OLYMPIA – The Washington State Department of Financial Institutions (DFI) closed Bank of Whitman, headquartered in Colfax, Wash. today, citing critically insufficient capital to allow the bank to continue operations. Immediately following the closure, DFI named the Federal Deposit Insurance Corporation (FDIC) as receiver of Bank of Whitman. The FDIC immediately entered into a purchase and assumption agreement with Columbia State Bank, headquartered in Tacoma, Wash. Columbia State Bank (doing business as Columbia Bank) will assume Bank of Whitman in an All Deposit, Modified Whole Bank purchase without a Shared-Loss Agreement.
“Large loan losses made it impossible for Bank of Whitman to continue,” DFI Division of Banks Director Richard M. Riccobono said. “Bank management was unable to raise sufficient capital to remain viable. It hurts to lose an institution like the Bank of Whitman because they extended services to our state’s smaller communities.”
Columbia Bank will retain eight of the existing 20 branches operated by the Bank of Whitman as part of the Agreement. The eight former Bank of Whitman (now Columbia Bank) branches remaining open are located in Clarkston, Colfax, Othello, Pullman, Ritzville, Spokane (two branches), and Walla Walla.
While all depositor accounts are being transferred to Columbia Bank, the physical facilities at the following 12 branches will not be maintained after the closing:
- In Adams County:
- Lind
- Washtucna branches
- In Benton County:
- Kennewick branch
- In Franklin County:
- Pasco branch
- In Garfield County:
- Pomeroy branch
- In Grant County:
- Mattawa
- Royal City
- Warden branches
- In Spokane County:
- Spokane branch on State Route 2
- In Whitman County:
- Endicott
- LaCrosse
- Rosalia branches
“We recognize that ‘brick and mortar’ bank branches in our smaller rural communities are not always profitable. Yet, access to banking services remains very important to these communities,” DFI Director Scott Jarvis said. “We encourage the financial sector to market and offer alternative distribution channels, such as automated teller machines, Internet banking, and electronic deposit and cash delivery systems to the businesses and residents of communities that cannot support a full-service bank branch.”
As a result of the closures, residents and businesses previously served by these now closed branches who do not transact banking business electronically, through the mail, or over the Internet will need to travel to one of the remaining eight branches now owned by Columbia Bank for in-person banking services. Bank of Whitman depositors may still write checks on their accounts and use their ATM cards, and loan customers should continue to make their payments.
To facilitate the transfer and to provide information and support to the depositors in the branches not reopening, the FDIC’s Division of Resolutions and Receiverships (DRR) will take the following additional steps:
- All customers will be notified their accounts have been transferred to Columbia State Bank.
- All closed branches of the Bank of Whitman will have notices posted that their deposits have been transferred to a branch of Columbia State Bank.
- FDIC representatives will be at all closed branches through the middle of next week.
- The FDIC will have a presence at the closed branches for at least 21 days for customers with safe deposit boxes to obtain the contents.
- The FDIC will make available Spanish-speaking individuals to answer questions from Spanish-speaking customers.
- The FDIC also intends to contact local merchants and inform them that checks drawn on Bank of Whitman are good.
As of June 30, 2011, Bank of Whitman had total assets of $549 million and total deposits of $516 million.
Columbia State Bank is a wholly-owned subsidiary of Columbia Banking Systems, Inc., headquartered in Tacoma, WA. The bank has branches in Washington and Oregon. As of June 30, 2011, Columbia Bank had total assets of $5.43 billion and total deposits of $3.58 billion.