OLYMPIA – The Washington Department of Financial Institutions (DFI) closed Evergreen Bank today, citing inadequate capital and severe loan losses. Immediately following the closure, DFI named the Federal Deposit Insurance Corporation (FDIC) as receiver of Evergreen Bank.
The FDIC immediately entered into a purchase and assumption agreement with Umpqua Bank, headquartered in Roseburg, Oregon. Umpqua Bank will assume all deposits and certain assets of Evergreen Bank, except certain brokered deposits, which will be paid out by the FDIC.
“Evergreen’s capital has been depleted by large loan losses,” Brad Williamson, Director of DFI’s Division of Banks explained. “Like many banks across the state and country, Evergreen’s real estate construction and development portfolio has suffered tremendously as real estate values have fallen.”
“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 by a northwest bank as a whole bank purchase. This is a good outcome for bank depositors and borrowers.”
“Umpqua Bank has always been committed to the financial health of the communities we serve,” said Ray Davis, Umpqua Holdings Corporation president and CEO. “Umpqua is well positioned to assume the deposits and loans of Evergreen Bank and we will work quickly to make this transition as smooth as possible for customers and employees.”
Evergreen Bank, headquartered in Seattle, Wash. has branches located in King and Snohomish counties. All will be assumed by Umpqua Bank. The main office and all of Evergreen’s seven branches will reopen on Monday, Jan. 25 as branches of Umpqua Bank.
Throughout the weekend and transition, Evergreen 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, 2009, Evergreen Bank had total assets of $481,701,000 and total deposits of $438,978,000.