A Cherry Hill, N.J. bank was closed by the Federal Deposit Insurance Corporation Friday, the same day that a Pennsylvania-based bank purchased the failed institution and assumed its roughly $79.6 million in assets.
Commercial mortgages accounted for 53.4 percent of ISN Bank’s non-performing loans according to tracking firm Trepp, which reported six FDIC bank closures on Friday. Residential mortgages accounted for a large portion of the non-performing loans, 22 percent of the total.
ISN was purchased by Customers Bank through a Purchase & Assumption Agreement with the FDIC. Jim Collins, the division president of Customers Bank, said in a statement that he expects the ownership transition to go smoothly.
“There will not be any interruptions in customer service,” Collins said. “Loan customers should continue to make their payments as usual.”
ISN representatives declined to comment. When reached by phone, Collins advised that any information provided would be made available on the Customers Bank website.
So far this year, Trepp has recorded 125 bank failures nationwide.