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Madison National sale passes muster

Madison National Bank.

Madison National Bank. Credit: Handout

Five-year-old Madison National Bancorp. of Melville said Thursday that federal regulators and shareholders have approved its takoever by FNBNY Bancorp. of Manhattan and that the deal is expected to close by the end of next month.

The corporate owner of Madison National Bank, which has branches in Massapequa, Melville and Merrick, said 99 percent of shareholders voting approved the merger. The Federal Reserve Bank of New York gave its approval Jan. 31, according to its website.

Madison also said it had agreed with FNBNY on a per share merger price fixed at $9.09 per share, the amount that originally was announced in October of 2010, equal to about $33.7 million in cash.

Madison National’s branches eventually will be renamed First National Bank of New York and operate as a subsidiary of FNBNY, which operates no branches now. No branch closings are expected, the announcement said, adding that most current officers and staff, a total of 51 full time equivalents, will be retained.

The merger has been somewhat controversial. In September a watchdog group, Citizens Union, raised questions about the involvement of former Gov. Mario M. Cuomo, father of Gov. Andrew M. Cuomo, with the investment group that owns FNBNY Bancorp — Modern Capital Holdings, of which Mario Cuomo, a lawyer, is chairman. Modern and Mario Cuomo denied any conflict, saying the former governor will play no role in the new bank's operations, that the bank does not intend to do any business with the state and that it will will be federally, not state, chartered.

Madison had assets of $302 million as of Sept. 30.

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