What Can Cape Fear Bank Customers Do Now

We visited the website of the Cape Fear Bank and found the following message from FDIC.

FDIC Information for Cape Fear Bank, Wilmington, North Carolina
On April 10, 2009, Cape Fear Bank, Wilmington, North Carolina was closed by the North Carolina Office of Commissioner of Banks. Subsequently, the Federal Deposit Insurance Corporation (FDIC) was named Receiver. No advance notice is given to the public when a financial institution is closed.

All deposit accounts, excluding certain brokered deposits, have been transferred to First Federal Savings and Loan Association, Charleston, SC. For more information on First Federal Savings and Loan Association, visit us at www.firstfederal.com.

The FDIC has assembled useful information regarding your relationship with Cape Fear Bank. Besides a checking account, you may have Certificates of Deposit, a business checking account, a Social Security direct deposit, and other relationships with the institution.

Online service will remain available.

Please select the link below to read more about this event:

FDIC Bank Closing Information for Cape Fear Bank

Failed Bank Information - Information for Cape Fear Bank, Wilmington, NC

On Friday, April 10, 2009, Cape Fear Bank, Wilmington, NC was closed by the North Carolina Office of Commissioner of Banks and the Federal Deposit Insurance Corporation (FDIC) was named Receiver. No advance notice is given to the public when a financial institution is closed.

The FDIC has assembled useful information regarding your relationship with this institution. Besides a checking account, you may have Certificates of Deposit, a car loan, a business checking account, a commercial loan, a Social Security direct deposit, and other relationships with the institution. The FDIC has compiled the following information, which should answer many of your questions.

II. Press Release
The FDIC has issued a press release (PR-052-2009) about the institution's closure. If you represent a media outlet and would like information about the closure, please contact David Barr at 202-898-6992.

III. Acquiring Financial Institution
All deposit accounts, excluding certain brokered deposits, have been transferred to First Federal Savings and Loan Association, Charleston, SC ("assuming institution") and will be available immediately. On Monday, April 13, 2009, the former Cape Fear Bank locations will reopen as branches of First Federal Savings and Loan Association.

Your transferred deposits will be separately insured from any accounts you may already have at First Federal Savings and Loan Association for six months after the failure of Cape Fear Bank. Checks that were drawn on Cape Fear Bank that did not clear before the institution closed will be honored as long as there are sufficient funds in the account. You may speak to an FDIC representative regarding deposit insurance by calling: 1-866-806-6128 or visit EDIE the FDIC's Electronic Deposit Insurance Estimator.

EDIE - FDIC's Electronic Deposit Insurance Estimator

You may withdraw your funds from any transferred account without an early withdrawal penalty until you enter into a new deposit agreement with First Federal Savings and Loan Association as long as the deposits are not pledged as collateral for loans. You may view more information about First Federal Savings and Loan Association by visiting their web site.

First Federal Savings and Loan Association (www.firstfederal.com)

V. Banking Services
The Automated Teller Machines (ATM) and online service will remain available.

As of Monday, April 13, 2009, you may continue to use the services to which you previously had access, such as, safe deposit boxes, night deposit boxes, wire services, etc.

Your checks will be processed as usual. All outstanding checks will be paid against your available balance(s) as if no change had occurred. Your new bank will contact you soon regarding any changes in the terms of your account. If you have a problem with a merchant refusing to accept your check, please contact your branch office. An account representative will clear up any confusion about the validity of your checks.

All interest accrued through Friday, April 10, 2009, will be paid at your same rate. First Federal Savings and Loan Association will be reviewing rates and will provide further information soon. You will be notified of any changes.

Your automatic direct deposit(s) and/or automatic withdrawal(s) will be transferred automatically to your new bank. If you have any questions or special requests, you may contact a representative of your assuming institution at your branch office.

VI. Loan Customers
If you had a loan with Cape Fear Bank, you should continue to make your payments as usual. The terms of your loan will not change under the terms of the loan contract, because they are contractually agreed to in your promissory note with the failed institution. Checks should be made payable as usual and sent to the same address until further notice. If you have further questions regarding an existing loan, please contact your loan officer.

For all questions regarding new loans and the lending policies of First Federal Savings and Loan Association, please contact your branch office.

VII. Possible Claims Against the Failed Institution
Claims against failed financial institutions occur when bills sent to the institution remain unpaid at the time of failure. Shortly after the failure, the FDIC sends notices directly to all known service providers to explain the claim filing process.

Please note: there are time limits for filing a claim, as specified in the notice.

There was no publicly owned stock in Cape Fear Bank. If you are an equity shareholder, your shares are in Cape Fear Bank Corporation, Wilmington, NC, the holding company for Cape Fear Bank, and not the institution. Cape Fear Bank Corporation, Wilmington, NC and the interests of equity, debt holders or other creditors of Cape Fear Bank Corporation, are not included in the closure or receivership of the institution. Please contact Cape Fear Bank Corporation directly for information.

If you provided a service for Cape Fear Bank, and have not received a notice, please contact:

Federal Deposit Insurance Corporation
Receiver: Cape Fear Bank
Attention: Claims Department, DRR
1601 Bryan Street
Dallas, Texas 75201

Or:
Call toll free 1-800-568-9161

VIII. Priority of Claims
In accordance with Federal law, allowed claims will be paid, after administrative expenses, in the following order of priority:

1. Depositors
2. General Unsecured Creditors
3. Subordinated Debt
4. Stockholders

IX. Dividend Information
No dividends have been declared at this time.

Dividend Information on Failed Financial Institutions

X. Brokered Deposits
The FDIC offers a reference guide to deposit brokers acting as agents for their investor clientele. This site outlines the FDIC's policies and procedures that must be followed by deposit brokers when filing for pass-through insurance coverage on custodial accounts deposited in a failed FDIC Insured Institution.