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State closes two Maryland banks

Two Maryland banking institutions, HarVest Bank of Maryland in Gaithersburg, and Bank of the Eastern Shore in Cambridge, were closed Friday by the Maryland Commissioner of Financial Regulation, it was announced late Friday by the Federal Deposit Insurance Corp., which was appointed receiver for both banks.

HarVest Bank’s deposits and assets were immediately acquired by McLean, Va.-based Sonabank, a subsidiary of Southern National Bancorp of Virginia Inc. HarVest Bank has four branches, in Bethesda, North Rockville, Germantown and Frederick.

Bank of the Eastern Shore’s deposits and assets have been transferred to a new, temporary entity, Deposit Insurance National Bank of Eastern Shore, which will remain open for approximately 30 days to allow depositors access to their money.

According to the announcement, both banks failed in efforts to raise their capital to a safe level, which necessitated their closure.