newjerseynewsroom.com

Northfield Bank assumes control of bank's operations

BY TOM HESTER SR.

NEWJERSEYNEWSROOM.COM

The First State Bank in Cranford was closed Friday by the state Department of Banking and Insurance, which appointed the Federal Deposit Insurance Corp. as receiver.

To protect depositors, the FDIC entered into a purchase and assumption agreement with Northfield Bank to assume all of the deposits. Customers of First State Bank will not experience any interruption in services, state officials said.

First State Bank, which opened in 2006, has its headquarters in Cranford and a second branch in Westfield. The banks will reopen Saturday as branches of Northfield Bank and depositors of First State Bank will automatically become depositors of the Northfield Bank.

As of June 30, First State Bank had approximately $204.4 million in total assets and $201.2 million in deposits.

“Unfortunately, First State’s poor asset quality made today’s action necessary to protect consumers,” DOBI Commissioner Tom Considine said. “First State Bank’s sale to Northfield is a good result and this transaction will be completely seamless to First State Bank customers. While we never like to see a bank close, this was the best option.”

Deposits made with First State Bank will continue to be insured by the FDIC. Considine said there is no need for customers to change their banking in order to retain their deposit insurance coverage.

Considine said that on Friday and Saturday, depositors of First State Bank can access their money by writing checks or using ATM or debit cards. Checks drawn on First State Bank will be processed. Loan customers should continue to make their payments as usual.

With 22 locations in Staten Island, Brooklyn and New Jersey, Northfield Bank first entered the New Jersey market in 2002 through a merger with Liberty Bank. The bank has total assets of $2 billion.

People who have questions about the takeover can call the FDIC toll-free at 1-800-613-0378. The phone number will be operational Friday until 9:00 p.m.; on Saturday from 9:00 a.m. to 6:00 p.m.; on Sunday from noon to 6:00 p.m.; and thereafter from 8:00 a.m. to 8:00 p.m.

People also can visit the FDIC's website at http://www.fdic.gov/bank/individual/failed/firststatebank-nj.html.