Washington State Department of Financial Institutions

News Release

Friday, January 11, 2013

Contact

Lyn Peters, Director of Communications
PH (360) 902-8731 lyn.peters@dfi.wa.gov

Richard Riccobono, Director, DFI Division of Banks
PH (360) 902-8704 banks@dfi.wa.gov

FOR IMMEDIATE RELEASE:


Sunwest Bank Of Irvine, Calif. Purchases Westside Community Bank After Closure By Washington DFI

OLYMPIA – The Washington Department of Financial Institutions (DFI) closed Westside Community Bank in University Place, Wash. today, citing inadequate capital and severe loan losses. Immediately following the closure, DFI named the Federal Deposit Insurance Corporation (FDIC) as receiver of Westside Community Bank.

The FDIC immediately entered into a purchase and assumption agreement with Sunwest Bank of Irvine, Calif. Sunwest Bank will assume all of the deposits and assets of Westside Community Bank.

“Westside Community Bank’s capital has been depleted by large loan losses associated with land development and construction, as well as commercial real estate lending,” Rick Riccobono, Director of DFI’s Division of Banks explained. “While the Board of Directors and management have worked diligently to address the bank’s problems they were unable to raise sufficient capital to remain viable.”

“The closure of a Washington State chartered bank is never a welcome event,” DFI Director Scott Jarvis added. “However, a very positive signal is sent when another financial institution acquires a failing institution and continues service to the community.”

Westside Community Bank, headquartered in University Place, Wash. has two locations which will reopen Monday as branches of Sunwest Bank.

Throughout the weekend and transition, Westside Community 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 Sept. 30, 2012, Westside Community Bank had total assets of $97,700,000 and total deposits of $96,500,000.

Westside Community Bank customers seeking more information about the closure should visit www.dfi.wa.gov/banks/westsidecommunitybank.htm, www.fdic.gov.

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 www.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 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 and loan associations. Also, we authorize new branches and branch closures; and approve mergers and acquisitions of State-chartered banks.

About DFI
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.

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