FDIC APPROVES ASSUMPTION OF ALL THE DEPOSITS OF
PULASKI SAVINGS BANK, PHILADELPHIA, PENNSYLVANIA
FOR IMMEDIATE RELEASE PR-107-2003 (11-14-2003)
Media Contact: David Barr (202) 898-6992
The Board of Directors of the Federal Deposit Insurance Corporation (FDIC) has approved the assumption of all the deposits of Pulaski Savings Bank, Philadelphia, Pennsylvania, by Earthstar Bank, Southampton, Pennsylvania.
Pulaski Savings Bank, with approximately $10.2 million in assets, was closed today by the Secretary of Banking, Commonwealth of Pennsylvania, and the FDIC was named receiver. Pulaski Savings Bank's only banking office will reopen on Monday, November 17, as a branch of Earthstar Bank. Depositors of the failed bank will automatically become depositors of Earthstar Bank.
The failed bank had total deposits of $9.2 million in about 1,200 accounts. Earthstar Bank will pay the FDIC a premium of $400,000 for the right to assume those deposits and to purchase $8.9 million of the failed bank's assets. The FDIC will retain the remaining $1.3 million in assets for later disposition.
The FDIC estimates the cost of this transaction to the Bank Insurance Fund (BIF) to be $1.1 million. Pulaski Savings Bank is the third BIF-insured bank to fail this year, and the first failure in Pennsylvania since Metrobank of Philadelphia, Philadelphia, Pennsylvania, failed on March 11, 1996.
Congress created the Federal Deposit Insurance Corporation in 1933 to restore public confidence in the nation's banking system. The FDIC insures deposits at the nation's 9,267 banks and savings associations and it promotes the safety and soundness of these institutions by identifying, monitoring and addressing risks to which they are exposed. The FDIC receives no federal tax dollars - insured financial institutions fund its operations.
FDIC press releases and other information are available on the Internet at www.fdic.gov or through the FDIC's Public Information Center (877-275-3342 or (703) 562-2200).