Federal regulators shuttered the Fort Lee Federal Savings Bank, of Fort Lee, N.J., this past Friday, making it the 17 bank failure of the year so far, and the first in New Jersey this year. Fort Lee FSB is the fifth bank to fail in the Garden State since 2008.
The FDIC was named receiver of the bank, and it entered into an agreement with Alma Bank, of Astoria, Queens, N.Y. Alma Bank has agreed to assume all the deposits and purchase $15.7 million of the failed institution’s assets. For the privilege of assuming the deposits, Alma Bank will pay the FDIC a premium of 1.85 percent, according to the press release.
Fort Lee FSB, by most recent estimates, had $51.9 million in assets and $50.7 million in deposits, according to the FDIC. It had just one branch in Fort Lee, a northern New Jersey suburb of New York, just across the Hudson from the city.
Customers of Fort Lee FSB are encouraged to continue to use their home branch, which now operates as Alma Bank. When certain changes are made, they will be able to use Alma Bank branches as their own. The failure will cost the Deposit Insurance Fund $14 million.