Lydian Private Bank, a Palm Beach institution that targeted customers with high net worth, was closed by federal regulators Friday, its assets sold to Miami-based Sabadell United Bank.
The Federal Deposit Insurance Corp., which acted as receiver after Lydian failed, said Friday evening that over the weekend, Lydian Bank depositors can continue to access their money by writing checks or using ATM or debit cards.
Lydian's five branches will reopen Monday as branches of Sabadell United.
The acquisition gives Sabadell its first branches on Florida's west coast, expanding its statewide footprint to 25 locations in six counties.
Lydian had approximately $1.7 billion in assets and $1.24 billion in deposits. Under an agreement with the FDIC, Sabadell will share in any losses connected to $907 million of Lydian's assets. The FDIC estimates the agreement will cost its deposit insurance fund $293.2 million.
The closure marked the 66th FDIC-insured bank failure in the country so far this year and the 10th in Florida.