This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

ISN Bank of New Jersey Fails

CHERRY HILL, N.J. ( TheStreet) - New Jersey regulators on Friday closed ISN Bank of Cherry Hill on Friday, bringing the total number of bank failures for 2010 to 120.

The failed bank was included in TheStreet's Bank Watch List of undercapitalized institutions, based on second-quarter regulatory data provided by SNL Financial.

ISN Bank was undercapitalized since the fourth quarter of 2008, when a net loss of $2.2 million pushed the institution's Tier 1 leverage ratio down to 3.70% and its total risk-based capital ratio to 6.87%. These ratios need to be at least 5% and 10% for most banks and thrifts to be considered well-capitalized by regulators. The capital ratios need to be at least 4% and 8% for most to be considered adequately capitalized.

After six more quarters of net losses, the capital ratios had declined to 1.66% and 3.54% as of June 30, and the bank's ratio of nonperforming assets - loans past due 90 days or in nonaccrual status and repossessed real estate - comprised a crippling 25.36% of total assets.

After ISN Bank was shuttered by the New Jersey Department of Banking and Insurance, the Federal Deposit Insurance Corp. was appointed receiver and sold the failed institution to New Century Bank (OZRK) of Phoenixville, Penn. The acquiring institution does business under the brand name Customers First Bank (NCYB.PK).

ISN Bank had $81.6 million in total assets when it failed. The FDIC agreed to share in losses on $64.8 million of the assets acquired by New Century Bank.

The failed bank's office was set to reopen as a Customers Bank branch.

Thorough Bank Failure Coverage

ISN Bank was the first New Jersey institution to fail this year and the third since the current wave of bank failures began in 2008.

Florida leads all states with 23 bank closures during 2010, followed by 15 in Illinois and 11 failures in Georgia.

All bank and thrift failures since the beginning of 2008 are detailed in's revamped interactive bank failure map:

The bank failure map is color-coded, with the states having the greatest number of failures highlighted in dark grey, and states with no failures in light green. By moving your mouse over a state you can see its combined 2008-2010 totals. Then click the state to open a detailed map pinpointing the locations and providing additional information for each bank failure.


-- Written by Philip van Doorn in Jupiter, Fla.

>To contact the writer of this article, click here: Philip van Doorn.

>To follow the writer on Twitter, go to

>To submit a news tip, send an email to:
Philip W. van Doorn is a member of TheStreet's banking and finance team, commenting on industry and regulatory trends. He previously served as the senior analyst for Ratings, responsible for assigning financial strength ratings to banks and savings and loan institutions. Mr. van Doorn previously served as a loan operations officer at Riverside National Bank in Fort Pierce, Fla., and as a credit analyst at the Federal Home Loan Bank of New York, where he monitored banks in New York, New Jersey and Puerto Rico. Mr. van Doorn has additional experience in the mutual fund and computer software industries. He holds a bachelor of science in business administration from Long Island University.

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
AAPL $110.38 0.00%
FB $92.07 0.00%
GOOG $626.91 0.00%
TSLA $247.57 0.00%
YHOO $30.71 0.00%


Chart of I:DJI
DOW 16,472.37 +200.36 1.23%
S&P 500 1,951.36 +27.54 1.43%
NASDAQ 4,707.7750 +80.6910 1.74%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs