Bank Of St. Croix Being Sold To United Fidelity Bank

ST. CROIX — The Bank of St. Croix (B.S.C.), which has two locations on this island — in Peter’s Rest and Gallows Bay — is being sold to United Fidelity Bank (U.F.B.), which will acquire “substantially all of the assets and assume certain deposit and other liabilities of B.S.C.,” Lieutenant Governor Osbert Potter, who serves as the commissioner of banking and insurance, and is the chairman of the Virgin Islands Banking Board, announced Monday.

U.F.B. is a federal savings association regulated by the Office of the Comptroller of the Currency (O.C.C.) — an independent bureau within the United States Department of the Treasury that was established by the National Currency Act of 1863. The bank is headquartered in Evansville, Indiana, and is also a member of the Federal Deposit Insurance Corporation (F.D.I.C.), with its transaction accounts being F.D.I.C. insured as well.

United Fidelity, which is authorized by the O.C.C. to operate banks in Evansville, Indiana, Indianapolis, Indiana; Chicago, Illinois; Cincinnati, Ohio and Denver-Boulder, Colorado, has applied to O.C.C.  to purchase the assets and assume the liabilities of the Bank of St. Croix, and is awaiting approval for the transaction no later than July 31, 2016, according to Mr. Potter.

“The Office of the Lieutenant Governor, Division of Banking and Insurance asked specific questions about the proposed acquisition and were informed that, 1) There will not be any employee lay-offs. Christiana Williams, the management team and the other employees of BSC will be retained. Terms of employment will be the same or better. UFB’s application for acquisition is subject to the OCC’s review and approval. 2) The bank will continue to use the name “Bank of St. Croix.” U.F.B. will provide more capital and financial resources for B.S.C. and will continue to operate both B.S.C. branches on St. Croix, which includes the Gallows Bay main branch and the Peter’s Rest branch. 3) U.F.B.’s website shows that it has many products and services. U.F.B. therefore, will enable B.S.C. to offer more products, including credit cards. U.F.B. will enable B.S.C. to offer 30-year fixed rate mortgages, increasing its lending limits. 4) U.F.B. will provide more support services for B.S.C. at a cost-savings. Where B.S.C. for example was paying an off-Island consultant to address federal compliance issues, U.F.B.’s personnel will handle these issues in the future,” Mr. Potter said.

He added: “We want the public to know that Bank of St. Croix is in good standing. We are pleased with the proposed acquisition, particularly that there will be no lay-offs of current Bank of St. Croix employees; and further, that United Fidelity, through the name Bank of St. Croix, will offer more banking products and services to Virgin Islands consumers.”

Feature Image: Bank of St. Croix, Gallows Bay location (Credit: VIC).