Press Release

Alma Bank, Astoria, New York, Assumes All of the Deposits of Fort Lee Federal Savings Bank, FSB, Fort Lee, New Jersey 

FOR IMMEDIATE RELEASE
April 20, 2012
Media Contact:
Greg Hernandez (202) 898-6984
Cell: (202) 340-4922
Email: ghernandez@fdic.gov

 

Fort Lee Federal Savings Bank, FSB, Fort Lee, New Jersey, was closed today by the Office of the Comptroller of the Currency, which appointed the Federal Deposit Insurance Corporation (FDIC) as receiver. To protect the depositors, the FDIC entered into a purchase and assumption agreement with Alma Bank, Astoria, New York, to assume all of the deposits of Fort Lee Federal Savings Bank, FSB.

The sole branch of Fort Lee Federal Savings Bank, FSB will reopen on Saturday as a branch of Alma Bank. Depositors of Fort Lee Federal Savings Bank, FSB will automatically become depositors of Alma Bank. Deposits will continue to be insured by the FDIC, so there is no need for customers to change their banking relationship in order to retain their deposit insurance coverage up to applicable limits. Customers of Fort Lee Federal Savings Bank, FSB should continue to use their existing branch until they receive notice from Alma Bank that it has completed systems changes to allow other Alma Bank branches to process their accounts as well.

This evening and over the weekend, depositors of Fort Lee Federal Savings Bank, FSB can access their money by writing checks or using ATM or debit cards. Checks drawn on the bank will continue to be processed. Loan customers should continue to make their payments as usual.

As of December 31, 2011, Fort Lee Federal Savings Bank, FSB had approximately $51.9 million in total assets and $50.7 million in total deposits. Alma Bank will pay the FDIC a premium of 1.85 percent to assume all of the deposits of Fort Lee Federal Savings Bank, FSB. In addition to assuming all of the deposits of the failed bank, Alma Bank agreed to purchase approximately $15.7 million of the failed bank’s assets. The FDIC will retain the remaining assets for later disposition.

Customers with questions about today’s transaction should call the FDIC toll-free at 1-800-430-8098. The phone number will be operational this evening until 9:00 p.m., Eastern Daylight Time (EDT); on Saturday from 9:00 a.m. to 6:00 p.m., EDT; on Sunday from noon to 6:00 p.m., EDT; on Monday from 8 a.m. to 8 p.m., EDT; and thereafter from 9:00 a.m. to 5:00 p.m., EDT. Interested parties also can visit the FDIC’s Web site at http://www.fdic.gov/bank/individual/failed/fortlee.html.

The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) will be $14.0 million. Compared to other alternatives, Alma Bank’s acquisition was the least costly resolution for the FDIC’s DIF. Fort Lee Federal Savings Bank, FSB is the seventeenth FDIC-insured institution to fail in the nation this year, and the first in New Jersey. The last FDIC-insured institution closed in the state was First State Bank, Cranford, on October 14, 2011.

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FOR IMMEDIATE RELEASE
April 20, 2012
Contact: Dean DeBuck
(202) 874-5770

OCC Appoints Receiver for Fort Lee Federal Savings Bank

WASHINGTON — The Office of the Comptroller of the Currency (OCC) today appointed the Federal Deposit Insurance Corporation (FDIC) as receiver for Fort Lee Federal Savings Bank, Fort Lee, New Jersey, a federal savings association. As of December 31, 2011, the institution had approximately $51.9 million in total assets.

The OCC acted after finding that the institution had experienced substantial dissipation of assets and earnings due to unsafe or unsound practices. The OCC also found that the institution incurred losses that depleted its capital, the institution is critically undercapitalized, and there is no reasonable prospect that it will become adequately capitalized without federal assistance.

The FDIC will release information about the resolution of the institution.

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