State officials closed down Seattle-based Evergreen Bank on Friday night. The bank will reopen Monday as branches of Umpqua Bank headquartered in Roseburg, Ore. The bank, which has a Lynnwood branch near Alderwood Mall, had inadequate capital and severe loan losses, according to the state Department of Financial Institutions. The state transferred the bank to the Federal Deposit Insurance Corp., which immediately sold it to Umpqua Bank. “Evergreen’s capital has been depleted by large loan losses,” said Brad Wiliamson, director of the state division of banks. He said losses in real estate construction were its undoing. Ray Davis, CEO of Umpqua, promised a smooth transition. Throughout the weekend, customers can access their funds using ATMs, debit cards, checks or online services.
McDonald’s growing during recession
McDonald’s dollar menu keeps gaining fans in the recession, and its profit rose last fall, but the world’s largest burger chain said Friday that its annual revenue slipped for the first time in at least a quarter century. Analysts said McDonald’s fortunes won’t dramatically increase until the economy — especially the U.S. unemployment rate — does. “If it does improve, I think things will definitely get better,” said Morningstar analyst R.J. Hottovy. For the three months that ended Dec. 31, McDonald’s rang up revenue of $5.97 billion — 7 percent more than the same period last year. Falling commodity costs and currency fluctuations helped boost the company’s fourth quarter profit, which amounted to $1.22 billion, or $1.11 per share. That’s 23 percent more than the same period last year when McDonald’s profit amounted to $985.3 million, or 87 cents per share.
Google founders to sell some shares
Google co-founders Larry Page and Sergey Brin each plan to sell 5 million shares of their company stock. The sales will occur periodically during the next five years. That’s according to regulatory documents filed Friday. At current prices, 5 million shares of Google stock would fetch $2.75 billion. After the divestitures, Page and Brin combined will still own 47.7 million shares.
Harley-Davidson expects tough year
Harley-Davidson Inc. reported a fourth-quarter loss Friday, its first quarterly deficit in 16 years, as restructuring costs and the sluggish economy wore on the motorcycle maker. Harley-Davidson has come under pressure over the last year as the tight credit markets and the weak economy led consumers to shun purchases of its high-end, heavyweight motorcycles. The company has been reorganizing its business through layoffs, factory closures and shuttering or selling unwanted brands. “As we look at the year in front of us, we expect 2010 to continue to be challenging,” Chief Executive Keith Wandell told investors during a conference call.
From Herald news services