WASHINGTON: US regulators closed two banks -- one in Norfolk, Virginia and the other in Nevada City, California -- on Friday, bringing the total number of closures this year to 73.
The larger of the two banks was Bank of the Commonwealth in Norfolk, with assets of $985.1 million. Citizens Bank of Northern California had assets of $288.8 million.
Most of the banks that have failed so far this year have had less than $1 billion in assets.
Southern Bank and Trust Co, of Mount Olive, North Carolina, a subsidiary of Southern BancShares, agreed to purchase Bank of the Commonwealth. Its 21 branches will re-open on Saturday as part of Southern Bank.
Tri Counties Bank, of Chico, California, agreed to purchase all of the assets of Citizens Bank and assume all of its deposits. Citizens Bank had seven branches, which will become part of Tri Counties Bank.
The overall outlook for the industry has been improving in recent quarters.
The industry earned $28.8 billion in the second quarter, a $7.9 billion increase from a year before, the FDIC said on Aug. 23.
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