NORFOLK-- The State Corporation Commission has closed the Norfolk based, Bank of the Commonwealth.
The SCC's Bureau of Financial Institutions and the Federal Deposit Insurance Corporation took control of the bank at the close of business on Friday.
In addition to its main office, the bank has 16 branch offices in Virginia and four in North Carolina.
The SCC acted because the bank was found to be insolvent and for the protection of the public interest.
'The bank fell on some hard times. Loans weren't getting repaid, and it was losing money, and, so, it had, basically, wiped out the bank's capital,' explained FDIC Senior Ombudsman Specialist Raymond Rudnicki. 'They were diligently trying to find additional investors to put more money in the bank, but that did not happen.'
Rudnicki told 13News about 120 people were located throughout Bank of the Commonwealth's branches Friday night to help with the transition process.
Through an agreement with the FDIC, the bank is being acquired by Southern Bank and Trust Company of Mount Olive, North Carolina. All Bank of the Commonwealth deposit accounts have been transferred to Southern Bank and will be available during normal business hours.
A release from the SCC says there will not be any losses to bank depositors. Southern Bank is a state-chartered institution that primarily provides banking services in eastern North Carolina.
'As long as they're taking over and it doesn't interfere with me, I'm fine with whoever takes over. Operations the same, that's fine,' said John Evans just after withdrawing money from the ATM at Bank of the Commonwealth's headquarters 403 Boush Street in Norfolk.
The firm has held a state banking charter since 1971.
This is the second state-chartered bank to be closed by the Commission this year.
The FDIC has established a website and toll-free phone number to answer questions from
depositors, creditors, and other interested parties regarding the receivership of Bank of the
Commonwealth. The website is http://www.fdic.gov/bank/individual/failed/boc-va.html . The toll
free phone number is 1-800-423-6395.
