South Carolina loses another bank, fourth this year

Calcutta News.Net
Saturday 24th July, 2010

Williamsburg First National Bank, of Kingstree, South Carolina, was established in 1958.

The bank grew over the years and expanded to service Florence and Georgetown counties.

The bank's attention to customer service and management was recognized by Bauer Financial Reports, Inc.

For fifty-nine consecutive reporting periods, Williamsburg First National Bank earned a five-star superior rating. The award recognizes the highest level of banking performance.

Unfortunately for the bank the strength of its balance sheet was the ultimate adjudicator on its future.

The 58 year old bank was closed on Friday 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 First Citizens Bank and Trust Company, Inc., Columbia, South Carolina, to assume all of the deposits of Williamsburg First National Bank.

The five branches of Williamsburg First National Bank will reopen on Monday as branches of First Citizens Bank and Trust Company, Inc. Depositors of Williamsburg First will automatically become depositors of First Citizens Bank and Trust Company, Inc. Deposits will continue to be insured by the FDIC, so there is no need for customers to change their banking relationship in order to retain their deposit insurance coverage, an FDIC statement issued Friday said. Customers of Williamsburg First National Bank should continue to use their existing branch until they receive notice from First Citizens Bank and Trust Company, Inc. that it has completed systems changes to allow other First Citizens Bank and Trust Company, Inc. branches to process their accounts as well.

On the weekend, depositors of Williamsburg First National Bank can access their money by writing checks or using ATM or debit cards, the FDIC said. Checks drawn on the bank will continue to be processed. Loan customers should continue to make their payments as usual.

As of March 31, 2010, Williamsburg First National Bank had approximately $139.3 million in total assets and $134.3 million in total deposits. First Citizens Bank and Trust Company, Inc. will pay the FDIC a premium of 0.5 percent to assume all of the deposits of Williamsburg First National Bank. In addition to assuming all of the deposits of the failed bank, First Citizens Bank and Trust Company, Inc. agreed to purchase essentially all of the assets.

The FDIC and First Citizens Bank and Trust Company, Inc. entered into a loss-share transaction on $64.4 million of Williamsburg First National Bank's assets. First Citizens Bank and Trust Company, Inc. will share in the losses on the asset pools covered under the loss-share agreement. The loss-share transaction is projected to maximize returns on the assets covered by keeping them in the private sector.

Customers who have questions about Friday's transaction can call the FDIC toll-free at 1-800-523-8209. The phone number will be operational on Saturday from 9:00 a.m. to 6:00 p.m., EDT; on Sunday from noon to 6:00 p.m., EDT; and thereafter from 8:00 a.m. to 8:00 p.m., EDT.

Interested parties can also visit the FDIC's Web site at:
http://www.fdic.gov/bank/individual/failed/williamsburgsc.html.

The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) will be $8.8 million. Compared to other alternatives, First Citizens Bank and Trust Company, Inc.'s acquisition was the least costly resolution for the FDIC's DIF. Williamsburg First National Bank is the fourth bank to be shuttered in South Carolina this year. The last FDIC-insured institution closed in the state was Woodlands Bank, Bluffton, on July 16, 2010.

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