News Release

New Jersey Department of
Banking and Insurance

Commissioner Ken Kobylowski

For Immediate Release:
January 2, 2014

For Further Information:
Ed Rogan or Marshall McKnight (609) 292-5064

TRENTON – New Jersey Department of Banking and Insurance Commissioner Ken Kobylowski announced today that 1st Bank of Sea Isle City has converted from a federally-regulated savings bank to a state regulated financial institution. The conversion went into effect in December.

“We welcome 1st Bank of Sea Isle City to the state banking system,” said Commissioner Kobylowski. “Their decision to switch to a State charter is a good one for many reasons. As state regulators we are more accessible to our banks, have a greater knowledge of their market and local issues and are more cost effective than our federal counterparts. We look forward to a long and productive relationship with 1st Bank.”

1st Bank of Sea Isle City, which was previously regulated by the Office of the Comptroller of the Currency, was founded in 1888 as Sea Isle Building and Loan. Headquartered in Sea Isle City, the Bank also has branches in Seaville and Swainton. It provides a broad range of business and consumer financial services.

“We believe that the charter conversion will allow greater ability to execute our strategy as a New Jersey-based community bank and remain competitive in the markets we serve,” said Larry C. Schmidt, President and Chief Executive Officer 1st Bank of Sea Isle City.

The Department of Banking and Insurance works diligently to make itself accessible to local banks by reaching out extensively to the banking community, regularly attending report-of-exam meeting, regulatory compliance seminars and speaking engagements.

The Department regulates 75 State-chartered banks and 19 credit unions.

Recent changes in the federal regulation of financial institutions brought about by the Dodd-Frank Wall Street Reform and Consumer Protection Act have increased banks’ compliance costs and have provided New Jersey with a continuing opportunity to recruit federally-regulated banks to the state regulatory system.

“We continue to urge any federally regulated financial institutions in New Jersey to switch to a State charter,” Commissioner Kobylowski said. “It’s a smart business decision.”

1st Bank of Sea Isle City is the sixth New Jersey bank to switch from a federal to a State charter during the Christie Administration.