Brooklyn Federal Savings Bank, founded in 1887, with three branches on Long Island and two in Brooklyn, has agreed to be sold for to New Jersey-based Investors Savings Bank for $10.3 million, or $0.80 a share.
All Brooklyn Federal depositor accounts, including those at the Wantagh, Islandia and Commack offices, will automatically be transferred to Investors, which will immediately sell most of the Brooklyn bank's real estate investment fund.
No branch consolidation is expected, said Investors Bancorp Inc., the buyer's parent company, said in a Wednesday news release.
After acquiring Brooklyn Federal's $470 million in assets and $411 million in deposits, Investors will have $10.7 billion in assets, $7.2 billion in deposits and 85 branches serving northern and central New Jersey and Brooklyn, Queens, and Long Island.
Brooklyn Federal was chartered in March 1887 as the Brooklyn City Savings and Loan Association, at 91 Court St. "Its purpose was to promote thrift and home ownership to the people in the downtown section of the city," the bank says on its website. "In 1935, it was the first Brooklyn based institution to receive a Federal charter and its name was changed to Brooklyn Federal Savings and Loan Association."
In 1960 it opened the Kings Bay branch in Sheepshead Bay, and four years later it bought a six-story building at 81 Court St. and moved its headquarters there.
It opened the Wantagh branch in 1973, the Islandia branch in 1999 and the Commack branch in 2008. "These suburban locations were chosen in an effort to diversify the Bank’s customer base," the bank said. "It was believed that Brooklyn Federal would have a high recognition rate among suburban residents..."