Bay Bank, FSB, Lutherville, Maryland, Assumes All of the Deposits of Slavie Federal Savings Bank, Bel Air, Maryland
May 30, 2014
Greg Hernandez (202) 898-6993
Slavie Federal Savings Bank, Bel Air, Maryland, was closed today by the Office of the Comptroller of the Currency, which appointed the Federal Deposit Insurance Corporation (FDIC) as receiver. To protect the depositors, the FDIC entered into a purchase and assumption agreement with Bay Bank, FSB, Lutherville, Maryland, to assume all of the deposits of Slavie Federal Savings Bank.
The two branches of Slavie Federal Savings Bank will reopen as branches of Bay Bank, FSB during their normal business hours. Depositors of Slavie Federal Savings Bank will automatically become depositors of Bay Bank, FSB. Deposits will continue to be insured by the FDIC, so there is no need for customers to change their banking relationship in order to retain their deposit insurance coverage up to applicable limits. Customers of Slavie Federal Savings Bank should continue to use their existing branch until they receive notice from Bay Bank, FSB that it has completed systems changes to allow other Bay Bank, FSB branches to process their accounts as well.
This evening and over the weekend, depositors of Slavie Federal Savings Bank can access their money by writing checks or using ATM or debit cards. Checks drawn on the bank will continue to be processed. Loan customers should continue to make their payments as usual.
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. In addition to assuming all of the deposits of the failed bank, Bay Bank, FSB agreed to purchase approximately $129.9 million of the failed bank's assets. The FDIC will retain the remaining assets for later disposition.
Customers with questions about today's transaction should call the FDIC toll-free at 1-800-613-0378. The phone number will be operational this evening until 9:00 p.m., Eastern Daylight Time (EDT); on Saturday from 9:00 a.m. to 6:00 p.m., EDT; on Sunday from noon to 6:00 p.m., EDT; on Monday from 8 a.m. to 8 p.m., EDT; and thereafter from 9:00 a.m. to 5:00 p.m., EDT. Interested parties also can visit the FDIC's Web site at http://www.fdic.gov/bank/individual/failed/slaviefederal.html.
The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) will be $6.6 million. Compared to other alternatives, Bay Bank, FSB's acquisition was the least costly resolution for the FDIC's DIF. Slavie Federal Savings Bank is the ninth FDIC-insured institution to fail in the nation this year, and the first in Maryland. The last FDIC-insured institution closed in the state was Bank of the Eastern Shore, Cambridge, on April 27, 2012.
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Congress created the Federal Deposit Insurance Corporation in 1933 to restore public confidence in the nation's banking system. The FDIC insures deposits at the nation's banks and savings associations, 6,730 as of March 31, 2014. It promotes the safety and soundness of these institutions by identifying, monitoring and addressing risks to which they are exposed. The FDIC receives no federal tax dollars — insured financial institutions fund its operations.
FDIC press releases and other information are available on the Internet at www.fdic.gov, by subscription electronically (go to www.fdic.gov/about/subscriptions/index.html) and may also be obtained through the FDIC's Public Information Center (877-275-3342 or 703-562-2200). PR-41-2014