South Carolina state regulators closed Allendale County Bank, Fairfax, SC, and appointed the FDIC as receiver. In order to protect depositors the FDIC sold the failed bank to Palmetto State Bank, Hampton, South Carolina, which will assume all deposits of failed Allendale County Bank.
According to the FDIC, selling a failed bank to another bank is the least costly resolution since assets and deposits remain in the hands of private enterprise.
Allendale County Bank had been in business for almost eight decades since its founding in 1937. Despite the longevity of the Bank, by the time regulators closed the doors for good, Allendale County Bank had total assets of only $54.5 million.
All five branches of Allendale County Bank will reopen as branches of Palmetto State Bank and depositors of the failed bank will automatically become depositors of Palmetto State Bank with uninterrupted deposit insurance coverage up to the applicable limits. Over the weekend depositors of Allendale County Bank can access their money through the use of checks, ATMs and debit cards.
As of December 31, 2013, Allendale County Bank had total deposits of $51.0 million and total assets of $54.5 million. In addition to assuming all deposits, Palmetto State Bank agreed to purchase essentially all of the assets of failed Allendale County Bank.
Palmetto State Bank was founded in 1907 and currently has seven branches and almost half a billion dollars of assets. This is the first acquisition of a failed bank by Palmetto State Bank.
The cost to the FDIC Deposit Insurance Fund for the failure of Allendale County Bank is $17.1 million. Allendale County Bank is the sixth banking failure of the year and the first in South Carolina since the failure of Carolina Federal Savings Bank, Charleston, which was closed on June 8, 2012.