Gaithersburg-based HarVest Bank of Maryland was closed by federal regulators Friday evening and its deposits and some of its assets were sold to McLean-based Sonabank.
HarVest’s four branches along the Interstate 270 corridor will be converted to Sonabank locations, giving Sona 19 total branches.
“We are delighted to welcome HarVest customers to Sonabank,” said Sonabank CEO Georgia Derrico in a statement. “Customers can be confident that their deposits are safe, secure and readily accessible. Clients will recognize familiar branch personnel from HarVest who will take care of their banking needs.”
Sonabank will initially be acquiring the assets and liabilities of HarVest at a $27.3 million discount and no premium on deposits. Sonabank receive $145 million in deposits, $95 million in loans and $6.2 million in other real estate owned from HarVest. There will be no loss share agreement between the FDIC and Sonabank, which also will purchase HarVest’s cash and marketable securities.
HarVest is just the third local bank failure since the 2008 financial crisis, the others being Greater Atlantic Bank â€” which Sonabank also acquired through FDIC receivership â€” and Waterfield Bank.
HarVest has been trying desperately to raise capital for more than two years to stave off regulatory seizure, but was unable to close the deal after a group of investors pulled out last month.