Bank of North Carolina assumes deposits of failed S.C. bank

Bank of North Carolina has assumed the deposits of a failed Charleston, S.C., bank, regulators announced today.

The Office of the Comptroller of the Currency closed Carolina Federal Savings Bank and appointed the Federal Deposit Insurance Corp. as receiver, according to an FDIC news release. The FDIC entered into a purchase and assumption agreement with Thomasville-based Bank of North Carolina, part of BNC Bancorp, which recently expanded into Charlotte.

The Charleston lender's two branches will reopen as Bank of North Carolina branches and will conduct business under the name BNC Bank. The FDIC estimated the cost to the Deposit Insurance Fund would be $15.2 million, saying the deal was the "least costly" resolution.

Carolina Federal Savings Bank had about $54.5 million in total assets as of March 31 and $53.1 million in total deposits. In addition to assuming the failed bank's deposits, Bank of North Carolina agreed to buy $41 million of its assets.

Carolina Federal Savings Bank is the 26th FDIC-insured institution to fail this year, and the second in South Carolina. Customers with questions about the deal should call the FDIC at 1-800-760-3639.