FDIC closes University Place bank; first failure of ‘13

WASHINGTON — U.S. regulators on Friday closed a small lender in Washington state, making it the first bank failure of 2013 following 51 closures last year.

The Federal Deposit Insurance Corp. seized Westside Community Bank, based in University Place and Sunwest Bank, based in Irvine, Calif., agreed to assume all of the failed lender’s deposits and buy essentially all of its assets.

Westside Community Bank had $97.7 million in assets and $96.5 million in deposits as of Sept. 30. Its failure is expected to cost the deposit insurance fund $20.3 million.

U.S. bank closures have been declining since they peaked in 2010 in the wake of the financial crisis and the Great Recession.

In 2007, just three banks went under. That number jumped to 25 in 2008, after the meltdown, and ballooned to 140 in 2009.

In 2010, regulators seized 157 banks, the most in any year since the savings and loan crisis two decades ago. The FDIC has said 2010 likely was the high-water mark for bank failures from the recession. They declined to a total of 92 in 2011.

Last year’s bank failures trickled to 51, but that’s still more than normal.

In a strong economy, an average of only four or five banks close annually. The sharply reduced pace of closings shows sustained improvement.

From 2008 through 2011, bank failures cost the deposit insurance fund an estimated $88 billion, and the fund fell into the red in 2009. But with failures slowing, the fund’s balance turned positive in the second quarter of 2011. By Sept. 30, it stood at $25.2 billion, up from $22.7 billion at the end of June.

The FDIC expects bank failures from 2012 through 2016 to cost $10 billion.

More in Herald Business Journal

Tulalips break ground on new Quil Ceda Creek Casino Hotel

A 150-room hotel was added to what is now a $140 million complex expected to open in spring 2019.

For modern women, 98-year-old rejection letters still sting

In a stark new video, female Boeing engineers break the silence about past inopportunity.

Teddy, an English bulldog, models Zentek Clothing’s heat regulating dog jacket. (Ian Terry / The Herald)
Everett clothing company keeps your dog cool and stylish

Zentek uses space-age fabrics to moderate the temperature of pets and now humans.

Providence Hospital in Everett at sunset Monday night. Officials Providence St. Joseph Health Ascension Health reportedly are discussing a merger that would create a chain of hospitals, including Providence Regional Medical Center Everett, plus clinics and medical care centers in 26 states spanning both coasts. (Kevin Clark / The Daily Herald)
Merger would make Providence part of health care behemoth

Providence St. Joseph Health and Ascension Health are said to be talking. Swedish would also be affected.

Boeing raises dividend 20%, continues stock buyback program

The manufacturer said it has repurchased $9.2 billion worth of its shares this year.

Trudeau snubs Boeing, unveils plan to buy used Aussie jets

Trudeau will be assessing the impact fighter jet contracts have on his country’s economy.

Everett engineers learn lessons from Mexico City catastrophe

Structural scientists went to help after the September earthquake there and studied the damage.

Value Village sues Washington attorney general over demands

The company said the AG wanted it to tell customers how much of their prices goes to charities.

Study: Almost 45 million tons of e-waste discarded last year

The gold, silver, copper and other materials would’ve been worth $55 billion had they been recovered.

Most Read