On Friday, the OCC closed Beach First National Bank, headquartered in Myrtle Beach, South Carolina, and the FDIC was named receiver. As receiver, the FDIC entered into a purchase and assumption agreement with Bank of North Carolina, headquartered in Thomasville, North Carolina, to assume all of the deposits of Beach First National Bank.

As of December 31, 2009, Beach First National Bank had approximately $585.1 million in total assets and $516 million in total deposits. Bank of North Carolina did not pay the FDIC a premium for the deposits of Beach First National Bank, but did agree to purchase essentially all of the failed bank's assets. The FDIC and Bank of North Carolina entered into a loss-share transaction on $497.9 million of Beach First National Bank's assets.

The FDIC estimates that the cost to the Deposit Insurance Fund will be $130.3 million. Beach First National Bank is the 42nd FDIC-insured institution to fail in the nation this year, and the first in South Carolina since the failure of Victory State Bank on March 26, 1999.