Anchor Bank of Myrtle Beach Buys Deposits in Hilton Head
MYRTLE BEACH, S.C. - Anchor Bank, based here, said it has acquired $59 million in deposits and $48 million in assets of Hilton Head Bank and Trust Co., which was closed last Friday by the Office of the Comptroller of the Currency.
Before the transaction Anchor Bank's assets stood at about $125 million.
Anchor is a commercial bank unrelated to Anchor Savings Bank, a major thrift in New York State.
Anchor Bank said it paid a premium of $2.56 million, or 4.3%, for the Hilton Head bank's deposits. The Federal Deposit Insurance Corp., which was appointed receiver for the failed institution, advanced $9 million to Anchor Bank and agreed to retain Hilton Head assets with a book value of $14.6 million.
Anchor Bank, which said it earned $654,000 in the first half of the year, reopened the failed bank's two offices under new management.
Poor Lending Practices Cited
In announcing the failure last week, Susan F. Krause, senior deputy Comptroller of the Currency for bank supervision policy, said Hilton Head Bank and Trust became a concern to regulators in late 1989 because of poor lending practices and inadequate supervision of the lending function by management and the board of directors.
In early 1990, the Comptroller obtained a commitment from the board to address the bank's problems, but its deterioration continued and it was unable to obtain capital and prevent insolvency.
The Hilton Head bank received its national charter in 1985 and had total assets of $72 million.