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Christopher Menkin
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Christopher "Kit" Menkin is of editor LeasingNews.org (http://www.leasingnews.org/), an internet trade publication for the finance/leasing industry. He has 41 years experience in the finance/leasing industry as well as being a founder of a commercial regional bank and serving on... More
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  • 1-4 Family Home Loans Take 154 Year Old Bank Down 0 comments
    Jun 2, 2014 11:46 AM

    The two offices of Slavie Federal Savings Bank, Bel Air, Maryland, were closed with Bay Bank, FSB, Lutherville, Maryland, to assume all of the deposits. Founded April 4, 1900, the bank had 29 full time employees as of March 31, 2014, at their original office in Bel Air and the office established June 30, 2002 in Baltimore.

    This brings Bay Bank to 11 offices in Baltimore City and Baltimore County as well as in Anne Arundel and Harford counties, bring the bank's parent Bay Bancorp to assets in excess of $500 million.

    Philip E. Logan has been the President, Chief Executive Officer and Chairman of the Board at Slavie Federal Savings Bank since January 2001, according to Bloomberg BusinessWeek. The bank was informed several times to bring its capital up to par, but was unable to do so. Bel Air, Maryland is a town of 10,274, so most of the loans appear to be in Baltimore real estate, which was the downfall of the bank as evidenced by the non-current loans (no loan and interest payments, yet paying interest on deposits) and residential real estate charge offs.

    (in millions, unless otherwise)

    Non-Current Loans

    2006$1.20
    2007$479,000
    2008$1.2
    2009$1.9
    2010$5.7
    2011$7.7
    2012$9.7
    2013$12.7
    3/31$10.7

    Charge Offs

    2006 0
    2007 $122,000 ($119,000 commercial/industrial, $3,000 individuals)
    2008 $102,000 ($100,000 commercial/industrial, $2,000 individuals)
    2009 $150,000 ($154,000 1-4 family residential, -$4,000 nonfarm/nonres.)
    2010 $14,000 ($14,000 1-4 family residential, $1,000 nonfarm/nonres., -$1,000 comm./ind.)
    2011 $400,000 ($400, 1-4 family, $1,000 individuals, -$1,000 commercial/industrial)
    2012 $6.3 ($4.9 1-4 family, $740,000 nonfarm/nonres., $571,000 constr./land, $90,000 individuals, $5,000 commercial/industrial)
    2013 $1.9 ($1.4 1-4 family, $373,000 nonfarm/nonres., $109, constr./land, -$10,000 Individuals)
    3/31 $128,000 ($285,000 1-4 family, -$421,000 nonfarm/nonres., -$3,000 individuals)

    Construction and Land, 1-4 family multiple residential,
    Multiple Family Residential, Non-Farm Non-Residential loans.

    Profit 
    2006-$13,000
    2007$62,000
    2008-$2.2
    2009$89,000
    2010$538,000
    2011-$3.0
    2012-$9.1
    2013-$3.6
    3/31-$458,000
      
    Net Equity 
    2006$16.6
    2007$16.8
    2008$14.9
    2009$16.2
    2010$16.8
    2011$13.6
    2012$6.3
    2013$3.1
    3/31$2.9

    Tier 1 risk-based capital ratio 3.83%

    As of March 31, 2014, Slavie Federal Savings Bank had approximately $140.1 million in total assets and $111.1 million in total deposits. Bay Bank, FSB will pay the FDIC a premium of 0.20 percent to assume all of the deposits of Slavie Federal Savings Bank. In addition to assuming all of the deposits of the failed bank, Bay Bank, FSB agreed to purchase approximately $129.9 million of the failed bank's assets. The FDIC will retain the remaining assets for later disposition.

    The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) will be $6.6 million.

    http://www.fdic.gov/news/news/press/2014/pr14041.html

    Unofficial Problem Bank List:
    http://cr4re.com/PBL05172014.html
    List of Bank Failures:
    http://www.fdic.gov/bank/individual/failed/banklist.html

    Leasing News Bank Beat:

    http://www.leasingnews.org/Conscious-Top%20Stories/Bank_Beat.htm

    Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

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