On Friday, OTS closed Waterfield Bank, headquartered in Germantown, Maryland and appointed the FDIC as receiver. As receiver, the FDIC created Waterfield Bank, FA, a new depository institution chartered by the OTS and insured by the FDIC, to take over the operations of Waterfield Bank. The new institution will remain open until April 5, 2010, “to allow depositors access to their insured funds and time to move accounts to other insured institutions.”
As of December 31, 2009, Waterfield Bank had $155.6 million in assets and $156.4 million in deposits.
The FDIC estimates that the cost to the Deposit Insurance Fund will be $51 million. Waterfield Bank is the 25th [link to 24th] bank to fail in the nation this year and the first in Maryland.