Hull Federal Savings Bank placed under federal supervision

September 01, 2010|By Hanah Cho, The Baltimore Sun

Hull Federal Savings Bank, established in 1911 to cater to German and Polish immigrants settling in Locust Point, has been placed under federal supervision as it addresses what regulators call the thrift's "unsafe or unsound practices."

The move comes amid continuing fallout of the mortgage crisis and recession, which have contributed to 118 bank failures, three of them in Maryland.

Under an agreement effective Monday, the Office of Thrift Supervision ordered Hull Federal to submit a plan to maintain adequate capital levels, revise its appraisal policy, develop a loan modification policy and revise its procedures related to establishing an adequate allowance for its loan and lease losses.

Hull Federal also must come up with a plan to reduce its level of problem assets. The bank reported $2.3 million in troubled loans during the quarter that ended June 30, according to its most recent regulatory filing.

Hull Federal has $26.7 million in assets. The one-branch thrift reported a loss of $299,000 in the quarter.

Michael C. Baumann, Hull Federal's chairman, could not be reached for comment.

In July, federal regulators closed Bay National Bank in Lutherville and Ideal Federal Savings Bank in Baltimore. Bay National re-emerged as Bay Bank, while the FDIC made arrangements to pay out insured deposits of Ideal Federal, which couldn't find a buyer. A third bank, Waterfield Bank of Germantown, closed in March.

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