Palmetto State Bank, through a purchase and assumption agreement with the Federal Deposit Insurance Corporation (FDIC), will assume all of Allendale County Bank’s deposits.
Federal regulators closed Allendale County Bank, based in Fairfax, S.C., last month. Its five branches will reopen as branches of Palmetto State Bank, and depositors of Allendale County Bank will automatically become depositors of Palmetto State Bank.
As of Dec. 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.
According to a news release, the FDIC estimates that the cost to the Deposit Insurance Fund (DIF) will be $17.1 million. 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.
