State and federal regulators stepped in to close the doors on two community-based lenders over the weekend Ã¢â‚¬" one in California and one in Virginia Ã¢â‚¬" pushing this year's ""failed bank tally"":http://www.fdic.gov/bank/individual/failed/banklist.html to 73.
""Citizens Bank of Northern California"":http://www.citizensbanknc.com/, headquartered in Nevada City, California, is the fourth FDIC-insured institution in the Golden State to go under this year. It[IMAGE] [COLUMN_BREAK]
operated seven branch locations, with $253 million in deposits and assets totaling $288 million.
The FDIC brokered a deal with ""Tri Counties Bank"":http://www.tcbk.com/tcb, out of Chico, California, to take over the failed lender's operations and purchase its assets. The seizure of Citizens Bank will cost the FDIC an estimated $37.2 million.
""Bank of the Commonwealth"":http://bankofthecommonwealth.com/ in Norfolk, Virginia, was the larger of the two closings. It had 21 branches, $901 million in deposits, and $985 million in assets.
""Southern Bank and Trust Company"":http://www.southernbank.com, based out of Mount Olive, North Carolina, stepped in to assume all of the Virginia bank's deposits and acquire $924 million of its assets. The FDIC and Southern Bank and Trust Company entered into a loss-share transaction on $798 million of the assets purchased.
The failure of Bank of the Commonwealth is expected to cost the FDIC $268 million. It is only the second Virginia institution to be shut down by the federal agency this year.