October 14, 2011 – 8:33 pm

Blue Ridge Savings Bank, Inc., Asheville, North Carolina, is the 78th FDIC-insured institution to fail in the nation in 2011. The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) will be $38.0 million.

Blue Ridge Savings Bank, Inc., Asheville, North Carolina, was closed today by the North Carolina Office of Commissioner of Banks, which appointed the Federal Deposit Insurance Corporation (FDIC) as receiver. To protect the depositors, the FDIC entered into a purchase and assumption agreement with Bank of North Carolina, Thomasville, North Carolina, to assume all of the deposits of Blue Ridge Savings Bank, Inc.

The ten branches of Blue Ridge Savings Bank, Inc. will reopen on Monday as branches of Bank of North Carolina. Depositors of Blue Ridge Savings Bank, Inc. will automatically become depositors of Bank of North Carolina. Deposits will continue to be insured by the FDIC, so there is no need for customers to change their banking relationship in order to retain their deposit insurance coverage up to applicable limits. Customers of Blue Ridge Savings Bank, Inc. should continue to use their existing branch until they receive notice from Bank of North Carolina that it has completed systems changes to allow other Bank of North Carolina branches to process their accounts as well.

This evening and over the weekend, depositors of Blue Ridge Savings Bank, Inc. can access their money by writing checks or using ATM or debit cards. Checks drawn on the bank will continue to be processed. Loan customers should continue to make their payments as usual.

As of June 30, 2011, Blue Ridge Savings Bank, Inc. had approximately $161.0 million in total assets and $158.7 million in total deposits. In addition to assuming all of the deposits of the failed bank, Bank of North Carolina agreed to purchase essentially all of the assets.

Customers with questions about today’s transaction should call the FDIC toll-free at 1-800-591-2912 . The phone number will be operational this evening until 9:00 p.m., Eastern Daylight Time (EDT); on Saturday from 9:00 a.m. to 6:00 p.m., EDT; on Sunday from noon to 6:00 p.m.,EDT; and thereafter from 8:00 a.m. to 8:00 p.m., EDT.

If you should have any further questions please do not hesitate to visit the FDIC webpage for Blue Ridge Savings Bank.

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