Palmetto State Bank, Hampton, South Carolina, Assumes All of the Deposits of Allendale County Bank, Fairfax, South Carolina
April 25, 2014
Greg Hernandez (202) 898-6993
Allendale County Bank, Fairfax, South Carolina, was closed today by the South Carolina State Board of Financial Institutions, which appointed the Federal Deposit Insurance Corporation (FDIC) as receiver. To protect the depositors, the FDIC entered into a purchase and assumption agreement with Palmetto State Bank, Hampton, South Carolina, to assume all of the deposits of Allendale County Bank.
The five branches of Allendale County Bank will reopen as branches of Palmetto State Bank during their normal business hours. Depositors of Allendale County Bank will automatically become depositors of Palmetto State Bank. 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 up to applicable limits. Customers of Allendale County Bank should continue to use their existing branch until they receive notice from Palmetto State Bank that it has completed systems changes to allow other Palmetto State Bank branches to process their accounts as well.
This evening and over the weekend, depositors of Allendale County Bank can access their money by writing checks or using ATM or debit cards. Checks drawn on the bank will continue to be processed. Loan customers should continue to make their payments as usual.
As of December 31, 2013, Allendale County Bank had approximately $54.5 million in total assets and $51.0 million in total deposits. In addition to assuming all of the deposits of the failed bank, Palmetto State Bank agreed to purchase essentially all of the assets.
Customers with questions about today's transaction should call the FDIC toll-free at 1-800-894-1696. The phone number will be operational this evening until 9:00 p.m., Eastern Daylight Time (EDT); on Saturday from 9:00 a.m. to 6:00 p.m., EDT; on Sunday from noon to 6:00 p.m., EDT; on Monday from 8 a.m. to 8 p.m., EDT; and thereafter from 9:00 a.m. to 5:00 p.m., EDT. Interested parties also can visit the FDIC's Web site at http://www.fdic.gov/bank/individual/failed/allendale.html.
The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) will be $17.1 million. Compared to other alternatives, Palmetto State Bank's acquisition was the least costly resolution for the FDIC's DIF. Allendale County Bank is the sixth FDIC-insured institution to fail in the nation this year, and the first in South Carolina. The last FDIC-insured institution closed in the state was Carolina Federal Savings Bank, Charleston, on June 8, 2012.
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Congress created the Federal Deposit Insurance Corporation in 1933 to restore public confidence in the nation's banking system. The FDIC insures deposits at the nation's banks and savings associations, 6,812 as of December 31, 2013. It promotes the safety and soundness of these institutions by identifying, monitoring and addressing risks to which they are exposed. The FDIC receives no federal tax dollars — insured financial institutions fund its operations.
FDIC press releases and other information are available on the Internet at www.fdic.gov, by subscription electronically (go to www.fdic.gov/about/subscriptions/index.html) and may also be obtained through the FDIC's Public Information Center (877-275-3342 or 703-562-2200). PR-31-2014