The U.S. Federal Deposit Insurance Corporation announced on Friday that West Virginia's First State Bank had failed and its accounts were being taken over by MVB Bank, Inc., also of West Virginia.

The regulator said the bank had been closed on Friday by state regulators after "longstanding capital and asset quality issues." Financial reports from the end of 2019 showed the bank operating with too little capital to legally stay open, the FDIC said.

The bank, which had $152.4 million in assets, is the first U.S. bank to fail since the coronavirus pandemic spread nationwide.