As of July 23, 2010, the Williamsburg First National Bank (FNB) in Kingstree, South Carolina, is one of the latest U.S. failed banks. The Williamsburg FNB was closed by the Office of the Comptroller of the Currency (OCC), and the Federal Deposit Insurance Corporation (FDIC) was named Receiver. Advance notice is not given to the public when a financial institution is closed.
The FDIC updates failed bank information on its website each Friday. Williamsburg First National Bank is the 99th FDIC-insured institution to fail in the nation this year, and the fourth in South Carolina.
All deposit accounts of Williamsburg First National Bank, excluding certain brokered deposits, have been transferred to First Citizens Bank and Trust Company, Inc., a Columbia, SC financial institution, and will be available immediately to customers. Depositors of Williamsburg First National Bank will automatically become depositors of First Citizens Bank and Trust Company, Inc. The five former Williamsburg FNB locations reopened as branches of First Citizens Bank on Monday, July 26, 2010, during regular business hours.
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. Customers of Williamsburg First National Bank should continue to use their existing branch until they receive notice from First Citizens Bank and Trust Company that it has completed systems changes to allow other First Citizens branches to process their accounts as well.
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 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 mostly 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. Under loss sharing, the FDIC agrees to absorb a portion of the loss on a specified pool of assets in order to maximize asset recoveries and minimize FDIC losses.
The FDIC estimates that the cost of this transaction to the Deposit Insurance Fund (DIF) will be $8.8 million. Customers who have questions about this transaction can call the FDIC toll-free at 1-800-523-8209 during designated hours. For more information on this transaction, visit the FDIC’s website at www.fdic.gov/bank/individual/failed/williamsburgsc.html. The complete FDIC failed bank list can be viewed at http://www.fdic.gov/bank/individual/failed/banklist.html.