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Updated June 24, 2009

Area bank changes hands again
N.C. regulators shut down Cooperative Bank
By John Davis www.pagelandprogressive.com

JEFFERSON - North Carolina banking regulators shut down Cooperative Bank and turned over the chain to First Bank over the weekend.

Monday, First Bank received ownership over the Cooperative chain based in Wilmington, N.C., after the Federal Deposit Insurance Corporation (FDIC) appointed North Carolina Office of Commissioner of Banks ordered the company closed Friday.

First Bank, based in Troy, N.C., assumed all Cooperative Bank deposits of all 21 Cooperative Bank offices, except deposits from brokers.

The Jefferson bank would make it the second branch office in Chesterfield County. The other is located in Cheraw.

Cooperative Bank acquired Bank of Jefferson in 2007 when shareholders voted to sell the independent bank for an undisclosed cash amount.

Cooperative Bank customers depositing money into the Jefferson branch would have transactions insured by the FDIC.

After a November 2008 audit, FDIC the North Carolina Commissioner of Banks alleged Cooperative Banks engaged in banking practices deemed “unsafe or unsound.”

Cooperative is the second bank chain in North Carolina to fail since in 2009 since the recession began. It’s stock shares fell more than 90 percent over the course of 12 months.

Cooperative Bank customers can access accounts and money by the usual method of checks and ATM cards, and loan customers can continue making payments.

As of May 31, 2009, Cooperative Bank had total assets of $970 million and total deposits of approximately $774 million, according to the FDIC.

In addition to assuming all of the deposits of Cooperative, First Bank agreed to purchase approximately $942 million of assets.

The FDIC will retain the remaining assets for later disposition.

The FDIC and First Bank entered into a loss-share transaction on approximately $852 million of Cooperative Bank’s assets.

First Bank will share in the losses on the asset pools covered under the loss-share agreement.

The loss-sharing arrangement is projected to maximize returns on the assets by keeping them in the private sector. The agreement also is expected to minimize disruptions for loan customers.

First Bank will purchase all the deposits, except about $57 million in brokered deposits, held by Cooperative Bank. The FDIC will pay the brokers directly for the amount of their funds. Customers who placed money with brokers should contact them directly for more information on the status of their deposits.
 

Fireworks display set for July 4

RUBY - Bright lights and explosions over the Jewel City should be expected July 4.

Town officials began planning for the annual fireworks display slated for 9:30 p.m. across from Ruby Elementary on Thurman Avenue.

Leading in the July 4 display is a 6:30 p.m. parade to include prizes for the top three entrants under golf cart and float categories.

From 7 to 9 p.m., kids games and food vendors will be on hand for the public as the countdown to the 9:30 p.m. display.

With no entry fees, the parade is open to any wheeled vehicles except for four-wheelers.

Participants in the parade are asked to decorate or wear red, white and blue, with parade float with judging taking place

Should rain washout the display, the town designated July 5 as a make-up day.
 

 

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