K Bank parent files for bankruptcy

K Bank was closed by regulators, deposits sold to M&T

November 12, 2010|By Hanah Cho, The Baltimore Sun

The parent of K Bank, which became the latest Maryland bank to fail amid the real estate crisis, has filed for Chapter 7 bankruptcy.

The petition by K Capital Corp. was filed Monday in federal bankruptcy court in Baltimore.

The bank's board of directors voted to turn over the Owings Mills-based institution to state regulators, after it was unable to turn around its finances or find a buyer. The bank's $500 million in deposits and about $411 million in assets were sold to M&T Bank. K Bank branches were expected to be closed permanently after business Friday. On Saturday, K Bank customers should start using M&T branches, which number 123 in the Baltimore area.

K Bank became the fourth bank to fail in Maryland this year.

K Capital reported $1 million to $10 million in assets and $10 million to $50 million in liabilities in the bankruptcy filing.

Hanah.cho@baltsun.com

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