Federal Regulators Seize Md.'s Suburban Federal Bank [FDIC Friday]
Federal regulators this evening seized Suburban Federal Savings Bank in Crofton, Md., in the first bank failure in the Washington area since 1993.
Suburban Federal, a small bank with seven branches, was immediately sold to Virginia-based Bank of Essex.
All deposits were protected. The failure was not a surprise. Suburban Federal was freighted by mounting losses on a portfolio of mortgage loans.
The company had been told to find a buyer or face seizure. An insurance company briefly flirted with the idea, then backed away. Last week, regulators had issued the bank a final warning. The problems in the banking...