Friday, April 16, 2010
Lyn Peters, Director of Communications
PH (360) 902-8731 firstname.lastname@example.org
Brad Williamson, DFI Director, DFI Division of Banks
PH (360) 902-8704 email@example.com
FOR IMMEDIATE RELEASE:
Whidbey Island Bank Of Oak Harbor, Wash. Purchases Lynnwood-Based City Bank After Closure By Washington DFI
OLYMPIA – The Washington Department of Financial Institutions (DFI) closed City Bank today, citing inadequate capital and severe loan losses. Immediately following the closure, DFI named the Federal Deposit Insurance Corporation (FDIC) as receiver of City Bank.
The FDIC immediately entered into a purchase and assumption agreement with Whidbey Island Bank, headquartered in Oak Harbor, Wash. Whidbey Island Bank will assume all deposits and certain assets of City Bank, except certain brokered deposits, which will be paid out by the FDIC.
“City Bank’s capital has been depleted by large loan losses and resultant loan loss reserve provisions associated with its construction loan portfolio,” Brad Williamson, Director of DFI’s Division of Banks explained.
“These are exceptionally challenging economic times for those community banks focused on commercial real estate land acquisition and construction lending,” DFI Director Scott Jarvis said. “Any time DFI closes a bank it is a sad event. We are very pleased, however, to see this bank acquired by Whidbey Island Bank — another Washington State chartered bank with strong community ties and a 50-year history of serving the banking needs of Washington businesses and residents.”
City Bank, headquartered in Lynnwood, Wash. has branches located in Snohomish and King counties. All will be assumed by Whidbey Island Bank. All eight of City Bank’s drive-up locations will open tomorrow as Whidbey Island Bank branches for normal Saturday banking hours. All locations including the main office will reopen on Monday, April 19.
Throughout the weekend and transition, City Bank customers can access their funds by writing checks or using ATM or debit cards. Checks will continue to be processed. Loan customers should continue to make their payments as usual. Online services also will remain available.
As of Dec. 31, 2009, City Bank had total assets of $1,129,154,000 and total deposits of $1,029,494,000.
For more information about deposit insurance for Washington banks and credit unions, visit www.dfi.wa.gov/consumers/deposits.htm. For details about FDIC coverage and requirements, visit www.fdic.gov or call toll-free 1.877.ASK.FDIC.
DFI also offers answers to frequently asked questions for bank business loan customers in turbulent times at http://dfi.wa.gov/banks/business-loan-faqs.htm.
About Division of Banks
www.dfi.wa.gov/banks ▪ 360.902.8704 ▪ 877.RINGDFI (746.4334) x 28704
The Washington State Department of Financial Institutions Division of Banks regulates more than 80 Washington State-chartered commercial banks, stock savings banks, mutual savings banks, foreign banks, savings and loan associations and independent trust companies. We charter new banks, business development corporations, trust companies, foreign banks and savings & loan associations. Also, we authorize new branches and branch closures; and approve mergers & acquisitions. Learn more about the Division of Banks.
www.dfi.wa.gov ▪ 360.902-8700 ▪ 877.746-4334
The Washington State Department of Financial Institutions regulates a variety of financial service providers such as banks, credit unions, mortgage brokers, consumer loan companies, payday lenders and securities brokers and dealers. The department also works to improve financial education throughout Washington through its outreach programs and online clearinghouse www.dfi.wa.gov/financial-education. In addition to posting information about licensees and administrative actions, DFI uses the Web and social media to provide financial education information: http://www.twitter.com/FinEd4All, www.twitter.com/DFIConsumers, www.finlit.blogspot.com, www.youtube.com/user/WADFI, www.homeownership.wa.gov.