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Slavie Savings boosts capital ratios

Slavie Federal Savings Bank, of Bel Air, reported Friday on steps it is taking to boost its capital position and lessen its risk exposure, pursuant to an agreement it signed in July with federal banking regulators.

To meet minimum capital requirements that take effect on Sept. 30, 2012, the bank has committed to reach and maintain its Tier 1 capital to total assets at 9 percent or above, and its total capital to risk-weighted assets at 14 percent or above. As of June 30, 2012, the bank had Tier 1 capital of 6.48 percent and total risk-based capital of 12.45 percent. (The Tier 1 capital ratio is a bank’s core equity capital compared to its total assets; the total risk-based capital ratio is the requirement that banks keep a minimum ratio of estimated total capital to estimated risk-weighted assets.)

Allowance for loan losses was increased to approximately 4.63 percent of total loans to cover anticipated losses in the portfolio as of June 30. The bank’s liquidity totaled approximately $40 million as of that date.

Bank officials said the decision to raise capital levels will have no effect on its ability to conduct its normal banking business, including business hours, Internet banking, products and services, ATM usage and federal deposit insurance coverage of $250,000 per depositor. Slavie has two branches, in Bel Air and Overlea.