Mar 01 2010 Emmanuel Olaoye
Regulators closed two banks in Washington and Nevada over the weekend, taking the number of failed banks in 2010 to 22. The failures are expected to cost the Federal Deposit Insurance Corporation's Deposit Insurance Fund $103m. The biggest failure was Rainier Pacific Bank of Tacoma, Washington, which held $717.8m in assets and $446.2m in deposits. The Washington State Department of Financial Institutions said that it closed the bank after it suffered "significant securities write-downs and loan losses".
Brad Williamson, director of WDFI's Division of Banks, said: "Rainier's largest losses resulted from write-downs on collateralized debt obligations that lost tremendous value as the financial markets became illiquid and underlying asset values declined." The FDIC sold Rainier Pacific Bank to Umpqua Bank of Roseburg, Oregon in a deal that will see Umpqua Bank assume Rainier's deposits and purchase $670.1m of the deposits. The failure is expected to cost the DIF $95.2m.
Heritage Bank, of Nevada, acquired bought Carson River Community Bank of Carson City, Nevada, after the Carson City bank was closed by its state regulator. Carson River Community Bank had approximately $51.1m in assets and $50m in deposits.
