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News Release

New Jersey Department of
Banking and Insurance

Commissioner Tom Considine

For Immediate Release:
October 14, 2011

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

Northfield Bank Assumes All Deposits of First State Bank

CRANFORD – The New Jersey Department of Banking and Insurance (DOBI) today closed First State Bank, Cranford, New Jersey and appointed the Federal Deposit Insurance Corporation (FDIC) as receiver. To protect depositors, the FDIC entered into a purchase and assumption agreement with Northfield Bank to assume all of the deposits of First State Bank. Customers of First State Bank will not experience any interruption in services.

First State Bank, which opened in 2006, has its headquarters in Cranford and a second branch in Westfield. Both branches of First State Bank will reopen on Saturday as branches of Northfield Bank and depositors of First State Bank will automatically become depositors of the Northfield Bank.

“Unfortunately, First State’s poor asset quality made today’s action necessary to protect consumers. First State Bank’s sale to Northfield is a good result and this transaction will be completely seamless to First State Bank customers,” said DOBI Commissioner Tom Considine. “While we never like to see a bank close, this was the best option.”

Customers of First State Bank should continue to use their existing branch and will receive additional information from Northfield Bank. Deposits will continue to be insured by the FDIC, so there is no need for customers to change their banking relationship in order to retain their deposit insurance coverage.

This evening and over the weekend, depositors of First State Bank can access their money by writing checks or using ATM or debit cards. Checks drawn on First State Bank will be processed. Loan customers should continue to make their payments as usual.

As of June 30, 2011, First State Bank had approximately $204.4 million in total assets and $201.2 million in deposits.

Based in Staten Island, New York, with 22 locations in Staten Island, Brooklyn and New Jersey, Northfield Bank first entered the New Jersey market in 2002 through a merger with Liberty Bank. The bank has total assets of $2 billion and strengthens its presence in Union and Middlesex Counties.

Customers who have questions about today's transaction can call the FDIC toll-free at 1-800-613-0378. 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; and thereafter from 8:00 a.m. to 8:00 p.m., EDT.  Interested parties also can visit the FDIC's web site at


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