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Regulators decided on a rare Thursday seizure because a Friday evening closure would have conflicted with the Jewish Sabbath.
March 12
WASHINGTON — In a rare Thursday failure, regulators shut a small Pennsylvania bank that serves the Orthodox Jewish community.
The Pennsylvania Department of Banking closed the $46.8 million-asset Public Savings Bank in Huntingdon Valley, Pa., the Federal Deposit Insurance Corp. said in a press release.
Regulators typically close banks on Friday evening, but the FDIC said regulators closed the bank a day earlier to avoid conflicting with the Jewish Sabbath.
Capital Bank N.A., based in Rockville, Md., assumed all of the deposits and agreed to purchase essentially all of the assets of the failed bank. The bank's sole branch will reopen Friday as a branch of Capital Bank.
The cost to the Deposit Insurance Fund is estimated to be $11 million. The bank is the 65th failure of 2011, and the first to fail this year in Pennsylvania.
