Bay Bank assumes deposits, most loans of failed Bel Air thrift
By By Christopher Dinsmore and The Baltimore Sun
May 30, 2014 at 8:40 PM
Bay Bank has agreed to assume the deposits and most of the assets of Slavie Federal Savings Bank after federal regulators closed the institution with offices in Bel Air and Baltimore.
The federal Office of the Comptroller of the Currency closed Bel Air-based Slavie on Friday night.
Lutherville-based Bay Bank agreed to assume Slavie's deposits — about $115 million — and buy $94 million of the thrift's loans from the Federal Deposit Insurance Corp., which manages the assets of failed banks. The FDIC will retain about $10 million of Slavie's assets, including its foreclosed real estate.
The FDIC said the failure is expected to cost the federal insurance fund $6.6 million.
Customers of Slavie, which is more than 100 years old, will have uninterrupted access to their deposits by writing checks or using ATMs, debit cards or the Internet. Both Slavie branches will reopen as Bay Bank offices at 9 a.m. Saturday.
"We are pleased to welcome Slavie Federal Savings Bank customers to the Bay Bank family and want to assure all customers of Slavie that their deposits are safe and accessible," said Kevin Cashen, Bay Bank's president and CEO.
Before acquiring Slavie, Bay Bank had nine locations in Baltimore City and Baltimore County as well as in Anne Arundel and Harford counties. After the Slavie takeover, Bay Bancorp, the bank's parent, will have assets in excess of $500 million.
"This acquisition is part of our continuing strategy to build a solid, local community bank in the Baltimore/Washington region," said Joseph J. Thomas, Bay Bancorp's executive chairman.
Slavie is the first FDIC-insured institution to fail in the state since April 2012, when the Bank of the Eastern Shore in Cambridge was seized. It's the ninth bank failure nationwide this year.