Each depositor insured to at least $250,000 per insured bank

The following answers are provided to the most commonly asked questions by customers of the failed bank.

The total balance in your account(s) has been transferred to First Federal Savings and Loan Association, Charleston, SC and will be available for transactions starting on Monday, April 13, 2009 during regular business hours at the former Cape Fear Bank, Wilmington, NC branches.

You may continue to use your same checks and ATM/Debit cards until notified.

All direct deposits, including social security checks will continue as usual.

On April 10, 2009, Cape Fear Bank of Wilmington, NC was closed by the North Carolina Office of Commissioner of Banks. The Federal Deposit Insurance Corporation (FDIC) was then named Receiver. Subsequent to the closure, First Federal Savings and Loan Association, Charleston, SC acquired the assets and most of the liabilities from the FDIC as Receiver for Cape Fear Bank. Any claims by equity holders were not acquired.

Account(s): What about my account with Cape Fear Bank?

All deposit accounts, which include Checking, Savings, Money Market, CDs and Retirements accounts, excluding certain brokered deposits, have been transferred to First Federal Savings and Loan Association, Charleston, SC, regardless of the dollar amount. No one lost any money on deposit in Cape Fear Bank.

If you had an account with Cape Fear Bank, you now have an account with First Federal Savings and Loan Association.

Please be advised you will not receive any email notification to claim/unlock/unsuspend your account or to provide any private information. Please be aware of any scams to obtain information from you.

ATM/debit card and/or Billpay: What about my ATM/debit card and/or bill paying with Cape Fear Bank?

Your ATM/debit card will continue to work, and bill paying will work as it has in the past.

Brokered Deposits: I am a deposit broker or have brokered deposits. What do I do?

All deposits comprised of principal and interest through the date of bank failure, EXCLUDING deposits in the name of CEDE & CO, will be funded by the FDIC and transferred to the assuming bank. Funds representing principal and interest through the date of bank failure for the CEDE & CO brokered CDs will be paid directly by the FDIC. DTC Participant holders will not need to submit paperwork to claim funds. For additional recorded guidance relative to broker processing you may call 1-866-806-6128.

Direct Deposits - Government Deposits: What will happen to my direct deposits?

Direct Deposits will continue as normal, including Social Security checks.

Existing Deposits at First Federal Savings and Loan Association: I already have other deposit accounts with the new bank. When combined with balances at this bank, my deposits exceed $250,000. Are all funds insured?

The accounts transferred to First Federal Savings and Loan Association will be separately insured for at least six months after the merger. This grace period gives a depositor the opportunity to restructure the accounts, if necessary.

CDs from the failed bank are separately insured until the earliest maturity date after the end of the six-month grace period.

CDs that mature during the six-month period and are renewed for the same term and in the same dollar amount (either with or without accrued interest) continue to be separately insured until the first maturity date after the six-month period.

If a CD matures during the six-month grace period and is renewed on any other basis, it would be separately insured only until the end of the six-month grace period.

Interest Rates, Early Withdrawal Penalty: Will I continue to earn interest at the same rate?  Will I be charged an early withdrawal penalty?

First Federal Savings and Loan Association will be reviewing rates and will notify you.

You may withdraw funds from any transferred account without an early withdrawal penalty until you enter into a new deposit agreement with your new bank. Entering into a new deposit agreement can be done by either renewing your CD or making a deposit to, or a withdrawal from your account.

Loans/mortgages: What about my loan or mortgage with Cape Fear Bank?

All mortgages and loans have been assumed by First Federal Savings and Loan Association. Your payment amount and due date are the same. If you are having your payment deducted from your account, it will continue as it has in the past. You should continue to make your checks payable to Cape Fear Bank and send your payments to the same address.

Loans in Process: What happens if I had a loan in process that had not closed or a line of credit not fully funded?

You should contact your loan officer.  All prior contacts remain the same.

Media: I represent a TV/Newspaper/Radio and would like some information.

Please contact the Office of Public Affairs:

Outstanding Checks: What about checks that I have written on my account with Cape Fear Bank?

Your checks will clear up to the available balance in your account. You can continue to use your existing checks.

Safe Deposit Boxes: How can I claim the contents of my safe deposit box?

It is business as usual. You can go to your local branch and access your safe deposit box; however, no action on your part is required because of this transaction.

Shareholders: What about my shares of stock, notes or subordinated notes that I own in Cape Fear Bank?

On April 10, 2009, Cape Fear Bank was closed by the North Carolina Office of Commissioner of Banks. The Federal Deposit Insurance Corporation (FDIC) was then named Receiver. Subsequent to the closure, First Federal Savings and Loan Association, Charleston, SC acquired the assets and most of the liabilities of Cape Fear Bank from the FDIC as Receiver for Cape Fear Bank. Any claims by equity holders were not acquired.

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.

All claims against Cape Fear Bank, together with proof of the claims, must be submitted in writing to the Receiver at the following address:

Transaction Types: Why do all deposits, insured or not, pass in some transactions but not in others?

The FDIC is required by law to employ the least-cost resolution measure for each failed financial institution.  The most frequent result is for the FDIC to transfer only the insured deposits in a merger transaction.  The FDIC has been able to transfer all deposits in about 25% of the failures over the past 15 years.