WASHINGTON - The Office of the Comptroller of the Currency closed City National Bank of Washington on Friday, and the Federal Deposit Insurance Corp. turned its $22.2 million in 1,050 deposit accounts over to Crestar Financial Corp.
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Crestar said it would not reopen City National's only office and would fold the business into nearby branches. The Richmond-based company paid a $614,000 premium for the deposits and agreed to take $5.6 million of the failed bank's $24 miliion of assets.
The Comptroller said City National had fallen into the critically undercapitalized category, with tangible equity capital below 2% of assets, and struggled with poor loan underwriting and administration standards in a depressed real estate market.
