FDIC declares Williamsburg First National Bank "unsound," acquired by First Citizens

KINGSTREE — First Citizens Bank and Trust Co. Inc., a wholly-owned subsidiary of First Citizens Bancorp. Inc., acquired the banking operations of Williamsburg First National Bank from the FDIC, effective July 23 according to a press release issued Friday.

Williamsburg First National Bank, headquartered in Kingstree, has five branch locations in Kingstree, Hemingway and Florence.

The Office of the Comptroller of the Currency (OCC) in Washington, D.C. appointed the FDIC as receiver for Williamsburg First National (WFNB) July 23, according to a press release from the OCC issued that same day.

The OCC acted after finding that the bank had experienced substantial dissipation of assets and earnings due to unsafe and unsound practices, the release said. The OCC found that the bank incurred losses that depleted its capital and said the bank was critically undercapitalized, presenting “no reasonable prospect” that the bank would become adequately capitalized without Federal assistance, the release said.

First Citizens Bank has entered into loss sharing agreements with the FDIC effective July 23 to purchase about $130.1 million of Williamsburg First National Bank’s assets and assume the majority of its liabilities. First Citizens Bank acquired loans of approximately $66.0 million and deposits of $96.6 million, with $30.3 million of brokered deposits excluded from the transaction, a release said from First Citizens said Friday.

According to First Citizens release, First Citizens Bank has not purchased or assumed assets, liabilities and common stock of Williamsburg First National Bank’s holding company, WFNB Bankshares Inc.

According to a letter posted outside the new First Citizens bank in Hemingway from Douglas Roeder, Senior Deputy Comptroller of the Large Bank Division of the FDIC, WFNB experienced “substantial dissipation of assets or earnings due to any unsafe or unsound practice” and was in an “unsafe or unsound condition to transact business.”

The letter listed seven other reasons justifying “appointment of a receiver” for WFNB in accordance with U.S. law, including that the bank had incurred or was likely to incur losses that would “deplete all or substantially all of its capital.”

Calls with questions to the First Citizens location in Kingstree were directed to a company spokesperson in Columbia. A spokesperson could not be reached prior to press time.

All acquired Williamsburg First National offices began operating as First Citizens Bank branches as of July 26, according to a release. Over the weekend, former WFNB customers continued to have access to their funds through debit cards, checks and online banking. Customers were instructed to bank as they normally would at their existing branches, the release said. Customers with questions about the transition were asked to contact a representative at any of the former Williamsburg First National locations or at any First Citizens Bank location.

First Citizens Bank was selected to complete the July 23 transaction through a competitive bidding process. The loans and other real estate owned by Williamsburg First National Bank and purchased by First Citizens Bank are covered by loss share agreements between the FDIC and First Citizens Bank, which provide protection against losses to First Citizens Bank, according to a release.

“We are very excited to welcome our new customers and associates to First Citizens,” JB Schwiers, Regional Executive Vice President of North and Coastal South Carolina for First Citizens said in the release. “Our knowledge and familiarity with the Kingstree, Hemingway and Florence communities will allow us to focus on what we do best—providing our customers with the highest level of service and a stable banking environment.”

According to the First Citizens website, firstcitizensonline.com, Williamsburg First National accounts remain safe, secure and available to the customers—and deposits were still protected by FDIC insurance. WFNB checks, credit cards and ATM cards could still be used and customers still have online access to all of their accounts, according to the website. As July 26, all former Williamsburg First National Bank branches were opened during regular business hours and customers encouraged to continue to banking as usual, the website said.

Details of the transition to First Citizens Bank would be sent to customers “in the days ahead,” according to the website.

“We’re committed to making this transition as easy as possible for you and will keep you informed every step of the way,” the website said.

For more information, contact any First Citizens location or log on to firstcitizensonline.com

First Citizens is the largest bank based in South Carolina, with more than $8 billion in assets, serving customers in South Carolina and Georgia through more than 190 branches.