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The Warwick Commercial Bank - In Organization

FEDERAL DEPOSIT INSURANCE CORPORATION

The Warwick Commercial Bank - In Organization
Warwick, New York
Application for Federal Deposit Insurance - Bank Insurance Fund

ORDER

The undersigned, acting under delegated authority, has fully considered all facts and information relevant to the factors of Section 6 of the Federal Deposit Insurance Act relating to the application for Federal deposit insurance for The Warwick Commercial Bank, a proposed new limited purpose bank to be located at 18 Oakland Avenue, Warwick, New York, and has concluded that the application should be approved.

Accordingly, it is hereby ORDERED, for the reasons set forth in the attached Statement, that the application submitted by The Warwick Commercial Bank for Federal deposit insurance be, and the same hereby is, approved subject to the following conditions:

1. That beginning paid-in-capital funds of not less than $3,000,000 be provided, and that the Tier 1 capital to assets leverage ratio be maintained at not less than eight percent during the first three years of operations;

2. That any changes in proposed management or proposed ownership (10 percent or more of stock), including new acquisitions of or subscriptions to 10 percent or more of stock, will render this commitment null and void unless such proposal is approved by the Regional Director of the FDIC's New York Regional Office (Regional Director) prior to opening of the bank;

3. That Federal deposit insurance shall not become effective unless and until the applicant has been granted a charter, that it has authority to conduct a banking business, and that its establishment and operation as a bank have been fully approved by the New York State Banking Department;

4. That the bank shall operate within the parameters of the business plan submitted to the FDIC. Furthermore, during the first three years of operations, the bank shall notify the Regional Director of any proposed major deviation or material change from the submitted plan 60 days before consummation of the change;

5. That prior to the effective date of deposit insurance, adequate written policies addressing securities investments, investments in bond anticipation notes, liquidity and funds management, bank secrecy, wire transfer, and security and controls against external crimes will be submitted to the Regional Director for review prior to the bank's opening;

6. That until the conditional commitment herein granted for deposit insurance becomes effective, FDIC shall have the right to alter, suspend, or withdraw the said commitment should any interim development be deemed to warrant such action.

7. That if deposit insurance has not become effective within twelve months from the date of the ORDER, or unless, in the meantime a request for an extension of time has been approved by the FDIC, the consent granted shall expire at the end of the said twelve-month period.

Dated at Washington, D.C., this 6th day of June, 2001.

_______________________________
John M. Lane
Associate Director
Division of Supervision

FEDERAL DEPOSIT INSURANCE CORPORATION


FEDERAL DEPOSIT INSURANCE CORPORATION

The Warwick Commercial Bank - In Organization
Warwick, New York
Application for Federal Deposit Insurance - Bank Insurance Fund

STATEMENT

Pursuant to the provisions of Section 5 of the Federal Deposit Insurance Act (12 U.S.C. 1815), an application for Federal deposit insurance with membership in the Bank Insurance Fund has been filed on behalf of The Warwick Commercial Bank, a proposed new state nonmember bank to be located at 18 Oakland Avenue, Warwick, New York.

The Warwick Commercial Bank will be a wholly-owned subsidiary of The Warwick Savings Bank, Warwick, New York. The purpose of its formation is to solicit deposits from state, county, and municipal governmental units. The Warwick Commercial Bank will offer a full range of deposit products to municipalities, similar to the deposit products offered to retail customers by its parent - The Warwick Savings Bank. The Warwick Commercial Bank will not make loans.

For the purposes of this proposal, the investment in fixed assets is reasonable, capital is adequate, future earnings prospects are favorable, and management is considered satisfactory. No formal objections to this application have been filed with the FDIC. Corporate powers to be exercised are consistent with the purpose of the Federal Deposit Insurance Act. No undue risk to the Bank Insurance Fund is apparent.

Accordingly, based upon a careful evaluation of all available facts and information, the Associate Director, pursuant to delegated authority, has concluded that approval of the application is warranted.

ASSOCIATE DIRECTOR
DIVISION OF SUPERVISION
FEDERAL DEPOSIT INSURANCE CORPORATION



Last Updated 03/24/2011 Legal@fdic.gov