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8-K - FIRST NATIONAL BANCSHARES INC /SC/ | v191053_8k.htm |
For More Information, please
contact:
|
Media Contact:
Reed
Byrum, APR
Byrum
Innovation Group, Inc.
864.567.7468
reedbyrum@byruminnovation.com
|
FIRST NATIONAL BANCSHARES’
BANK SUBSIDIARY
CLOSED BY U.S. COMPTROLLER
OF CURRENCY
SPARTANBURG,
SC, July 21, 2010—First National Bancshares, Inc., (FNSC.OB)
announced the U.S. Comptroller of the Currency closed its subsidiary bank, First
National Bank of the South on July 16, 2010, and the Federal Deposit Insurance
Corporation (FDIC) was appointed as receiver. First National
Bancshares is no longer the parent company of First National Bank of the
South.
In a
virtually simultaneous transaction, NAFH National Bank acquired the operations
and all deposits and purchased essentially all assets of the Bank in a loss
share transaction facilitated by the FDIC and will continue to operate the Bank,
according to an FDIC news release. Customers who have questions about
the foregoing matters, or who would like more information about the closure of
the Bank, can visit the FDIC’s web site located at http://www.fdic.gov/bank/individual/failed/firstnatlsc.html,
or call the FDIC toll-free at (800) 823-3215.
In a
prepared statement, First National Bancshares said: “While we ultimately were
unable to save the Bank in the face of unyielding market conditions, your Board
of Directors worked tirelessly over the past two years and attempted every
reasonable solution on behalf of shareholders and the Company. In particular,
over the last several months, the Board and management team had been working on
a proposed transaction that would have recapitalized the Bank with an injection
of new capital and simultaneously would have improved the Bank's balance sheet
by having it dispose of a large number of the problem assets that had been
weighing it down. The injection of new capital would have come from a
private equity group investing $25 million plus an additional $10 million
investment from local community investors and Board members. While we
were close to completing that deal, the parties were unable to do
so.”
The First
National Bancshares statement continued: “Banks throughout the Southeast have
been similarly afflicted during what is generally described as the worst
economic downturn in America since the Great Depression. When economic growth in
our markets began to contract, many of our customers found themselves unable to
meet the obligations on their loans, and alternative sources of collateral
proved insufficient to make up the shortfall. The losses created by these
situations used up so much of our capital that we fell below regulatory capital
thresholds and were no longer permitted by regulators to independently
operate.”
First
National Bancshares is currently exploring methods of winding down its holding
company operations.
If a
customer has any questions about transactions, accounts, or loan status, please
contact your banker for assistance.
For more
information, you may contact the Company directly at First National Bancshares,
P.O. Box 7114, Spartanburg, SC 29304 or email us at firstnationalshareholders@byruminnovation.com.
###
About First National
Bancshares
First
National Bancshares, Inc., (FNSC.OB) is a holding company, based in Spartanburg,
South Carolina. First National Bancshares was incorporated in 1999 to conduct
general banking business.