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Maryland Sees 9th Bank Collapse of 2014

bank-splittingFollowing a prior collapse in Ohio, FDIC announced over the weekend the closure of another bank: Slavie Federal Savings Bank of Bel Air, Maryland, has been closed. The agency 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.

"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 FDIC a premium of 0.20 percent to assume all of the deposits of Slavie Federal Savings Bank," FDIC said in a statement.

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. FDIC will retain the remaining assets for later disposition.

FDIC estimated that costs to the Deposit Insurance Fund will be $6.6 million. Bay Bank’s acquisition was the least costly solution for the fund.

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, in April 2012.

About Author: Colin Robins

Colin Robins is the online editor for DSNews.com. He holds a Bachelor of Arts from Texas A&M University and a Master of Arts from the University of Texas, Dallas. Additionally, he contributes to the MReport, DS News' sister site.
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