WHITEVILLE, N.C., Dec. 13, 2011 /PRNewswire/ -- Officials at Waccamaw Bankshares today said that a directive issued by federal banking regulators last week does not infringe on the bank's right to accept deposits and open new accounts, despite news reports to the contrary.

"There have been an unusual number of reports stating that we have been barred from accepting deposits," said Waccamaw President Geoff Hopkins. "Fact is we can accept deposits, but interest rates cannot exceed comparable rates and amounts in our markets, unless we get prior approval from the Federal Reserve."

The Federal Reserve recently issued the company a Prompt Corrective Action due to unacceptable capital levels. The directive requires the bank to meet certain capital requirements by Jan. 6, 2012. In anticipation of the action, Waccamaw agreed in October to sell 11 branches to First Bank of Troy, N.C.

"We are working very hard at improving our capital position," Hopkins said. "Our ratios should begin to improve provided our transaction with First Bank is approved by regulators. I also want to emphasize that this action by the Fed will in no way affect our customers. Their money is safe and insured by the FDIC up to $250,000 per depositor."

About Waccamaw Bankshares, Inc.

Waccamaw Bankshares, Inc., is the holding company for Waccamaw Bank, a North Carolina-chartered community bank. We are headquartered in Whiteville, North Carolina. Waccamaw Bank began operations in Whiteville, North Carolina on September 2, 1997 and on June 30, 2001 became our wholly owned subsidiary upon completion of our reorganization into a bank holding company. We conduct all of our business activities through our banking subsidiary, Waccamaw Bank. The bank's deposits are insured up to applicable limits by the FDIC. Our principal executive office is located at 110 North J.K. Powell Boulevard, Whiteville, North Carolina 28472 and our telephone number is (910) 641-0044. Our website is www.waccamawbank.com.

Cautionary Statement Regarding Forward-Looking Statements

This press release contains forward-looking statements regarding future events. These statements are only predictions and are subject to risks and uncertainties that could cause actual events or results to differ materially. These risks and uncertainties include risks of managing our growth, substantial changes in financial markets, regulatory changes, changes in interest rates, loss of deposits and loan demand to other financial institutions, and changes in real estate values and the real estate market. Additional information concerning factors that could cause actual results to be materially different from those in the forward-looking statements is contained in the Company's filings with the Securities and Exchange Commission. Waccamaw Bankshares, Inc. undertakes no obligation to update or clarify forward-looking statements, whether as a result of new information, future events or otherwise.

SOURCE Waccamaw Bankshares