The other shoe dropped on Friday, as the Federal Deposit Insurance Corporation and the Washington Department of Financial Institutions ordered the closure of Cowlitz Bank, and its subsequent sale to Heritage Bank of Olympia. The sale covers all nine branches of the bank, including the two Oregon branches and the three Bay Bank branches. Dozens of regulators descended on the bank’s main branch in Longview late Friday afternoon, posting notices of the closure and beginning the sale process. The FDIC says that Cowlitz Bank will re-open for normal banking on Saturday, but now under the Heritage Bank name. FDIC officials assure Cowlitz Bank customers that their deposits are automatically transferred to Heritage Bank, so there’s no need to change accounts. It’s also noted that funds deposited in Cowlitz Bank will still be accessible through checks and ATM’s over the weekend. The FDIC and Heritage Bank entered into what’s called a “loss-share transaction,” valued at $160.9 million. Heritage Bank agreed to pay a one percent premium on Cowlitz Bank deposits, and assumed around $329.5 million of Cowlitz Bank assets. The remainder of the assets, approximately $199.8 million, are being retained by the FDIC for future disposition. The acquisition cost the Deposit Insurance Fund approximately $68.9 million, but is also being called the FDIC’s “least costly” acquisition of the year. Cowlitz Bank is the 107th bank in the U. S. to fail this year, and the eighth in Washington State. All current employees are being retained at this time; Heritage Bank officials say that it will be “business as usual” on Monday morning. It’s unclear at this time what will happen with Cowlitz Bank’s current executives. If you have questions about the sale, the FDIC has a toll-free number available from 9 am to 6 pm on Saturday, noon to 6 on Sunday and 8 am to 8 pm after that. That number is 1-800-528-6215.
Cowlitz Bank Sold
Posted on 31st July 2010 at 08:02
-
Recent Posts
Recent Comments
Archives
- April 2018
- March 2018
- February 2018
- January 2018
- December 2017
- November 2017
- October 2017
- September 2017
- August 2017
- July 2017
- June 2017
- May 2017
- April 2017
- March 2017
- February 2017
- January 2017
- December 2016
- November 2016
- October 2016
- September 2016
- August 2016
- July 2016
- June 2016
- May 2016
- April 2016
- March 2016
- February 2016
- January 2016
- December 2015
- November 2015
- October 2015
- September 2015
- August 2015
- July 2015
- June 2015
- May 2015
- April 2015
- March 2015
- February 2015
- January 2015
- December 2014
- November 2014
- October 2014
- September 2014
- August 2014
- July 2014
- June 2014
- May 2014
- April 2014
- March 2014
- February 2014
- January 2014
- December 2013
- November 2013
- October 2013
- September 2013
- August 2013
- July 2013
- June 2013
- May 2013
- April 2013
- January 2012
- December 2011
- November 2011
- October 2011
- September 2011
- August 2011
- July 2011
- June 2011
- May 2011
- April 2011
- March 2011
- February 2011
- January 2011
- December 2010
- November 2010
- October 2010
- September 2010
- August 2010
- July 2010
- June 2010
- May 2010
- April 2010
- March 2010
- February 2010
- December 2009
Categories
Meta