The Federal Deposit Insurance Corp. or FDIC, announced Friday the shuttering of one bank in Washington, opening the count for U.S. bank closures in 2013, 51 in 2012, 92 in 2011 and the 157 bank closures in 2010. This is the first FDIC-insured institution to fail in Minnesota after August 5, 2011.
Westside Community Bank was closed by the Washington State Department of Financial Institutions on Friday, with the assets of the failed bank being assumed by Sunwest Bank (SWBC) in an FDIC assisted transaction. The FDIC estimates that the cost to the Deposit Insurance Fund or DIF, by the bank closure will be a total of $20.3 million.
“We are pleased with the opportunity to partner with the businesses and residents of Washington and for Sunwest Bank to become part of the community,” said Chris Walsh, President and Chief Executive Officer of Sunwest Bank. Irvine, California-based Sunwest Bank acquired the banking operations, including all the deposits, of University Place, Washington-based Westside Community Bank, from the FDIC.
As of September 30, 2012, the bank had about $97.7 million in total assets and $96.5 million in total deposits. Sunwest Bank agreed to purchase essentially all of the Westside Community Bank’s assets, while assuming all of the deposits of the failed bank.
The FDIC noted that all customers of the two branches of the failed bank can this evening and over the weekend access their money by writing checks or using ATM or debit cards. Checks drawn on the bank will continue to be processed, and loan customers should continue to make their payments as usual.
Customers of failed banks are protected, by the FDIC, which has insured bank deposits since the Great Depression, currently covering customer accounts up to $250,000. The FDIC insures deposits at the nation’s 7,246 banks and savings associations.
Banks failures continued at a relatively steady pace in 2012, though the size and number of closures were well below levels seen during the prior three years. On an average, just over 4 banks have failed per month in 2012, with bank closures for 2011 averaging eight per month, and thirteen in 2010.
The 51 bank closures in 2012 were sharply down from 92 in 2011, the peak of 157 in 2010 in the wake of the financial crisis, and 140 in 2009, but were double the 25 bank failures in 2008. Meanwhile, only three banks failed in 2007, and a total of 23 in the six years prior to that. The highest and all time record for bank closures was in 1989 when 534 banks closed, followed by 181 bank failures in 1992.
by RTT Staff Writer
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