OLYMPIA - The Washington Department of Financial Institutions (DFI) closed Bank of Clark County today, citing inadequate capital and liquidity. Immediately following the closure, the Federal Deposit Insurance Corporation (FDIC) took receivership. The FDIC entered into a purchase and assumption agreement with Umpqua Bank of Roseburg, Ore.
Both the main and single additional branch of Bank of Clark County will reopen on Tuesday, Jan. 20 after the Martin Luther King, Jr. holiday with no disruption in service. Online services may not be available until Monday.
“It is regrettable to have to take such actions, but DFI did so to ensure the soundness and stability of banking in Washington State,” DFI Director of Banks Brad Williamson said. “This unfortunate event is the result of a combination of significant deterioration in loan portfolios and the overall economic instability we are experiencing today in our country.”
Williamson assures depositors that most deposits in Washington state chartered banks are insured by the FDIC up to $250,000.
All insured deposit accounts at Bank of Clark County are being transferred to Umpqua Bank. Throughout this holiday weekend, insured depositors of Bank of Clark County can access their funds by writing checks or using ATM or debit cards. Checks drawn on the bank will continue to be processed. Loan customers should continue to make their payments as usual.
Consumers with more than $250,000 in interest-bearing accounts, or total related interest-bearing accounts exceeding $250,000 should note these accounts may require review by an FDIC claim agent. Call 1.800.822.9247 to schedule a telephone appointment with an FDIC claim agent.
As of Jan.13, 2009, Bank of Clark County had total assets of $446.5 million and total deposits of $366.5 million. At the time of closing, there were approximately $39.3 million in uninsured deposits held in approximately 138 accounts that potentially exceeded the insurance limits. This amount is an estimate that is likely to change once the FDIC obtains additional information from these customers.
Umpqua will not assume the approximately $117.8 million in brokered deposits. The FDIC will pay the brokers directly for the amount of their insured funds.
The Bank of Clark County closure is the first in Washington State since Emerald City Bank of Seattle was closed in 1993.
For details about FDIC coverage limits and requirements, visit www.fdic.gov or call toll-free 1.877.ASK.FDIC.