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To protect depositors, the FDIC entered into a purchase and assumption agreement with New Century Bank (doing business as Customers Bank) of Phoenixville, Pa., to assume all of the deposits. Customers of ISN Bank will not experience any interruption in services.

ISN Bank was not a traditional community bank and had a negligible level of "core" deposit relationships with people and businesses. A "core" deposit relationship is one in which a depositor has its main banking relationship with one bank.

Customers of ISN Bank may continue to use the bank and will receive additional information from Customers Bank.

Friday evening and over the weekend, depositors of ISN Bank can access their money by writing checks or using ATM or debit cards. Checks drawn on ISN Bank will continue to be processed. Loan customers may continue to make their payments as usual.

"ISN Bank was not a traditional community bank with significant core banking relationships and represents an isolated situation," Banking and Insurance Commissioner Tom Considine said. "Unfortunately, the bank's poor asset quality made today's action necessary to protect consumers. This action comes only after we attempted well-coordinated corrective actions.

As of June 30, ISN Bank had approximately $80 million in assets and $79 million in total deposits. The majority of deposits were gathered from individuals and companies outside of New Jersey via ISN Bank's Internet site.

State Banking Director Garret Komjathy said, "The department has been engaged in attempts to remedy the bank's condition and the purchase of ISN Bank represents a preferred outcome. Senior management of New Century Bank has a proven record of success in the banking industry. Importantly, this transaction will be completely seamlessly for ISN Bank customers.''

Customers who have questions about the transaction can call the FDIC toll-free at 1-800-913-3067. The phone number will be operational Friday evening until 9 p.m., on Saturday from 9 a.m. to 6 p.m., on Sunday from noon to 6 p.m., and thereafter from 8 a.m. to 8 p.m.

– TOM HESTER SR., NEWJERSEYNEWSROOM.COM