Bank of North Carolina Assumes All Deposits and Purchases Certain Assets of Carolina Federal Savings Bank
Bank of North Carolina, a wholly-owned subsidiary of BNC Bancorp (Nasdaq: BNCN), announced today that it has entered into a Purchase and Assumption Agreement with the Federal Deposit Insurance Corporation ("FDIC") to purchase certain assets and to assume all of the deposits and substantially all other liabilities of Carolina Federal Savings Bank ("Carolina Federal").
On Friday, June 8, Carolina Federal was closed by the Office of the Comptroller of the Currency and the FDIC was named as Receiver. All Carolina Federal locations opened today as branches of Bank of North Carolina, doing business in South Carolina as BNC Bank. All former Carolina Federal depositors will be able to conduct banking business as usual. Carolina Federal customers can continue to access their money by writing checks, using ATMs, debit cards, or the Internet. Checks drawn on Carolina Federal will continue to be accepted. Loan customers should continue to make their payments as usual.
A full integration effort is expected to be completed in the third quarter of 2012.
Under the Purchase and Assumption Agreement, Bank of North Carolina purchased approximately $31 million in performing loans and assumed approximately $52 million in local deposits from the FDIC as Receiver of Carolina Federal. BNC's bid excluded approximately $14 million in troubled assets and other real estate that will be retained by the FDIC. There is no loss-share arrangement with the FDIC with respect to this transaction. BNC did not pay a premium to the FDIC to assume the deposits of Carolina Federal. No additional capital was required to fund the transaction and both BNC Bancorp and Bank of North Carolina will remain "well capitalized" on a pro forma basis after the transaction.
(c) 2013 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.