Friday, February 26, 2010
Lyn Peters, Director of Communications
PH (360) 902-8731 email@example.com
Brad Williamson, DFI Director, DFI Division of Banks
PH (360) 902-8704 firstname.lastname@example.org
FOR IMMEDIATE RELEASE:
Umpqua Bank Of Roseburg, ORE. Purchases Tacoma-Based Rainier Pacific Savings Bank After Closure By WA DFI
OLYMPIA – The Washington Department of Financial Institutions (DFI) closed Rainier Pacific Bank today, citing inadequate capital and severe loan losses. Immediately following the closure, DFI named the Federal Deposit Insurance Corporation (FDIC) as receiver of Rainier Pacific Bank.
The FDIC immediately entered into a purchase and assumption agreement with Umpqua Bank, headquartered in Roseburg, Ore. Umpqua Bank will assume all deposits and certain assets of Rainier Pacific Bank, except certain brokered deposits, which will be paid out by the FDIC.
“Rainier Pacific Bank’s capital has been depleted by significant securities write-downs and loan losses,” Brad Williamson, Director of DFI’s Division of Banks explained. “Rainier’s largest losses resulted from write-downs on collateralized debt obligations that lost tremendous value as the financial markets became illiquid and underlying asset values declined. Construction loan losses further eroded the bank’s capital position."
“In these challenging economic times we are always disappointed when a bank is unable to continue safe and sound financial operations,” DFI Director Scott Jarvis said. “We are very pleased however to see the bank acquired as a whole bank purchase by a northwest bank with a growing presence in our state.”
“Umpqua Bank has always been committed to the financial health of the communities we serve,” Umpqua Holdings Corporation president and CEO Ray Davis said. “Umpqua is well positioned to assume the deposits and loans of Rainier Pacific Bank and we will work quickly to make this transition as smooth as possible for customers and employees.”
Rainier Pacific Bank, headquartered in Tacoma, Wash. has branches located in Pierce and King counties. All will be assumed by Umpqua Bank. Thirteen of Rainer Pacific’s 14 branches will open tomorrow as Umpqua Bank branches for normal Saturday banking hours. All locations including the main office will reopen on Monday, March 1.
Throughout the weekend and transition, Rainier Pacific 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, Rainier Pacific Bank had total assets of $717,800,000 and total deposits of $446,200,000.
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 recently released FAQs 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 90 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.