WASHINGTON (AP) — Regulators on Friday closed banks in Virginia and California, lifting to 73 the number of U.S. bank failures this year.
The number of closures has dropped significantly this year as banks have worked their way through the bad debt accumulated in the recession. By this time last year, regulators had shuttered 127 banks.
The Federal Deposit Insurance Corp. seized Bank of the Commonwealth, based in Norfolk, Va., with $985.1 million in assets and $901.8 million in deposits, and Citizens Bank of Northern California, based in Nevada City, Calif., with $288.8 million in assets and $253.1 million in deposits.
Southern Bank and Trust Co., based in Mount Olive, N.C., agreed to assume all the deposits and about $924.3 million of the assets of Bank of the Commonwealth. Tri Counties Bank, based in Chico, Calif., is acquiring the assets and deposits of Citizens Bank of Northern California.
In addition, the FDIC and Southern Bank and Trust agreed to share losses on $798.2 million of Bank of the Commonwealth’s loans and other assets.
The failure of Bank of the Commonwealth is expected to cost the deposit insurance fund $268.3 million. That of Citizens Bank of Northern California is expected to cost $37.2 million.
California has been
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