Regulators close failed Allendale County Bank's 5 branches

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Friday, April 25, 2014

COLUMBIA, S.C. (AP) -- Regulators have closed a failing South Carolina bank to protect depositors.

The South Carolina State Board of Financial Institutions on Friday shut down Fairfax-based Allendale County Bank and appointed the Federal Deposit Insurance Corporation as receiver. The FDIC struck a deal with Palmetto State Bank of Hampton to assume all of the deposits.

The five Allendale County Bank branches will reopen Monday as branches of Palmetto State Bank. Over the weekend, depositors of Allendale County Bank can access their money by writing checks or using ATM or debit cards.

The failed bank was victimized by a teller who was sentenced in 2012 to five years in prison for stealing hundreds of thousands of dollars, then trying to burn it down when her bosses discovered the missing money.

Regulators have closed a small lender in South Carolina, marking the sixth U.S. bank failure of 2014 after 24 closures last year.

The Federal Deposit Insurance Corp. said Friday that it has taken Allendale County Bank, based in Fairfax, S.C.

The lender, which operated five branches, had about $54.5 million in assets and $51 million in deposits as of Dec. 31.

Palmetto State Bank, based in Hampton, S.C., agreed to assume Allendale's deposits and to buy essentially all of the failed lender's assets.

Allendale County Bank's failure is expected to cost the deposit insurance fund $17.1 million.

(Copyright 2014. The Associated Press.)

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