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Additional information about the failure of Citizens Bank of North Carolina.
TheStreet) -- State regulators shuttered two banks on Friday, bringing this year's total number of bank failures to 73.
Both failed banks were previously included in
Bank Watch List of
undercapitalized institutions, based on regulatory data provided by
Bank of the Commonwealth
State regulators on Friday closed
Bank of the Commonwealth, of Norfolk, Va., which was formerly held by
Commonwealth Bancshares (CWBS) and had $985.1 million in total assets and $901.8 million in deposits when it was seized by the Virginia State Corporation Commission.
Federal Deposit Insurance Corp. was appointed receiver and sold the failed bank's deposits and $924.3 million of its assets to
Southern Bank and Trust Co. of Mount Olive, N.C. The FDIC retained Bank of the Commonwealth's remaining asset for later disposition.
The FDIC agreed to cover 80% of losses on $798.2 of the failed bank's assets acquired by Southern Bank and Trust Co., and estimated the cost of Bank of the Commonwealth's failure to the deposit insurance fund would be $268.3 million.
The failed bank's 21 offices were set to reopen during normal business hours as Southern Bank and Trust branches.
Bank of the Commonwealth was the seventh-largest undercapitalized bank included in
TheStreet's second-quarter watch list. The largest surviving bank on the watch list is
Community One Bank, NA, which had $1.7 billion in total assets as of June 30 and is a subsidiary of
FNB United (FNBN).
FNB United on April 27 entered into a deal to acquire
Bank of Granite Corporation (GRAN) of Granite Falls, N.C., with $158 million in new capital being contributed by The Carlyle Group and Oak Hill Capital Partners. The target company holds
Bank of Granite, which is also on the watch list. On August 16, FNB United announced that a total of $310 million in private equity subscription agreements, contingent upon approval of current shareholders and regulators.
In order for this complicated deal to be completed, all private equity investors need to meet their commitments, the U.S. Treasury Department needs to exchange $51.5 million in preferred shares of FNB United -- held in exchange for bailout funds received through the Troubled Assets Relief Program, or TARP - for common shares in the new combined holding company (the agency has already agreed to do so), and CommunityOne needs to repay outstanding debt and repurchase preferred stock held by
SunTrust (STI - Get Report).
Citizens Bank of Northern California
The California Department of Financial Institutions shut down
Citizens Bank of Northern California of Nevada City, which had total assets of $288.8 million and $253.1 million in deposits. The FDIC was appointed receiver and sold the failed bank to
Tri Counties Bank of Chico, Calif.
The acquiring institution is a subsidiary of TriCo Bancshares
(TCBK - Get Report).
The FDIC estimated that the cost of Citizen Bank of Northern California's failure to the deposit insurance fund would be $37.2 million.
The failed bank's seven branches were scheduled to reopen Monday as branches of Tri Counties Bank.