Washington State Department of Financial Institutions

News Release

Friday, September 11, 2009

Contact

Lyn Peters, Director of Communications
PH (360) 902-8731 lpeters@dfi.wa.gov

Brad Williamson, DFI Director, DFI Division of Banks
PH (360) 902-8704 banks@dfi.wa.gov

FOR IMMEDIATE RELEASE:


First-Citizens Bank & Trust Company Of Raleigh, NC Purchases Venture Bank After Closure By The Washington State Department of Financial Institutions

Branches with Saturday drive-up services will operate as normal — DuPont administrative offices and Venture branches throughout the Puget Sound region will reopen on Monday as branches of First-Citizens Bank & Trust Company

OLYMPIA – The Washington Department of Financial Institutions (DFI) closed Venture Bank today, citing inadequate capital and severe loan losses. Immediately following the closure, DFI named the Federal Deposit Insurance Corporation (FDIC) as receiver of Venture Bank.

The FDIC immediately entered into a purchase and assumption agreement with First-Citizens Bank & Trust Company of Raleigh, N.C. First-Citizens Bank & Trust Company will assume all deposits and assets of Venture Bank, except brokered deposits, which will be paid out by the FDIC.

“Venture’s capital has been depleted by large loan and investment losses,” Brad Williamson, Director of DFI’s Division of Banks explained. “Like many banks across the country, Venture’s real estate construction and development portfolio has suffered as real estate values have fallen.”

“However, Venture’s demise was hastened by very large losses associated with FNMA/Freddie Mac preferred stock and Collateralized Debt Obligations,” Williamson continued. “The combination of loan and investment losses created capital problems that couldn’t be overcome without an immediate capital infusion, which hasn’t been forthcoming.”

“While we are disappointed in Venture Bank’s inability to continue safe and sound financial operations,” DFI Director Scott Jarvis said, “we are pleased to see the negotiation of a whole bank purchase, insuring the deposits and loans of individuals, businesses and public entities throughout Washington. The only change customers should see is a new name and logo, services will continue as before.”

Venture Bank, headquartered in Lacey, Wash. with administrative offices in DuPont, Wash., has branches located throughout the Puget Sound region, from Thurston, Lewis and Pierce counties up into King County. All will be assumed by First-Citizens Bank & Trust Company. Branches that provide drive-up services on Saturday will reopen on Saturday with normal business hours as branches of First-Citizens Bank & Trust Company. The corporate office and all of Venture’s 18 branches will reopen on Monday, Sept. 14 as branches of First-Citizens Bank & Trust Company.

Throughout the weekend and transition, Venture Bank customers can access their funds by writing checks or using ATM or debit cards. Checks will continue to be processed. Loan customers should continue to make their payments as usual. Online services will remain available.

As of June 30, 2009, Venture Bank had total assets of $991.4 million and total deposits of $902.7 million.

Venture Bank customers seeking more information about the closure should visit www.dfi.wa.gov/banks/venture.htm or www.fdic.gov or www.firstcitizens.com or you may call First-Citizens toll-free at 1.800.586.2351 between 7 a.m. and 8 p.m. Pacific time.

For more information about deposit insurance for Washington banks and credit unions, visit www.dfi.wa.gov/consumers/deposits.htm. For details about FDIC coverage and requirements, visit www.fdic.gov or call toll-free 1.877.ASK.FDIC.

DFI recently released FAQs for bank business loan customers in turbulent times at http://dfi.wa.gov/banks/business-loan-faqs.htm.


About Division of Banks
www.dfi.wa.gov/banks ▪ 360.902.8704 ▪ 877.RINGDFI (746.4334) x 28704
The Washington State Department of Financial Institutions Division of Banks regulates more than 90 Washington State-chartered commercial banks, stock savings banks, mutual savings banks, foreign banks, savings and loan associations and independent trust companies. We charter new banks, business development corporations, trust companies, foreign banks and savings & loan associations. Also, we authorize new branches and branch closures; and approve mergers & acquisitions. Learn more about the Division of Banks.

About DFI
www.dfi.wa.gov ▪ 360.902-8700 ▪ 877.746-4334
The Washington State Department of Financial Institutions regulates a variety of financial service providers such as banks, credit unions, mortgage brokers, consumer loan companies, payday lenders and securities brokers and dealers. The department has won numerous awards for its financial literacy and outreach programs developed to protect consumers from financial fraud. In addition to posting information about licensees and administrative actions, the DFI’s Web site features consumer tips on a variety of financial fraud-related topics.

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