Two Institutions Closed April 8 & 9SC Bank and CT Credit Union Are Latest Failures One bank and one credit union were closed by state and federal regulators on April 8 and 9, raising to 48 the number of failed institutions so far in 2010.
Below is a roundup of the latest failures:
Beach First National Bank
Beach First National Bank, Myrtle Beach, South Carolina, was closed by the Office of the Comptroller of the Currency, which appointed the Federal Deposit Insurance Corporation (FDIC) as receiver. To protect the depositors, the FDIC entered into a purchase and assumption agreement with Bank of North Carolina, Thomasville, North Carolina, to assume all of the deposits of Beach First National Bank.
The seven branches of Beach First National Bank will reopen on Monday as branches of Bank of North Carolina. Depositors of Beach First National Bank will automatically become depositors of Bank of North Carolina.
As of December 31, 2009, Beach First National Bank had approximately $585.1 million in total assets and $516.0 million in total deposits. Bank of North Carolina did not pay the FDIC a premium for the deposits of Beach First National Bank. 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 FDIC estimates that the cost to the Deposit Insurance Fund (DIF) will be $130.3 million.
South End Mutual Benefit Association, Inc.
South End Mutual Benefit Association, Inc., a Bloomfield, CT credit union was closed by the Connecticut Department of Banking. The National Credit Union Administration (NCUA) was appointed as receiver/liquidator.
The Connecticut Department of Banking assumed control of South End Mutual Benefit Association, Inc. operations and appointed NCUA receiver after determining the credit union was experiencing problems with its earnings, delinquency, and management.
At the time of liquidation, the credit union had $2.4 million in assets and served 385 members. The credit union began operations in 1945 and served the residents of Hartford, County and nearby communities in Connecticut. This is the fifth federally insured credit union liquidated in 2010.