First Bank of Delaware, which had been repeatedly cited for violations in its consumer lending business, will cease operations after regulators determined that the bank was lax in monitoring relationships in two business lines.

The $257 million-asset bank announced the first step in its wind down last week when it agreed to sell one branch in Wilmington, Del., and certain loans and deposits to $1.8 billion-asset Bryn Mawr Bank (BMTC). The cash deal with Bryn Mawr, as well as First Bank's proposal to liquidate and dissolve itself, both require approval from the Federal Deposit Insurance Corp.

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