DFI Takes Possession Of Westsound Bank
Kitsap Bank Will Be New Owner
On Friday, May 08, 2009, the Washington Department of Financial Institutions (DFI) took possession of Bremerton’s Westsound Bank, citing severe asset problems, significant losses and inadequate capital. Immediately upon taking possession, DFI appointed the Federal Deposit Insurance Corporation (FDIC) receiver. The FDIC entered into a purchase and assumption agreement with Kitsap Bank of Port Orchard, Wash. View press release from DFI.
Westsound Bank will reopen Monday — with minimal disruption of service throughout the weekend — under new ownership with Kitsap Bank of Port Orchard
“It is regrettable to have to take such actions, but DFI did so to ensure the soundness and stability of banking in Washington State,” said DFI's Director of Banks Brad Williamson. “This unfortunate event is the result of very poor lending practices during the past several years. While the current management team worked diligently to overcome problems with the bank’s loan portfolio — a combination of the downturn in the local real estate market and the overall economic situation combined to make it impossible for the institution to continue.”
Williamson reminds depositors that most deposits in Washington state chartered banks are insured by the FDIC up to $250,000.
Kitsap Bank will be assuming all deposits of Westsound bank except brokered deposits, which will be paid by the FDIC. It is anticipated that there will be no loss exposure to Westsound Bank depositors.
Information For Westsound Bank Customers
- Kitsap Bank will assume all deposits of Westsound bank except brokered deposits, which will be paid by the FDIC. It is anticipated that there will be no loss exposure to Westsound Bank depositors.
- Throughout the weekend, depositors of Westsound 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.
- Westsound Bank will reopen Monday under new ownership with Kitsap Bank of Port Orchard.
Resources For Westsound Bank Customers
Information From FDIC Regarding Possession
Information and FAQs from the FDIC regarding the closure of Westsound Bank.
FDIC Q&A Guide
Q&A guide for Westsound Bank customers.
Welcome Message From Kitsap Bank
Information and welcome message from Kitsap Bank President and CEO.
Borrower's Guide To FDIC Insured Bank Failure
Information for the borrowers whose loans are acquired in the bank failure process.
- What Happens When A Bank Fails? Information From The FDIC
Information from the FDIC about what happens when a bank fails.
Protection Of Public Deposits
The Public Deposit Protection Commission provides security for public treasurers by protecting public deposits which exceed the amount insured by the FDIC.
Deposit Insurance For Washington Banks & 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).
On October 03, 2008 President Bush signed into law the emergency Economic Stabilization Act of 2008 which temporarily raises the insurance limits from $100,000 per account to $250,000 until December 31, 2009.
Information For The Media
Lyn Peters, Director of Communications
PH (360) 349-8501 firstname.lastname@example.org
Jeremy Lushene, Communications
PH (360) 902-0506 email@example.com
Brad Williamson, DFI Director, DFI Division of Banks
PH (360) 902-8704 firstname.lastname@example.org
David Barr, FDIC Office of Public Affairs
PH (202) 898-6992, email@example.com
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