#BankFailFriday April 9, 2010 - Two Financial Institutions Closed: 1 Bank and 1 Credit Union

Beach First National Bank of Myrtle Beach, South Carolina, was closed Friday, April 9 by the Office of the Comptroller of the Currency. This was the 42nd bank closed for the year.

On Thursday, April 8, 2010, the Connecticut Department of Banking closed the South End Mutual Benefit Association, Inc. credit union. The credit union was located in Bloomfield, CT. This was the fifth credit union to be closed this year.

The full press releases for the the closed financial institutions follows:

Bank of North Carolina, Thomasville, North Carolina, Assumes All of the Deposits of Beach First National Bank, Myrtle Beach, South Carolina

Beach First National Bank, Myrtle Beach, South Carolina, was closed today by the Office of the Comptroller of the Currency, which appointed the Federal Deposit Insurance Corporation (FDIC) as receiver. To protect the depositors, the FDIC entered into a purchase and assumption agreement with Bank of North Carolina, Thomasville, North Carolina, to assume all of the deposits of Beach First National Bank.

The seven branches of Beach First National Bank will reopen on Monday as branches of Bank of North Carolina. Depositors of Beach First National Bank will automatically become depositors of Bank of North Carolina. Deposits will continue to be insured by the FDIC, so there is no need for customers to change their banking relationship to retain their deposit insurance coverage. Customers should continue to use their existing branch until they receive notice from Bank of North Carolina that it has completed systems changes to allow other Bank of North Carolina branches to process their accounts as well.

This evening and over the weekend, depositors of Beach First National Bank can access their money by writing checks or using ATM or debit cards. Checks drawn on the bank will continue to be processed. Loan customers should continue to make their payments as usual.

As of December 31, 2009, Beach First National Bank had approximately $585.1 million in total assets and $516.0 million in total deposits. Bank of North Carolina did not pay the FDIC a premium for the deposits of Beach First National Bank. In addition to assuming all of the deposits of the failed bank, Bank of North Carolina agreed to purchase essentially all of the 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. Bank of North Carolina will share in the losses on the asset pools covered under the loss-share agreement. The loss-share transaction is projected to maximize returns on the assets covered by keeping them in the private sector. The transaction also is expected to minimize disruptions for loan customers. For more information on loss share, please visit: http://www.fdic.gov/bank/individual/failed/lossshare/index.html.

Customers who have questions about today's transaction can call the FDIC toll-free at 1-866-954-9536. The phone number will be operational this evening until 9:00 p.m., Eastern Daylight Time (EDT); on Saturday from 9:00 a.m. to 6:00 p.m., EDT; on Sunday from noon to 6:00 p.m., EDT; and thereafter from 8:00 a.m. to 8:00 p.m., EDT. Interested parties also can visit the FDIC's Web site at http://www.fdic.gov/bank/individual/failed/beachfirst.html.

The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) will be $130.3 million. Bank of North Carolina's acquisition of all the deposits was the "least costly" resolution for the FDIC's DIF compared to all alternatives. Beach First National Bank is the 42nd FDIC-insured institution to fail in the nation this year, and the first in South Carolina. The last FDIC-insured institution closed in the state was Victory State Bank, Columbia, on March 26, 1999.

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Congress created the Federal Deposit Insurance Corporation in 1933 to restore public confidence in the nation's banking system. The FDIC insures deposits at the nation's 8,012 banks and savings associations and it promotes the safety and soundness of these institutions by identifying, monitoring and addressing risks to which they are exposed. The FDIC receives no federal tax dollars – insured financial institutions fund its operations.

FDIC press releases and other information are available on the Internet at www.fdic.gov, by subscription electronically (go to www.fdic.gov/about/subscriptions/index.html) and may also be obtained through the FDIC's Public Information Center (877-275-3342 or 703-562-2200). PR-73-2010

For Details, Contact NCUA

Public & Congressional Affairs

E-mail: pacamail@ncua.gov

Phone: 703.518.6330

National Credit Union Administration

1775 Duke Street

Alexandria, VA 22314-3428

Fax: 703.518.6409

Media Advisory

FOR IMMEDIATE RELEASE

South End Mutual Benefit Association,

Inc. Closes

Connecticut Department of Banking Appoints NCUA Liquidating

Agent; Member Funds Are Insured

April 8, 2010, Alexandria, Va. -- The National Credit Union Administration (NCUA)

today accepted appointment as receiver/liquidator of South End Mutual Benefit Association,

Inc., a state chartered credit union in Bloomfield, Connecticut, following the State of

Connecticut Department of Banking decision to close the credit union.

The Connecticut Department of Banking assumed control of South End Mutual Benefit

Association, Inc. operations and appointed NCUA receiver after determining the credit

union was experiencing problems with its earnings, delinquency, and management.

At the time of liquidation, the credit union had $2.4 million in assets and served 385

members. The credit union began operations in 1945 and served the residents of Hartford,

County and nearby communities in Connecticut. This is the 5th federally insured credit

union liquidated in 2010.

The NCUA Asset Management and Assistance Center will issue checks to members holding

share accounts in the credit union within one week. Member accounts are insured up to at

least $250,000 by the National Credit Union Share Insurance Fund (NCUSIF), a federal

fund managed by NCUA and backed by the full faith and credit of the U.S. Government.

The National Credit Union Administration is the independent federal agency that regulates,

charters and supervises federal credit unions. NCUA, with the backing of the full faith and

credit of the U.S. government, operates and manages the National Credit Union Share

Insurance Fund, insuring the accounts of 90 million account holders in all federal credit

unions and the overwhelming majority of state-chartered credit unions.

-NCUA