Years of losses were too much for a South Carolina thrift that was seized by federal banking regulators.
Charleston, S.C.-based Atlantic Bank & Trust was closed down Friday by the Office of Thrift Supervision.
“Atlantic, which reported net losses in 2008, 2009, 2010 and the first quarter of 2011, was critically undercapitalized,” the OTS explained in a statement.
The four-year-old bank had a staff of 65 employees. It was created by Albany, Ga.-based Community Capital Bancshares Inc.
A 2005 announcement from then-president of Community Capital, Robert Lee, expressed excitement about the prospect of opening the thrift and expanding in the Southeast.
Atlantic owned $65 million in home loans, $61 million in commercial real estate assets and $22 million in construction-and-land-development loans.
An announcement last year indicated that Atlantic had signed on for Kislak Lending Solutions’ loan fulfillment services.
The Federal Deposit Insurance Corp. was named receiver and awarded the winning bid for the failed bank to First Citizens Bank and Trust Company Inc.
First Citizens assumed all of Atlantic’s $192 million in deposits for an 0.75 percent premium. It also acquired all of the failed institution’s $208 million in total assets.
Considering a loss-sharing arrangement that the FDIC agreed to for $142 million of the assets, Deposit Insurance Fund losses are projected at $36 million.
Atlantic was the 45th FDIC-insured bank failure this year.
Also facing its demise last week was Valued Members Federal Credit Union, which the National Credit Union Administration said it liquidated on May 31.
“Valued Members Federal Credit Union’s declining financial condition led to its closure,” the NCUA said in a statement.
Valued was established in 1957 to serve Leake County, Miss. It had only $9 million in assets and 2,000 members. Last month, the NCUA placed the credit union into conservatorship.
Taking over the failed institution’s assets, liabilities and members was Magnolia Federal Credit Union.
