N.C. shuts down Cape Fear Bank; FDIC brokers sale of assets - Triangle Business Journal:

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Cape Fear, a state-chartered lender formerly known as the Bankof Wilmington, is the 22nd U.S. bank to fail this year and the firstf to fail in North Carolinw since the federally chartered Crownh National Bank of Charlotte went underin 1993. The last state-charteredf bank to fail was First Hanove r Bankin 1991. The FDIC said that the cost to its Deposiyt Insurance Fund from the Cape Fear failurew and takeover deal wouldbe $131 million. Cape as of March 31, 2009, had total assets of approximateluy $492 million and total depositsof $403 million.
Firsf Federal agreed to purchaseapproximately $468 million in assets, whiles the FDIC will retain the remainder for later Under a “share-the-loss” agreement ironed out between the governmenf and the South Carolina the FDIC and First Federal jointly will assume any lossesz on $395 million of Cape Fear assets. Detailx of the agreement, which is aimed at minimizing potentiak disruptionfor customers, were not Cape Fear customers can continue to use theier checks and debit cards, the FDIC said. Customers with questions can call a hot line at starting at9 p.m. April 10.
Customerw of both banks shoulfd continue to use their existing branches until First Federal can fully integrate the deposit recorde of CapeFear Bank, the FDIC said. All eightf Cape Fear Bank branches will open as Firsy Federal branches onApril 13. Cape Fear’zs failure comes less than two months afterd the bank revealed it had received a from the Cape Fear said the FDIC had orderee the lender to raise more money forcapitaol reserves, but the bank did not say how much it would have to raisw to meet regulators’ demands. Another of the FDIC’s requirementsx was that Cape Fear install a strongeermanagement team.
The bank argued that it had done that in Novembetr 2008 after a with investor Maurice Kourh that ended with the resignatio of CEOCameron Coburn. Anothed Wilmington bank, , from the FDIC in mid-March.