First Fidelity Bancorp. acquired Howard Savings Bank for $73.5 million Friday after the New Jersey-based institution was seized by regulators.
Meanwhile, regulators seized First Constitution Bank of New Haven and sold it to Webster Financial Corp., a thrift company based in Waterbury, Conn.
The failures of Howard Savings, which had $3.6 billion in assets, and the $1.6 billion-asset First Constitution were long expected.
Both institutions were victims of the region's realty slump.
For First Fidelity, which is based in Lawrenceville, N.J., the acquisition is the latest in a string of deals since the company started to rebound from its own loan problems.
With the acquisition of Livingston-based Howard Savings, First Fidelity adds 70 branches, $3 billion in assets, and $3.4 billion of deposits.
The Federal Deposit Insurance Corp. will retain $616 million in troubled assets.
Under the deal, the $29.3 billion-asset First Fidelity could bear 20% of any loss on $867 million of the loans it acquired.
First Federal Savings, the operating unit of Webster Financial, will assume $1.4 billion of deposits and the same amount in assets from First Constitution.
Costs to U.S.
The failure of Howard Savings Bank is expected to cost the FDIC about $117 million, while the tab for First Constitution was put at $122 million.
Harrison Young, FDIC's director of resolutions, said the deals' costs were relatively low because both institutions were still solvent.
Each institution attracted three final offers, Mr. Young said.