WASHINGTON - Equitable Federal Savings Bank has signed a definitive agreement under which it would become an independent subsidiary of Federal Trust Corp., a bank holding company based in Orlando.

Equitable would convert to stock ownership, and existing management would be maintained.

The savings bank said the agreement, approved by both boards, was subject to certain conditions as well as approval by the Office of Thrift Supervision.

Equitable said Federal Trust would contribute enough capital for the thrift to meet all regulatory requirements when the deal is completed, which is expected to be sometime next year.

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