A small bank based out of Charleston has been secured by federal regulators after its failure Friday.
The Federal Deposit Insurance Corporation (FDIC) announced that it had closed Carolina Federal Savings Bank Friday evening. The small Charleston bank became the 26th to fail nationwide this year and the second in South Carolina. The FDIC does not notify the public in advance before closing a bank.
Under an agreement with the FDIC, the Bank of North Carolina will take over Carolina Federal’s two branches in the Lowcountry.
BNC will also assume Carolina Federal’s $53.1 million in deposits and buy $41 million of its $54.4 million in assets. The FDIC estimates the total cost to its Deposit Insurance Fund will be $1.2 million. The branches will re-open as BNC Banks on Monday.
The FDIC says customers will still be able to write checks and access their money with ATM or debit cards. Loan customers are also expected to continue making payments.
It marks the second time the FDIC has taken over a bank along the coast this year, with Plantation Bank of Pawleys Island failing back in April.
