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.