On Friday, the Office of Thrift Supervision closed Imperial Savings and Loan Association, headquartered in Martinsville, Virginia, and appointed the FDIC as receiver. As receiver, the FDIC entered into a purchase and assumption agreement with River Community Bank, headquartered in Martinsville, Virginia, to assume all of the deposits of Imperial Savings and Loan Association.

As of June 30, 2010, Imperial Savings and Loan Association had total assets of $9.4 million in total assets and $10.1 million in total deposits. River Community Bank did not pay the FDIC a premium to assume the deposits of Imperial Savings and Loan Association, but did agree agree to purchase essentially all of the failed bank’s assets.

The FDIC estimates that the cost to the Deposit Insurance Fund will be $3.5 million. Imperial Savings and Loan Association is the 113th FDIC-insured institution to fail in the nation this year and the 1st in Virginia since December 2009.