Federal regulators on Friday evening closed four banks in Oklahoma, Illinois, South Carolina and North Carolina, bringing the total number of bank failures in the United States so far this year to 28.
The largest bank to be closed on Friday was the Waccamaw Bank which had its headquarters in the city of Whiteville in North Carolina. The bank, which had a total of sixteen branches across North and South Carolina, was closed by the North Carolina Office of the Commissioner of Banks after its regular closing time.
After the closing, the Federal Deposit Insurance Corporation (FDIC) said it immediately entered into a purchase and assumption agreement with the First Community Bank in Bluefield, Virginia, to assume all of the deposits of the Waccamaw Bank. As of March, the Maccamaw Bank had approximately $533.1 million in total assets and $472.7 million in total deposits.
Most customers should see no or little service disruption despite the closure of the institution as the sixteen branches of Waccamaw Bank will reopen on Monday as branches of the First Community Bank, and all depositors of Waccamaw Bank will automatically become depositors of First Community Bank.
All of the services of the failed bank, including checks, ATM and debit cards, will remain active. "Checks drawn on the bank will continue to be processed," the FDIC said in a statement which also applies to the three other banks which were closed. "Loan customers should continue to make their payments as usual."
The other banks closed by federal regulators were the First Capital Bank based in Kingfisher, Oklahoma, with only one branch; the Carolina Federal Savings Bank based in Charleston, South Carolina, with two branches; and the Farmers and Traders State Bank based in Shabbona, Illinois, with also two branches. All the banks were assumed by another bank, ensuring continuing service for customers.
The FDIC estimated that the combined cost of all four bank failures to the Deposit Insurance Fund (DIF) will be around $80.8 million, but said it was the least costly resolution for the DIF compared to other alternatives. Friday's closures bring the total number of U.S. bank failures so far this year to 28. There were 91 bank failures in 2011 and 157 bank failures in 2010.