)
- Bid Summary
- Balance Sheet Summary
Please be advised you will not receive any email notification to claim/unlock/unsuspend your account or to provide any private information. Please be aware of any Phishing Scams to obtain information from you.
On Friday, August 19, 2011, Lydian Private Bank, Palm Beach, FL, including its division Virtual Bank, was closed by the Office of the Comptroller of the Currency, and the Federal Deposit Insurance Corporation (FDIC) was named Receiver. No advance notice is given to the public when a financial institution is closed.
The FDIC has assembled useful information regarding your relationship with this institution. Besides a checking account, you may have Certificates of Deposit, a car loan, a business checking account, a commercial loan, a Social Security direct deposit, and other relationships with the institution. The FDIC has compiled the following information, which should answer many of your questions.
II. Press Release
The FDIC has issued a press release (PR-137-2011) about the institution's closure. If you represent a media outlet and would like information about the closure, please contact LaJuan Williams-Young at 1-202-898-3876.
III. Acquiring Financial Institution
All deposit accounts, including brokered deposits and online deposits held at Virtual Bank, a division of Lydian Private Bank, have been transferred to Sabadell United Bank, National Association (N.A.), Miami, FL ("assuming institution") and will be available immediately. The former Lydian Private Bank locations will reopen as branches of Sabadell United Bank, N.A. during regular business hours.
Your transferred deposits will be separately insured from any accounts you may already have at Sabadell United Bank, N.A. for six months after the failure of Lydian Private Bank, including its division Virtual Bank. Checks that were drawn on Lydian Private Bank, including its division Virtual Bank that did not clear before the institution closed will be honored as long as there are sufficient funds in the account. If you have questions about your account(s) transferred to the assuming bank, you may speak to an FDIC representative by calling (888) 206-4662.
For general questions about FDIC deposit insurance coverage, please call 1-877-275-3342 or visit EDIE, the FDIC's Electronic Deposit Insurance Estimator.
EDIE - FDIC's Electronic Deposit Insurance Estimator
You may withdraw your funds from any transferred account without an early withdrawal penalty until you enter into a new deposit agreement with Sabadell United Bank, N.A. as long as the deposits are not pledged as collateral for loans. You may view more information about Sabadell United Bank, N.A. by visiting their web site.
Sabadell United Bank, N.A. (www.sabadellunited.com)
V. Banking Services
The Automated Teller Machines (ATM) and online service, including services at Virtual Bank, a division of Lydian Private Bank, will remain available.
The bank will maintain its regular business hours, and you may continue to use the services to which you previously had access, such as safe deposit boxes, night deposit boxes, wire services, etc.
Your checks will be processed as usual. All outstanding checks will be paid against your available balance(s) as if no change had occurred. Your new bank will contact you soon regarding any changes in the terms of your account. If you have a problem with a merchant refusing to accept your check, please contact your branch office. An account representative will clear up any confusion about the validity of your checks.
All interest accrued through Friday, August 19, 2011 will be paid at your same rate. Sabadell United Bank, N.A. will be reviewing rates. You will be notified of any changes.
Your direct deposits and automatic withdrawals will be transferred to your new bank. If you have any questions or special requests, you may contact a representative of your new bank at your branch office.
VI. Loan Customers
If you had a loan with Lydian Private Bank or its division Virtual Bank, you should continue to make your payments as usual. The terms of your loan will not change, because they are contractually agreed to in your promissory note. Checks should be made payable as usual and sent to the same address until further notice. If you have further questions regarding an existing loan, please contact your loan officer.
For all questions regarding new loans and the lending policies of Sabadell United Bank, N.A., please contact your branch office. Please see A Borrower's Guide to an FDIC Insured Bank Failure for additional information.
VII. Possible Claims Against the Failed Institution
Claims against failed financial institutions occur when bills sent to the institution remain unpaid at the time of failure. If you or your company provided a service or product, leased space, furniture, or equipment to Lydian Private Bank or its division Virtual Bank after Friday, August 19, 2011 and have not been paid, you do not have a claim against Lydian Private Bank. Please follow your normal billing procedures by providing an invoice as instructed.
If you or your company provided a service or product, leased space, furniture, or equipment to Lydian Private Bank or its division Virtual Bank prior to Friday, August 19, 2011 and have not been paid, you may be entitled to a claim against the bank. If you provided a product to or a service for Lydian Private Bank or its division Virtual Bank prior to the bank's failure for which you have not been paid and you have not received communication, please contact:
FDIC as Receiver for Lydian Private Bank
1601 Bryan Street
Dallas, TX 75201-3430
Attention: Claims Agent
Please note: There are time limits for filing a claim, your claim must be filed on or before 11/22/2011.
Lydian Holding Company, Palm Beach Gardens, FL owned 79% of the common stock of the bank. The holding company was not included in the closing of the bank or the resulting receivership. If you are a shareholder of Lydian Holding Company, please do not contact or file a claim with the receiver. You must contact the holding company directly for more information:
Lydian Holding Company
2401 PGA Boulevard, Suite 236
Palm Beach Gardens, FL 33410
If you are a shareholder of Lydian Private Bank, any questions should be directed to the CLAIMS address above.
Shareholders have a claim against the receivership; however, they have the lowest priority of claim. You should discuss this with an accountant and/or the IRS concerning the exact requirements necessary to recognize the investment as a loss for tax purposes. The FDIC does not require stockholders to file a claim with the Receiver. However, we recommend that you keep our office informed of any address change, should we need to contact you in the future.
VIII. Priority of Claims
In accordance with Federal law, allowed claims will be paid, after administrative expenses, in the following order of priority:
- General Unsecured Creditors
- Subordinated Debt
IX. Dividend Information
Dividend Information on Failed Financial Institutions
X. Brokered Deposits
The FDIC offers a reference guide to deposit brokers acting as agents for their investor clientele. This site outlines the FDIC's policies and procedures that must be followed by deposit brokers when filing for pass-through insurance coverage on custodial accounts deposited in a failed FDIC Insured Institution.
Deposit Broker's Processing Guide