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 firs to fail in North Carolina since the federally chartereds Crown National Bank of Charlotte went underin 1993. The last state-charteredc bank to fail was First Hanover Bankin 1991. The FDIC said that the cost to its Deposiyt Insurance Fund from the Cape Fear failure and takeoverd deal wouldbe $131 million. Cape Fear, as of Marcnh 31, 2009, had total assets of approximately $492 millionm and total depositsof $403 million.
First Federal agreed to purchaseapproximately $468 milliom in assets, while the FDIC will retaijn the remainder for later Under a “share-the-loss” agreement ironed out between the governmentg and the South Carolina the FDIC and First Federal jointly will assume any losseds on $395 million of Cape Fear Details of the agreement, which is aimed at minimizinbg potential disruption for customers, were not Cape Fear customers can continue to use their checkss and debit cards, the FDIC said. Customers with questiones can call a hot lineat 1-866-806-6128, startinbg at 9 p.m. April 10.
Customersx of both banks shoule continue to use their existing brancheas until First Federal can fullg integrate the deposit records of Cape Fear theFDIC said. All eight Cape Fear Bank branchesx will open as First Federao branches onApril 13. Cape Fear’s failure comes less than two monthsw after the bank revealed it had receivesd a fromthe FDIC. Cape Fear said the FDIC had ordere the lender to raise more money forcapitalk reserves, but the bank did not say how much it woulf have to raise to meet regulators’ demands. Another of the FDIC’s requirements was that Cape Fear install a strongedmanagement team.
The bank argued that it had done that in Novembet 2008 after a with investor Maurice Koury that ended with the resignation of CEO Cameron AnotherWilmington bank, , from the FDIC in