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Press Release
New York State Banking Superintendent Closes USA Bank

July 9, 2010

New York N.Y.: Richard H. Neiman, Superintendent of Banks for New York State, announced that the Banking Department closed USA Bank in Port Chester, New York citing inadequate capital, and immediately appointed the Federal Deposit Insurance Corporation (FDIC) as receiver.

As receiver, the FDIC has entered into a purchase and assumption agreement with Customers 1st Bank, formerly New Century Bank, of Phoenixville, PA, to assume all insured and uninsured deposits of the bank. Depositors of USA Bank automatically become depositors of Customers 1st Bank effective immediately.

Superintendent Neiman took possession of the business and property of USA Bank in order to protect depositors and the public.  The Bank has been operating under two Cease and Desist Orders issued by the Banking Department. The Cease and Desist Orders are available at http://www.banking.state.ny.us/ea.htm.

USA Bank, which had one office, had total assets of $193 million and total deposits of approximately $191 million, as of May 31, 2010.

“We at the New York State Banking Department, along with the FDIC, continue to do everything we can to protect the customers of New York State banks and ensure the safety and soundness of the banking system here,” said Neiman. “We want to assure consumers that we will be working with our federal partners to ensure a safe and seamless transition.”

Customers who have questions about today's transaction can call the FDIC toll-free at 1-800-405-8215.  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 http://www.fdic.gov/bank/individual/failed/usabankny.html.

The U. S. Congress created the Federal Deposit Insurance Corporation (FDIC) in 1933 to restore public confidence in the nation's banking system. The FDIC insures deposits at the nation's 7,932 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 New York State Banking Department is the regulator for all state-chartered banking institutions, virtually all of the United States offices of international banking institutions, all of the State’s mortgage brokers, mortgage bankers, check cashers, money transmitters and budget planners. The aggregate assets of the depository institutions supervised by the Banking Department are more than $2.4 trillion.

In addition to regulating banking institutions, the Banking Department is active in informing and educating all New Yorkers on banking matters. To contact the Banking Department, please call 1-877-BANK-NYS or visit our Web site at www.dfs.ny.gov.