One Bank Closed on May 27

Now 56 Failed Institutions so Far in 2011
One Bank Closed on May 27
One bank closed at the start of the holiday weekend on Fri., May 27. This closure raises the running tally to 56 failed institutions so far in 2011.

The latest closure:

First Heritage Bank, Snohomish, Washington

First Heritage Bank, Snohomish, Washington, was closed by the Washington State Department of Financial Institutions, which appointed the Federal Deposit Insurance Corporation (FDIC) as receiver. To protect the depositors, the FDIC entered into a purchase and assumption agreement with Columbia State Bank, Tacoma, Washington, to assume all of the deposits of First Heritage Bank.

Due to the Memorial Day holiday, the five branches of First Heritage Bank will reopen on Tuesday as branches of Columbia State Bank. Depositors of First Heritage Bank will automatically become depositors of Columbia State Bank.

As of March 31, 2011, First Heritage Bank had approximately $173.5 million in total assets and $163.3 million in total deposits. Columbia State Bank will pay the FDIC a premium of 0.75 percent to assume all of the deposits of First Heritage Bank. In addition to assuming all of the deposits of the failed bank, Columbia State Bank agreed to purchase essentially all of the assets.

The FDIC and Columbia State Bank entered into a loss-share transaction on $142.2 million of First Heritage Bank's assets.

The FDIC estimates that the cost to the Deposit Insurance Fund will be $34.9 million. The last FDIC-insured institution closed in the state was Summit Bank, Burlington, on May 20.

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