FDIC Reports Two Bank Failures

Regulators closed two banks in Virginia and California Friday, the Federal Deposit Insurance Corp. (FDIC) reports.

The larger failing belonged to Norfolk, Va.-based Bank of the Commonwealth, whose closure is expected to cost the FDIC's insurance fund about $268.3 million. Mount Olive, N.C.-based Southern Bank and Trust Co. acquired approximately $924.3 million of the failed bank's assets, $798.2 million of which are covered by a loss-share transaction with the FDIC.

As of the end of June, Bank of the Commonwealth had about $985.1 million in total assets. The FDIC will retain the balance of the assets for later sale.

Also closed Friday was Nevada City, Calif.-based Citizens Bank of Northern California, whose assets totaled approximately $288.8 million at the end of June. Chico, Calif.-based Tri Counties Bank has purchased essentially all of the assets. Citizens Bank of Northern California's closing is projected to cost the FDIC about $37.2 million.

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