The FDIC announced the closure of another bank, noting that Slavie Federal Savings Bank of Bel Air, Maryland has been closed. The FDIC entered into a purchase and assumption agreement with Bay Bank, FSB of Lutherville, Maryland to assume all the deposits of the recently shuttered Slavie Federal Savings Bank.
The two branches of Slavie Federal Savings Bank will reopen as branches of Bay Bank during normal business hours, with depositors automatically becoming depositors at the new bank. The FDIC urges former Slavie Federal Savings Bank customers to use their existing branch until they receive notice from Bay Bank that it has completed system changes to allow the new bank to process their accounts.
“As of March 31, 2014, Slavie Federal Savings Bank had approximately $140.1 million in total assets and $111.1 million in total deposits. Bay Bank, FSB will pay the FDIC a premium of 0.20 percent to assume all of the deposits of Slavie Federal Savings Bank,” FDIC said.
In addition to assuming all of the deposits of the failed bank, Bay Bank agreed to purchase approximately $129.9 million of the failed bank’s assets. The FDIC will retain the remaining assets for later disposition.
The FDIC estimated that costs to the Deposit Insurance Fund (DIF) will be $6.6 million. Bay Bank’s acquisition was the least costly solution for the FDIC’s DIF.
Slavie Federal Savings Bank is the ninth FDIC-insured institution to fail this year, and the first in Maryland. The last FDIC-insured institution closed in the state was Bank of the Eastern Shore in Cambridge, Maryland on April 27, 2012.