2 Banks Closed, 1 CU Conserved

90-Plus Failed Institutions So Far in 2011
2 Banks Closed, 1 CU Conserved
Two banks closed and one credit union was conserved Sept. 23 by state and federal banking regulators. These failures bring the year's tally to 91 failed institutions.

The latest failures:

Citizens Bank of Northern California, Nevada City, Calif.

Citizens Bank of Northern California, Nevada City, Calif., was closed by the California Department of Financial Institutions, which appointed the Federal Deposit Insurance Corp. as receiver. To protect the depositors, the FDIC entered into a purchase and assumption agreement with Tri Counties Bank, Chico, Calif., to assume all of the deposits of Citizens Bank of Northern California.

As of June 30, Citizens Bank of Northern California had approximately $288.8 million in total assets and $253.1 million in total deposits.

The FDIC estimates that the cost to the Deposit Insurance Fund will be $37.2 million.

Bank of the Commonwealth, Norfolk, Va.

Bank of the Commonwealth, Norfolk, Va., was closed by the Virginia State Corporation Commission. The FDIC was appointed as receiver. To protect the depositors, the FDIC entered into a purchase and assumption agreement with Southern Bank and Trust Company, Mount Olive, N.C., to assume all of the deposits of Bank of the Commonwealth.

As of June 30, Bank of the Commonwealth had approximately $985.1 million in total assets and $901.8 million in total deposits.

The FDIC estimates that the cost to the DIF will be $268.3 million.

Chetco Federal Credit Union of Harbor, Ore.

The National Credit Union Administration assumed control of service and operations at Chetco Federal Credit Union of Harbor, Ore. While continuing normal member services, NCUA will work to resolve issues affecting the institution.

As of June 30, Chetco FCU had approximately $333 million in assets.

Deposits at Chetco Federal Credit Union remain federally protected. Administered by NCUA, the National Credit Union Share Insurance Fund continues to insure individual accounts at Chetco Federal Credit Union up to $250,000.


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