Washington State Department of Financial Institutions

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

Resources for Cowlitz and Bay Bank Customers

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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