EDISON, N.J. - Hometown Bank of Edison was turned over to Somerset Trust Co. of Somerville after being seized by the state.

The New Jersey banking commissioner, Jeff Connor, seized Hometown after declaring it unsafe and unsound. He appointed the Federal Deposit Insurance Corp. as receiver.

The FDIC transferred the failed institution, which had $25 million in assets, to Somerset.

Somerset Trust also took over Highlands Community Bank, Clifton, with $21 million in assets, which was seized by federal regulators last week. Somerset Trust had assets of $676 million as of June 30 and 17 branches.

Hometown, which opened in December 1988. and Highlands Community Bank each had one office.

Subscribe Now

Access to authoritative analysis and perspective and our data-driven report series.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.