RICHMOND — The State Corporation Commission (SCC) has closed Bank of the Commonwealth based in Norfolk, Virginia. The SCC’s Bureau of Financial Institutions and the Federal Deposit Insurance Corporation (FDIC) took control of the bank at the close of business on September 23. The FDIC has been named receiver of the institution. In addition to its main office, the bank has 16 branch offices in Virginia and four in North Carolina.

Through an agreement with the FDIC, Bank of the Commonwealth is being acquired by Southern Bank and Trust Company (Southern Bank) 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. There will not be any loss exposure to bank depositors.

Southern Bank is a state-chartered institution that primarily provides banking services in eastern North Carolina. Established in 1901, Southern Bank is regulated by the North Carolina Office of the Commissioner of Banks.

The SCC acted pursuant to Virginia banking law (Section 6.2-913) that authorizes the Commission to close a state-chartered bank and take charge of its books, assets and affairs if the bank is found to be insolvent or if deemed necessary for the protection of the public interest. The SCC petitioned the Circuit Court of the City of Norfolk to have the FDIC appointed receiver of the bank.

Bank of the Commonwealth, headquartered at 403 Boush Street in Norfolk, 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.

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Case Number BFI-2011-00223
View Order Closing the Bank