On Friday, the New Jersey Department of Banking and Insurance closed ISN Bank, headquartered in Cherry Hill, New Jersey, and appointed the FDIC as receiver for the bank. As receiver, the FDIC entered into a purchase and assumption agreement with New Century Bank (doing business as Customers Bank), headquartered in Phoenixville, Pennsylvania, to assume all of the deposits of ISN Bank.
As of June 30, 2010, ISN Bank had approximately $81.6 million in total assets and $79.7 million in total deposits. New Century Bank did not pay the FDIC a premium for the deposits of ISN Bank, but did agree to purchase essentially all of the failed bank’s assets. New Century Bank entered into a loss-share transaction on approximately $64.8 million of ISN Bank's assets.
The FDIC estimates that the cost to the Deposit Insurance Fund will be $23.9 million. ISN Bank is the 120th FDIC-insured institution to fail in the nation this year, and the first in New Jersey since the failure of First BankAmericano on July 31, 2009.