OCC Appoints Receiver for First National Bank of the South

WASHINGTON — The Office of the Comptroller of the Currency (OCC) today appointed the Federal Deposit Insurance Corporation (FDIC) as receiver for First National Bank of the South, Spartanburg, South Carolina. As of March 31, 2010, the bank had approximately $682 million of total assets.

The OCC acted after finding that the bank had experienced substantial dissipation of assets and earnings due to unsafe and unsound practices. The OCC also found that the bank incurred losses that depleted its capital and there is no reasonable prospect that the bank will become adequately capitalized without Federal assistance.

Information about the FDIC’s resolution of the bank will be released later by the FDIC.