Washington State Bank is 33rd Bank to Fail in 2009

A Bremerton, WA-based institution, Westsound Bank, was closed on Friday by the Washington Department of Financial Institutions. It is the 33rd FDIC-insured bank to fail in 2009. The FDIC arranged for the failed bank's deposits to be sold to Kitsap Bank Port Orchard, WA.

The failed bank's nine offices will reopen today as branches of Kitsap Bank. The failed banks had assets of $334.6 million and deposits of $304.5 million. Kitsap will not assume the $9.4 million of brokered deposits.

Additionally, Kitsap Bank will buy $49.3 million of assets comprised of cash, cash equivalents, marketable securities and loans secured by deposits. The bank closing will cost the FDIC's Deposit Insurance Fund $108 million. Westsound Bank is the second state in Washington to fail in 2009. The last bank in the state to fail was the Bank of Clark County on January 16, 2009.

About the Author

Linda McGlasson

Linda McGlasson

Managing Editor

Linda McGlasson is a seasoned writer and editor with 20 years of experience in writing for corporations, business publications and newspapers. She has worked in the Financial Services industry for more than 12 years. Most recently Linda headed information security awareness and training and the Computer Incident Response Team for Securities Industry Automation Corporation (SIAC), a subsidiary of the NYSE Group (NYX). As part of her role she developed infosec policy, developed new awareness testing and led the company's incident response team. In the last two years she's been involved with the Financial Services Information Sharing Analysis Center (FS-ISAC), editing its quarterly member newsletter and identifying speakers for member meetings.

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