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Regulators Shut Down California and Virginia Lenders

State and federal regulators stepped in to close the doors on two community-based lenders over the weekend â€" one in California and one in Virginia 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.

About Author: Carrie Bay

Carrie Bay is a freelance writer for DS News and its sister publication MReport. She served as online editor for DSNews.com from 2008 through 2011. Prior to joining DS News and the Five Star organization, she managed public relations, marketing, and media relations initiatives for several B2B companies in the financial services, technology, and telecommunications industries. She also wrote for retail and nonprofit organizations upon graduating from Texas A&M University with degrees in journalism and English.
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