April 20, 2012 / 11:06 PM / 7 years ago

U.S. regulators close Fort Lee, New Jersey bank

Apri1 20 (Reuters) - U.S. regulators closed a small New Jersey bank on Friday, bringing the total number of closures so far this year to 17.

Fort Lee Federal Savings Bank, FSB, of Fort Lee, New Jersey, will reopen on Saturday as a branch of Alma Bank of Astoria, New York, the Federal Deposit Insurance Corp said.

Fort Lee Federal Savings Bank had approximately $50.7 million in deposits as of the end of last year, according to FDIC, which estimated that its failure will cost the Deposit Insurance Fund $14 million.

As the U.S. economy recovers, and the 2007-2009 financial crisis fades further into the distance, the pace of bank failures has slowed.

In 2010, 157 banks with $92.1 billion in total assets failed while 92 institutions with $34.9 billion in total assets were closed in 2011.

The pace of failures is expected to slow significantly again this year.

Earlier this week, FDIC acting Chairman Martin Gruenberg said his agency expects a total of 50 to 60 banks to be closed this year.

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