Brooklyn is losing one of its oldest businesses, and its last financial institution, Arundel Federal Savings Bank.

The bank has been in the community for more than a century. It recently informed clients that it is set to close in February, citing a decline in demand for in-branch services and safety concerns for customers and employees.

In a letter to customers, the bank shared that “despite previous efforts to mitigate risks, management has determined that current protections are no longer adequate.”

Officials with Arundel Federal Savings Bank could not be reached for comment.

Andrea Mayer, a longtime resident of Brooklyn, has had an account with Arundel Federal Savings Bank since 1972.

“This bank was more than just a bank here,” Mayer said. “It was a central part of the community.”

The bank, which began as Arundel Perpetual Building and Loan Association in Brooklyn in 1906, was created to help finance homes for local residents, according to the bank’s website. As Arundel Federal Savings, it expanded to have branches in Annapolis, Glen Burnie, Pasadena and Severna Park.

The Brooklyn branch closure will cut off access to people who walk to the bank for their money needs, Mayer said. The next closest Arundel Federal Savings branch is more than five miles away in Glen Burnie.

Other in-person banking options, including a Chase branch in the Cherry Hill Town Center, are over a mile away.

Brooklyn lost its Bank of America branch in 2021 after it saw fewer customers pre-pandemic and experienced a continuous decline thereafter.

Nearly 24% of households in the Brooklyn, Curtis Bay and Hawkins Point areas do not have vehicles, according to Baltimore Neighborhood Indicators Alliance’s most recent data.

Mayer said she also worries about what another available vacant building in the community will mean.

“Unfortunately, when people buy property in this neighborhood they just do it because they are trying to make money off of it,” she said. “They’ll do any kind of business that will just put money in their pocket.”

The 3,500-square-foot former Bank of America building sat vacant on a commercial thoroughfare for over a year before the company donated it to the Greater Baybrook Alliance, a nonprofit community development corporation. The building, which is still being developed, will house the nonprofit’s headquarters and a pop-up retail space.

Meredith Chaiken, CEO of the alliance, said it’s disappointing that Arundel Federal Savings Bank is shutting its Brooklyn doors.

“Banking is a critical function in a community and this is going to be a challenge for us to overcome,” Chaiken added.

The Greater Baybrook Alliance is working on developing their own micro-lending program that will provide loans with flexible terms and lower interest rates up to $25,000, according to Chaiken.

All accounts located at the Brooklyn branch will automatically transfer to the Glen Burnie location on Crain Highway, according to the letter from the bank. Those with safety deposit boxes need to vacate by Jan. 16. If not cleared by then, boxes will be drilled and the items inside will be placed in a vault at the Glen Burnie location.

The Brooklyn bank branch and its ATM are set to close at 3 p.m. on Feb. 27, the notice to customers says.