News Release

New Jersey Department of
Banking and Insurance

Commissioner Tom Considine

For Immediate Release:
June 29, 2011

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

TRENTON – New Jersey Department of Banking and Insurance (DOBI) Commissioner Tom Considine announced today that Crest Savings Bank, based in Wildwood, has converted from a federal savings bank regulated by the Office of Thrift Supervision (OTS), to a state regulated financial institution, effective June 29.
 
“Crest is the first federally regulated New Jersey bank to convert to a state charter during Governor Chris Christie’s Administration,” said Commissioner Considine. “Since taking office 16 months ago, I have been actively urging federally regulated financial institutions located here to make that switch, and we at the Department are very pleased that Crest has become the first institution to do so.”

Commissioner Considine highlighted a number of reasons for federally regulated banks in New Jersey to convert to a State charter.  

“It makes good business sense,” he said. “As state regulators we are more accessible to our banks than our federal counterparts, have a greater knowledge of their management, their market and are more cost effective. Additionally, while not a driving force in Crest’s conversion, other federally chartered banks considering converting to a state charter will achieve significant regulatory cost savings.”

The Department makes itself widely accessible by reaching out extensively to the banking community. Senior DOBI staff has attended 70 percent of bank board report-of-exam meetings, regulatory compliance seminars and speaking engagements, as well as scores of roundtables and events.

Jay M. Ford, President and CEO of Crest Savings Bank, remarked that “Conversion to a New Jersey savings bank is an important and positive step in light of the 2010 enactment of the Dodd-Frank Act, which made certain statutory changes that removed most of the advantages of the federal charter. While we have always had a very good relationship with the OTS, we believe that in light of the federal regulatory consolidation there is a significant advantage to being a New Jersey savings bank and having a locally based regulator who is more responsive and has a better understanding of our market area and operations.”

Under provisions of the federal Dodd-Frank Wall Street Reform and Consumer Protection Act, the OTS will merge into the Office of the Comptroller of the Currency (OCC), another federal bank regulator, in July. This merger gives New Jersey a continuing opportunity to recruit federally regulated banks to the State regulatory system, according to Commissioner Considine.

“We hope our proactive approach and excellent reputation encourage more banks to convert. We welcome Crest Savings Bank,” said Considine.