The Pennsylvania Department of Banking and Securities closed the Tioga-Franklin Savings Bank in Philadelphia and appointed the Federal Deposit Insurance Corporation (FDIC) as receiver.
Subsequently, the FDIC entered into an agreement with Second Federal Savings and Loan Association of Philadelphia to assume all deposits and purchase substantially all assets of Tioga-Franklin Savings Bank.
Tioga-Franklin Savings Bank reported total assets of $68 million and total deposits of $67 million as of June 30.
Tioga-Franklin Savings Bank’s sole branch will reopen as a branch of Second Federal Savings and Loan Association of Philadelphia during its normal business hours starting August 24.
Depositors of Tioga-Franklin Savings Bank will automatically become depositors of Second Federal Savings and Loan Association of Philadelphia. The deposits assumed by Second Federal Savings and Loan Association of Philadelphia will continue to be insured by the FDIC, so customers do not need to change their banking relationship.
Tioga-Franklin Savings Bank customers will have immediate access to their deposits. Customers with questions should contact the FDIC toll-free at 1-866-314-1744 or visit the FDIC’s website.
The FDIC estimates that the failure will cost the Deposit Insurance Fund approximately $5.5 million. However, the estimate will change over time as retained assets are sold.