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Bay Bank takes over Slavie branches

The Office of the Comptroller of the Currency closed Bel Air-based Slavie Federal Savings Bank over the weekend, appointing the Federal Deposit Insurance Corp. as the receiver.

The FDIC appointed Lutherville-based Bay Bank to assume all deposits. Slavie’s two branches reopened Saturday as branches of Bay Bank.

“As a local bank with branch offices in the communities served by Slavie, we are confident that the Slavie customers will have the best financial products and services at their disposal,” Kevin Cashen, CEO of Bay Bank, said in a statement. “As a bank focused on financial strength, relationships and service, we look forward to getting to know our new customers from Slavie.”

Bay Bank also announced earlier in May that it had completed a $7 million financing round. Executive Chairman Joseph J. Thomas said this capital would help to fund the acquisition of Slavie.

Slavie is the ninth U.S. bank to fail this year and the first in Maryland since 2012. It was established in 1900.

As of March 31, Slavie had $140 million in assets and $111 million in deposits. It suffered a net loss in the first quarter of the year of $458,000. In 2012, the bank signed an agreement with federal regulators to boost its capital ratio.

Bay Bank was established in 2010 and had a net income of $114,000 in the first quarter. It has about $430 million in assets and $372 million in deposits. It has 14 branches in Maryland.