On April 10, 2009, the North Carolina Office of Commissioner of Banks closed Cape Fear Bank, headquartered in Wilmington, North Carolina, and the FDIC was named as receiver. The FDIC entered into a purchase and assumption agreement with First Federal Savings and Loan Association of Charleston, South Carolina to assume all the deposits of Cape Fear Bank.

The FDIC reported that as of March 31, 2009, Cape Fear Bank had total assets of approximately $492 million and total deposits of $403 million. First Federal also agreed to purchase approximately $468 million of the failed bank's assets, with the FDIC retaining the remaining assets for later disposition. The FDIC and First Federal entered into a loss-share transaction in which First Federal will share in the losses on approximately $395 million in assets covered under the agreement.

The FDIC estimates the cost to the Deposit Insurance Fund will be $131 million. Cape Fear Bank is the twenty-second bank to fail this year and the first in North Carolina since Crown National Bank, headquartered in Charlotte, failed on May 20, 1993.