NORWALK SAVINGS SOCIETY, NORWALK, CONNECTICUT
ASSUMES DEPOSITS OF FAIRFIELD FIRST BANK
AND TRUST COMPANY, SOUTHPORT, CONNECTICUT
FOR IMMEDIATE RELEASE PR-51-96 (7-12-96)
Media Contact: David Barr (202) 898-6992
The Board of Directors of the Federal Deposit Insurance
Corporation approved the assumption of all the deposits of Fairfield
First Bank & Trust Company, Southport, Connecticut, by Norwalk
Savings Society, Norwalk, Connecticut.
Fairfield First was closed today by John Burke, Connecticut
Banking Commissioner, and the FDIC was named receiver.
The failed bank's two offices will reopen as branches of Norwalk
Savings Society on Saturday, July 13. Fairfield First's depositors
will automatically become depositors of the assuming bank.
Norwalk Savings Society will assume $57.5 million in about 3,800
deposit accounts and will pay the FDIC a premium of $3.9 million for
the right to receive the failed bank's deposits and to purchase $39.8
million in assets. Fairfield First had total assets of $60.7
In a separate agreement, New England Bank and Trust Company,
Windsor, Connecticut, will pay the FDIC a premium of $24,000 to
purchase $1 million of the failed bank's assets. The FDIC will
retain approximately $19.9 million of the failed bank's assets.
The FDIC estimates the cost of this transaction to the Bank
Insurance Fund (BIF) to be approximately $5.1 million.
The FDIC notes that its claim on recoveries from the sale of the
failed bank's assets will have priority over non-depositor creditors
of the failed bank.
Fairfield First is the fourth BIF-insured bank failure in the
U.S. this year and the first in Connecticut since Founders Bank, New
Haven, was closed on July 28, 1995.
FDIC press releases are available on the Internet via the World Wide
Web at www.fdic.gov or through Gopher at gopher.fdic.gov. They may
also be obtained through the FDIC's Public Information Center, 801
17th St. NW, Room 100, Washington, DC, ((703) 562-2200).