Federal officials shut down Blue Ridge Savings Bank Friday evening after closing hours. The Asheville-based bank has one location in South Carolina– with a branch in the town of Greer. The Federal Deposit Insurance Corporation (FDIC), which insures American bank accounts against failure, made a deal with the Bank of North Carolina to purchase and assume all of Blue Ridge Savings’ assets.
On Monday, the Greer location will reopen as BNC Bank. Former Blue Ridge customers will be able to continue using their debit cards, ATMs, and checks. Anyone making loan payments to the bank still has to continue those, as well.
FDIC officials said customers of Blue Ridge Savings Bank, Inc. should continue to use their existing branch until they receive notice from Bank of North Carolina that it has completed systems changes to allow other Bank of North Carolina branches to process their accounts as well.
In its Friday announcement, the FDIC said Blue Ridge Savings Bank had approximately $161.0 million in total assets and $158.7 million in total deposits. In addition to assuming all of the deposits of the failed bank, Bank of North Carolina agreed to purchase essentially all of the assets. The deal cost the FDIC about $38 million.
With the additional failure of a small Georgia bank Friday, that brings to 80 the total number of American banks that have failed this year, including three in South Carolina. Most have been small banks with only a few branches.