Review of the Failure of Waccamaw Bank

March 26, 2015

Memorandum

Consistent with the requirements of section 38(k) of the Federal Deposit Insurance Act, as amended by the Dodd-Frank Wall Street Reform and Consumer Protection Act, 12 U.S.C. 1831o(k), the Office of Inspector General conducted an in-depth review of the failure of Waccamaw Bank. This report reflects the results of our review.

We provided the Division of Banking Supervision and Regulation with a draft of our report for review and comment. In your response, you indicated that your staff generally agreed with the conclusions and recommendations in our report. We have included your response as appendix C in our report.

We appreciate the cooperation that we received from staff of the Federal Reserve Bank of Richmond, the Federal Reserve Bank of Atlanta, and the Board of Governors of the Federal Reserve System during our review. This report will be added to our public website and will be summarized in our next Semiannual Report to Congress. Please contact me if you would like to discuss this report or any related issues.