Cape Fear Bank Becomes 22nd US Bank Failure Of ’09

NEW YORK (AP) — Regulators are shutting down Cape Fear Bank, the first North Carolina bank to collapse since 1993.

The Wilmington, N.C.-based bank is the 22nd federally insured institution to fail this year.

First Federal Savings and Loan Association of Charleston in Charleston, S.C., is assuming all of the bank’s $403 million in deposits and buying about $468 million of the bank’s $492 million in assets.

The Federal Deposit Insurance Corp., which was appointed receiver of Cape Fear Bank on Friday, will retain the rest of the assets to sell later.

On Monday, Cape Fear Bank’s eight branches will reopen as First Federal branches.

The last North Carolina-based bank to fail was Crown National Bank of Charlotte, N.C., in May of 1993.