Friday, May 20, 2011
Lyn Peters, Director of Communications
PH (360) 902-8731 firstname.lastname@example.org
Gloria McVey, DFI Acting Director, DFI Division of Banks
PH 360.902.8704, email@example.com
FOR IMMEDIATE RELEASE:
Columbia Bank, Headquartered In Tacoma, Wash. Purchases Summit Bank After Closure By Washington DFI
OLYMPIA – The Washington Department of Financial Institutions (DFI) closed Summit Bank in Burlington, Wash. today, citing inadequate capital and severe loan losses. Immediately following the closure, DFI named the Federal Deposit Insurance Corporation (FDIC) as receiver of Summit Bank.
The FDIC immediately entered into a purchase and assumption agreement with Columbia State Bank headquartered in Tacoma, Wash. Columbia State Bank (doing business as Columbia Bank) will assume all of the deposits, except approximately $2 million in brokered deposits and all assets of Summit Bank.
“Summit Bank has suffered significant losses associated with real estate lending. Like many institutions, Summit Bank has experienced large losses associated with construction and land development loans,” Gloria McVey, Acting Director of DFI’s Division of Banks explained. “Despite continuing efforts, bank’s management was not able to raise sufficient capital to remain viable.”
“The closure of a Washington State chartered bank is never a welcome event,” DFI Director Scott Jarvis added. “However, a very positive signal is sent when Columbia, a financially strong state-chartered bank with an excellent reputation, steps up to acquire a failing institution and continues service to the affected communities.”
Summit Bank, headquartered in Burlington, Wash. has three locations which will reopen Monday as branches of Columbia Bank.
Throughout the weekend and transition, Summit 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 March 31, 2011, Summit Bank had total assets of $142,729,000 and total deposits of $131,631,000.
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 www.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 76 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 and loan associations. Also, we authorize new branches and branch closures; and approve mergers and 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.