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This photo shows Harvest Community Bank in Pennsville on Saturday, Jan. 14, 2017, the day after the FDIC closed it. (Bill Gallo Jr. | For NJ.com)

PENNSVILLE TWP. -- Harvest Community Bank has become the first bank in the U.S. to fail in 2017, according to federal banking officials.

The New Jersey Department of Banking and Insurance closed the bank on Friday night and named the Federal Deposit Insurance Corporation (FDIC) as receiver.

Bad loans are to blame, federal officials say.

Banking operations will now be handed by Raleigh, N.C.-based First-Citizens Bank and Trust Company.

For customers of Harvest, federal officials says the bank's four branches remain open for business under First-Citizens.

"It's banking as usual," FDIC spokesman Eric Raines said Saturday morning. "There will be no changes in banking operations"

Harvest Community Bank operated four branches in Salem County and first opened in Pennsville in 2000 touting itself as as first locally owned, independent commercial bank in the county for more than 30 years.

From its base on North Broadway in Pennsville, the bank eventually added three more branches -- in Pilesgrove, Elmer and Salem.

The branches were open Saturday morning. At at least one of the branches, the press release from the FDIC announcing the failure was posted on the branch's door.

Raines said Harvest became insolvent due to bad loans.

The FDIC began directly observing Harvest Community Bank in March 2015 and started requiring the bank to send reports in July 2015. Starting in October 2016, the bank had 90 days to resolve its issues.

During that 90-day period that Harvest had been ordered to put things in order, First-Citizens was chosen to take over its operations if Harvest was not successful.

According to Raines, business will continue for bank customers. The only difference is that the bank is being managed by First-Citizens Bank. The FDIC guarantees deposits at banks up to $250,000.

Harvest Community Bank had $126.4 million in assets and $123.8 million in deposits as of Sept. 30, according to the FDIC, which are now assumed by the Raleigh bank.

Attempts to reach Harvest board of directors members Saturday morning for comment were unsuccessful.

Harvest Community Bank is the first bank to close in the nation for 2017 and the first bank to close in New Jersey since the FDIC shut down Fort Lee Federal Savings Bank on April 20, 2012.

Customers with questions about the transition are asked to call the FDIC's toll-free number at 1-800-913-3067 or visit www.fdic.gov/bank/individual/failed/harvestcomm.html.

Don E. Woods may be reached at dwoods@njadvancemedia.com. Follow him on Twitter @donewoods1. Find NJ.com on Facebook.