After the Federal Deposit Insurance Corporation seized the assets of Florida-based Lydian Private Bank on Friday, the Spanish firm Sabadell United Bank has taken over the operations of the closed bank.

Under the terms of the loss-share agreement between the Federal Deposit Insurance Corporation and Banco Sabadell, the FDIC will absorb 80 per cent of the losses on certain loans acquired by the Spanish bank.

Overall, Sabadell says it has boosted its assets by around $1.6 billion for a discount of approximately $176 million, and assumed liabilities totaling $1.6 billion including $1.2 billion in customer deposits. The bank is part of Banco Sabadell Group.

As of today, Lydian Private Bank's six offices will open as branches of Sabadell United Bank, expanding that firm's branch network to 25 locations across six countries.

Lydian was founded in 2002 and had concentrated on private banking and wealth management services. However it hit some problems earlier this year when its chairman and chief executive Rory Brown resigned after a financial report adjusting the bank’s fourth quarter results to show $33 million of capital disappearing

Sabadell says the acquisition is part of a strategy to boost its business along Florida’s West Coast.

"This is a strategic acquisition that will give us a broader geographic area and expanded private banking services. This will give us locations on Florida's West Coast, expands our Palm Beach County business, as is part of our strategy to seek acquisitions and become a significant statewide bank," said Mario Trueba, president and chief executive of Sabadell United Bank.

With the takeover, Sabadell expects to see its total Florida business volume reach around $10.7 billion, or $7.3 billion in deposits and assets under management, and $3.4 billion in loans. It is also the Spanish bank's fourth acquisition in the area, following TransAtlantic Bank in 2007, BBVA's Miami-based private banking arm in 2008, and Mellon United National Bank in 2010.