Heritage Bank Purchases Cowlitz Bank
On Friday, July 30, 2010, the Washington Department of Financial Institutions (DFI) closed Cowlitz Bank, citing inadequate capital and severe loan losses. Immediately following the closure, DFI named the Federal Deposit Insurance Corporation (FDIC) as receiver of Cowlitz Bank.
The FDIC immediately entered into a purchase and assumption agreement with Heritage Bank headquartered in Olympia, Wash. Heritage Bank will assume all deposits and certain assets of Cowlitz Bank, except certain brokered deposits, which will be paid out by the FDIC.
Information for Cowlitz Bank Customers
- Heritage Bank will assume all deposits and certain assets of Cowlitz Bank, except certain brokered deposits, which will be paid out by the FDIC.
- Depositors of Cowlitz Bank will automatically become depositors of Heritage Bank.
- Cowlitz Bank has nine branches located throughout Washington and Oregon. Five of the organization’s nine branches operate under the name of Bay Bank. Bay Bank Washington branches are located in Bellevue, Seattle and Vancouver. Bay Bank Oregon branches are located in Portland and Wilsonville. Cowlitz Bank branches are located in Longview, Castle Rock, Kalama and Kelso, Wash. Heritage Bank will acquire all Cowlitz and Bay Bank branches. All locations will reopen Monday as branches of Heritage Bank. The Longview Cowlitz Bank drive-up facility will reopen on Saturday with normal business hours.
- Throughout the weekend, depositors of Cowlitz and Bay Bank 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.
Resources for Cowlitz and Bay Bank Customers
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Information for Cowlitz Bank Customers from the FDIC
Answers to FAQs, as well as information about banking services during the transition and possible claims against the institution.
You may also call the FDIC at 1-800-881-7816. -
Heritage Bank Website
Website for Heritage Bank. -
When a Bank Fails - The Facts
Facts from the FDIC for depositors, borrowers, and creditors.
Deposit Insurance for Washington Banks and Credit Unions
DFI wants to assure depositors that most deposits in Washington state chartered banks and credit unions are insured up to $250,000.
Banks and credit unions doing business in Washington State have federal deposit insurance through the Federal Deposit Insurance Corporation (FDIC) for banks and the National Credit Union Administration (NCUA) for credit unions. The NCUA's deposit insurance is called the National Credit Union Share Insurance Fund (NCUSIF).
Information for the Media
Media Contacts
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Lyn Peters, Director of Communications
PH (360) 902-8731 lyn.peters@dfi.wa.gov - Brad Williamson, DFI Director, DFI Division of Banks
PH (360) 902-8704 banks@dfi.wa.gov
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