On Friday, the OTS closed Bradford Bank, headquartered in Baltimore, Maryland, and named the FDIC as receiver. As receiver, the FDIC entered into a purchase and assumption agreement with Manufactures and Traders Trust Company (M&T), headquartered in Buffalo, New York, to assume all the deposits of Bradford bank.

As of June 30, 2009, Bradford Bank had total assets of $452 million and total deposits of approximately $383 million. In addition to assuming all of the deposits of the failed bank, M&T also agreed to purchase essentially all of Bradford Bank’s assets. The FDIC entered into a loss-share transaction with M&T on approximately $338 million of the failed bank’s assets.

The FDIC estimates that the cost to the Deposit Insurance Fund will be $97 million. This is the 82nd bank to fail in the nation this year and the 2nd bank in Maryland.