First Bank Failures of 2010

Regulators Close 1 Bank, 1 CU on Jan. 8 The New Year started where the old one left off: Federal and state banking regulators closed a pair of banking institutions on Friday, Jan. 8.

In Washington, Horizon Bank of Bellingham was closed by the Washington State Department of Financial Institutions. And in California, the Bakersfield-based Kern Central Credit Union was liquidated by the National Credit Union Administration (NCUA).

These were the first failed banking institutions of 2010. In 2009, 171 banks and credit unions were closed, acquired or placed into receivership. Below are further details on the latest closings.

Horizon Bank Acquired by Washington Federal S&L
Horizon Bank of Bellingham, Washington, was closed by the Washington State Department of Financial Institutions, which appointed the Federal Deposit Insurance Corporation (FDIC) as receiver. The FDIC then entered into a purchase and assumption agreement with Washington Federal Savings and Loan Association, Seattle, Washington, to assume all of the deposits of Horizon Bank.

The 18 branches of Horizon Bank were to reopen during their normal business hours beginning today as branches of Washington Federal Savings and Loan Association. Depositors of Horizon Bank will automatically become depositors of Washington Federal Savings and Loan Association.

As of September 30, 2009, Horizon Bank had approximately $1.3 billion in total assets and $1.1 billion in total deposits.

The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) will be $539.1 million.

Kern Central Credit Union Taken Over by Self-Help FCU
The NCUA was today appointed liquidating agent of Kern Central Credit Union (Kern Central) of Bakersfield, by the California Department of Financial Institutions (DFI).

NCUA immediately signed an agreement with Self-Help Federal Credit Union (Self-Help) of Durham, North Carolina, to assume the assets and liabilities of Kern Central Credit Union.

Self-Help has $75.2 million in assets and serves approximately 15,000 members. It is a full service credit union located in Durham, North Carolina. Self-Help will continue to operate Kern Central's 3 branch locations.

At liquidation, Kern Central had approximately $34.9 million in assets and served approximately 8,400 members. Kern Central was established in 1974 to serve employer groups within a 25-mile radius.

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