Friday, October 01, 2010
Lyn Peters, Director of Communications
PH (360) 902-8731 firstname.lastname@example.org
Brad Williamson, DFI Director, DFI Division of Banks
PH (360) 902-8704 email@example.com
FOR IMMEDIATE RELEASE:
GBC International Bank, Headquartered In Los Angeles, Calif. Purchases Shoreline Bank After Closure By WA DFI
OLYMPIA – The Washington Department of Financial Institutions (DFI) closed Shoreline Bank in Shoreline, Wash. today, citing inadequate capital and severe loan losses. Immediately following the closure, DFI named the Federal Deposit Insurance Corporation (FDIC) as receiver of Shoreline Bank.
The FDIC immediately entered into a purchase and assumption agreement with GBC International Bank headquartered in Los Angeles, Calif. GBC International Bank will assume a majority of the deposits and assets of Shoreline Bank. A limited amount of the bank’s assets will be retained and certain brokered deposits will be paid out by the FDIC.
“Shoreline Bank has suffered significant loan losses associated with land development and construction lending. These losses have depleted the bank’s capital resulting in critical undercapitalization,” Brad Williamson, Director of DFI’s Division of Banks explained. “The bank’s management was not able to raise sufficient capital to remain viable. ”
“Shoreline Bank is yet another unfortunate casualty of the extraordinary weakness in the commercial real estate land acquisition and construction lending market,” DFI Director Scott Jarvis said. “We are pleased, however, that GBC International Bank has stepped up to the plate to acquire Shoreline Bank.”
Shoreline Bank, headquartered in Shoreline, Wash. has three branches, all located in Shoreline. The North 175th Street location will reopen on Saturday and the remaining two locations will reopen Monday as branches of GBC International Bank.
Throughout the weekend and transition, Shoreline 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 also will remain available.
As of June 30, 2010, Shoreline Bank had total assets of $104,208,000 and total deposits of $100,192,000.
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 also offers answers to frequently asked questions 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 77 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.
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 also works to improve financial education throughout Washington through its outreach programs and online clearinghouse www.dfi.wa.gov/financial-education. In addition to posting information about licensees and administrative actions, DFI uses the Web and social media to provide financial education information: http://www.twitter.com/FinEd4All, www.twitter.com/DFIConsumers, www.finlit.blogspot.com, www.youtube.com/user/WADFI, www.homeownership.wa.gov.