Sale of Melville bank is delayed
Madison National Bank was ordered by regulators to correct "unsafe and unsound banking practices." (Nov. 11, 2010) Credit: Joseph D. Sullivan
A Manhattan investment group said Friday it will delay closing on its planned purchase of Melville-based Madison National Bank.
Madison has branches in Melville, Merrick and Massapequa.
The Manhattan buyer, FNBNY Bancorp Inc., said it came to an agreement last week with Madison and "extended the merger agreement for a period of up to an additional six months to complete the transaction."
FNBNY will pay Madison a consideration of $500,000 each month the sale is extended.
The terms of the original deal are still intact, FNBNY said. It will pay $9.09 per share subject to adjustments, with an $8.18 minimum net payment per share.
Madison National Bank last year was ordered by regulators to correct "unsafe and unsound banking practices" and criticized it for weak management, inadequate earnings, insufficient capital and not diversifying the types of loans it makes.
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PHOTO: Madison National Bank on Walt Whitman Road in Melville. (Nov. 11, 2010)
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