Federal regulators take over small bank in Maryland; makes 9th US bank failure this year

WASHINGTON – Regulators have closed a small lender in Maryland, marking the ninth U.S. bank failure of 2014 after 24 closures last year.

The Federal Deposit Insurance Corp. said Friday that it has taken over Slavie Federal Savings Bank, in Bel Air, Maryland.

The lender, which operated two branches, had roughly $140.1 million in assets and $111.1 million in deposits as of March 31.

Bay Bank FSB, based in Lutherville, Maryland, has agreed to pay the FDIC a premium of 0.20 per cent to assume Slavie Federal’s deposits. It also agreed to buy about $129.9 million of the failed bank’s assets.

Slavie Federal’s failure is expected to cost the deposit insurance fund $6.6 million.