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Regulators Shut Down New Jersey Bank; US Bank Closures Reach 17 In 2012

The Federal Deposit Insurance Corp. or FDIC on Friday announced the shuttering of a bank in New Jersey, taking the count of U.S. bank closures in 2012 to 17, after 92 in 2011 and the 157 bank closures in 2010.

Fort Lee Federal Savings Bank of Fort Lee was closed by the state's Office of the Comptroller of the Currency. It was New Jersey's first bank failure of the year.

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, Astoria, New York, agreed to acquire all of the failed bank's deposits for a 1.85% premium and will buy about $15.7 million of its assets.

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 said that as receiver, it will retain the remaining assets for later disposition.

The FDIC estimates that the cost of the bank failure to the Deposit Insurance Fund will reach $14 million.

On an average, 13 banks have failed per month in 2010, with bank closures for 2011 averaging only nearly eight per month, and currently averaging only four in 2012. The 92 bank closures in 2011 were down from 157 in 2010 and 140 in 2009, but nearly four times of the 25 bank failures in 2008. Only three banks failed in 2007. The highest and all time record for bank closures was in 1989 when 534 banks closed, followed by 181 bank failures in 1992.

by RTTNews Staff Writer

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