South Carolina Bank Fails; Marks 2014’s Sixth Collapse

The South Carolina Board of Financial Institutions closed the five branches of Allendale Country Bank, Fairfax, South Carolina on Friday. The FDIC was appointed as the receiver and to protect the depositors, an assumption agreement was made was made with Palmetto State Bank, Hampton, South Carolina.

As of the end of the year, Allendale had $54.5 million in total assets and $51 million in deposits. Palmetto not only assumed the deposits of the failed bank, but purchased all of the assets.

The FDIC has predicted that the cost to the Deposit Insurance Fund (DIF) for this will be $17.1 million.

Allendale’s closure marks the sixth FDIC-insured bank to fail this year and the first in South Carolina. The last bank to close in the state was Carolina Federal Savings Bank in 2012.