Suburban Federal Savings Bank in Crofton, MD received a warning that it must be sold by Friday or it would be seized by the government. On Friday, the bank had not sold and was summarily seized, becoming the fifth bank seizure of the year.
Federal banking regulators have told Crofton-based Suburban Federal Savings Bank that it must be sold by Friday or face a possible government takeover.
The 53-year-old thrift has been trying to recover from losses on soured real-estate loans. In documents filed last week, the Office of Thrift Supervision ordered Suburban to merge with another institution or accept “appointment of a conservator or receiver.”
The assuming institution is Bank of Essex, Tappahannock, VA. For more information visit the FDIC webpage.
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