The Federal Deposit Insurance Corporation (FDIC) said the five branches of Allendale County Bank of Fairfax will reopen Monday morning as Palmetto State Bank, which is headquartered in nearby Hampton and has agreed to buy almost all of the collapsed lender’s assets and assume all of the deposits.
The S.C. State Board of Financial Institutions seized the troubled lender after business hours on Friday evening and appointed the FDIC as the receiver. Regulators rarely notify the public in advance of a bank’s closing.
The agency says the bank’s depositors will still be able to access their money by writing checks or using their existing ATM or debit cards. Checks drawn on the bank will still be processed, and borrowers should keep making their loan payments.
As of Dec. 31, Allendale County Bank had about $54.5 million in assets and $51 million in deposits, according to the FDIC. The federal agency estimates that its insurance fund will take a $17.1 million hit from the failure. Officials said the least costly alternative was selling the bank branches to Palmetto State Bank.
While small bank closings were a relatively common occurrence in South Carolina during the past recession, this is the first time regulators have shut down a bank since the small Carolina Federal Savings Bank in Charleston failed in June 2012.