Easley bank closed by regulators

CommunitySouth Bank & Trust of Easley was closed by the South Carolina State Board of Financial Institutions Friday, the fifth South Carolina bank to be shuttered over the past two years.

CommunitySouth has lost nearly $30 million over the past three years and was deemed critically undercapitalized by regulators late last year.

For the nine months ended Sept. 30, 2010, the bank recorded a provision for loan losses of $5 million and net loan charge-offs of $6.5 million. That compares with a $6.3 million provision for loan losses and net loan charge-offs of $4.1 million during the same period last year.

Impaired loans doubled between Dec. 31, 2009, and Sept. 30, 2010, to $68.2 million from $34.2 million, according to SEC filings.

According to information released Friday by the Federal Deposit Insurance Corp., all deposit accounts, excluding certain brokered deposits, have been transferred to CertusBank, National Association, of Easley.

Certus is a newly chartered bank subsidiary of Blue Ridge Holdings, Inc. of Charlotte.

CommunitySouth had six branches and $440 million in assets.

The last bank to fail in South Carolina was Williamsburg First National Bank of Kingstree, on July 23, 2010.

CommunitySouth was trading for 5 cents a share at the close of business Friday.

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2 thoughts on “Easley bank closed by regulators

  1. Pingback: SC bank started big, goes out with whimper « The Cotton Boll Conspiracy

  2. Pingback: CertusBank to set up HQ in Greenville « The Cotton Boll Conspiracy

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