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News Release

New Jersey Department of
Banking and Insurance


Commissioner Steven M. Goldman

For Immediate Release:
May 1, 2009

For Further Information:
Ed Rogan or Marshall McKnight (609) 292-5064


North Jersey Community Bank Assumes All Deposits of
Citizens Community Bank, Ridgewood, New Jersey



Citizens Community Bank, Ridgewood, New Jersey, was closed today by the New Jersey Department of Banking and Insurance (NJDOBI), which appointed the Federal Deposit Insurance Corporation (FDIC) as receiver. To protect the depositors, the FDIC entered into a purchase and assumption agreement with North Jersey Community Bank, to assume all of the deposits of Citizens Community Bank.

The failed bank had one office in New Jersey. The office will reopen on Monday as a branch of North Jersey Community Bank. Depositors of Citizens Community Bank will automatically become depositors of North Jersey Community Bank.

NJDOBI partnered with the FDIC to issue parallel cease and desist orders in September 2008 due to several safety and soundness issues. NJDOBI and FDIC monitored the bank closely and continued to work with the institution.

“Citizens Community Bank is an isolated case among New Jersey chartered financial institutions,” said NJDOBI Commissioner Steven M. Goldman. “They have suffered from deficient management and poor asset quality. The Department repeatedly demanded the bank’s management take corrective action, but its failure to adequately address these problems made today’s action necessary to protect consumers.”

Deposits will continue to be insured by the FDIC, so there is no need for customers to change their banking relationship to retain their deposit insurance coverage. Customers of both banks should continue to use their existing branches until North Jersey Community Bank can fully integrate the deposit records of Citizens Community Bank.

New Jersey Banking Director Terry McEwen stated, “The Department’s top priority remains protecting the deposits of all of our citizens. Customers of Citizen’s Bank will experience a smooth and seamless transition. As a reminder, all individual accounts are insured by the FDIC up to $250,000.”

Over the weekend, depositors of Citizens Community Bank 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.

Customers who have questions about today's transaction can call the FDIC toll-free at 1-800-523-8503. 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; Monday and thereafter from 8:00 a.m. to 8:00 p.m.

Customers who would like more information about today's transaction can also visit the FDIC's Web site at http://www.fdic.gov, or call NJDOBI at 1-800-446-7467, or online at http://www.njdobi.org.


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